SKC posted second-quarter sales of 645.4 billion won and an operating loss of 14.4 billion won, it said on Sunday. Sales rose 38.3 percent from a year earlier and the operating loss narrowed 79.0 percent.

Sales also rose 30.0 percent from the previous quarter, while the operating loss narrowed 49.8 percent. The company remained in the red, but EBITDA, a measure of cash generation, rose to 29.1 billion won, about triple the previous quarter, staying positive for a second straight quarter.

First-half sales totalled 1.14 trillion won, up 26.2 percent from a year earlier. The cumulative operating loss was 43.2 billion won, sharply narrower than 142.5 billion won a year earlier.

Its financial structure also improved. SKC said it completed a 1.16 trillion won rights issue during the quarter, which sharply reduced net debt and its debt ratio.

The chemical business led the earnings recovery. It posted sales of 317.8 billion won and operating profit of 30.5 billion won. Operating profit rose 218 percent from the previous quarter. Higher selling prices for PG (propylene glycol) and PO (propylene oxide) lifted sales, while expanded sales of high value-added products and cost improvements and process efficiency raised profitability. Output and sales volumes fell due to global supply chain uncertainty, but profitability improved.

The copper foil business posted sales of 254.0 billion won, the highest quarterly sales on record. Sales volumes rose 76 percent for ESS (energy storage system) copper foil and 28 percent for EV (electric vehicle) copper foil, leading growth. The share of sales in North America expanded to 67 percent. The company said it plans to fully implement a Malaysia-centred production and sales system in the second half to boost cost-cutting effects.

The semiconductor materials business posted sales of 72.9 billion won and operating profit of 21.3 billion won. Sales of test sockets for AI (artificial intelligence) data centres rose 66 percent from a year earlier, extending growth. In the second half, it plans to expand capacity through an expansion of its first plant in Vietnam and respond to customer demand.

In the glass substrate business, it began fully implementing a two-track strategy to commercialise embedding and non-embedding products at the same time. It started initial reliability testing of embedding products and began a new project by supplying non-embedding prototypes for next-generation network semiconductors to a U.S. telecommunications company. The company said it plans in the second half to complete reliability tests for embedding products while preparing proof-of-concept work for non-embedding products.

An SKC official said, "In the second quarter, profitability improved across all businesses and results from new businesses became visible, allowing us to build a foundation for earnings recovery." The official added, "In the second half, we will continue to improve profitability by raising operational efficiency, while strengthening the technological competitiveness of new businesses to further solidify our mid- to long-term growth foundation."