CHA Biotech (085660.KQ) saw its first-quarter operating loss widen following the consolidation of Kakao Healthcare after its acquisition. The company said Thursday that it posted first-quarter revenue of 329.7 billion won and an operating loss of 30.7 billion won on a consolidated basis.
While revenue rose 8% year-on-year, the operating loss more than doubled from 12.5 billion won in the same period last year.
The wider operating loss is attributed to the consolidation of Kakao Healthcare, which remains in the red, following its acquisition. Kakao Healthcare's operating loss for 2025 stood at 39.2 billion won, up 12.4% from a year earlier. CHA Biotech decided last year to acquire Kakao Healthcare through its subsidiary CHA Cares and other affiliates.
Consolidated net loss came to 2.6 billion won, narrowing by 24.4 billion won from the same period a year earlier.
Revenue also rose year-on-year on the back of growth in the core business and the consolidation effect from Kakao Healthcare. Kakao Healthcare's revenue last year was 23.1 billion won.
"Our global healthcare business in the United States, Australia, Singapore and Japan continued to grow, and the consolidation of Kakao Healthcare and CHA AI Healthcare was reflected," a CHA Biotech official said. "Business growth at affiliates including CHA Biotech, CMG Pharmaceutical and CHA Cares also contributed to the revenue increase."
On a non-consolidated basis, revenue stood at 16.2 billion won, up 9% year-on-year. Growth in income-generating businesses such as IT, bio insurance (BI) and cord blood drove the improvement.
The non-consolidated operating loss came to 1.4 billion won as research and development investment expanded. CHA Biotech is developing key pipelines including 'CHAGE-201-IPF,' a gene-based treatment for idiopathic pulmonary fibrosis; 'CHACAR-NK-201,' an allogeneic CAR-NK cell therapy; and 'CHAUM-101,' a cell therapy for ovarian failure.
Non-consolidated net profit swung to a 20.8 billion won surplus, reflecting the impact of the sale of its stake in Solidus Investment and other factors.
"We plan to expand the AI- and data-driven healthcare ecosystem through collaboration with Kakao Healthcare, LG CNS and Hanwha financial affiliates," the CHA Biotech official said. "We will advance our digital healthcare business model by organically connecting medical, healthcare, research and clinical data, and strengthen our foundation for future growth encompassing regenerative medicine and AI-based healthcare."
