1. What Happened to Citi-R Mobility?
Citi-R Mobility reported KRW 123.4 billion in revenue in its Q2 2025 preliminary earnings, a 13% increase year-over-year. This is thanks to the positive news of entering the EV parts business and the solid growth of its existing business. However, the joy was short-lived. Operating profit remained low at KRW 2.1 billion, and the company recorded a net loss of KRW 0.6 billion, failing to escape the mire of deficit.
2. Why These Results?
The main reason for the deteriorating profitability despite revenue growth is the high debt ratio and credit rating downgrade. The worsening financial soundness increases interest expense burdens and dampens investor sentiment, creating a vicious cycle. Moreover, rising international oil prices and sea freight rates added to cost pressures. Increased expenses related to new business investments also contributed to the decline in profitability.
3. What’s Next for Citi-R Mobility?
The future of Citi-R Mobility is full of uncertainty. While there is an opportunity for growth in the EV market, the financial risks are very high. The future stock price of Citi-R Mobility will largely depend on whether it can improve profitability, stabilize its financial structure, navigate macroeconomic variables, and adapt to changes in the competitive landscape.
4. What Action Should Investors Take?
Investors should be fully aware of Citi-R Mobility’s financial risks and make investment decisions cautiously. Don’t be fooled by short-term stock price fluctuations, and carefully review the company’s long-term growth potential and financial stability. In particular, the following points should be closely monitored:
- – Whether the EV parts business can secure profitability
- – Whether the company can reduce its debt ratio and improve its credit rating
- – The impact of macroeconomic variables
- – Changes in the competitive landscape
Currently, investment is considered to be in a very risky zone, so caution is advised.