Kwangmoo Posts 32.2 Billion Won Net Profit in H1, Up 59.7 Billion Won Year-on-Year, Returning to Profitability

Kwangmoo, a KOSDAQ-listed company, successfully turned a net profit in the first half of this year, driven by improvements in financial gains and cost reductions.

On August 14, Kwangmoo announced that its consolidated net profit for the first half of the year reached 32.2 billion won, an improvement of 59.7 billion won compared to the same period last year. During the same period, revenue amounted to 2.1 billion won, while it recorded an operating loss of 1.8 billion won.

The key factor behind this turnaround is the improvement in financial gains. In the first half of this year, financial income totaled 118.2 billion won, an increase of 105.1 billion won year-on-year. After reflecting financial expenses, net financial gains also swung from a loss of 32.7 billion won in the first half of last year to a profit of 49.1 billion won in the first half of this year. The improvement in financial gains alone amounted to 81.5 billion won.

The cost structure also improved. Selling, general, and administrative expenses for the first half were 2.0 billion won, a reduction of 1.1 billion won from 3.1 billion won in the same period last year. As a result, the operating loss decreased by 500 million won, from 2.2 billion won last year to 1.8 billion won this year.

Benefiting from these factors, profit before corporate tax also turned around, shifting from a deficit of 34.4 billion won in the first half of last year to a profit of 48.3 billion won this year. The company continued its net profit streak from the first quarter into the second quarter, indicating a sustained turnaround in performance.

Financial soundness greatly improved as well. The company's debt ratio decreased sharply, dropping from 7.09% at the end of the first half of last year to just 0.11% at the end of this year's first half. The current ratio soared by 479.89 percentage points during the same period, rising from 778.79% to 1,258.68%.

A Kwangmoo representative commented, "The turnaround in performance was driven by cost reductions through management efficiency and financial operations utilizing available cash. Maintaining net profitability in the second quarter following the first is a positive signal."

The company added, "Based on a stable financial foundation, we will accelerate our growth in the second half by selectively pursuing projects focused on profitability."

This content was produced with the assistance of AI translation services.