KNJ expanded its scale in the first half, supported by growth in its semiconductor parts and FPCB businesses. KNJ said on Aug. 13 that first-half revenue on a consolidated basis rose 80.2 percent from a year earlier to 69.07 billion won, and operating profit increased 27.7 percent to 13.96 billion won. Net profit fell to 6.7 billion won from a year earlier, affected by higher manufacturing costs, valuation losses on convertible bonds and corporate tax expenses.

Its semiconductor parts business increased supply volumes to major customers, centered on CVD SiC Focus Rings. To respond to rapidly rising demand, the company brought forward its expansion schedule from the original plan, built a new production building this year and added CVD SiC chambers and processing equipment. It also expanded production infrastructure related to silicon parts.

Its FPCB subsidiary raised its operating profit margin in the first half on revenue growth and improved production efficiency. The margin rose to about 13 percent in the second quarter from about 8 percent in the first quarter, improving both scale and profitability.

The rise in selling and administrative expenses in the first half reflected increased investment in research and development. On a separate basis, recurring R&D expenses were about 800 million won, up sharply from about 300 million won a year earlier. The company plans to continue investing to strengthen the competitiveness of its existing CVD SiC products, develop new products and expand its product portfolio, including silicon parts.

A company official said, "In the first half, related costs were recognized in advance in the process of bringing forward the expansion schedule to respond to a situation where customer demand exceeded production capacity." The official said, "In the second half, we expect profitability to gradually improve as expanded production capacity leads to a full-scale increase in supply and translates into revenue."