Hurim Robot Changes Largest Single Shareholder to Hurim Holdings... "Promoting New Business Based on Governance Stabilization"

[Asia Economy Reporter Yoo Hyun-seok] Hurim Robot announced on the 7th that Hurim Holdings has secured the position of the single largest shareholder as H&T, the former major shareholder, sold its remaining shares of Hurim Robot on the market. Hurim Robot plans to secure mid- to long-term growth engines through new business initiatives and M&A, starting from this change in governance structure.

H&T sold 5.4 million shares of Hurim Robot, which it previously held, on the market to secure operating funds. The disposed shares were pledged as collateral to JNS Consortium and Cellos Investment Association and were sold on the market with the consent of creditors according to the rehabilitation plan of the rehabilitation court.

A Hurim Robot official said, "H&T invested 5 billion KRW to maintain its position as the largest shareholder of Hurim Robot," adding, "Since it was a simple investment purpose rather than management participation, there were some limitations in terms of governance for Hurim Robot to prepare growth engines through new business initiatives or M&A." He continued, "Starting from this change of the single largest shareholder, the organizational changes and new business initiatives to secure mid- to long-term growth engines that Hurim Robot has been promoting since last year are expected to gain more momentum."

Hurim Robot successfully raised funds amounting to 38 billion KRW through convertible bond issuance and third-party allotment capital increase last year. Based on this, it is promoting entry into the secondary battery business and actively reviewing corporate mergers and acquisitions to secure mid- to long-term growth engines.

The core business performance is also gradually improving. Despite the impact of COVID-19, Hurim Robot successfully carried out restructuring and expanded its business area to the quarantine care sector, significantly reducing its deficit. As of the third quarter of last year, the cumulative sales on a separate basis recorded 16.2 billion KRW, a 28% increase compared to the same period last year, and operating loss was reduced from 2.4 billion KRW in the same period last year to 1 billion KRW. Net profit turned positive from a net loss of 5.6 billion KRW to a net profit of 15.7 billion KRW.

Sambu Construction, in which Hurim Robot holds the largest shareholder position (10.48% stake), is also showing positive performance prospects as orders are in full swing following its return to profitability in 2019. With new orders exceeding 700 billion KRW last year, including site development work in Naegok District, Changwon, multi-family housing in Jinjeop, Namyangju, and multi-family housing in Asan Sinchang, the trend of performance improvement is expected to continue.

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