III. Description by Purpose of the General Shareholders’ Meeting
? Approval of separate financial statements
A. Overview of the business situation for the relevant fiscal year
[Chemical Equipment Sector]
(1) Characteristics of the Industry
The chemical equipment manufacturing industry is a type of PLANT (refinery, chemical) equipment industry and is closely related to facility investments in the domestic and international petrochemical industries. In the case of the plant industry, it is led by large EPC (Engineering Procurement Construction) companies, and generally, chemical equipment is ordered through leading domestic and international engineering companies, and products are manufactured in the order method through customized design for each project. Therefore, in order to smoothly proceed with the project, the ordering party prefers a manufacturer with existing transaction history, and since the design for each project equipment is different, there are limited companies that can perform the business in accordance with customer requirements.
(2) Industry Growth Potential
In the mid- to long-term, demand for energy and petrochemical products is expected to steadily increase due to global GDP growth and population expansion. In particular, oil-producing countries that depend on crude oil exports and have been suffering from deficits due to refining and chemically processed finished products are expanding their investments to establish direct processing facilities to secure higher profits and national competitiveness. Accordingly, major countries in the Middle East/Asia/North America are expected to expand investments in new chemical facilities and green hydrogen/green ammonia plants to respond to environmental regulations.
(3) Characteristics of economic fluctuations
The petrochemical industry is closely related to international oil prices, oil consumption/production, and investment plans of major crude oil and gas resource-holding countries, and is also affected by the flow of the petrochemical industry, which has a cyclical nature. In addition, it is closely related to the international situation and the balance of energy demand and supply.
(4) Competitive Factors
Due to the nature of the industry based on steel welding, the industry leadership is shifting similarly to the shipbuilding industry. The industry that started in the United States, then moved to Korea via Japan, and recently, competitors from China and India, who are emphasizing low labor costs for basic equipment for general steel grades, are emerging.
However, based on our manufacturing experience through technical partnerships with leading licensors for the production of various products, our company has secured high recognition from domestic and international customers based on our own development of special equipment, quality improvement and technological advancement, and unconditional compliance with delivery dates. We are committed to discovering new customers and conducting sales activities for existing customers to secure stable sales.
B. Separate and consolidated financial statements, comprehensive income statement, and statement of appropriation of retained earnings for the relevant fiscal year (draft)
? The following 44th separate and consolidated financial statements are data that have not been audited by an external auditor and are financial statements before approval by the general shareholders' meeting. The revised business report and audit report will be disclosed on the Financial Supervisory Service's electronic disclosure system.
- Consolidated Financial Statements
44th Period As of December 31, 2024
43rd Period As of December 31, 2023
(Unit: Won)
Item 44th Period 43rd Period
Assets
?. Current assets 144,003,165,188 143,157,237,723
1. Cash and cash equivalents 30,447,467,233 21,483,942,637
2. Trade receivables 21,032,415,203 19,535,358,365
3. Unclaimed work 55,234,055,464 45,166,385,449
4. Other receivables 23,086,663,829 46,475,422,405
5. Current income tax assets 61,002,658 57,452,574
6. Derivative assets - 315,972,255
7. Other Current Assets 2,272,030,833 3,444,549,860
8. Inventory Assets 11,369,529,968 6,678,154,178
9. Assets Held for Sale 500,000,000 -
?. Non-current assets 70,466,242,506 78,707,404,364
1. Other long-term receivables 5,387,647,264 6,030,395,668
2. Available-for-sale financial assets 2,856,999,342 225,000,000
3. Tangible assets 58,010,511,043 53,814,779,943
4. Intangible assets 49,842,500 60,602,658
5. Other non-current assets 14,431,250 72,156,250
6. Investments in related companies 181,269,466 18,504,469,845
7. Currency forward assets 3,965,541,641 -
Total assets 214,469,407,694 221,864,642,087
Liabilities
?. Current Liabilities 77,469,008,174 82,519,903,294
1. Trade Payables 23,556,305,882 20,211,804,407
2. Other Payables 7,919,983,589 9,063,663,214
3. Borrowings 35,500,000,000 30,963,960,000
4. Convertible Bonds - 4,670,896,192
5. Excess Billings 4,943,900,546 13,653,237,721
6. Provisions 2,206,259,097 3,456,855,182
7. Other Current Liabilities 596,474,418 499,486,578
8. Derivative Liabilities 2,746,084,642 -
?. Non-current liabilities 9,719,091,433 11,319,681,676
1. Long-term borrowings 7,000,000,000 7,208,470,000
2. Severance pay liabilities 1,003,930,831 2,207,016,891
3. Deferred corporate tax liabilities 1,667,326,641 1,667,326,641
4. Other non-current liabilities 46,776,475 236,868,144
5. Currency forward liabilities 1,057,486 -
Total liabilities 87,188,099,607 93,839,584,970
Capital
?. Capital stock 118,640,772,000 118,465,772,000
?. Capital surplus 7,655,913,343 7,530,663,343
?. Other capital (1,148,927,657) (153,577,657)
?. Retained earnings 2,133,550,401 2,182,199,431
Total capital 127,281,308,087 128,025,057,117
Total liabilities and capital 214,469,407,694 221,864,642,087
- Consolidated comprehensive income statement
44th period (from January 1, 2024 to December 31, 2024)
43rd period (from January 1, 2023 to December 31, 2023)
(Unit: KRW)
Item 44th period 43rd period
?. Sales 136,623,566,311 137,250,775,712
?. Cost of sales 113,023,267,712 107,969,385,912
?. Gross profit 23,600,298,599 29,281,389,800
?. Selling and administrative expenses 13,678,184,120 16,397,799,917
?. Operating profit 9,922,114,479 12,883,589,883
?. Other income 12,152,843,168 7,719,954,011
?. Other expenses 8,473,047,639 3,984,868,513
?. Financial income 4,294,415,546 3,484,091,581
?. Financial expenses 2,950,996,891 1,841,199,917
?. Equity method gains and losses (12,806,570,633) (1,758,534,082)
XI. Net income before income tax expense 2,138,758,030 16,503,032,963
XII. Income tax expense 1,010,981,043 2,001,821,937
XIII. Net income from continuing operations 1,127,776,987 14,501,211,026
XIV. Net income from discontinued operations - -
XV. Net income for the period 1,127,776,987 14,501,211,026
XVI. Other comprehensive income (2,124,174,567) 107,095,516
XVII. Total comprehensive income (996,397,580) 14,608,306,542
XVIII. Earnings per share
Basic earnings per share from continuing operations 4.9 61.8
Diluted earnings per share from continuing operations 4.9 61.8
Basic earnings per share from discontinued operations - -
Diluted earnings per share from discontinued operations - -
- Separate financial statements
44th period As of December 31, 2024
43rd period As of December 31, 2023
(Unit: KRW)
Item 44th period 43rd period
Assets
?. Current assets 142,985,757,773 141,920,367,875
1. Cash and cash equivalents 29,845,169,076 21,363,710,406
2. Trade receivables 21,032,415,203 19,535,358,365
3. Unclaimed work 55,234,055,464 45,166,385,449
4. Other receivables 22,697,509,601 45,358,809,788
5. Current income tax assets 60,228,428 57,452,574
6. Derivative assets - 315,972,255
7. Other current assets 2,246,850,033 3,444,524,860
8. Inventory assets 11,369,529,968 6,678,154,178
9. Assets held for sale 500,000,000 -
?. Non-current assets 71,483,266,690 79,944,245,712
1. Other long-term receivables 5,384,647,264 5,368,892,174
2. Available-for-sale financial assets 2,856,999,342 225,000,000
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