SGA "Accelerating Rebound through Management Improvement"

SGA, which received a decision to maintain its listing, is overcoming adverse conditions and accelerating preparations for a new leap forward.

SGA, a company specializing in educational informatization, was designated as a subject for a substantial review of listing eligibility by the Korea Exchange in July this year and subsequently submitted a management improvement plan. Accordingly, the Corporate Review Committee decided to maintain the listing, and stock trading resumed from the 23rd.

Going forward, SGA plans to intensify its management improvement strategy to enhance performance by expanding its solution-based system integration (SI) business, leveraging the business references it has accumulated so far. By establishing a new integrated group headquarters in Uiwang, Gyeonggi Province last month, it aims to improve work efficiency and maximize synergy effects with its affiliates, promoting a new leap forward for the group’s joint growth.

Due to factors such as delays in project orders during the preparation process for the 4th generation NEIS (National Education Information System) project, the COVID-19 pandemic, and system opening delays, the company recorded losses for two consecutive years.

However, from the second half of this year, as the project transitions to the maintenance phase, the profit structure has significantly improved, and the company has started generating substantial profits. Operating profit turned positive in the second quarter of this year, raising expectations.

Meanwhile, regarding the restriction on participation qualifications in public institution bids, which was the main reason for the suspension of stock trading, SGA explained that through the “injunction stay decision (provisional disposition),” there is no impact on bid participation qualifications until the final judgment is made.

Additionally, to ensure thorough business management and internal control, a Compliance Monitoring Office has been established to prepare measures to prevent recurrence. Financially, the company resolved capital erosion by completing a free capital reduction in May. Through asset securitization, the current ratio improved to 167%, and with debt-free management without financial institution liabilities, financial soundness has been significantly strengthened.

SGA Chairman Eun Yujin stated, “I feel a deep sense of responsibility for causing concern to our shareholders who have trusted and supported the company for a long time,” adding, “We will definitely achieve the given business missions and goals through responsible management that delivers results.” He continued, “We will actively work to enhance corporate value for the company’s new leap forward and do our best to maximize shareholder value.”