[Edaily Reporter Shin Ha-yeon ] “The low point in first-half earnings was due to supply-and-demand issues in the Chonbang automotive industry and temporary growing pains arising from the business restructuring process. Starting in the second half of the year, clear signs of a recovery in core business earnings are emerging.”

Lee Jong-wan, CEO of UNI CHEM.CO.,LTD(011330), made these remarks during a meeting with E-Daily on the 13th regarding this year’s earnings outlook and future growth strategies. He explained that while external factors such as disruptions in finished vehicle production weighed on earnings in the first half, there has been no change in the annual order volume itself, making a rapid recovery possible starting in the second half.

CEO Lee said, “The poor performance in the first half was largely due to external factors that caused production disruptions at automakers, rather than a lack of our company’s fundamental competitiveness.” Following a temporary sales suspension in the North American market in early March due to safety issues related to the 2026 Palisade, a large-scale fire broke out at an engine valve supplier in Daejeon at the end of the same month, causing disruptions in engine supply.

As a result, production volumes for the Grandeur and Palisade—UNI CHEM.CO.,LTD’s main target models—declined, leading to a roughly 40% drop in related revenue; however, the company explained that this should not be viewed as a structural decline in demand. Since there has been no change in the annual order volumes from automotive customers, the quantities that could not be supplied in the first half were not canceled but rather deferred to the second half.

CEO Lee stated, “The volume we were unable to fulfill in the first half is scheduled to be intensively produced and delivered in the second half,” adding, “Production and sales have been recovering to normal levels since mid-June, so we expect sales from the deferred volume to be fully reflected starting in the third quarter.”

Supplies for new vehicle models are also expected to support the recovery in second-half performance. Starting in August, mass production began for three new vehicle programs, including the Avante and Tucson for the domestic market and for export to Europe. The factory is currently operating on a 24-hour production schedule.

The company also anticipates improvements in profitability as a result of quality enhancements. With defect rates and claim costs decreasing compared to last year, the company explained that conditions are now in place for the recovery in sales to lead to improved profitability. Based on this, UNI CHEM.CO.,LTD aims to achieve its highest-ever consolidated sales since its founding and return to an annual operating profit this year.

CEO Lee stated, “The order volume secured this year is at a record high, and a significant portion of it is concentrated in the second half of the year,” adding, “Production and sales have returned to normal levels since mid-June, and the factory is currently operating on a 24-hour production schedule.” He further emphasized, “Based on our order and production status, we believe it is entirely possible to achieve a significant improvement in performance in the second half of the year and return to an annual profit.”

Alongside the turnaround of its core business, the company cited the acquisition of Lumia Technologies, a U.S.-based deep-tech company specializing in flexible electronics, as a key growth driver to boost its corporate value over the medium to long term. UNI CHEM.CO.,LTD recently signed a term sheet to acquire 100% of Lumia’s shares and is currently proceeding with the acquisition process.

UNI CHEM.CO.,LTD plans to integrate Lumia’s flexible electronics technology with its existing premium leather materials to develop them into high-value-added “smart materials.” The key strategy is to expand its business scope—currently centered on automotive interior materials—into the “e-skin” market, which includes robotics, healthcare, and defense. During the commercialization process, the company will actively utilize outsourced production infrastructure rather than investing heavily in its own large-scale production facilities. Through this approach, the company aims to reduce the burden of operating expenses (OPEX) and capital expenditures (CAPEX) while prioritizing the domestic, Northeast Asian, and North American markets.

CEO Lee emphasized, “We plan to integrate Lumia’s flexible electronics technology into our premium leather materials to develop them into next-generation smart materials,” adding, “We will expand the scope of material applications beyond automotive interiors to encompass the entire global e-skin market, including robotics, healthcare, and defense.”

Discussions are currently underway with global companies in the automotive and robotics sectors to collaborate on technology development. The company is also exploring ways to attract strategic investment from major domestic partners. After conducting feasibility studies for joint development with global partners, the company aims to generate tangible revenue in the smart leather and electronic skin for robot exteriors sectors starting in 2027, in line with the schedule for establishing mass production outsourcing infrastructure.

He stated, “The acquisition of Lumia is not merely a matter of business diversification but a synergy strategy that combines UNI CHEM.CO.,LTD’s material manufacturing capabilities with Lumia’s next-generation flexible electronics and smart leather technologies,” adding confidently, “We will prove our worth to shareholders by recovering our earnings in the second half of 2026 and secure a revaluation of our corporate value as we fully launch our smart leather and e-skin businesses in 2027.”