Fine M Tech Reports Q1 Sales of 46.1 Billion Won...Turns Net Profit Positive

Fine M Tech demonstrated improved profitability in the first quarter of this year, achieving sales growth and turning a net profit for the period. Despite the ongoing burden of proactive investments aimed at expanding future growth businesses, improved cost ratios and increased sales have been cited as the foundation for its performance recovery.

Fine M Tech announced that, on a consolidated basis for the first quarter, it recorded sales of 46.07 billion won, gross profit of 6.59 billion won, an operating loss of 2.2 billion won, and net profit of 2.55 billion won.

Sales increased by 5.7% compared to the same period last year, which was 43.58 billion won. In particular, gross profit rose by 47.7% from 4.46 billion won to 6.59 billion won over the same period, and the gross profit margin improved by 4.1 percentage points from 10.2% to 14.3%.

Although operating losses continued, the amount was reduced. The operating loss for the first quarter was 2.2 billion won, down from 2.94 billion won in the same period last year. The company explained that increased sales and improved cost structure contributed to the recovery in profitability.

The primary reasons for the operating loss were increased research and development (R&D) expenses and facility investments to respond to future growth businesses. The company noted that proactive spending on R&D and mass production preparation costs, particularly for new North American set maker foldable projects and the glass processing business, acted as a short-term burden on profitability. However, the company views these as foundational investments for expanding its customer base and generating results in new businesses in the future.

Net profit turned positive, reaching 2.55 billion won, compared to a loss of 3.84 billion won in the same period last year. Profit before tax also improved significantly, recording 2.52 billion won versus a loss of 4.13 billion won last year.

A company representative commented, "The first quarter was a period in which we confirmed the potential to improve our profit and loss structure through sales growth, improved gross profit margin, and a return to net profit. While R&D and facility investment expenses for preparing for future businesses were reflected in the operating segment, these mainly represent proactive investments for new growth areas such as North American set maker projects and glass processing."

According to recent securities research, mass production of new foldable products for North American set makers is expected to begin in earnest from the second and third quarters of this year. Should major existing customers also expand their foldable lineups, Fine M Tech is expected to benefit from the resulting increase in foldable phone shipments.

Fine M Tech is responding to growing customer demand by leveraging its accumulated technology and mass production competitiveness in core components for foldable displays. At the same time, it is pursuing business expansion in new growth areas such as glass processing, automotive components, and ESS end plates.

A Fine M Tech representative stated, "This year is a critical period for both recovering our existing foldable business and generating results in new business areas. We plan to continue our annual performance improvement trend by focusing on profitability and strengthening our ability to respond to customer needs."

Fine M Tech is accelerating efforts to reinforce its mid-to-long-term growth foundation by expanding into future growth businesses such as foldable display components and automotive and ESS components.

This content was produced with the assistance of AI translation services.