HANJIN HEAVY INDUSTRIES

- Announces that operating income turned to the black last year and unveils his commitment for management normalization in 2020 at the General Shareholders’ Meeting on March 27

                                            Lee Byung-mo, CEO of HHIC

“At present, business management environments are very uncertain. However, I will achieve substantial management performances by reducing costs through changes and innovation and maximizing operating profits with differentiated sales strategies.”

At the 13th General Shareholder’s Meeting held at Galwol-dong, Yongsan-gu, Seoul on March 27, Lee Byung-mo, CEO of HANJIN Heavy Industries & Construction (HHIC), said, asking for continued interest and support from shareholders.

He mentioned that last year, HHIC achieved KRW 1.9042 trillion in contract amount, KRW 1.6095 trillion in sales and KRW 77 billion in operating income (separate financial statements). In particular, operating profits considerably increased from the previous year and turned to the black.

In fact, since he was appointed as the CEO last year, the multinational shipbuilder has achieved 150 percent of its target order in shipbuilding by winning the bids for PKX-B-class boats (ROK Navy) and special purpose ships such as a multi-purpose very large response vessel. In construction as well, he has shown great performances such as successful bids in public construction projects and increase in orders for housing improvement. In plant construction, the company has signed contracts for Yangsan Integrated Energy Facilities and crane installation at the Port of Busan. 

In addition, he has eliminated conventional practices and promoted changes and innovation from diverse perspectives. To reestablish business management values and reinforce spiritual base for corporate development, he has set the mission of ‘Create New Values, Keep Moving Forward for It’ and systematically established vision, business goals, core values and code of conduct. He has also promoted ‘NEW TURN’ movement to make new values shared and get specific accomplishments.

He said, “I have set ‘Profit First and Secure Viability’ as our management goal for year 2020 and developed a business plan with a goal of achieving KRW 2.1185 billion in order amount and KRW 1.782 billion in sales.” He continued, “I will make my best efforts to respond to your interest and support by deriving substantial management performances through the maximization of operating profits”.  

He added, “A sudden change is anticipated in business management environments due to the COVID-19. Even so, my primary goal is to normalize business management by securing unrivalled competiveness for special-purpose ships in shipbuilding and increasing sales and operating profits through active participation in technical bids and housing & plant construction projects in construction”.

Meanwhile, the appointment of new outside directors passed in its original form. Director Choi Sung-moon and Director Park Gi-dong resigned, and Professor Kim Yong-heon from Sejong University and Professor Kim Ga-ya from Dong-eui University were appointed as outside directors. In addition, Melanie S. Belen, vice president of BDO Unibank in the Philippines, was named non-executive director.