1. What Happened? NineTech’s Q2 2025 Earnings Decline

NineTech reported a significant decline in Q2 2025 earnings, with revenue down 36.9% year-over-year to KRW 43.6 billion, an operating loss of KRW 5.6 billion, and a net loss of KRW 10.7 billion. The downturn in the secondary battery and display equipment markets was the primary driver of this underperformance, particularly impacting sales of lamination equipment and display-related products.

2. Why Did This Happen? Analyzing the Factors Behind the Decline

A confluence of factors contributed to NineTech’s weak performance, including the global economic slowdown, reduced investments by key customers, and intensifying competition. Decreased demand for lamination equipment in the secondary battery market dealt a significant blow, while heightened competition in the LCD market further pressured display equipment sales. Increased financial costs and losses from derivative valuations also widened the net loss.

3. What’s Next? Assessing NineTech’s Future Prospects

NineTech is actively investing in new business ventures, including rare earth recycling, next-generation electrode technology (MXene-based printed electrodes), and glass substrate equipment development, to secure future growth engines. Considering the long-term growth potential of the secondary battery market and the promise of these new ventures, there remains a possibility for mid-to-long-term growth. Diversification efforts, such as the investment in Energy 11, are also viewed positively. However, in the short term, the company must address the challenges of weak earnings and bolstering its financial health.

4. What Should Investors Do? Key Investment Considerations

  • Monitor New Business Performance: Closely track the progress and performance of new ventures, including rare earth recycling and next-generation electrode technology.
  • Assess Financial Health Improvement: Pay attention to improvements in operating cash flow and efforts to strengthen financial stability.
  • Watch Market Dynamics: Continuous monitoring of market volatility and competitive landscape changes in the secondary battery and display sectors is crucial.