Samyang Foods Inc. (003230)

A. Status of the Business The company is a global food-manufacturing company that operates its business with sales and logistics corporations in Korea and overseas based at its headquarters. Centered on the controlling company Samyang Foods Co., Ltd. and its subsidiaries, it conducts the manufacture and sale of food such as noodles, as well as logistics and service businesses. In Korea, it performs food-manufacturing and sales functions centered on the headquarters of Samyang Foods Co., Ltd., and operates its business through subsidiaries such as Samyang Flour Mills Co., Ltd., which handles raw-material processing, and Samyang Logistics Co., Ltd., which provides logistics services. Overseas, the company has sales corporations in the Americas, Japan, China, Southeast Asia, Europe, and elsewhere, and each regional corporation carries out sales strategies tailored to the characteristics of its market through an import/distribution structure. In addition, in China the company is constructing a local production facility targeted for completion in January 2027, through which it plans to strengthen its response to the Chinese domestic market and its localization strategy. The service business consists of Samyang Logistics Co., Ltd., which provides logistics- and distribution-related services, and Samyang Round Earth Co., Ltd., which handles the work of sorting flake-soup raw materials for the noodle division. B. Characteristics of the Major Business The company's core business, the noodle business, is a representative consumer-staples industry that exhibits relatively low demand volatility from economic cycles. However, with the recent prolonged inflation strengthening consumers' value-oriented consumption tendencies, revenue and profitability may be affected by the resulting changes in product mix and by seasonal factors. In addition, although the noodle market has many competitors, in practice a competitive structure centered on a small number of companies has formed, and price, quality, and brand competition for market-share expansion continues. Accordingly, the company is pursuing strategies to strengthen its competitiveness, such as developing differentiated products and expanding private-brand (PB) products. C. Major Raw Materials and Production Capacity The company's main raw materials consist of flour, potato starch, palm oil, and the like, and some raw materials are procured from affiliated companies. Major raw materials are procured through multiple suppliers, and for certain raw materials the procurement unit price may be affected by market-price fluctuations and supply-demand conditions. The company has its headquarters in Seoul and a total of three production plants in Korea (Wonju, Iksan, Miryang). The Wonju plant consists of a noodle plant that produces noodles including cup products and bag products, a snack plant that produces products such as Jjanggu and Sattobap, and a seasoning-material/sauce plant that produces sauces and soy-sauce products. The Iksan plant produces some noodle products excluding cup products. The Miryang plant consists of a noodle plant that produces noodles including cup products and bag products and a sauce plant that produces sauces, and it produces mainly export products. D. Revenue Performance On a cumulative basis in 2025, the company recorded, on a consolidated basis, revenue of KRW 2,351.8 billion, operating profit of KRW 524.2 billion, and net income of KRW 388.7 billion; on a separate basis, it recorded revenue of KRW 1,901.8 billion, operating profit of KRW 471.4 billion, and net income of KRW 355.3 billion.