Hanchang's Operating Profit in the First Half Up 685% YoY... "Triple-Digit Growth Continues"

[Asia Economy Reporter Jang Hyowon] Hanchang announced on the 16th that its consolidated operating profit for the first half of the year recorded 7.4 billion KRW, a 685.5% increase compared to the same period last year. During the same period, sales increased by 195.7% to 47.9 billion KRW.

Hanchang surpassed last year's sales of 35.2 billion KRW within half a year, and operating profit continues its stepwise growth following the first quarter.

This significant performance growth is attributed to the strong results of its valuable subsidiary Hanjoo Chemical and the expansion of sales of owned commercial properties that were unsold due to COVID-19. Recently, with the enactment of the Serious Accident Punishment Act, demand for replacement with safe, clean extinguishing agents for the human body is expanding. Based on this, Hanjoo Chemical achieved 28.9 billion KRW in sales for the first half, recording its highest-ever sales.

Since last year, Hanchang has been promoting a pyrolysis and refining business for waste plastics to secure new growth engines, making the performance outlook for the second half bright.

Hanchang’s waste plastic pyrolysis and refining business provides a total solution from plant manufacturing to installation and operation, converting polymer waste such as waste plastics and marine waste into high-quality refined oil through low-temperature pyrolysis and refining. Globally, there is growing attention to the waste plastic pyrolysis industry to establish a circular economy, and demand for Hanchang’s pyrolysis refining plants is expected to continue increasing.

A company official stated, “We are continuously pursuing management rationalization such as restructuring loss-making divisions, and thanks to the resulting improvement in financial structure and the strong performance of subsidiaries, stable management results are appearing. By securing new growth engines such as the waste plastic pyrolysis refining business and luxury platform business, we will continue the performance growth trend through a balanced business portfolio that strengthens profitability as well as external growth.”

Meanwhile, the net loss of 2.8 billion KRW occurred due to accounting recognition of valuation losses on issued convertible bonds and exchangeable bonds, as well as increased corporate tax expenses resulting from the rise in operating profit.