Dongjin Semichem Co (A005290) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was KRW 884.9 billion, down from KRW 1,112.8 billion year-over-year, with operating income at KRW 130.8 billion, a decrease from KRW 175.4 billion.

• Net income from continuing operations was KRW 39.0 billion, with an additional KRW 25.8 billion from discontinued operations, totaling KRW 64.8 billion.

• The company completed the sale of 10 Chinese subsidiaries, classified as discontinued operations, impacting both revenue and profit.

• A corporate split was approved to separate the foaming agent business into a new entity, Dongjin Inochem, effective January 1, 2026.

Financial highlights

• Gross margin for the period was 25.6%, with cost of sales at KRW 658.5 billion.

• Basic EPS for the period was KRW 1,322, compared to KRW 3,010 in the prior year.

• Cash and cash equivalents at period end were KRW 326.1 billion, down from KRW 417.4 billion at the previous year-end.

• Total assets stood at KRW 1.93 trillion, with equity of KRW 1.06 trillion and a capital financing ratio of 22.4%.

Outlook and guidance

• No new business lines confirmed as of September 30, 2025; future new business plans will be disclosed when finalized.

• The company expects continued focus on core electronic materials and foaming agent businesses post-split.