Hanchang Biotech Q1 Sales Up 240% Year-on-Year

[Asia Economy Reporter Jang Hyowon] Hanchang Biotech announced on the 12th that its first-quarter sales increased by 240% year-on-year to 1.7 billion KRW.

During the same period, operating losses were reduced significantly to 300 million KRW. In particular, net profit turned positive, recording 1.7 billion KRW.

This external growth is attributed to the expansion of sales in new distribution businesses such as the food waste disposer "Meoms." Additionally, the turnaround in net profit was achieved thanks to the strong performance of its subsidiary Hanjoo Chemical, which operates in the fire prevention and disaster management business.

Hanjoo Chemical holds a 40% market share in the domestic gas-based fire extinguisher market. It is the only company in Korea to have performance certification for all types of gas-based fire extinguishing equipment and has recorded profits for 10 consecutive years. This year, it expects significant performance growth.

A company official explained, "To achieve stable sales growth and improve profitability, we expanded our portfolio of marketable items and achieved meaningful results in the distribution business promoted as a new business. Also, thanks to Hanjoo Chemical, a solid-performing key subsidiary, net profit turned positive, and we plan to maintain a profit trend this year."

Additional performance improvements are expected from the second quarter. Demand for the bio food waste disposer "Meoms," for which Hanchang Biotech holds exclusive distribution rights, is rapidly increasing. The home appliance industry forecasts that the food waste disposer market, which was 200 billion KRW last year, will grow to about 600 billion KRW this year and approximately 1 trillion KRW next year. The current penetration rate, estimated at around 1%, is expected to exceed 5% in 2023.

A company representative said, "To expand market share in the bio food waste disposer market, we are actively marketing in various sectors such as construction, retail, schools, restaurants, and large supermarkets, so we expect to achieve additional sales growth. We are also reviewing new businesses that can establish a second growth foundation beyond the distribution business, so we plan to focus not only on sales growth but also on profitability improvement."