Sambutogeon Reports 59 Billion KRW Increase in Net Profit Last Year... Returns to Profitability After 3 Years

[Asia Economy Reporter Jang Hyowon] Sambutogeon announced on the 27th that it achieved sales of 226.3 billion KRW last year, marking a 27.5% increase compared to the same period of the previous year. During the same period, operating profit and net profit were 5 billion KRW and 7.5 billion KRW respectively, which are increases of 14.3 billion KRW and 59 billion KRW compared to the previous year, successfully turning profitable after three years.

A company official stated, "Sales significantly increased due to the commencement of new contract sites," adding, "Operating profit greatly improved due to effects such as reduced cost ratios at major sites, and the structure of current profit and loss also improved due to the reversal of bad debt provisions from bond recoveries."

Sambutogeon has been striving to stabilize management rights by concluding a long-standing management dispute and recording consecutive operating profits since last year, establishing a 'turning point' for performance improvement. This is especially meaningful as it is the first profit turnaround since the appointment of the new CEO.

Additionally, the company projected that the expected sales scale would reach approximately 1 trillion KRW, including the construction of about 830 housing units in Cheonan-si, Chungnam Province, and a housing project of about 1,200 units in Namyangju-si, Gyeonggi Province, starting from the first half of the year. They also expect to maximize profitability through continuous growth centered on additional orders and land development projects currently held.

A company representative said, "All employees have made their best efforts to expand profits and achieve management goals in order to increase the previously undervalued corporate value," and added, "We will definitely restore shareholder value and the prestige of Sambutogeon as a 'construction powerhouse.'"

Meanwhile, since the completion of corporate rehabilitation procedures through a merger and acquisition (M&A) in October 2017, Sambutogeon has signed new contracts worth a total of 900 billion KRW and secured financial strength through capital increases, striving for management stabilization. The company emphasized its determination to grow into a 'leading company' by enhancing market competitiveness and focusing capabilities on new businesses, including the construction sector.