External Auditor Replaced Starting with Recent Audit Report
Profitability Expected to Turn Positive in Q2... Accelerating Improvement
Uisikju Company: "Will Pursue IPO Once Profitability Stabilizes"
Uisikju Company, which operates 'Lundrigo', the first non-face-to-face mobile laundry service in Korea, has begun 'quiet preparations' with an eye toward going public. Starting with this year's audit report, the company has replaced its external auditor with a mid-sized accounting firm qualified to audit listed companies, and is seeking a turnaround in performance by expanding its business focus from business-to-consumer (B2C) to business-to-business (B2B) transactions. The company views an initial public offering (IPO) as a natural stage of growth and aims to become the first listed company in the domestic laundry industry.
According to industry sources on April 24, Uisikju Company changed its external auditor from Wuin Accounting Corporation to Samdo Accounting Corporation, starting with the '2024 Audit Report' disclosed on the Financial Supervisory Service's electronic disclosure system on April 4. Samdo Accounting Corporation is a top 10 mid-sized domestic accounting firm qualified to audit listed companies. A company representative explained, "This decision was made to enhance the transparency and quality of accounting audits," adding, "It is a natural part of preparations for going public."
Uisikju Company's external growth over the past four years has been rapid. Sales grew more than fourfold from 13 billion KRW in 2021 to 53.9 billion KRW last year. However, operating losses increased from 13.6 billion KRW in 2021 to 29.6 billion KRW the following year, and the company has continued to post losses in the 20 billion KRW range.
To improve profitability, the company began management efficiency initiatives last year. It discontinued non-core businesses such as 'Jipggumigi', and simultaneously pursued production efficiency and cost reduction through smart factories and artificial intelligence (AI) technology. A company representative stated, "Thanks to these measures, Lundrigo achieved a 10% EBITDA margin in the fourth quarter of last year," and added, "In the second quarter of this year, we expect to surpass a 20% EBITDA margin and turn to operating profit."
The company is also accelerating its entry into the B2B rental market through its 'Hotel & Business' division. Uisikju Company emphasized that it had identified the growth potential of the B2B market early and responded proactively. A company representative explained, "We have been making proactive investments in the B2B business for the past three years," and added, "Starting from the fourth quarter of last year, we invested a total of 10 billion KRW to build a 4,000-pyeong B2B-dedicated smart factory and began expanding our rental business."
The market outlook is also positive. According to Samjong KPMG Economic Research Institute, the domestic laundry market is expected to surpass 6 trillion KRW by 2026, with about 20% of this market projected to shift from offline to online services. In particular, analysts note that the laundry service platform market has entered the 'Laundry 3.0 era', expanding from a B2C focus to a B2B rental focus. As the B2B market is based on stable demand and features many long-term contracts, industry experts assess that B2B could become the key to future profit stability.
Starting this year, Uisikju Company plans to expand its services beyond hotels to various industries such as fitness centers, restaurants, and hair salons, in order to establish a stable revenue base and use this as a springboard to become the first listed company in the domestic laundry industry. A company representative stated, "The B2B portion of total sales is expected to increase from 20% to 30% this year," and added, "Although B2B sales are still small, if profitability improves stably, we will be able to begin preparations for listing."
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