Hancom WITH Inc. Posts 9.4 Billion Won in Q3 Operating Profit... Hancom Added as a Subsidiary

[Financial News] Hancom WITH Inc., the holding company of Hancom Group, has added Hancom as a consolidated subsidiary, with consolidated operating profit in the third quarter rising about sixfold year over year.
Hancom WITH Inc. said on the 13th that it posted consolidated revenue of 128.8 billion won, operating profit of 9.4 billion won and an operating margin of 7.3% in the third quarter of this year. Operating profit rose nearly sixfold from 1.6 billion won in the same period last year. Revenue for the first three quarters of this year totaled 394.6 billion won, and operating profit came to 8.8 billion won. Cumulative operating profit increased 112% from 4.1 billion won in the same period a year earlier.
Revenue fell 14.4% year over year, affected by lower volumes of physical gold distributed by its subsidiary Hancom Gold Exchange amid a correction in international gold prices. The decline was narrower than in the first half of the year. The net loss reflected an accounting valuation loss incurred when the company revalued its existing stake as Hancom was brought into the group. This was a one-off factor that did not involve a cash outflow.
Hancom WITH Inc. steadily bought shares in Hancom this year, raising its individual stake to 31.2%. The stake held by the largest shareholder and related parties combined is 40.15%. On this basis, Hancom was added as a consolidated subsidiary starting in the third quarter. Results from Hancom Lifecare, a subsidiary of Hancom, also began to be included in Hancom WITH Inc.'s consolidated results.
Hancom Lifecare posted third-quarter revenue of 30.9 billion won, operating profit of 3.4 billion won and an operating margin of 11.0%. Revenue rose 31% year over year. Revenue for the first three quarters totaled 91.9 billion won, up 60.5%. Cumulative operating profit was 7.2 billion won, with an operating margin of 7.8%—three times the 2.4 billion won recorded in the same period last year.
Growth was driven by the defense business. The company has completed most deliveries of the ninth mass-production batch of K5 next-generation gas masks supplied to the armed forces, while revenue from Ground Laser Target Designator (GLTD) deliveries was also recognized in stages. In the fire and safety division, new products such as lightweight modular breathing apparatuses and the PG-1 fire helmet have gained a foothold in the market. In August, the company signed a five-year exclusive distribution agreement with France's Shark Robotics and began pursuing the unmanned firefighting robot market. Revenue from new defense businesses, including the urban combat training project and the Army's Korea Combat Training Center (KCTC), will also be recognized in stages starting next year.
Hancom WITH Inc. is expanding the supply of its AI authentication technology, which filters deepfake faces and synthesized voices, to financial institutions and public agencies. Deployment of its continuous authentication solution, which keeps monitoring users' activity after login, is growing amid demand for the transition to zero trust. Its post-quantum cryptography (PQC) is incorporated into data and communications encryption products supplied to high-trust sectors such as the public, financial and defense sectors.
Hancom WITH Inc. CEO Sangyeop Song said, "The third quarter was when the group's performance began to be reflected in Hancom WITH Inc.'s results following Hancom's inclusion as a consolidated subsidiary," adding, "With the group's earnings base now broader, we will deliver results in our own businesses, including AI authentication and post-quantum cryptography, and further strengthen our earnings structure."

[email protected] Yeon Ji-an Reporter