Kg Chemical Corporation (001390)

1. (Manufacturing and Services) Business Overview KG Chemical Co., Ltd. began in 1954 as Korea's first private fertilizer company. Today it operates a broad range of eco-friendly businesses, including not only the production of environmentally friendly agricultural materials such as eco-friendly organic fertilizers, natural-ingredient crop protection agents, microbial preparations, and soil-environment improvement agents, but also high-efficiency sewage treatment agents, algae-removal agents, and the AdBlue automotive diesel exhaust fluid (urea solution) business that reduces nitrogen oxides in vehicle emissions. Its high-performance concrete water-reducing agents and dispersant raw-materials businesses provide the most competitive product solutions and are growing on the strength of high market share at home and abroad. KG Chemical and its consolidated subsidiaries can be classified into 11 segments according to the nature of their business (chemicals, energy, electronic payments, media and broadcasting, education, food service, steel and ports, real estate leasing, automobile manufacturing, finance, and others). A. Status by Business Segment Segment / Company name / Principal goods and services / Principal customers Chemicals KG Chemical Co., Ltd. KG Enerchem Co., Ltd. Construction materials, water treatment Secondary-battery raw materials Horticultural fertilizer, organic fertilizer Eco-friendly agricultural materials Major domestic and overseas companies Nonghyup (National Agricultural Cooperative Federation) and member cooperatives Bio-energy KG Eco Solution Co., Ltd. (formerly KG ETS Co., Ltd.) Bio-heavy oil Jungbu and Nambu power plants Electronic payments KG Inicis Co., Ltd. KG Inicis Japan Electronic payments Integrated online electronic payment solutions, etc. Major domestic and overseas companies KG Mobilians Co., Ltd. Mobile electronic payments Mail-order business Major domestic and overseas companies Media and broadcasting Edaily Co., Ltd. Edaily M Co., Ltd. Media advertising Global forums Campaign business Online securities broadcasting by experts Overseas financial market conditions Data services and economic news Major domestic and overseas companies Financial institutions and their employees Edaily C&B Co., Ltd. Media advertising, broadcasting Major domestic and overseas companies KG Sunning Life Co., Ltd. (formerly SLK Co., Ltd.) Golf course business Training-center leasing Major domestic and overseas companies Education KG Eduone Co., Ltd. Internet program development Content supply Academy operation Major domestic and overseas companies and the general public Food service KG F&B Co., Ltd. (formerly KG Hollys F&B Co., Ltd.) KG F&B JAPAN Franchise restaurant chains, meat processing and storage The general public Steel and ports KG Steel Co., Ltd. KG GNS Co., Ltd. KG E&C Co., Ltd. KG Steel S&D Co., Ltd. KG Steel S&I Co., Ltd. KG STEEL USA INC. Dongbu Singapore Pte., Ltd KG STEEL (THAILAND) Co., Ltd Dongbu Vietnam Steel Co., Ltd. KG STEEL JAPAN CO., Ltd KGKOR STEEL INDIA Pvt. Ltd Manufacture and sale of steel products Port facility operation Major domestic and overseas companies Real estate leasing LB Specialized Private Real Estate Investment Trust No. 9 10540 Fountain Valley, LLC Real estate leasing Major domestic and overseas companies Automobile manufacturing and sales KG Mobility Co., Ltd. KG Mobility Europe Parts Center B.V. KGM Australia KGM Europe Gmbh KG Mobility Commercial Automobile manufacturing After-sales service and parts sales Automobile sales Major domestic and overseas companies Finance KG Capital Co., Ltd. Credit card and installment financing Major domestic and overseas companies Others KG Digital Asset Holdings Co., Ltd. Metafin Company Co., Ltd. (formerly KG Sunning Life Co., Ltd.) Zephyrus Mobility Venture Investment Association No. 13 Consulting, services Finance Investment Services Major domestic and overseas companies B. Summary of Revenue by Business Segment (Unit: KRW million) Segment / 2025 / 2024 / 2023 Revenue / Operating profit / Revenue / Operating profit / Revenue / Operating profit Chemicals 216,526 / 16,420 / 207,534 / 18,925 / 223,731 / 12,388 Bio business 104,854 / 4,349 / 89,108 / 10,679 / 91,695 / 10,803 Media and broadcasting 67,770 / 2,681 / 81,521 / 11,762 / 86,270 / 13,204 Electronic payments 911,313 / 83,653 / 979,273 / 63,892 / 987,091 / 92,736 Education 28,726 / 266 / 36,502 / (1,554) / 40,128 / (4,117) Food service 341,429 / 5,946 / 323,817 / 8,453 / 368,153 / 12,066 Steel and ports 3,193,444 / 150,747 / 3,300,982 / 206,016 / 3,429,848 / 280,411 Real estate leasing 12,770 / 6,595 / 16,503 / 10,259 / 14,329 / 8,511 Automobile manufacturing and sales 4,303,637 / 36,156 / 3,905,069 / 1,433 / 3,736,369 / 12,548 Finance 10,779 / 299 / 12,276 / (13,940) / 7,725 / 2,503 Others - / - / - / (9) / - / (11) Subtotal 9,191,248 / 307,112 / 8,952,585 / 315,916 / 8,985,339 / 441,040 Consolidation adjustments (89,600) / (1,433) / (89,442) / 2,885 / (52,282) / 1,544 Total 9,101,648 / 305,679 / 8,863,143 / 318,802 / 8,933,057 / 442,584 The overview of each business segment is as follows. 