[News Space=Reporter seungwon lee] Eagon Windows (CEO Gil-su Lee) is expected to post sales of KRW 134.4 billion in 2024, up about 21% from the previous year (KRW 111.5 billion), but the company’s outlook is bleak. This is because financial instability is increasing due to the widening deficit and increasing debt ratio.

According to the audit report of the Financial Supervisory Service’s electronic disclosure system on the 29th, the operating loss last year was 8.4 billion won, a wider loss than the previous year (-7.9 billion won). The net loss for the period also increased to 9.8 billion won, a wider deficit than the previous year (-9.3 billion won). The industry is raising questions about the recovery of profitability due to the continued expansion of operating losses and net losses.

No dividends were paid last year. In 2023, a dividend of 500 million won was paid, but in 2024, it is interpreted that the company lacked the capacity to pay dividends due to the company's deteriorating financial status and profitability.

The debt ratio also rose to 152%, compared to the previous year (approximately 114%). This is due to an increase in both current and non-current liabilities. An increase in the debt ratio worsens financial soundness, and there is a possibility that the interest burden will increase when interest rates rise.

Among these, current liabilities increased by about 48% year-on-year, which is due to a sharp increase in short-term borrowings and current long-term borrowings. There are concerns about long-term labor cost burden due to the sharp increase in defined benefit liabilities (about 4 times year-on-year). This is likely to ultimately threaten the financial stability of the company.

Of the total sales and management expenses of 21.4 billion won, 7.2 billion won was for salaries, 4.8 billion won for commissions, 1.3 billion won for welfare expenses, and 400 million won for advertising and publicity expenses. Approximately 7.84 million won was used for donations.

The company stated in its statement of financial position that "although there are some pending lawsuits as of the end of the year, there are no significant liabilities expected to arise from these contingencies."

An industry financial expert emphasized, “Despite its sales growth, Eagon Windows is facing financial challenges such as widening deficits and rising debt ratios,” and “It is essential to strengthen liquidity management through cost reduction and efficient fund management in the future, and a sales increase strategy based on market competitiveness in the high-end window and accessory equipment market is urgently needed.”

Park Seung-jun, the largest shareholder of Eagon Holdings, is the largest shareholder with a 31.07% stake in Eagon Holdings as of the end of 2023, and controls Eagon Group with a 52.7% stake together with 10 special related parties.

Looking at the income statement of Eagon Windows Co., Ltd. for the past three years, it decreased to KRW 151.1 billion in 2021, KRW 136.1 billion in 2022, and KRW 111.5 billion in 2023, but successfully rebounded in 2024. During the same period, operating profit turned into a deficit of KRW 3.1 billion in 2021, KRW 1 billion in 2022, and KRW -7.9 billion in 2023.