SK Materials' second-quarter 2021 business performance reached a record high, driven by increased sales and continued robust performance in the upstream industries.

SK Materials announced its second-quarter 2021 financial results on the 20th. According to the results, consolidated sales reached KRW 280.1 billion, a 23.2% increase year-over-year, and operating profit reached KRW 68.1 billion, a 20.4% increase year-over-year. Net income increased 135.4% year-on-year to KRW 92 billion.

Regarding these results, an SK Materials official stated that sales and operating profit reached record highs due to increased sales of special gases and improved performance of subsidiaries following the continued boom in the upstream industry.

The company's main product, nitrogen trifluoride (NF3), reportedly played a major role in the company's improved performance by reducing inventory burden and alleviating oversupply.

While all business divisions grew evenly, Showa Denko's sales in particular reportedly increased by 40% compared to the previous quarter.

In addition, pre-tax profit increased by 106% quarter-on-quarter to KRW 119.2 billion due to a large non-operating profit generated from the sale of industrial gas facility assets.

Growth is expected to continue in the third quarter. With the peak season for specialty gases, industrial gases, and dry ice for semiconductors and displays, demand for specialty gases such as NF3 and industrial gases is expected to increase. Furthermore, increased dry ice sales are expected to drive strong performance for SK Materials Renewtech.

Meanwhile, SK Materials recently entered the silicon cathode material business by establishing a joint venture, 'SK Materials Group 14', with 'Group 14 Technologies', a US-based next-generation battery cathode material company.

Accordingly, profits are expected to be generated in the next-generation battery materials sector in the future.