ESSEN TECH’s Operating Profit Doubles, Accelerating a “Profitability Turnaround” with Eco-Friendly Refrigerants

[Financial News] ESSEN TECH, a company specializing in refrigeration and air-conditioning components, more than doubled its operating profit in the first half compared with the same period last year. In the second half, the company plans to continue improving profitability by focusing on eco-friendly refrigerant products and expanding overseas markets.
According to the company on the 3rd, ESSEN TECH posted simultaneous growth in sales and operating profit in the first half of this year. Operating profit growth, in particular, exceeded 100%. Sales of core products, increased exports, and improved production and cost efficiency drove the earnings improvement.
ESSEN TECH is currently expanding its valve and fitting product lines for low-global-warming-potential (GWP) refrigerants in response to stricter global environmental regulations. Based on its existing overseas customers, including those in the United States, the company is also seeking to secure new customers and sales regions.
The key challenge for the second half is to extend the profit improvement confirmed through cost efficiencies in the first half by leveraging eco-friendly refrigerants and export growth.
The company is also working to enhance shareholder value. It recently decided on a reverse stock split to maintain an appropriate number of shares in circulation and stabilize its share price.
An ESSEN TECH representative said, "In the second half, we will focus on products designed for eco-friendly refrigerants and expanding our overseas customer base to sustain stable earnings growth."


[email protected] Kim Kyung-ah Reporter