[Edaily Reporter Kwon Oh Seok ] LaonPeople Inc.(300120)The company successfully returned to profitability in the second quarter of this year, driven by significant improvements in profitability and an increase in new orders. Having successfully restructured its business by divesting low-margin operations and reorganizing its portfolio, the company views this year as the first year of profitable operations.

LaonPeople Inc. announced on the 26th that it posted a profit in both operating income and net income for the second quarter, driven by growth in its core business areas, such as golf sensors and generative AI. This marks a turnaround in performance, breaking the cycle of losses that had persisted until last year.
The primary driver behind this improvement in performance is the restructuring of the company’s business model to focus on high-margin operations. The company boldly divested low-margin businesses while reorganizing its business structure to prioritize highly profitable sectors such as △global golf operations △generative AI △and industrial AI solutions. Concurrently, it streamlined its cost and expense structure and reduced selling, general, and administrative expenses (SG&A), significantly lowering the burden of fixed costs. Financial soundness has also improved significantly through the resolution of overhang issues and a reduction in the debt-to-equity ratio.
New orders, which will drive future growth, are also showing strong momentum. Driven by expanded sales in the golf business following new product launches and aggressive marketing, the order backlog is growing rapidly. The order backlog for the second half of the year is projected to exceed 6 billion won.
Industry observers are noting that LaonPeople Inc. has secured multifaceted growth drivers—including the expansion of new AI businesses, winning public sector contracts, and increased overseas exports—that go beyond a simple recovery in earnings. Since the company returned to profitability solely through structural improvements, such as cost reductions, even with revenue levels similar to the previous year, the positive impact on earnings from reduced fixed costs is expected to grow even further as revenue increases following the third quarter due to the expansion of overseas operations.
LaonPeople Inc. official emphasized, “Based on our solid technological capabilities, we are continuously securing large-scale government projects, while contracts with major conglomerates in the AI vision and generative AI sectors are continuing,” adding, “As the results of our global business become visible, we will be able to accelerate our progress toward achieving an annual profit beyond the second half of the year.”