Rayence

Rayence is an X-ray detector specialist established in 2011 through a spin-off of Vatech's digital radiography business, and it operates as a listed affiliate of global healthcare group Vatech Networks.

It is the only Korean company to hold both TFT (thin-film transistor) and CMOS (complementary metal-oxide semiconductor) detector technologies, and it has built a full product lineup spanning dental, medical, veterinary, and industrial applications.

In the second quarter of 2026, CMOS detector revenue of KRW 13.06 billion led overall growth, with sales expanding across semiconductor inspection equipment, dental, and veterinary applications.

Industrial detectors posted the strongest growth at KRW 7.11 billion, up 140.9% year over year, while veterinary revenue reached KRW 11.03 billion (+30.4%) and dental revenue KRW 12.61 billion (+13.2%).

The veterinary business, supplied through subsidiaries Woorien and Woorien Pharm, is being cultivated as a new growth driver.

The core business model is an OEM partnership supplying detectors and imaging solutions to global medical device makers, where certifications such as CE MDR serve as a key criterion for contract reliability and directly affect order competitiveness.

In intraoral sensors (IOS), the company has surpassed cumulative production of 200,000 units, securing the position of the world's largest producer.

In the competitive landscape, Rayence competes with domestic TFT detector makers such as Vieworks and large overseas imaging component suppliers, while holding a technical differentiation as the sole domestic manufacturer in the CMOS detector segment.

Annual results peaked in 2022 with revenue of KRW 147.16 billion and operating profit of KRW 25.36 billion (17.2% operating margin), before both revenue and margin contracted through 2023 (KRW 142.99 billion, 13.8% margin) and 2024 (KRW 125.56 billion, 5.3% margin).

In 2025, revenue fell to KRW 114.72 billion (-8.6% year over year), and the company swung to an operating loss of KRW 3.95 billion and a net loss attributable to owners of KRW 5.28 billion.

On a quarterly basis, Q2 2025 revenue was KRW 28.99 billion with an operating loss of KRW 0.31 billion; Q3 2025 briefly returned to profit with revenue of KRW 29.35 billion and operating profit of KRW 1.01 billion, but Q4 2025 deteriorated sharply to revenue of KRW 29.13 billion, an operating loss of KRW 2.92 billion, and a net loss attributable to owners of KRW 6.71 billion.

Revenue then jumped to KRW 36.75 billion in Q1 2026, with operating profit of KRW 3.58 billion and net profit attributable to owners of KRW 5.89 billion marking a substantial improvement, followed by Q2 2026 revenue of KRW 36.46 billion, operating profit of KRW 2.51 billion, and net profit attributable to owners of KRW 2.54 billion, extending the profitable streak to two consecutive quarters.

Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative net profit attributable to owners stood at KRW 4.19 billion, still reflecting the drag from the large Q4 2025 loss.

This pattern shows that growing sales of detectors for semiconductor inspection equipment have been the core driver of the revenue recovery, while also revealing the structural characteristic of large quarter-to-quarter swings tied to the investment cycle of downstream industries.

Meanwhile, even in the net-loss year of 2025, operating cash flow remained positive at KRW 9.21 billion, a level lower than the KRW 16.6 billion to KRW 24.8 billion range seen from 2022 to 2024 but still indicating that the cash flow base held up even during the net loss phase.

The industrial X-ray inspection market Rayence operates in is entering a phase of rising demand for inspection precision and speed, driven by expanding AI infrastructure investment and growing HBM (high-bandwidth memory) production.

HBM and AI chips have multilayer, stacked structures that make micro-defect detection difficult, and this has fueled a shift in demand from traditional optical inspection (AOI) toward AXI (automated X-ray inspection) and 3D X-ray CT-based precision inspection.

As the only domestic manufacturer of CMOS X-ray detectors, Rayence is positioned to benefit from this trend, and in February 2026 it unveiled an upgraded 'Flash Series' product targeting HBM and AI chip inspection equipment.

In the medical device segment, tightening EU CE MDR regulations are reshaping the industry; a study commissioned by the European Commission found that more than half of EU medical device companies had trimmed their product portfolios due to the complexity of MDR compliance.

Against this backdrop, Rayence completed MDR certification across 35 medical and dental models in a single batch, gaining relative advantage in a landscape where regulatory hurdles function as barriers to entry.

The veterinary imaging market has become a stable growth pillar for Rayence, with its VET segment maintaining a long streak of consecutive growth amid rising spending on companion animal healthcare.

That said, the dental and medical detector businesses, which still account for a substantial share of revenue, remain sensitive to the investment cycles of downstream medical device markets, a factor that has been a major driver of revenue and margin fluctuations in recent years.

The company stated that it plans to continue growing its industrial business in the second half of the year based on expanded sales of detectors for semiconductor inspection equipment.

At the Q2 earnings release, CEO Young Kwon Seo said the company would expand its customer base in the semiconductor inspection equipment market and continue its growth momentum by supplying detectors optimized for various applications in the second half.

Specifically, the company explained plans to strengthen industrial competitiveness through securing new customers, expanding mass-production conversion, and supplying new products, while also broadening cooperation with key customers in the dental and veterinary markets.

The 'Flash Series' unveiled in February 2026 for HBM and AI chip inspection is an upgraded version of an existing product already supplied to a top-tier global inspection equipment maker, and the company stated its goal of strengthening its position as a core supplier in AI semiconductors and advanced manufacturing.

In early September 2026, the company obtained European CE MDR certification for 35 medical and dental imaging models, stating that this certification would serve as an important foundation for expanding European market supply and securing global OEM customers beyond simple regulatory approval.

The effect of this certification is expected to extend beyond Europe, positively impacting business expansion in emerging markets such as Southeast Asia, the Middle East, and Latin America, where CE certification is often used as a benchmark for domestic medical device approval.

However, no specific numerical guidance from the company has been confirmed, so the sustainability of the earnings recovery will need to be verified through upcoming quarterly disclosures.