Sambu Construction, Last Year's Sales 376.3 Billion KRW... 66.3% Increase YoY

[Asia Economy Reporter Jang Hyowon] Sambutogeon recorded improved sales and operating profit last year despite the prolonged COVID-19 pandemic and continued construction market downturn due to strengthened real estate regulations.

According to the Financial Supervisory Service's electronic disclosure system on the 25th, Sambutogeon's sales for the previous year increased by 66.3% to 376.3 billion KRW compared to 226.2 billion KRW in the same period the previous year, and operating profit rose by 3.4% to 6.1 billion KRW from 5.9 billion KRW during the same period.

A company official stated, "Sales significantly increased due to the commencement of construction from approximately 900 billion KRW worth of new orders last year, and the cost ratio improved."

On a consolidated basis, the company posted sales of 384.7 billion KRW, an operating loss of 5.5 billion KRW, and a net loss of 18.8 billion KRW. This was due to expenditures such as pre-investment in sales-related costs for affiliate projects including the Cheonan Sinbang Renaissance and Asan Sinchang The Hill apartment complexes, worth approximately 500 billion KRW, and temporary losses reflected from asset impairments of subsidiaries scheduled for liquidation.

The Cheonan Sinbang Renaissance apartment complex and the Asan Sinchang The Hill apartment complex completed 100% sales contracts in November 2020 and January 2021, respectively.

With the increase in sales and orders, Sambutogeon is expanding its workforce by hiring about 90 new employees.

A company representative anticipated, "From this year, sales and profits from sales projects implemented by affiliates will be fully reflected on a consolidated basis and continue until the expected completion in 2023. Additionally, with approximately 1.2 trillion KRW worth of existing construction orders secured, performance is expected to improve significantly."

Furthermore, the company added, "While continuously enhancing competitiveness in existing business areas, we are focusing our capabilities on securing future growth engines. Besides developing owned land, expanding high-profit self-operated projects, and participating in renewable energy businesses, the company is actively pursuing overseas orders by participating in profitable public procurement projects in countries such as Indonesia, the Philippines, Cambodia, Laos, and Vietnam."