Hansung Cleantec announced on the 11th through a disclosure of 'more than 30% change in sales or profit structure' that its consolidated sales last year amounted to 183.4 billion KRW, with an operating loss of 50.7 billion KRW.
A company official explained that the main reasons for this performance change were “an increase in raw material input costs due to rising prices during the execution of pre-contracted projects, a sharp decline in orders caused by the downturn in the semiconductor industry, which is the upstream industry, and the resulting increased burden of fixed costs.”
The company recruited professional managers from large corporations such as Samsung last year and presented a future vision focused on profitability by 2025 through a complete overhaul of its organization and business.
First, the company is transforming its structure to eliminate all deficit factors arising from past quantitative growth and to secure profitability based on technology for domestic development of ultrapure water, focusing on high value-added orders.
Additionally, the company plans to enhance profitability based on a downsizing of the organization, which began in earnest last year, and a construction execution system that can flexibly respond to the scale of orders.
A Hansung Cleantec official stated, “The ultrapure water facility construction project for Samsung E&A worth 17.7 billion KRW and the SK Hynix WWT project worth 51.2 billion KRW, both ordered at the end of last year, are progressing efficiently under the newly changed construction execution system. Furthermore, investment recovery in the semiconductor industry, including HBM (High Bandwidth Memory), an upstream industry, and the expansion of investment due to the establishment of the Yongin semiconductor cluster are expected.” He added, “Accordingly, a significant opportunity market is expected to open for our company, a specialized water treatment EPC (Engineering, Procurement, and Construction) company.”
He continued, “We are in the final stages of building infrastructure for overseas business, including signing business agreements with world-leading water treatment companies for global market entry. In addition, as domestic companies expand investment in Vietnam's electronics industry, we are pursuing water treatment EPC orders through our Vietnam subsidiary, and we plan to further increase the proportion of overseas business in the future.”
He also stated, “The strong performance trend based on the high profit margins of our three subsidiaries is expected to strengthen further by 2025. In particular, the industrial waste resource recycling business of our 100% subsidiary EN Water Solution will be fully launched this year, and we plan to grow into an eco-friendly recycling company.”
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