Battery company Sungwoo said on Thursday it posted consolidated second-quarter revenue of 24.7 billion won and an operating profit of 760 million won. Its operating margin was 3.1 percent.

Revenue rose 19 percent from 20.8 billion won a year earlier. It also grew 4 percent from 23.9 billion won in the previous quarter. Sungwoo said the gain came as major subsidiaries, including its headquarters, Namgyeong Sungwoo and Rubin Electronics, expanded sales volumes to key customers.

Profitability improved more sharply. Gross profit was 3.9 billion won, up 139 percent from 1.6 billion won a year earlier. The gross margin rose 8 percentage points to 16 percent from 8 percent. Operating profit swung to a profit from a 1.3 billion won loss a year earlier, and rose 250 percent from 200 million won in the previous quarter.

Sungwoo is spending about 5 percent of revenue on research and development for new products. It is pursuing a strategy to build a mid- to long-term growth base by expanding its portfolio of prismatic and ultra-compact battery products. The company is increasing supplies of existing products to customers while also developing new products.

It is also taking pre-emptive steps to address geopolitical risks. It secured required volumes in advance to prepare for potential disruptions in raw material supply and price increases stemming from instability in the Middle East. Sungwoo said this will help it maintain a stable production system and respond to customer supply needs without disruption.

Net profit was 1.9 billion won, swinging to a profit from a net loss of 1.8 billion won a year earlier, and rising 23 percent from 1.5 billion won in the previous quarter. Its financial structure is also sound. As of the end of the second quarter, total assets were 254.3 billion won, total liabilities were 25.3 billion won and total equity was 228.9 billion won, with a debt ratio of 11 percent. It held about 32.0 billion won in cash and cash equivalents.

A Sungwoo official said the company achieved both revenue growth and a return to operating profit on higher sales volumes to major customers. The official said it would respond pre-emptively to external uncertainties to maintain a stable raw material supply system, while continuing to invest in R&D for new products such as prismatic and ultra-compact batteries to expand its product portfolio and further strengthen its mid- to long-term growth base.