Source Fact: Financial Supervisory Service DART / 2024-12-19
Disclosure Type: Single Sales/Supply Contract Execution
💡 3-Second Summary
Hanwha Ocean has executed a shipbuilding contract with the Defense Acquisition Program Administration (DAPA) worth approximately KRW 839.1 billion for the construction of two surface ships, running from December 18, 2024, to December 31, 2030.
📊 1. [Key Disclosure Content & Major Figures Summary]
- Contract Name & Particulars: Construction order for two surface ships.
- Contracting Counterparty: Defense Acquisition Program Administration (DAPA), Domestic region.
- Contract Value: KRW 839,100,000,000 (KRW 839.1B).
- Proportion to Recent Revenue: 11.3% against the latest fiscal year (2023 year-end consolidated financial statements) revenue of KRW 7,408,300,000,000.
- Contract Period: Commencement Date 2024-12-18 / Expiry Date 2030-12-31.
- Major Contract Terms (Payment Conditions, etc.):
- Advance and progress payments: Yes.
- Article 19 of Special Contract Conditions: Advance and progress payments can be disbursed when requested by the contractor in accordance with Article 46-2 of the Defense Acquisition Program Act, Article 61-7 of its Enforcement Decree, and the Ministry of National Defense regulations.
- Article 33 of Special Contract Conditions: Payment of remuneration and interest on delayed payments shall be executed pursuant to Articles 58 and 59 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party.
- Financial Baseline & Notes:
- Recent revenue is based on 2023 year-end consolidated financial statements; both contract value and revenue are rounded to the nearest hundred million KRW.
- The contract period and final settlement amount remain subject to change during the construction process.
- The original disclosure does not specify product specifications, profit margins, or accounting-based revenue recognition methods.
📈 2. [Expert View: Significance for Investors]
This disclosure demonstrates that Hanwha Ocean has formalized a large-scale construction contract with DAPA totaling KRW 839.1 billion. The contract value equals 11.3% of the company’s 2023 consolidated revenue, with the contracting counterparty being a state authority.
Investors should perceive the execution period of this contract as a long-term duration (approximately 6 years) spanning from December 18, 2024, through December 31, 2030, exactly as stated in the text. The disclosure does not specify or address specific profitability metrics, quarter-by-quarter cash inflows, or precise accounting treatment methodologies (such as the percentage-of-completion method). Therefore, it is inappropriate for investors to definitively assume any certain financial impacts on overall cash flow stability, working capital liquidity, or short-term earnings. Investors should focus strictly on the defined contract clauses and the potential adjustments to the period and final settlement values over the course of the project.
📝 Editor’s Comment (by K-STOCK Editor)
Selected Comment Style: Professional Insight
This regulatory filing documents that Hanwha Ocean has secured a contractual agreement for two surface ships exceeding 11% of its annual revenue from the national defense procurement agency. The underlying terms explicitly integrate advance and interim progress payment structures along with legal provisions guided by the Enforcement Decree of the Act on Contracts to Which the State Is a Party.
The core variable for readers to trace going forward is the operational potential for contract parameter revisions. As explicitly denoted in the reporting details, the contract period and final settlement figures are subject to subsequent updates during construction. Investors should track future quarterly and half-year reports (Q1~Q4, H1~H2) regarding outstanding order balances and subsequent amendment filings to examine how these contract numbers are adjusted or maintained based entirely on objective data.
📢 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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