SKC (KRX: 011790) reported consolidated revenue of KRW 467.3 billion and an operating loss of KRW 70.2 billion (approximately USD 50 million or CNY 361 million) for the second quarter of 2025, marking a 7% increase in revenue and a 6% improvement in operating loss compared to the previous quarter—indicating a gradual recovery.

By business segment, SKC's semiconductor materials division posted KRW 60.6 billion in revenue and KRW 14.4 billion in operating profit, surging 37% and 112% quarter-on-quarter, respectively. The improvement was driven by the resumption of R&D and volume production schedules among major non-memory customers, pushing the division's operating margin to approximately 30%.

The secondary battery materials unit recorded KRW 127.3 billion in revenue—a 29% rebound to over KRW 100 billion for the first time in seven quarters—but continued to operate at a loss of KRW 38.1 billion. The recovery was fueled by growing shipments to North America, where client factories are now fully operational, resulting in a 44% increase in regional sales.

SKC's chemical business continued to face headwinds from sluggish demand and global tariffs, though declining raw material prices helped slightly reduce losses.

In parallel, SKC has made notable progress in strengthening its financial position through the sale of non-core assets and the issuance of perpetual exchangeable bonds using treasury shares, cutting its net debt by roughly KRW 500 billion quarter-over-quarter. The company's credit rating remains stable year-on-year.

Looking ahead, SKC plans to continue strengthening profitability in its semiconductor materials division while expanding battery materials sales through new certifications, including a project at a customer's Malaysian plant.

Most notably, SKC is accelerating commercialization of its glass substrate business. Prototype production is underway at its first facility in Georgia, U.S., with pre-mass production deliveries and customer qualification testing currently in progress.

According to Meritz Securities, SKC is expected to begin formal quality testing of its glass substrates for North American clients in the second half of 2025. Analyst Noh Woo-ho anticipates SKC will solidify its leadership in this segment through additional expansion decisions. He also forecasted rising shipments of copper foil for EV batteries, driven by increasing U.S. demand for Korean-made materials, and expects SKC to gradually reduce quarterly losses going forward.

Despite market uncertainties, SKC says it remains committed to agile strategy execution, reinforcing core businesses and accelerating investment in future growth areas like glass substrates.