Paratech "Continued Performance Improvement Expected Following Amendment of Fire Safety Facilities Act Enforcement Decree"

[Asia Economy Reporter Hyungsoo Park] Paratech announced on the 26th that it recorded consolidated sales of 25.7 billion KRW, operating profit of 1.4 billion KRW, and net profit of 1.6 billion KRW in the third quarter of this year.

Accumulated sales until the third quarter reached 93.5 billion KRW, operating profit 12.1 billion KRW, and net profit 14.1 billion KRW. The company expects to successfully turn profitable this year.

A company official explained, "According to the revision of the Enforcement Decree of the Firefighting Facilities Act, hospitals and clinics with inpatient rooms are also required to install sprinklers mandatorily," adding, "As a result of continuously developing technology and strengthening internal capabilities, we ranked first in the firefighting facility construction capability evaluation."

The financial structure is also expected to improve. Paratech expects to recover 20 billion KRW in loans in early next month. Additionally, it plans to secure 10 billion KRW in rental deposits in early next year. Of the 17 billion KRW in accounts receivable, 7 billion KRW is expected to be collected by the end of this year, and 10 billion KRW in early next year. Along with the improvement of the financial structure, the cash holdings are also expected to increase. The company plans to create a virtuous cycle structure leading to investments in research and development (R&D) and strengthening construction capabilities.