1) Chemicals segment The materials business has developed with a focus on expanding various social infrastructure to strengthen industrial competitiveness while progressively pursuing balanced national land development for the construction industry and improvement of citizens' living environment. The Company's materials business is affected by the international economy and construction market conditions, and its product lineup consists of PCE (polycarboxylic ether) and PNS (poly naphthalene sulfonate condensate)/SNF (sodium salt of naphthalene sulfonate formaldehyde condensate) dispersants. These are used mainly as plasticizers/water-reducing agents/retention agents for concrete admixtures, and PNS/SNF dispersants are also used in the dye, leather, paper, agrochemical, rubber, and latex markets. The fertilizer industry began as a key national industry and has evolved from an emphasis on increased production in the 1950s-70s, to a focus on quality in the 1980s, to an emphasis on the environment from the mid-1990s to the present, ushering in the era of eco-friendly agriculture. The government's five-year eco-friendly agriculture plan, with its policy to reduce the use of high-concentration chemical fertilizers, its policy to expand the supply of environmentally friendly and organic fertilizers, and the expansion of local-government subsidy programs, has stabilized the supply of fertilizer types. In addition, the previously closed market characterized by the unified supply of fertilizer through Nonghyup under the existing fertilizer-supply administration system and limited fertilizer imports is changing into a fully open and competitive market driven by free sales competition. Global demand for secondary batteries is estimated to grow from 248 GWh in 2019 to 866 GWh in 2023. By major segment, demand in the Electric Mobility sector is expected to rise most steeply, and with growing interest in environmental sustainability combined with government support policies, the EV share is rapidly increasing not only in passenger cars but also in commercial vehicles. In Consumer Electronics (CE) as well, the adoption of secondary batteries is spreading, centered on power tools, and Stationary installations are also increasing each year, supported by the trend of expanded investment in renewable energy and data centers. IT-related demand, such as smartphones and laptops, which previously drove market growth, is expected to slow, while Non-IT demand such as power tools, garden tools, and household vacuum cleaners is increasing. In particular, power tools are expected to continue growing at an average annual rate of around 15% as they replace the diesel market. 2) Bio-energy segment The Bio business division expanded its business scope into the renewable energy field, starting with the December 2015 groundbreaking of a power-generation bio-heavy oil facility in the Chodong Agro-Industrial Complex in Miryang, Gyeongsangnam-do. The Miryang plant was completed in May 2016, and in June 2016 the Company was designated as a producer for the demonstration supply program for power-generation bio-heavy oil. In April 2020, it expanded a facility capable of producing 60,000 kl annually on the site of Ulsan KG Chemical and is currently operating it on a trial basis. It currently has an annual bio-heavy oil production capacity of 210,000 kl through solid-impurity removal facilities, blending facilities, refining facilities, and storage facilities. Through degumming and dehydration technologies that differentiate it from competitors, and its patented gas-phase and liquid-phase dual-circulation bio-heavy oil manufacturing technology, it reduces process costs and process time, lowering manufacturing costs while protecting the environment. 3) Electronic payments segment The e-commerce industry is one in which transactions that used to take place offline are now conducted conveniently online without constraints of time and space. As the internet has become a major means of communication, conducting commerce without going directly to a store has become a part of daily life, and in this way various services can be enjoyed using the internet without temporal or spatial limitations...