[Edaily Reporter Shin Ha-yeon ] SONOKONG CO., LTD.(066910), a company diversifying its business from toys and character merchandise into mobility, artificial intelligence (AI) wellness, and K-IP platforms, significantly increased its revenue in the first half of this year, driven by growth in its automotive business. Following its classification as a mid-sized company at the end of last year, its status as a mid-sized company was again listed as “applicable” in this interim report.

SONOKONG CO., LTD. announced on the 14th that its consolidated revenue for the first half of this year reached 81.8 billion won, a 249% increase compared to the same period last year. This figure represents 84% of last year’s annual revenue of 97.2 billion won.

This revenue growth was driven by the automotive business division, which was newly consolidated into the financial statements last year. Revenue from vehicle sales at Classe Auto, a subsidiary and official dealer of Volkswagen Korea, reached 54.1 billion won in the first half of this year, accounting for 88% of last year’s annual revenue of 61.4 billion won. Revenue from used car sales also exceeded last year’s annual figure of 900 million won, reaching 2.5 billion won. Revenue from SONOKONG CO., LTD.’s car rental fees (1 billion won) and Seo-Seoul Development’s rental income (300 million won) were also reflected in revenue for the first time this year.

Last year, the number of consolidated subsidiaries increased to six with the establishment of Seo Seoul Development and Son Investment, as well as the consolidation of SONOKONG CO., LTD. and Lupop. In the first half of this year, with no additional changes to the subsidiaries, the effects of last year’s business diversification were fully reflected in the financial results.

However, despite this growth in scale, the operating loss widened. The operating loss for the first half of the year was 3.4 billion won, up from 1.9 billion won in the same period last year. The operating loss margin as a percentage of revenue improved to 4.1% from 7.9% in the same period last year. The company stated that while the burden of fixed costs has relatively decreased as revenue has grown, the total loss has increased; therefore, it plans to focus on improving profitability in the second half of the year.

The net loss for the period was 680 million won, an 87% reduction from the 5.022 billion won recorded in the same period last year. The net loss attributable to owners of the parent company also decreased significantly to 600 million won from 5.08 billion won in the same period last year. The company explained that non-operating income and expenses played a significant role in reducing the net loss.

The company’s financial structure also improved. Total liabilities decreased by 10 billion won, from 70.6 billion won at the end of last year to 60.6 billion won at the end of the first half of this year. As current financial liabilities fell from 22.5 billion won to 13.6 billion won, the debt-to-equity ratio also declined from 143.1% to 124.4%.

SONOKONG CO., LTD. is exploring ways to expand its mobility business—building on its automotive operations—into areas such as used car distribution, auctions, and overseas exports. It is also pursuing the integration of car rentals and installment financing through SONOKONG Rent-a-Car.

The company is preparing new growth engines, including AI wellness and K-IP platforms. Following a strategic partnership with AjiBot in May, it signed an exclusive distribution agreement for R2E AI wellness robots in Korea in July. Through its wholly-owned subsidiary, Lupop, it is promoting the “K-IP Discovery Project” in collaboration with domestic art toy artists. The company also plans to cultivate real estate development and investment businesses through Seo Seoul Development and Son Investment as new growth engines.

However, the company explained that these new businesses are still in the planning or early implementation stages, and their actual contribution to revenue and profits may vary depending on future business progress.

Cha Hyun-il, CEO of SONOKONG CO., LTD., stated, “The business diversification we completed last year is leading to revenue growth starting in the first half of this year,” adding, “Following the mobility business getting on track, we are also steadily preparing new businesses such as AI wellness and the K-IP platform.”

He continued, “The company is fully aware that the pace of improvement in operating profitability has been slower than that of revenue growth,” and added, “Along with stabilizing our financial structure, we will focus our efforts on improving profitability starting in the second half of the year.”