C&G Hi Tech

C&G Hi Tech's core business is manufacturing and selling Central Chemical Supply Systems (CCSS), which automatically blend and supply chemicals used in semiconductor and display manufacturing processes.

The company also supplies slurry renewal systems that reprocess residual slurry from CMP processes, along with ultra-precision flow control devices.

According to a Daishin Securities report from early 2023, semiconductor-related sales accounted for roughly 80% of total revenue by industry segment at the time, with Samsung Electronics representing an overwhelming share within that segment.

The same report indicated that chemical blending and equipment sales made up roughly the low-70% range of revenue then, with the remainder consisting of equipment setup and fluoropolymer material distribution.

The company has been preparing new businesses including heat-dissipation substrates, lining sheets, low-dielectric FCCL materials, and glass substrates, and had previously formed a joint venture with Daikin Industries and Samsung C&T to localize semiconductor etching gas.

However, according to a June 2026 disclosure, the company decided to divest its 21.5% stake in that joint venture at its original investment cost, with the proceeds to be invested in a new plant and production infrastructure being built near its Anseong headquarters.

This decision effectively reallocates resources out of the maturing gas-localization business and into the glass substrate production base being cultivated as a next-generation growth driver.

The customer base remains heavily weighted toward Samsung Electronics, while new businesses such as glass substrates, heat-dissipation substrates, and FCCL are still in early commercialization stages with limited revenue contribution so far.

Annual results show revenue of KRW 192.78 billion and operating profit of KRW 25.43 billion (13.2% margin) in 2022 declining to revenue of KRW 166.73 billion and operating profit of KRW 12.74 billion (7.6% margin) in 2023, with both revenue and margin contracting together.

In 2024, revenue fell further to KRW 151.19 billion, though operating profit rose modestly to KRW 12.94 billion (8.6% margin), while net profit dropped to KRW 6.88 billion.

In 2025, the company posted a clear recovery with revenue of KRW 196.19 billion, operating profit of KRW 24.74 billion (12.6% margin), and owner net profit of KRW 19.53 billion, restoring margins close to 2022 levels. Quarterly results show substantial volatility.

Revenue fell from KRW 39.14 billion with operating profit of KRW 3.14 billion in Q2 2025 to KRW 20.45 billion in Q3 2025, yet operating profit actually rose to KRW 6.80 billion (net profit KRW 6.14 billion), before Q4 2025 delivered the year's strongest results with revenue of KRW 55.71 billion and operating profit of KRW 10.35 billion.

In Q1 2026, revenue plunged to KRW 17.11 billion with an operating loss of KRW 2.17 billion, though net profit remained positive at KRW 0.96 billion; the company attributed this to a temporary "delivery gap" characteristic of order-based businesses, where roughly 90% of revenue is recognized upon delivery.

Q2 2026 saw a strong rebound with revenue of KRW 72.30 billion, operating profit of KRW 9.33 billion, and net profit of KRW 5.69 billion, offsetting much of the Q1 weakness.

Trailing four-quarter owner net profit (Q3 2025 through Q2 2026) totaled KRW 19.88 billion, close to full-year 2025 net profit of KRW 19.53 billion, suggesting the annual-level profit recovery has continued despite quarter-to-quarter swings.

C&G Hi Tech's core end markets are semiconductor and display manufacturing capital expenditure, with CCSS and related equipment demand directly tied to customers' fab investment schedules.

Regarding the weak Q1 2026 results, a corporate data provider attributed the decline in revenue and profitability to reduced CCSS equipment demand amid a slowdown in semiconductor and display industry investment and a broader economic downturn.

Conversely, the company stated it is developing next-generation glass substrate technology and low-dielectric FCCL materials for 5G/6G communications in anticipation of rising demand for highly integrated semiconductors driven by AI industry growth.

Glass substrates are being discussed as a next-generation semiconductor packaging material that could replace conventional organic substrates, drawing attention in AI chip and high-bandwidth memory packaging applications that require high integration and low power consumption.

Numerous domestic and international materials, components, and equipment companies are simultaneously pursuing entry into this field, making commercialization speed and yield achievement key competitive variables.

In its core CCSS business, the company maintains its position within the Samsung Electronics supply chain, meaning the pace of any earnings rebound is tied to the timing of a broader semiconductor and display industry recovery.

In April 2026, the company signed a KRW 38.15 billion semiconductor equipment supply contract with Samsung Electronics, running from April 10 through November 30, 2026, which is expected to be reflected in Q3 and Q4 revenue.

This represents about 19.44% of the prior year's revenue, with payment terms of 90% upon delivery and 10% upon setup completion.

A company official noted that in the prior two years, delivery volumes unexpectedly concentrated toward year-end rather than matching early-year projections, and that 2026's second-half results could similarly shift depending on customers' investment timing.

The rise in work-in-progress inventory from KRW 12.4 billion at end-2025 to KRW 27.9 billion at end-Q1 2026 is interpreted as a sign of an expanding production pipeline.

On the new business front, proceeds from divesting the stake in Daikin Advanced Materials Korea are to be fully invested in constructing a new plant and production infrastructure near the Anseong headquarters, laying the production groundwork for glass substrates and other next-generation materials.

The glass substrate business has moved past the prototype stage toward commercialization, though a specific mass-production start date or revenue contribution has not yet been officially confirmed.

Key items to watch going forward include progress on fulfilling the second-half Samsung Electronics supply contract, the new plant construction schedule, and any customer approvals or contracts for glass substrates and other new businesses.