Paratech to Restructure Profit Model Centered on Manufacturing in 2026... KRW 1.8 Billion Standalone Profit in Manufacturing Division

Paratech (CEO Park Seonki), a fire protection equipment specialist listed on the KOSDAQ, announced on March 27 that, despite the severe downturn in the construction industry, it confirmed a solid profit model by achieving approximately KRW 1.8 billion in operating profit in its core manufacturing business on a standalone basis. Based on this, Paratech plans to undertake a full-scale restructuring of its business model in 2026, centering on its manufacturing operations to drive a new phase of growth.

According to Paratech’s consolidated financial results for 2025, total revenue amounted to approximately KRW 173.9 billion, a decrease of 37.44% compared to the previous year. The company recorded an operating loss of about KRW 13.7 billion and a net loss of approximately KRW 22 billion.

The main reason for this decline in performance lies in the underperformance of the fire protection system installation division, which previously accounted for about 70% of total revenue. Sales from the installation division, which reached a record high of KRW 195.1 billion in 2024 on a consolidated basis, plummeted by about 46% to KRW 106.1 billion in 2025. Notably, KRW 13.1 billion, or about 96% of the total operating loss of KRW 13.7 billion, originated from the installation division, sharply deteriorating overall profitability.

On the other hand, Paratech’s core fire equipment manufacturing division delivered meaningful results, demonstrating strong downside resilience. While the manufacturing division posted a consolidated operating loss of KRW 600 million, it achieved a standalone profit of approximately KRW 1.8 billion. The consolidated deficit is attributed to the performance of non-core subsidiaries being included in the results.

This outcome was driven by the company’s “premium strategy,” which focused on targeting the market with high value-added products certified for global fire safety standards such as UL and FM. Paratech secured profitability by supplying its high-capacity “K160” sprinkler—Asia’s first and the world’s fifth to obtain FM certification—and the domestically developed early suppression fast response (ESFR) sprinkler, to large-scale logistics centers and data centers.

A Paratech official stated, “Although the overall scale has temporarily decreased due to the sluggish market in the installation division, it is extremely encouraging that the manufacturing division, which leverages our technological strengths, achieved a profit centered on high value-added products. Moving forward, we will adjust the proportion of the installation division, which relies heavily on the domestic market, and, based on our unrivaled technology, strengthen both overseas exports and our premium manufacturing lineup to establish a stable profit structure that will remain robust regardless of market variables.”