Young Poong (000670) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 was KRW 2,787.4 billion, down 25.9% year-over-year, with a consolidated net loss of KRW 327.8 billion, reflecting a significant downturn from the prior year’s profit.

• The main driver of the decline was a sharp drop in smelting segment sales and profitability, compounded by increased raw material costs and lower production volumes.

• The company’s financial position remains stable, with total assets of KRW 5,701.7 billion and a debt ratio of 37.8%, though equity decreased due to losses.

Financial highlights

• FY2024 revenue: KRW 2,787.4 billion (down 25.9% YoY); operating loss: KRW 160.7 billion; net loss: KRW 327.8 billion.

• Gross profit margin turned negative due to higher input costs and lower sales volumes.

• Cash and cash equivalents at year-end: KRW 210.8 billion; total borrowings increased to KRW 612.3 billion.

• Basic EPS: -146,582 KRW (2023: -35,382 KRW; 2022: 213,453 KRW).

Outlook and guidance

• The company expects continued market volatility in zinc prices and raw material costs, with ongoing uncertainty due to environmental regulatory actions affecting production at the main smelter.

• Management is focused on cost control, liquidity management, and strategic investments in high-value products and environmental compliance.