1. What Happened? AP Healthcare’s Q2 2025 Performance Analysis

AP Healthcare reported consolidated revenue of KRW 4.851 billion and an operating loss of KRW 1.371 billion in Q2 2025. Compared to the same period last year, revenue decreased by 41.7%, and the operating loss increased by 74%. All business segments, including pharmaceuticals, leasing, and insulation, showed sluggish performance.

2. Why These Results? Analyzing the Reasons for the Decline

The main causes of the decline in sales are analyzed as intensified competition in each business segment and a contraction in market demand. In particular, the insulation business recorded a significant drop in sales, compounded by the issue of reversing overestimated sales progress. The expansion of the operating loss is a combined result of declining sales, increased SG&A and other expenses, and rising raw material prices. Volatility in financial instrument valuation also affected the results.

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

The sluggish performance is likely to continue in the short term. Uncertainties surrounding biopharmaceutical development, a lack of transparency in the insulation business, and the potential for losses in financial instrument valuation act as significant investment risks. However, successful joint development of biopharmaceuticals and improved financial structure through capital increase can be positive factors.

4. What Should Investors Do? Investment Strategy Recommendations

A conservative investment approach is necessary at this time. Investors should closely monitor the progress of biopharmaceutical development, efforts to improve business structure, the possibility of changes in major shareholders, and volatility in the financial markets. Existing investors need to re-evaluate their holdings and strengthen risk management.