Photo: Shinsegae Engineering & Construction

 

[Alpha Biz= Paul Lee] Shinsegae Engineering & Construction recorded an operating loss for the fourth consecutive year, according to regulatory filings.

According to the Financial Supervisory Service on March 16, the company posted an operating loss of 198.4 billion won last year, widening by 64.4 billion won compared with the previous year.

Shinsegae E&C had posted an operating profit of 38.4 billion won in 2021 before turning to a loss of 12 billion won in 2022. It has since remained in the red for four straight years, reporting losses of 193.5 billion won in 2023, 134.1 billion won in 2024 and 198.4 billion won last year.

Despite the losses, the company’s revenue rose 13.9% year-on-year to 1.0876 trillion won from 954.9 billion won the previous year.

Of total revenue, 64.8% came from domestic commercial building construction projects, while residential construction accounted for 30.2%. Civil engineering and rental businesses contributed 4.2% and 0.8% of revenue, respectively.

Net loss for the year totaled 296.6 billion won, an increase of 119.5 billion won compared with the previous year’s loss of 177.1 billion won.

Shinsegae E&C had previously operated its business through construction and leisure divisions, but transferred its leisure business to Josun Hotels & Resorts—an affiliate of Shinsegae Group—on June 30, 2024.

As of the end of last year, four teams, including the sales team, were responsible for securing new projects. By client type, orders were divided into private-sector projects, group-affiliated projects and public-sector projects, accounting for 45%, 41% and 14% of revenue, respectively.

 

 

 

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