SK HERCULES'S INVESTMENT IN EQUIPMENT INCREASED BY OVER 70% PLUS AI STORAGE IN THE FIRST SIX MONTHS. PRODUCTION YES

ON 14 AUGUST, ACCORDING TO THE KOREAN MEDIA, IN RESPONSE TO THE GROWING DEMAND FOR ARTIFICIAL INTELLIGENCE STORAGE, SK HERCULES SIGNIFICANTLY INCREASED INVESTMENT IN EQUIPMENT AND RESEARCH AND DEVELOPMENT INPUTS IN THE FIRST HALF OF THE YEAR. CASH EXPENDITURES FOR THE PURCHASE OF TANGIBLE ASSETS EXCEEDED 18 TRILLION WON, AN INCREASE OF MORE THAN 70 PER CENT OVER THE SAME PERIOD LAST YEAR. ACCORDING TO THE SEMI-ANNUAL REPORT DISCLOSED BY SK HERCULES ON 14 JANUARY, THE COMPANY ' S CASH EXPENDITURE FOR THE PURCHASE OF PHYSICAL ASSETS IN THE FIRST HALF OF THIS YEAR WAS 18.3288 TRILLION WON, AN INCREASE OF 72.7 PER CENT OVER THE SAME PERIOD LAST YEAR OF 10.6157 MILLION WON. R & D INPUTS HAVE SIMILARLY INCREASED SIGNIFICANTLY. TOTAL R & D EXPENDITURE IN THE FIRST HALF OF THIS YEAR WAS 6.0428 TRILLION WON, AN INCREASE OF 98.4 PER CENT FROM THE SAME PERIOD LAST YEAR OF 3.0456 TRILLION WON. OF THIS, 5.8163 MILLION WON IS SPENT ON SUSTAINABLE DEVELOPMENT COSTS. SK HERCULES IS ACCELERATING THE EXPANSION OF PRODUCTION FACILITIES WITH THE GROWING DEMAND FOR AI-SPECIFIC HIGH BANDWIDTH MEMORY (HBM), SERVER DRAM AND ENTERPRISE-LEVEL SOLID-STATE HARD DRIVES (SD). KIM XIAN