Source Fact: Financial Supervisory Service DART / 2024-10-29
Disclosure Type: Single Sales/Supply Contract Execution
💡 3-Second Summary
Regarding the KRW 443.5 billion contract for one surface vessel secured by Hanwha Ocean from the Defense Acquisition Program Administration (DAPA) in 2018, the contract expiry date, which was previously marked as “TBD,” has been officially finalized as November 1, 2024, following the successful completion of all testing and evaluations.
📊 1. [Key Disclosure Content & Major Figures Summary]
- Amendment Details: The contract execution period, specifically the completion date, and the investment awareness clauses regarding the ‘one surface vessel’ project initially filed on December 7, 2018, have been modified.
- Contract Period Amendment: (Before) Expiry Date: TBD → (After) Expiry Date: 2024-11-01 (The commencement date remains identical as 2018-12-06).
- Contract Value: KRW 443,500,000,000 (KRW 443.5B).
- Proportion to Recent Revenue: 4.0% against the consolidated revenue of the fiscal year-end 2017 (KRW 11,101,800,000,000), which serves as the comparative baseline at the time of initial contract signing.
- Contracting Counterparty & Region: Defense Acquisition Program Administration (DAPA) / Domestic region.
- Amendment of Critical Information:
- (Before) The contract expiry date was undetermined due to ongoing remaining tests for the deep-sea rescue submersible introduced from overseas.
- (After) All test evaluations have been completed as “Criteria Fulfilled,” and the final “Fit for Combat” approval has been acquired from the Ministry of National Defense. The amended expiry date (2024-11-01) is the delivery date negotiated with DAPA, and the vessel will be delivered to the ROK Navy on that day.
- Financial Baseline & Parameter Criteria: Recent revenue is based on 2017 year-end consolidated financial statements; both contract value and revenue are rounded to the nearest hundred million KRW.
- Additional Note: The text states that the contract period and final settlement amount remain subject to change depending on the final settlement results.
📈 2. [Expert View: Significance for Investors]
This amendment filing documents a timeline finalization for a long-term defense project valued at over KRW 400 billion signed back in 2018, establishing a definitive calendar date for a parameter previously left open as “TBD.” The contract boundary is now formally scheduled to wrap up on November 1, 2024, following the resolution of technical evaluations.
Investors should focus on the clear factual disclosure that all testing benchmarks have met requirements and official clearance has been granted by the Ministry of National Defense, indicating the conclusion of verification procedures. The original text does not address specific cash inflow schedules upon delivery, detailed accounting entries for final revenue recognition, or overall financial advantages and disadvantages. Therefore, it is inappropriate for investors to definitively assume immediate earnings expansions or structural adjustments to corporate cash flow. Market participants should view this update as a formal administrative recording of the delivery schedule and monitor whether any minor adjustments occur based entirely on the subsequent settlement data.
📝 Editor’s Comment (by K-STOCK Editor)
This regulatory update logs that Hanwha Ocean’s multi-year surface vessel project has secured a definitive delivery date to the ROK Navy on November 1, 2024. As administrative hurdles are cleared and the completion window is formally assigned, readers should simply observe the structural point that this historical defense contract is moving into its final closing phase.
However, the original disclosure text avoids detailing the exact parameters of the localized cash receipts or stating whether the ongoing settlement adjustments will introduce variations to the total contract value. Consequently, readers must exercise caution and refrain from applying independent interpretations to label this milestone as either an immediate financial windfall or a source of late-stage accounting adjustment risk. Following the recorded parameters, tracing subsequent regulatory filings for potential modifications to the final settlement numbers remains the most objective analytical path.
📢 Disclaimers and Source Information
Source: This content has been newly structured and written based on official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART).
Investment Risk Notice: This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific stocks. All investment decisions and financial responsibilities rest entirely with the investor.
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