[Edaily Reporter Shin Ha-yeon ] Genohco, Inc(361390), a company specializing in aerospace and defense, reduced its losses in the first half of this year by improving its cost structure, despite delays in orders and project start dates for its core businesses. The company plans to improve its performance in the second half by transitioning existing development projects to follow-on production and mass production, and by expanding the proportion of its manufacturing business.

Genohco, Inc announced on the 14th that its revenue for the first half of this year stood at 22.44 billion won, an 8% decrease compared to the same period last year. During the same period, the operating loss narrowed by 15% to 1.93 billion won, and the net loss improved by 67% to 620 million won.

In the first half of the year, the timing of orders and project kickoffs for major business lines was partially delayed, which also affected the timing of revenue recognition. However, by managing cost structures throughout the project lifecycle, the company reduced both its operating loss and net loss compared to the same period last year.

Genohco, Inc is pushing forward with the transition of existing development projects to production and mass production, while simultaneously expanding its foundation to secure future growth opportunities and follow-on projects. The company expects that if projects secured during the development phase progress to the production and mass production stages, its medium- to long-term revenue base will also be strengthened.

In particular, the company plans to expand the proportion of production projects—which generate higher revenue than development projects—to drive both revenue growth and improved profitability. The company anticipates that the extent of earnings improvement will increase once orders and project launches for major projects return to normal and subsequent production and mass-production volumes are fully reflected in its financial results.

A Genohco, Inc official stated, “Although revenue recognition was affected in the first half of the year due to delays in the ordering and commencement schedules for some projects, the scale of losses improved compared to the same period last year,” adding, “Starting in the second half of the year, we plan to continuously pursue revenue growth and improved profitability by transitioning development projects into production and mass production and by expanding the proportion of manufacturing projects.”