FineM Tech Posts Q2 Operating Profit of 7.3 Billion Won, Up 39% YoY...Core Business Growth Accelerates

FineM Tech (441270) delivered significant increases in both revenue and operating profit in the second quarter of this year, signaling a full-fledged growth in its core business. After returning to profitability just one quarter after posting a loss in the first quarter, the company also more than doubled its cumulative operating profit for the first half of the year compared to the same period last year.

According to FineM Tech, consolidated revenue for the second quarter of 2026 reached 95.2 billion won, with operating profit at 7.3 billion won. Compared to the same period last year, revenue increased by 24.4% and operating profit rose by 38.6%.

The improvement is especially notable considering the company reported an operating loss of 2.2 billion won in the first quarter. Within just one quarter, FineM Tech recorded an operating profit of 7.3 billion won, successfully turning to profitability. The operating margin for the second quarter was 7.7%, up roughly 0.8 percentage points from 6.9% a year earlier.

Profitability improvement is also evident in gross profit. Gross profit for the second quarter was 19.5 billion won, a 46.7% increase from 13.3 billion won in the same period last year. The gross profit margin also climbed over 3 percentage points, rising from 17.4% to 20.5%.

The company attributes these improvements not only to increased revenue, but also to better product mix and greater production efficiency, leading to both expansion in scale and improved profitability.

The growth trend is also clear when looking at the aggregate performance for the first half. Accumulated revenue for FineM Tech in the first half of 2026 reached 141.3 billion won, up 17.7% from 120.1 billion won the previous year. Accumulated operating profit for the period was 5.1 billion won, up by 118.9% from 2.3 billion won a year ago.

The company explained that increases in revenue from key business divisions, a greater share of high-margin products, and an improved cost structure all contributed to the growth in operating profit.

However, net profit was temporarily influenced by financial expenses unrelated to the core business. For the second quarter, FineM Tech reported a net loss of approximately 4.9 billion won. About 17.3 billion won in financial expenses were reflected in the results for the quarter, a significant portion of which were non-cash expenses such as losses on derivative valuations recognized in accounting due to stock price fluctuations.

The company noted that weakness in the KOSDAQ market and the resulting decline in its own share price led to greater derivative valuation losses. Since these accounting expenses are not directly related to actual business activities or cash generation, FineM Tech stressed that core business performance should not be judged by net loss alone.

A FineM Tech representative stated, "In the second quarter, improvements in both revenue and operating profit and margin once again confirmed the growth potential of the core business. The swift return to profitability with 7.3 billion won in operating profit from an operating loss the previous quarter demonstrates that production efficiency and business structure improvements are now fully reflected in our results."

Looking to the second half of the year, foldable smartphone components and the energy storage system (ESS) business are expected to serve as additional growth drivers.

For the existing foldable business, increased sales of flagship foldable smartphones and improved product mix are expected to contribute to performance. In addition, a new foldable project for North American clients is entering mass production, which the company believes will strengthen its medium- to long-term growth foundation.

ESS components are also seeing an increase in supply. As customer demand rises, the supply of related components is expanding, positioning the ESS business as a new revenue source in a business structure previously focused on mobile components.

A company official commented, "In the second half, we expect solid growth from the established foldable business, the new project for North American clients, and the expanded ESS business to be reflected sequentially in our results. We will continue to not only grow sales but also improve profitability by increasing the share of high-value-added products."

Ultimately, by confirming the recovery of core business profitability in the second quarter and expanding both the foldable and ESS businesses, FineM Tech aims to sustain its growth momentum into the second half of the year.

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