Shinsung ENG announced on the 9th that it recorded consolidated sales of 129.5 billion won and operating loss of 3.2 billion won in the third quarter. On a cumulative basis, sales were 407.8 billion won and operating profit was 3.4 billion won.
Looking at each business division, the Clean Environment (CE) Division, which operates a semiconductor clean room and secondary battery dry room business, recorded sales of KRW 115.5 billion in the third quarter of this year, down 9% from the same period last year, and an operating loss of KRW 2.4 billion.
The company cited the slump in the semiconductor industry and delays in construction and investment in major domestic projects as the reasons for the deterioration in CE performance. As some projects were postponed, the company recorded a quarterly deficit due to the burden of sales and administrative expenses, including manufacturing costs and manpower input, and a decrease in operating rate.
However, performance is expected to improve as delayed project construction is gradually progressing and orders are steadily increasing. Shinsung ENG explained that the order backlog as of the end of the third quarter of this year was 232.1 billion won, an increase of more than 30 billion won compared to the end of the second quarter.
An official from Shinsung ENG said, “Since no projects or orders have been canceled, we expect a gradual increase in sales and profit improvement as the semiconductor economy recovers in the future,” and added, “After hitting a low point in the third quarter, a recovery will appear from the fourth quarter.”
Sales in the renewable energy (RE) business division, which operates solar module and EPC businesses, decreased by 53% compared to the same period last year to KRW 13.8 billion, and recorded an operating loss of KRW 200 million. This is due to a decrease in demand and a decrease in the operation rate in the solar energy market due to high interest rates. Accordingly, the company plans to expand new businesses into the energy IT field and increase the proportion of sales by entering overseas markets and strengthening EPC capabilities.
Lastly, an official from Shinsung ENG said, “We expect next year to be a year in which the proportion of overseas sales increases compared to domestic sales,” adding, “We will promote organic business cooperation between each local corporation and domestic support departments, and achieve sales growth and profits through efficient operation plans.” “We will make all improvements,” he said.
The Elec = Reporter Noh Tae-min tmnoh@thelec.kr
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2023-11-09 23:42:17
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