Physical AI company MakinaRocks said on Thursday its consolidated first-half revenue rose 168 percent from a year earlier to 7 billion won. Its operating loss was 4.2 billion won, down 28 percent from 5.9 billion won a year earlier.

New orders in the first half exceeded 20 billion won. That is more than triple the roughly 6.4 billion won recorded in the same period last year. It also surpassed last year’s full-year order total of 20.5 billion won in six months.

By sector, orders were split among defense and aerospace at 27 percent, heavy industry at 23 percent, advanced manufacturing at 22 percent and general manufacturing at 21 percent. Key customers include the Agency for Defense Development, Doosan Enerbility, Samsung Electronics, Yokogawa and Hyundai Motor.

The company’s financial structure also improved. MakinaRocks raised 38.4 billion won through its KOSDAQ listing in May. Cash and cash equivalents stood at 44.1 billion won as of the end of the first half. Its debt ratio fell to 12 percent from 53 percent before the listing. Accounts receivable also declined to 1.3 billion won from 4.2 billion won at the end of last year.

The company expects revenue recognition for defense and manufacturing projects to ramp up in the second half. Those businesses are structured so that inspections and billing are concentrated in the second half after project execution in the first half. It also plans to sequentially expand the supply of AI solutions to the defense and public sectors.

MakinaRocks CEO Yoon Sung-ho (윤성호) said the expanded first-half order intake is leading to revenue growth and narrower losses. He said the company will expand supplies for large projects in the second half based on secured orders and its financial footing.