Hecto Innovation "Records Highest Ever Q3 Revenue and Operating Profit"

Hecto Innovation announced its third-quarter earnings, showing significant growth in both scale and substance. Sales set a new record for the 13th consecutive quarter, and operating profit on a separate basis surpassed 10 billion KRW for the first time since the company's founding.

On the 7th, Hecto Innovation disclosed its preliminary earnings, reporting third-quarter consolidated results of ▲sales of 80.2 billion KRW ▲operating profit of 13.9 billion KRW ▲net profit of 12.4 billion KRW, and separate results of ▲sales of 28.9 billion KRW ▲operating profit of 10.3 billion KRW ▲net profit of 8.5 billion KRW.

Consolidated sales grew 8.7% year-on-year, marking the highest quarterly sales ever, while operating profit and net profit increased by 34.8% and 49.1%, respectively, reflecting a significant improvement in profitability. On a separate basis, sales rose 23.1%, with operating profit up 51.8% and net profit growing 48.6%, demonstrating solid profitability.

Hecto Innovation has been setting new maximum sales records for 13 consecutive quarters. The steady growth of existing IT-based information service businesses, along with new B2C service sales and increased app service advertising revenue, drove the strong performance in the third quarter. Operating profit grew substantially due to expanded sales in existing businesses and improved profitability in fintech operations of its subsidiary, Hecto Financial.

Hyuncheol Lee, CEO of Hecto Innovation, stated, “We continue to maintain steady growth based on explosive results in the IT information service sector and balanced growth in existing businesses. We are accelerating the securing of new growth engines such as B2C (business-to-consumer) platform business and global market expansion. Based on solid performance and financial strength of our core business and subsidiaries, we aim to increase corporate value from B2B (business-to-business) to B2C companies and further to global enterprises.”

Recently, Hecto Innovation has been intensifying its global business efforts. The information service division plans to launch an app service within the year to prevent cybercrimes such as smishing and romance scams, targeting the global market starting with North America. Its subsidiary, Hecto Healthcare, signed an export contract worth at least 155 billion KRW over five years for the premium probiotic “Dushimone” with Sinomed, a subsidiary of China National Pharmaceutical Group Corporation (Sinopharm Group), the largest state-owned pharmaceutical company in China, positioning itself for rapid entry into the Chinese market.

Hecto Innovation started with IT information services and is expanding its business by launching B2C platform services such as the app-tech platform ‘Balloso-deuk’. Additionally, through its subsidiaries, fintech company Hecto Financial and healthcare service company Hecto Healthcare, it operates IT technology-based finance, data, and healthcare businesses.