The secondary battery and automobile parts corporation Seongwoo reported a consolidated revenue of 20.8 billion won and an operating loss of 1.37 billion won for the second quarter (April to June) of this year on the 13th. Revenue decreased by 38% compared to the same period last year, and the company recorded a loss.
A Seongwoo representative noted, "This is a result of a combination of reduced order volumes from major customers, a temporary demand slowdown in the upstream market, and inventory adjustments," adding that "the cost increase in the subsidiary in Nanjing, China, and the decreased shipments from the joint venture have impacted quarterly performance, and the short-term burden of the cost structure has been reflected in revenue."
Seongwoo has faced short-term performance difficulties, but has secured financial stability with a debt ratio of around 11%. The company also stated that it continues to invest in research and development (R&D) to enhance future competitiveness.
Seongwoo emphasized that it maintained investor confidence by distributing an interim dividend last month despite a challenging business environment.
Seongwoo CEO Park Jong-hyun said, "This quarter's performance is due to a temporary adjustment phase in the overall market, and the medium- to long-term growth potential of the secondary battery industry remains valid," adding that "Seongwoo will see the effects of internal reforms and improvements in demand from the upstream market reflected in performance starting from the second half of the year based on stable financial structure and technological competitiveness."