Kumho Construction Reports Operating Loss of 181.8 Billion KRW Last Year... Initiates Performance Improvement This Year

Kumho Construction posted an operating loss of 181.8 billion KRW last year, turning to a deficit. However, it laid the groundwork for performance improvement by recording a quarterly profit in the fourth quarter.

Kumho Construction announced on the 6th that it recorded an operating loss of 181.8 billion KRW last year, turning to a deficit compared to the previous year. During the same period, sales decreased by 13.7% to 1.9142 trillion KRW. The company explained, "The deficit was due to external environmental factors such as rising construction costs."

Earlier, Kumho Construction had sharply declined its operating profit last year by reflecting a big bath (large-scale loss recognition) to clean up potential insolvency.

However, in the fourth quarter of last year, it succeeded in recording a quarterly profit with an operating profit of 5.5 billion KRW, up 7.8% from the same period last year.

Kumho Construction explained that the improvement in performance was influenced by the housing business boom following the launch of a new residential brand and the expansion of the sales proportion of highly profitable business sites. The quarterly cost ratio slightly decreased to 94.6 compared to the same period last year.

The debt ratio also declined. On a consolidated basis in the fourth quarter, the debt ratio recorded 602%, down 40% from the previous quarter.

A Kumho Construction official said, "The factors for performance improvement include the rise in brand awareness through the launch of Artera (ARTERA) in May last year, the full-scale profitability of the housing development business based on this, and the expansion of the sales proportion of highly profitable business sites." He added, "The full sales of major complexes such as 'Cheongju Technopolis Artera' and 'Gyeonggi Goyang Janghang Artera' also contributed to the full-scale sales."

Kumho Construction is set to turn around its performance this year. The company plans to continue growth focused on profitability through thorough risk management.

A Kumho Construction official explained, "In the first half of this year, major business sites such as Busan Eco Delta (Block 24) and Cheongju Technopolis (Block A7) are scheduled for sale, so continuous performance improvement is expected."