1. What Happened? Q2 Earnings Analysis

Korea BTB’s Q2 2025 revenue reached 7.3 billion KRW, exceeding market expectations. However, operating profit and net income turned negative, recording -900 million KRW and -700 million KRW, respectively. The continuing sluggish performance of the bio business and the slow recovery of the medical device business are contributing factors.

2. Why Did This Happen? Reasons for the Poor Performance

Declining sales, increased fixed costs, and rising financial expenses are identified as the primary causes of the deteriorating performance. The persistent struggles of the bio business and intensifying competition in the medical device sector are also putting pressure on profitability.

3. What’s Next? Delisting Risk and Investment Strategy

The most significant risk factor is the potential delisting. If Korea BTB fails to meet the listing requirements by March 26, 2025, the investment value could be wiped out. The current performance trend casts doubt on the likelihood of maintaining its listing. Macroeconomic factors, including rising raw material prices and exchange rate volatility, also pose challenges.

4. Investor Action Plan

Investing in Korea BTB involves accepting the extreme risk of delisting. Investors should not be misled by the short-term sales increase and should carefully assess the likelihood of maintaining the listing and the potential for long-term profitability improvement. Consulting with a financial advisor and establishing a risk management plan are crucial before making any investment decisions.