1. Yangjisa Q2 2025 Earnings: Key Highlights

Yangjisa reported sales of KRW 8.4 billion, an operating loss of KRW 3.6 billion, and a net loss of KRW 2.2 billion in Q2 2025. This represents a significant deterioration compared to the previous quarter and the same period last year. Declining sales, rising raw material costs, and increasing SG&A expenses are identified as the primary culprits.

2. Why the Decline?

  • Weak Domestic and Export Sales: Amid a structural downturn in the printing industry, demand for Yangjisa’s core products – notebooks, diaries, and notepads – continues to decline.
  • Rising Cost Pressures: Increasing raw material prices and escalating SG&A expenses are squeezing profitability.
  • Financial Health Concerns: A rise in short-term borrowings and a declining current ratio raise concerns about the company’s financial health.
  • New Business Uncertainty: While plans for new business ventures have been announced, the lack of concrete details creates uncertainty.

3. Action Plan for Investors

Caution is advised for investors considering Yangjisa. Downward pressure on the stock price is high in the short term, and the prospects for earnings recovery remain uncertain in the medium to long term. If considering an investment, closely monitor:

  • The company’s earnings recovery trajectory
  • Concrete restructuring plans and their execution
  • Tangible results from new business ventures

4. What Does the Future Hold for Yangjisa?

Yangjisa needs to secure short-term financial stability and strengthen its core business competitiveness. It also needs to articulate and transparently disclose its new business strategies to restore investor confidence. Without these efforts, securing long-term growth drivers will be challenging.