SKC

● Revenue rises 26% year on year; EBITDA remains positive for three consecutive quarters, signaling clearer improvement in business fundamentals

​● ​Copper foil revenue grows approximately 49% year on year; Malaysian subsidiary expected to turn an operating profit in the fourth quarter

​● ​Glass substrate business focuses on reliability testing and yield improvement, with efforts aimed at delivering tangible results

SKC announced on the 28th that it recorded revenue of KRW 638.9 billion and an operating loss of KRW 49.6 billion in the third quarter of this year. Having completed the restructuring of its copper foil production network and strengthened its financial structure, the company is accelerating its earnings recovery.

By business segment, the copper foil business generated revenue of KRW 248.2 billion, supported by a gradual recovery in electric vehicle (EV) demand and growth in the North American energy storage system (ESS) market. However, it posted an operating loss of KRW 54.4 billion, reflecting one-time costs associated with streamlining domestic production facilities and the fixed-cost burden from the ramp-up of its Malaysian plant.

SK nexilis has completed its transition to a Malaysia-centered production and sales structure, laying the groundwork for stronger cost competitiveness. Its Malaysian subsidiary is expected to turn an operating profit in the fourth quarter, supported by improving sales of copper foil for EV batteries, expanding North American ESS demand, and the phased implementation of higher selling prices.

The semiconductor materials business delivered revenue of KRW 71.8 billion and an operating profit of KRW 21.8 billion. Strong performance was driven by a greater share of high-value-added products for AI data centers, increased sales in new non-memory applications such as automotive and robotics, and improved profitability of existing memory-related products. The chemicals business recorded revenue of KRW 317.3 billion and an operating profit of KRW 13.4 billion, marking its third consecutive quarter of operating profit.

SKC also made progress in strengthening its financial structure. After raising equity capital in the first half to secure liquidity for its turnaround and growth, the company further reinforced its financial foundation through the completion of large-scale equity-like financing at SK nexilis. As a result, SKC’s debt-to-equity ratio fell sharply to 122%, down from 233% at the end of last year.

The glass substrate business plans to focus on reliability testing and achieving the required production yields for its embedding products. For non-embedding products under development for mobile communications applications, the company is currently holding detailed discussions with a customer on proof-of-concept (PoC) testing. It will also continue to pursue new development projects with multiple customers.

“Improvements in the fundamentals of each business and the path toward a turnaround are becoming increasingly clear,” an SKC spokesperson said. “With preparations now complete for a full-scale turnaround, we will deliver tangible results by strengthening our business competitiveness and improving profitability.” [End]