HanmiGlobal's First Half Sales Up 33% YoY... "Expanding Overseas Business in Second Half"

"Domestic High-Tech Sector, Overseas Subsidiaries' Order Increase Effective"
Continued Pursuit of Participation in UK Nuclear Power Plant and Saudi New City Construction Projects

Jonghoon Kim, Chairman of HanmiGlobal

[Asia Economy Reporter Noh Kyung-jo] HanmiGlobal's sales in the first half of this year increased by 33% compared to the same period last year. The growth in orders from the domestic high-tech sector and overseas subsidiaries was credited for this performance.

HanmiGlobal announced on the 17th that its sales revenue (based on consolidated financial statements) for the first half of this year reached 163.7 billion KRW, up 33.1% from the same period last year. Operating profit during the same period was 11.3 billion KRW, an increase of 8.8%. Based on separate financial statements, sales were 85.6 billion KRW and operating profit was 6.4 billion KRW, up 38.8% and 40.2% respectively, marking an all-time high performance.

A HanmiGlobal official stated, "The increase in construction project management (PM) services for domestic semiconductor and secondary battery production facilities, along with a roughly 41% increase in orders from overseas subsidiaries compared to last year, contributed to the improved first-half performance."

Representative projects include the monopile production plant of SeAH Wind, a UK subsidiary of SeAH Steel Holdings, and the PM services for a residential complex project of 30,000 households commissioned by Roshn, a Saudi Arabian state-owned real estate developer.

However, the operating profit growth rate was somewhat lower compared to the sales increase, as the official explained that about 1.5 billion KRW was spent on establishing and operating a subsidiary for entry into the REITs market. It is expected that sales from this subsidiary in the second half will offset the losses.

HanmiGlobal plans to accelerate the expansion of its overseas business in the second half. Last month, through its Saudi subsidiary, it secured a PM service contract for a large-scale residential complex project promoted by the Saudi government. The contract amount is approximately 44 billion KRW, and the client is the Diriyah Gate Development Authority (DGDA), chaired by Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia.

HanmiGlobal also secured the special overall program management (e-PMO) for the 'Neom Smart City Project,' a large-scale new city construction project in Saudi Arabia, last year. The company plans to continue participating in this project going forward.

A HanmiGlobal official said, "Based on the experience and technological capabilities accumulated in the semiconductor and secondary battery construction markets, we will further expand our influence in the high-tech sector. Through Walker Sime, a UK PM company acquired earlier this year, we will explore participation in the UK nuclear power plant construction market and the 'Saudi Vision 2030 Project,' among others, and strive to enhance profitability."