Experix Turns to Operating Profit in H1; Expands AI and Digital Healthcare Businesses

Experix (317770), a leading company specializing in digital identity verification and artificial intelligence (AI) solutions, achieved both top-line growth and improved profitability in its core business during the first half of this year. Building upon the growth momentum of its existing digital identity verification business, the company is fostering AI and digital healthcare as new growth drivers and expanding its business foundation by seeking to consolidate its affiliate, Intellectual Discovery.

On a separate basis, Experix posted sales of 11.3 billion KRW in the first half of the year, a 52.7% increase from 7.4 billion KRW in the same period last year. The company recorded an operating profit of 90 million KRW, marking a turnaround from an operating loss of 900 million KRW in the first half of last year. Net profit for the half also returned to the black at 900 million KRW, compared to a net loss of 15.1 billion KRW in the prior year period.

The company attributes its top-line growth to new product launches and both domestic and overseas sales expansion, while indicating that the increase in sales also led to an improvement in profitability.

On a consolidated basis, both revenue and net profit improved. First-half consolidated revenues were 12 billion KRW, up 41.2% from the same period last year. The operating loss was reduced slightly to 1.6 billion KRW, and net profit turned positive at 3.7 billion KRW after posting a net loss of 16 billion KRW in the first half of the previous year.

The consolidated operating loss reflects research and development expenses and investment for business preparation by Bagel Labs and Anute, which are engaged in new digital healthcare and AI initiatives. Experix views these losses not as a result of deteriorating profitability in its existing businesses, but as upfront investments to generate future sales in new business areas. The company plans to accelerate efforts to commercialize digital healthcare and AI businesses in the second half.

In the digital healthcare sector, collaborations with Bagel Labs are underway. Bagel Labs is a company developing digital therapeutic devices based on exercise intervention and possesses its own digital healthcare platform and AI-based health management technologies.

Bagel Labs is currently co-developing a customized digital therapeutic device with Hanmi Pharmaceutical to be used in conjunction with "Efeglenatide," an obesity treatment drug under development. The goal is to develop a digital convergence medicine that provides tailored dietary and exercise management solutions using patient data and enhances medication adherence and treatment efficacy.

The two companies are aiming to develop Korea's first digital convergence medicine for obesity treatment, with plans to commercialize the product after completing the development process and regulatory approval. Experix expects that once the product reaches commercialization, its digital healthcare business will enter a full-scale sales generation phase.

The AI business is also taking shape. Experix completed its merger with Anute in July and established a new AI solutions and infrastructure division, thereby securing related technology and business capabilities in-house.

Subsequently, the company signed a distributor agreement with FuriosaAI and is promoting the distribution of servers based on the next-generation AI accelerator "RNGD," as well as customized AI infrastructure solutions for enterprises. In the future, Experix plans to offer an "AI All-In-One Appliance," which combines its own software and agentic AI technology with AI servers, providing integrated AI solutions that support clients from data processing to service operation.

The growth of affiliate company Intellectual Discovery (ID) is also noteworthy. ID recorded consolidated revenue of 26.2 billion KRW in the first half of this year, representing a 28.4% increase from the same period last year. The growth trend in its core knowledge property (IP) monetization business continues, according to the company.

If this growth trajectory continues, Experix anticipates that ID could surpass its record-breaking results from last year, which were 47.8 billion KRW in annual sales and 11.3 billion KRW in operating profit.

Currently, as ID remains classified as an affiliate, its sales and operating profit are not directly reflected in Experix’s consolidated financials and are instead accounted for using the equity method. Experix is considering additional acquisition of ID shares within the year and is working to consolidate ID as a subsidiary. Once this consolidation is completed, a significant improvement in Experix’s consolidated financial indicators is expected.

An Experix official stated, "The turnaround to operating profit on a separate basis in the first half demonstrates simultaneous growth and recovery of profitability in the core digital identity verification business," and added, "The current consolidated operating loss is primarily due to upfront investments for the full-scale commercialization of AI and digital healthcare businesses."

The official continued, "We plan to push for consolidation of Intellectual Discovery within this year so that we can fully reflect the results of the new businesses in next year’s financial statements," adding, "As the consolidation of Intellectual Discovery, the commercialization of Bagel Labs’ digital healthcare business, and the AI solutions division’s FuriosaAI distributorship and related projects proceed sequentially, by 2027, both existing and new businesses are expected to drive further performance improvements."

Ultimately, Experix aims to restore profitability in its core digital identity verification business while establishing a solid foundation for significant earnings growth by 2027 through the consolidation of Intellectual Discovery and commercialization of AI and digital healthcare businesses.

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