Hanil Jingong Completes Merger Registration with NewOn... "Profit Turnaround Starting This Year"

Hanil Vacuum announced on the 8th that it has completed the registration of the merger with NewOn, a specialized company in the development of new health functional food materials focused on body fat reduction. With this, all merger procedures with NewOn have been finalized, and the company name will be changed to NewOn and listed on the 18th.

After completing the merger registration, Hanil Vacuum will recognize NewOn's sales and operating profit. Starting this year, the company is expected to break away from chronic deficits and turn profitable, achieving continuous performance growth thereafter. Previously, Hanil Vacuum had suffered severe downturns in its core vacuum deposition equipment business due to a sluggish downstream market and aggressive price competition from competitors.

A Hanil Vacuum official stated, “Due to prolonged poor performance in our core business, we experienced continuous sales decline and four consecutive fiscal years of operating losses until 2022. As financial instability increased, we judged that maintaining the listing and continuing as a going concern through the vacuum deposition equipment business had become uncertain.”

He added, “Through the merger with a new strong company, we have not only maintained our status as a going concern but also continuously prepared to secure new growth engines, and now these efforts have borne fruit. With the completion of the merger with NewOn, NewOn's sales and operating profit will be reflected in our performance, making this year the first year of turnaround and profitability following last year.”

Through the merger, Hanil Vacuum has secured stable sales and operating profit, resolving the financial difficulties that had persisted until now. While maximizing synergy with NewOn, the company also plans to actively pursue additional mergers and acquisitions (M&A) of strong companies to achieve growth in the global market.

Newly appointed CEO Lee Jong-jin expressed in an interview his ambition that 2024 will be a new starting point toward achieving the goal of 300 billion KRW in sales and 45 billion KRW in operating profit by 2028.