MZ Solution Turns Profitable After 3 Years... New Business Progressing Smoothly

MGN Solution announced on the 20th that its individual operating profit turned positive through an audit report containing an 'unqualified' audit opinion issued on the 19th.

The individual operating profit recorded 1.5 billion KRW, a 143% increase (approximately 5.2 billion KRW) from a loss of 3.6 billion KRW the previous year, returning to profit for the first time in three years since 2021.

Net profit for the period reached 6.8 billion KRW, a 170.4% increase (16.6 billion KRW) compared to the previous year, and sales also showed steep growth, rising 143.6% (21 billion KRW) to 35.6 billion KRW.

MGN Solution is responding to local governments' budget reduction demands by leveraging its strengths as the number one domestic player in the broadband integrated network sector and its ICT division centered on AI-based major disaster prevention solutions. In particular, it is further strengthening its market position by expanding construction and maintenance projects that replace large corporate communication networks.

Additionally, the AI disaster safety new business is progressing smoothly, and Vietnam's MUSEM VINA has also entered a normal trajectory, making future growth prospects even brighter. In fact, the standalone Alpha Shot System, an initial response system that sprays water and extinguishing agents within 30 seconds of fire occurrence through continuous detection, control, and recording functions, has recently attracted significant attention in the market amid electric vehicle fire issues.

Meanwhile, regarding the disclosure on the 22nd of last month about 'a change of 30% or more in sales or profit structure (15% or more for large corporations),' where profit from continuing operations before corporate tax expense was recorded as positive, MGN Solution explained that "the gain on disposal from the sale of SME shares was classified as discontinued business profit, which reduced the profit from continuing operations before corporate tax expense, resulting in a loss being shown in the audit report."