[Edaily Reporter Shin Yeong-bin ] Hancom WITH(054920)reported that its third-quarter operating profit increased nearly sixfold year-over-year after incorporating HANCOM INC.(030520)as a consolidated subsidiary. The financial results of Hancom and its subsidiary, Hancom Lifecare, were reflected in the consolidated financial statements.

Hancom WITH announced on the 13th that it recorded consolidated revenue of 128.8 billion won and operating profit of 9.4 billion won in the third quarter of this year.

Although revenue decreased by 14.4% year-over-year, operating profit rose significantly from 1.6 billion won in the same period last year. Cumulative revenue for the first three quarters totaled 394.6 billion won, and cumulative operating profit reached 8.8 billion won. Cumulative operating profit increased by 112% compared to the same period last year.

The company explained that the decline in revenue was due to a reduction in the volume of physical gold distributed by its subsidiary, Hancom Gold Exchange, following a correction in international gold prices. The net loss reflected a valuation loss incurred from the revaluation of existing shares held during the integration of Hancom. The company stated that this was a one-time accounting factor that did not result in a cash outflow.

Hancom WITH acquired additional shares in Hancom this year, raising its sole ownership stake to 31.2%. The ownership stake held by the largest shareholder, including related parties, stands at 40.15%. Based on this, Hancom was consolidated as a subsidiary starting in the third quarter.

Hancom Lifecare posted third-quarter revenue of 30.9 billion won and operating profit of 3.4 billion won. Revenue increased by 31% compared to the same period last year. Cumulative revenue rose 60.5% to 91.9 billion won, while cumulative operating profit reached 7.2 billion won—three times the level recorded during the same period last year.

Hancom Lifecare has largely completed delivery of the ninth mass-production batch of its next-generation gas mask, the “K5,” and sales from the Ground Laser Target Designator (GLTD) have also been sequentially reflected in revenue. In the firefighting and safety sector, the company is supplying new products such as lightweight modular self-contained breathing apparatus and the “PG-1” fire-resistant helmet.

Last August, the company entered the unmanned firefighting robot business by signing a five-year exclusive distribution agreement with France’s Chacro Robotics. Revenue from new defense business ventures—including urban combat training projects and the Army’s Science-Based Combat Training System (KCTC)—is expected to be reflected in the company’s financials sequentially starting next year.

Hancom WITH is also expanding its proprietary security business. It is meeting demand from the financial sector and public institutions with AI authentication technology that identifies deepfake faces and synthesized voices. The company is supplying data and communications encryption products incorporating post-quantum cryptography (PQC) to the public, financial, and defense sectors.

Song Sang-yeop, CEO of Hancom WITH, stated, “The third quarter marked the beginning of the group’s performance being reflected in Hancom WITH’s results following the integration with Hancom,” adding, “As the group’s profit base has strengthened, we will deliver results in our core businesses—such as AI authentication and post-quantum cryptography—to further solidify our revenue structure.”