Genoco, Annual Sales of 56.8 Billion Won... "Order Backlog Reaches 93.2 Billion Won"

Genoco, a specialized company in aerospace and defense, announced on the 17th through its business report that it achieved sales of 56.8 billion KRW last year. The operating loss was 2.17 billion KRW.

Genoco plans to recognize over 40 billion KRW of its current order backlog as revenue for this year. Last year's order backlog was 93.2 billion KRW. If new sales are added, a record high sales achievement is expected by 2025. Additionally, this year, Genoco is expected to establish itself as a key affiliate of Korea Aerospace Industries (KAI), achieving a record-high order backlog of 120 billion KRW.

In July this year, Korea Aerospace Industries (KAI) plans to acquire a 37.95% stake in Genoco. The acquisition will be conducted through purchasing shares from existing shareholders and a third-party allotment paid-in capital increase. Genoco plans to secure a total of 19 billion KRW through KAI's paid-in capital increase, which will be used for facility investment, research and development (R&D), and new project operations.

Among this, 10 billion KRW will be used for facility investment. The facility investment budget is allocated as 4 billion KRW each for the aerospace and satellite businesses, and 2 billion KRW for the defense business. The facilities and equipment will be utilized in various aerospace and satellite projects conducted with KAI. The remaining 9 billion KRW will be used for R&D and new project operation funds. 1.817 billion KRW will be invested each in this year and next year, with the remaining funds planned for long-term projects after 2027.

Genoco stated that it expects broad business synergies in the avionics and defense satellite communication sectors through cooperation with KAI. In the avionics sector, Genoco plans to reduce costs and improve profitability by utilizing domestically produced avionics components, and based on this, expand its maintenance, repair, and overhaul (MRO) business. In the satellite communication sector, Genoco plans to supply key components in line with the recent high-growth trend of the global low Earth orbit satellite and small satellite markets.

Yoo Tae-sam, CEO of Genoco, said, “Genoco plans to secure core technologies and further strengthen its position in the global market through cooperation with KAI in the avionics and satellite communication sectors,” adding, “The technological advancements and market expansion brought by the cooperation between Genoco and KAI are expected to create an important turning point in the avionics and satellite communication fields in the future.”