Hanshin Gongyeong, Q3 Operating Cash Flow Up 46% Year-on-Year

Hanshin Engineering & Construction announced on the 17th that its operating cash flow for the third quarter of this year reached 66.8 billion KRW, a 46% increase compared to the previous year.

Hanshin Engineering & Construction Headquarters / Photo by Hanshin Engineering & Construction

Operating cash flow refers to the movement of cash generated through a company's operating activities. A higher figure indicates more active business operations and greater cash generation.

A representative from Hanshin Engineering & Construction explained, "Amid liquidity concerns for mid-sized construction companies due to the downturn in the real estate market, most companies recorded negative operating cash flow that worsened compared to the same period last year. In contrast, Hanshin Engineering & Construction saw an increase of 20.9 billion KRW compared to the previous year, which is attributed to the recent strong sales performance."

Hanshin Engineering & Construction's own projects, 'Pohang Hanshin The Hue Pentacity' and 'Asan Hanshin The Hue,' have reached a sales rate of 90%, and projects under construction by Hanshin such as 'Pohang Haksan Hanshin The Hue Elite Park' and 'Ulsan Grand Park Hanshin The Hue' have overcome initial sluggish sales to surpass a 60% sales rate. Hanshin Engineering & Construction analyzed that with the execution of interim payment loans, there should be no issues in recovering construction costs. The improved operating activities are expected to have a positive impact on future performance.

Meanwhile, as of the third quarter, Hanshin Engineering & Construction holds approximately 370 billion KRW in cash equivalents. The company also maintains a very low level of unbilled construction work compared to peers in the industry, managing stable cash assets and liquidity risk.

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