Airrain Posts 13.97 Billion Won in First-Half Sales...Recovery Expected in Second Half

For the first half of this year, Airrain posted separate sales of 13.97 billion won, down 6.1% compared to the same period last year, and operating profit of 1.98 billion won, down 12.0% year-on-year.

According to Airrain on August 13, the decline in sales was not due to a slowdown in the growth of its core business, but rather attributable to the structural characteristics of its business. Airrain's sales consist of sales from gas separation membrane modules and system sales. Module sales increased by 5.9% year-on-year to 12.07 billion won, thanks to the expansion of new customers. However, system sales amounted to only 1.73 billion won, representing a roughly 50% decline year-on-year, due to accounting rules that recognize revenue only upon the completion of long-term construction projects. The decrease in operating profit was mainly caused by higher export logistics costs as a result of the United States-Iran war.

Net profit for the period surged by 415% year-on-year to 5.87 billion won, driven by gains from the sale of the Cheongju plant and an increase in financial income due to the domestic stock market and foreign exchange rates rising. Since these are largely one-off gains, the company continues to focus on expanding profits from its core business.

Airrain is collaborating with local governments and hydrogen ecosystem companies, concentrating on constructing biogas upgrading plants and carbon dioxide capture and liquefaction plants for small modular reactors (SMRs) used in hydrogen production. In addition, the company is developing a new product for biogas upgrading and aims to launch it in the market within this year. With the completion of the first phase expansion of the new Cheongju plant, Airrain now has a production base to continuously respond to increasing demand, and accordingly, sales are expected to grow in the second half of the year.

Ha Sungyong, CEO of Airrain, stated, "The decrease in sales and operating profit in the first half was a temporary effect caused by higher export logistics costs due to the United States-Iran war, and fluctuations in revenue recognition from system sales under accounting standards. We expect our business performance to recover in the second half, supported by the consistent growth of module sales and new business orders, and we will secure new growth engines with the launch of our new product for biogas upgrading."

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