KMH, Net Profit 42.4 Billion KRW Up 73%... 100% Rights Issue for 'Shareholder Harmony' Management

[Asia Economy Reporter Hyunseok Yoo] KMH, a broadcasting and transmission specialist company, announced on the 17th that its operating profit on a consolidated basis last year was tentatively estimated at 67.7 billion KRW, a 50.9% increase compared to the previous year. During the same period, sales amounted to 318.7 billion KRW, and net profit was 42.4 billion KRW, increasing by 23.5% and 72.6%, respectively, compared to the previous year.

Despite the COVID-19 situation last year, KMH achieved its best-ever performance through the simultaneous growth of its main business and subsidiaries. The company experienced a record-breaking year, surpassing 300 billion KRW in sales for the first time in 20 years since its establishment.

In particular, the stable expansion of performance in its main business of transmission and channel supply, along with growth centered on key affiliates, drove this increase in results. First, with the significant rise in the domestic golf population and the boom in the semiconductor industry, KMH’s golf courses and KMH Hightech, a company specializing in semiconductor parts, materials, and SSD case production, succeeded in improving their performance.

Along with this record corporate growth, KMH plans to further strengthen its shareholder-friendly policies. KMH decided on a stock dividend of one common share per one common share, aiming to realize more effective shareholder rights protection and enhancement of shareholder value alongside corporate growth. The new shares amount to approximately 22.66 million common shares with a par value of 500 KRW per share. The record date for the new shares is the 3rd of next month, and the listing date is scheduled for the 24th of next month.

Lee Kangbong, CEO of KMH, stated, “Last year, there was a significant increase in profits not only in the main business but also centered on key affiliates. This year, we will focus on elevating our existing business portfolio to a higher level while solidifying our internal foundation.” He added, “The company will share the fruits of this growth with shareholders, and this 1-for-1 stock dividend is part of that effort.”

He continued, “We hope this policy will become a cornerstone of harmony between the company and its shareholders,” and added, “This year, we will continue to focus on fundamental management activities such as sound management and discovering new growth engines, as well as making continuous efforts to harmonize with minority shareholders.”