"Improvement in All Sectors" Halla Reports Operating Profit of 21.1 Billion KRW in Q1, Up 81% YoY

[Asia Economy Reporter Yuri Kim] Hanla announced on the 27th that its consolidated operating profit for the first quarter of this year reached 21.1 billion KRW, an increase of 81.3% compared to the same period last year. During the same period, sales amounted to 344.7 billion KRW, and net profit was 13.3 billion KRW, increasing by 33.9% and 169%, respectively.

They explained that performance improvements were achieved across all sectors. Hanla stated, "The fact that many projects started last year have been fully underway, and that cost ratios and selling and administrative expenses have significantly decreased due to intensive innovation activities, have influenced the performance improvement," adding, "Considering the seasonal factor of the first quarter, which typically has fewer construction days due to the nature of the industry, these results are very improved."

Hanla secured approximately 700 billion KRW in new orders in the construction sector during the first quarter of this year. This is about 46% of last year's new order amount (1.5 trillion KRW) and corresponds to 37% of this year's new order target (1.9 trillion KRW). The order backlog has also shown continuous growth, recording 2.5 trillion KRW in 2018, 2.9 trillion KRW last year, and reaching 3.2 trillion KRW at the end of the first quarter.

Hanla explained, "We are currently restructuring affiliates and business divisions to establish a stable profit structure in the mid to long term," adding, "To improve profitability, we completed the conversion of Hanla Seragio Golf Course to a public course last month, and are currently working to enhance the value of subsidiaries such as Hanla GLS, Hanla OMS, and Mokpo New Port Operations." The existing New Growth Office has been expanded and reorganized under the name 'Ungok Campus.' They plan to secure future growth engines through collaboration between construction and finance, as well as the convergence of construction and IT.

A Hanla official said, "To achieve the business plan established at the beginning of the year, we will further strengthen cash-centered management through efficient fund execution."

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