1. What Happened at Seoulriger?

Seoulriger reported revenue of 15.39 billion won, an operating loss of 2.11 billion won, and a net loss of 2.96 billion won for the first half of 2025. Revenue decreased by 20.9% year-over-year, and profitability deteriorated significantly. The healthcare segment, in particular, experienced a 57.7% decline in sales, driving the overall poor performance.

2. What are the Reasons for the Decline?

Besides the struggles in the healthcare segment, the increasing financial burden from convertible bonds and derivative liabilities is a major factor. Convertible bonds worth 16.92 billion won and derivative liabilities of 26.13 billion won could significantly impact the company’s financial health depending on future stock price fluctuations. Also, while the funds from the rights offering have been invested, tangible results have yet to materialize, adding to investor concerns.

3. What’s the Outlook for Seoulriger?

In the short term, debt management and profitability improvement are crucial. The recovery of sales in the healthcare and cosmetics segments will be key. Long-term, growth in new businesses (GreenTech and new media marketing) and strengthening the competitiveness of core businesses are vital. The ability to navigate a volatile exchange rate and interest rate environment will also be a significant factor.

4. What Should Investors Do?

  • Core Business Recovery: Closely monitor the sales recovery and profitability improvement trends in the healthcare and cosmetics businesses.
  • Debt Management: Continuously assess the financial risks related to convertible bonds and derivative liabilities and review the company’s debt management strategy.
  • New Business Growth: Evaluate the growth potential and revenue contribution of the GreenTech and new media marketing businesses.
  • Macroeconomic Environment: Analyze the impact of exchange rate and interest rate fluctuations on the company’s financial condition and consider the company’s response strategy.