Innocean Posts Semiannual Operating Profit Turnaround to Black After 3 Years

[Asia Economy Reporter Jang Hyowon] Innosys, a company listed on the KOSDAQ, announced on the 16th that it achieved consolidated operating profit on a semi-annual basis for the first time in three years since the first half of 2019. Consolidated sales recorded a record high of 20.9 billion KRW for a half-year period. Operating profit turned positive to 183 million KRW from a loss of 854 million KRW in the same period last year.

On a separate basis, the company reported first-half sales of 11.1 billion KRW, operating loss of 125 million KRW, and net loss of 178 million KRW. On a consolidated basis, sales were 20.9 billion KRW, operating profit 183 million KRW, and net loss 345 million KRW, according to the disclosure. The financial condition also improved significantly compared to the end of last year on a separate basis, with the debt ratio decreasing from 145.9% to 79.2%, and the current ratio increasing from 178.1% to 321.8%.

An Innosys official stated, "We were able to achieve operating profit for the half-year due to strong sales in both existing and new businesses. The positive trend has continued into the second half, and all employees are making their best efforts to achieve record-high sales and operating profit by the end of this year."

Innosys has recorded operating losses for five consecutive years until 2021 after posting operating profit in 2016 on a separate basis. If it achieves operating profit by the end of this year, it will mark the first operating profit in six years.

An Innosys official explained, "Generally, companies that incur losses for four consecutive years are designated as management targets, and those with five consecutive years of losses undergo delisting review. However, Innosys was listed through a technology special listing, so if sales are below 3 billion KRW, it is designated as a management target starting from the sixth year, and only if more than 50% of equity is impaired and there are seven consecutive years of operating losses. As of the half-year, the capital stock is 6.3 billion KRW and total equity is 47.5 billion KRW, so even if operating losses continue, there is no concern about being designated as a management target. Regardless, we are determined to ensure a definite turnaround this year," the official added.