SC Engineering Reports 3.6 Billion KRW Operating Profit in 2Q, Up 249% YoY

SC Engineering announced on the 13th that its consolidated sales for the second quarter of this year reached 52.2 billion KRW, and operating profit was 3.6 billion KRW, marking increases of 55.3% and 249.1% respectively compared to the same period last year. Net profit for the same period rose by 240.2% to 2.5 billion KRW.

This strong performance was driven by the sharp growth of its core EPC (Engineering, Procurement, and Construction) business and its subsidiary Cellontech, which operates in the bio sector.

In the first half of this year, SC Engineering succeeded in securing new orders worth 160 billion KRW, surpassing the total EPC business sales of last year. Notably, the company significantly expanded its order base into advanced industries such as hydrogen and secondary batteries, laying the foundation for both top-line growth and profitability enhancement. In the first half of this year, SC Engineering secured a domestic hydrogen production plant construction project worth a cumulative contract amount of 100 billion KRW with K&D Energen, the largest in Korea.

An SC Engineering official stated, “The order outlook for the second half is as bright as the first half. Negotiations for projects scheduled to be ordered in the second half are progressing as planned, and it is virtually certain that this year will record the highest order volume ever.”

Subsidiary Cellontech also contributed to the strong performance with a significant increase in domestic sales of ‘CartiZol’. Cellontech has strengthened its domestic sales network by signing joint marketing agreements for CartiZol with three leading domestic pharmaceutical companies: LG Chem, Dongkook Pharmaceutical, and Kolon Pharmaceutical. CartiZol is the first collagen intra-articular injection developed domestically by Cellontech, possessing the competitive advantage of aiding the natural healing process of joint cartilage.

Cellontech’s growth momentum is expected to continue throughout the second half of the year. Based on joint marketing agreements with the three pharmaceutical companies, the expansion of CartiZol’s domestic market share, which was launched simultaneously, is expected to accelerate. Sales from the CartiZol supply contract signed in October last year for the Vietnam region are anticipated to begin as early as the second half of this year.

Additionally, Cellontech is accelerating the securing of a mid- to long-term growth foundation by expanding overseas markets to countries such as China and Thailand. Recently, Cellontech secured a minimum order quantity (MOQ) worth approximately 55 billion KRW over five years through a supply contract for CartiZol with Sahuan Pharmaceutical, known as Hugel’s distribution partner in China.

A Cellontech official said, “With our unique bio-collagen technology competitiveness, we have achieved overseas supply contract results totaling at least 120 billion KRW over the past year. There is very high overseas market interest not only in CartiZol but also in bio-collagen medical devices such as Terafil, Regenseal, and Cartipil.”

He added, “Currently, multiple supply proposals for bio-collagen medical devices are ongoing in regions including China, Japan, South America, and Russia, and we are carefully reviewing them. The expansion of overseas sales networks is expected to accelerate.”

This content was produced with the assistance of AI translation services.