Midas AI Turns Operating Profit Positive Last Year

[Asia Economy Reporter Hyungsoo Park] Midas AI succeeded in turning its operating profit positive on a separate basis last year.

Midas AI announced on the 7th that its operating profit on a separate basis last year turned positive to 2.04 billion KRW. During the same period, sales increased by 40.0% year-on-year to 11.26 billion KRW.

Midas AI recorded operating losses for four consecutive business years based on separate financial statements since 2020, resulting in its inclusion in the management oversight list. According to the external auditor's audit results, Midas AI's operating profit turned positive last year, and if the loss before corporate tax is less than 50% of equity capital, the reason for designation as a management oversight company is expected to be resolved.

Midas AI attracted new customers by launching new products and conducting aggressive marketing in its core business, the information security solutions division. Recently, as digital transformation (DT) of domestic companies has accelerated, sales of existing products such as ‘DLP Solution’ and ‘Personal Information Protection Solution’ have increased since the third quarter of last year.

In December, Midas AI strengthened its competitiveness in related businesses by unveiling various new products such as ‘upgraded products’ and ‘portable storage device management solutions.’ It also continued high-intensity structural improvements, including the sale of loss-making business units. The company succeeded in cost reduction by lowering costs and selling and administrative expenses.

The newly launched overseas distribution business of COVID-19 diagnostic kits also contributed to performance improvement. In 2020, Midas AI signed an overseas distribution rights contract for specimen collection kits and COVID-19 diagnostic kits with ‘Philosys,’ an affiliate of the domestic diagnostic kit specialist company ‘PHC.’ Recently, due to the global spread of the COVID-19 Omicron variant, demand for diagnostic kits has increased both domestically and overseas.

A Midas AI official said, "We focused on stabilizing management and prompt structural improvement last year, succeeding in improving annual profitability," adding, "this year, we expect better performance in our core business through acquisitions such as the specialty steel company ‘Jason & Company.’"

In January, Midas AI acquired 100% of the shares of the stainless steel specialist company ‘Jason & Company’ and is in the process of incorporating it as a consolidated subsidiary. Jason & Company achieved sales of about 100 billion KRW and a net profit of about 6 billion KRW last year.

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