1. What Happened? Seowon’s H1 2025 Performance Breakdown

Seowon reported a significant year-on-year increase in revenue, reaching ₩393.2 billion (preliminary) in H1 2025. However, operating profit and net profit plummeted to -₩600 million and -₩2.6 billion (preliminary), respectively, signaling a major decline in profitability. Discrepancies between the preliminary and final reports raise concerns about data reliability.

2. Why the Decline? Analyzing the Factors Behind the Profit Drop

The deterioration in profitability is primarily attributed to rising raw material prices, increased SG&A expenses, and other cost pressures. Additional factors impacting net profit include higher corporate taxes, increased financial expenses, and losses related to derivatives. Underperformance of subsidiaries further contributed to the consolidated earnings decline. Furthermore, a rise in debt-to-equity ratio and worsening operating cash flow highlight weakening financial health.

3. What’s Next? Investment Outlook and Future Projections

Seowon’s future stock performance hinges on several factors, including its ability to improve profitability, implement financial restructuring plans, adapt to changing market conditions, and revitalize underperforming subsidiaries. Crucially, the company needs to clarify the discrepancies between preliminary and final earnings data.

4. What Should Investors Do? Actionable Insights

Currently, Seowon presents substantial investment risks. Investors should closely monitor the company’s concrete improvement plans and market dynamics, maintaining a conservative investment approach.