Woongjin recorded exceptional achievement in the information technology (IT) business in the first quarter.
Sales were KRW 23 billion and operating profit was KRW 2.3 billion. Both sales and operating profit increased by 15% and 80%, respectively, compared to last first quarter.
These numbers exceeds the growth rate of sales and operating profit in the domestic business sector.
The sales of domestic business sectorwasKRW 32.5 billion and its operating profit was KRW 2.7 billion, which is 11% and 78% increase, respectively, compared to last first quarter.
Woongjin continues to perform well in various IT service businesses, and is experiencing even more of an exponential growth than last year when the IT business recorded historical performance.
A notable factor was Woongjin’s In-house solution growth. Woongjin’s success was results of doubling the sales of 'Woongjin Rental Management System (WRMS)' business, and tripling the sales of platform business compared to the same period last year. Both businesses were able to turn around and earn profit, which played an important role in improving earnings compared to the same period last year.
SAP's enterprise resource planning (ERP) business also contributed to the overall growth in sales. Woogjin’s cumulative sales in the first quarter exceeded KRW 9 billion. Compared to the same period last year, the sales and operating profit increased by 23% and 56%, respectively.
The expansion of the S/4HANA business in the large market and the Business One business in the mid-sized market is also a factor that carries momentum to its growth.
Woongjin has solidified its unrivaled position in the manufacturing and distribution industry through rental know-hows and SAP ERP and cloud business. It also continued to discover new growth businesses for promising industries such as 'data, platform, subscription, and mobility'.
Woongjin’s strategy is to reflect corporate customers’ demands that require quick IT response to changes in business group types as well as corporate digital transformation (DX).
It is working on a number of DX projects that rearranges the IT core simultaneously with the domestic headquarters and overseas subsidiaries and branches, as well as next-generation IT projects.
The IT core configuration proposed by Woongjin analyzes data coming from the front office based on cloud-based ERP, and establishes a standard process to create a flexible environment for new business expansion by deploying solutions that can respond immediately to on-site situations.
These IT core rearrangement is occurring not only in large corporations, but also in platform-type ventures and startups as well.
Woongjin is also showing interest in the 'battery, robotics' fields. The use of batteries is increasing in various fields such as the EV market and serving robots. There are proactive marketing activities to preoccupy the market as the demand for such a rental business is clear. It is promoting omnidirectional business expansion by discovering new types of industry.
Woongjin CEO Sooyoung Lee said, “Woongjin is paying attention to the big blur effect that crosses the boundaries of industrial groups as corporate customers of Woongjin are moving away from traditional manufacturing and distribution to focus on promising industrial technologies such as platforms, mobility, and robots. We will continue to improve our competitiveness to be the leader of this direction.”
By Staff Reporter Hochun Ahn (hcan@etnews.com)