Kris F&C Founding Family Gains 10 Billion KRW in One Year Through Entermate Investment

[Asia Economy Reporter Jang Hyowon] It has been identified that the founding family of golf wear company Chris F&C earned a profit of about 10 billion KRW within approximately one year through their investment in the KOSDAQ-listed company Entermate.

According to the Financial Supervisory Service's electronic disclosure on the 27th, Wise Alliance, the largest shareholder of Entermate, signed a contract on the 22nd to transfer 15,151,515 shares (18.19%) to Inno Trust LLC for 20 billion KRW.

Wise Alliance is a family company in which the founding family of Chris F&C holds shares. Chris F&C is a company that sells golf wear brands such as Parigates, Ping, and Phantom.

Previously, in February last year, Wise Alliance invested 10 billion KRW in a third-party allotment capital increase of Entermate, securing 15,151,515 shares and becoming the largest shareholder of Entermate. This means they earned double the profit in about one year and three months. Entermate is a company that provides mobile and online games such as "I Love Samgukji" and "Cheonhareul Tamhada".

At the time Wise Alliance acquired Entermate, Entermate was at risk of being designated as a management item due to continuous business losses before corporate tax expenses exceeding 50% of equity capital for two out of three fiscal years. Entermate recorded net losses of 10.3 billion KRW in 2017 and 16.7 billion KRW in 2018 on a separate basis.

After Wise Alliance's acquisition, Entermate's performance turned profitable. Last year, Entermate recorded sales of 16.1 billion KRW, operating profit of 2.9 billion KRW, and net profit of 1.7 billion KRW on a separate basis. Sales increased by 7.33% compared to the previous year, and operating profit and net profit turned positive.

Despite a slight increase in sales, the ability to generate profit was due to cost management. Entermate's operating expenses last year were 13.2 billion KRW, a sharp decrease of 47.4% compared to 25.1 billion KRW the previous year.

Meanwhile, Entermate closed trading at 1,210 KRW, up 4.76% from the previous day. After not surpassing the 1,000 KRW level for about a year, the stock price has been rising sharply since the beginning of this month.

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