[Public Notice+] Samyoung ENC "Last Year's Operating Loss Temporary... Meaningful Growth Possible This Year"

[Asia Economy Reporter Yoo Hyun-seok] Samyoung ENC announced on the 14th that its preliminary individual operating loss was 2.4 billion KRW last year, turning to a deficit compared to the previous year. Sales increased by about 5% year-on-year to 37 billion KRW. Net loss turned to 9.4 billion KRW.

A company official stated, "Sales increased last year thanks to rising demand for ship safety equipment in Southeast Asia and other regions, but operating losses occurred due to inventory clearance and an increase in allowance for doubtful accounts on trade receivables," adding, "The scale of net loss was large due to increased non-operating expenses such as subsidiary liquidation and asset impairment losses caused by the deteriorating business environment."

However, the company expects that although these were temporary cost increases that negatively affected last year's performance, they will have a positive effect by eliminating business uncertainties and strengthening asset soundness. This year, with the increasing domestic and international demand for ship safety equipment, the company explained that meaningful growth is possible, overcoming past sluggishness.

In particular, through the expansion of mass production facilities this year, the company plans to create opportunities for performance improvement by increasing orders for ship safety equipment from Southeast Asian countries where investment in maritime safety is rising, responding to the new market for e-navigation, and activating sales of new products such as its main equipment, ship navigation systems.

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