1. What Happened? Sonokong’s H1 2025 Earnings Release

Sonokong reported revenue of KRW 18.6 billion, operating loss of KRW 0.9 billion, and net loss of KRW 1.1 billion for the first half of 2025. While revenue exceeded expectations, profitability remains weak.

2. Why These Results? Analyzing Performance by Business Segment

Although the car sales division continued its growth with KRW 9.3 billion in revenue, the toy/game business segment recorded an operating loss of KRW 1.9 billion despite KRW 14 billion in revenue. The termination of the contract with Mattel is considered a negative factor.

  • Positive Factors: Growth in car sales, KRW 37 billion in funding secured, attempts at business diversification
  • Negative Factors: Continued sluggishness in the toy/game business, burden of large-scale convertible bond issuance, uncertainty surrounding new businesses, accumulated deficit

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

In the short term, downward pressure on the stock price is expected due to poor profitability, but the growth in the car sales division is a positive factor. In the medium to long term, the turnaround of the toy/game business segment and the success of new businesses will be key variables. Efforts to improve the financial structure and responses to exchange rate and interest rate fluctuations are also crucial.

4. What Should Investors Do? Key Investment Points

Investors should closely monitor the possibility of a turnaround in the toy/game business, the performance of new businesses, and improvements in financial structure. It is crucial to develop an investment strategy from a medium- to long-term perspective, rather than focusing on short-term stock price fluctuations.