Daewoong Pharmaceutical was fined 15 billion won in corporate tax for its regular tax audits last year, making it the first time to make a net profit loss since it was listed.
The company has been graced for joining the 1 trillion won sales club for the first time since its establishment, but disgraced for creating the first net profit deficit.
Daewoong Pharmaceutical made a provisional public announcement on March 5 that its combined sales increased 7.4 percent to 1.03 trillion won last year. Although the sales increased, operating profit dropped 36.9 percent to 24.6 billion won during the same period, and net profit for the current term was estimated to be below expectations, with a loss of 5.3 billion won.
In particular, the first loss in net profit since its listing is an unexpected result. Last year`s net profit was 35.8 billion won, down 40.7 billion won in a year. Looking at the trend of net profit over the past five years, attention is focusing on the reasons behind the sharp decline in net profit, with 57.9 billion won in 2013, 30.4 billion won in 2014, 35.6 billion won in 2015, 26.1 billion won in 2016 and 354.4 billion won in 2017.
The biggest reason for the decline in net profit is the fact that Daewong Pharmaceutical paid an additional 15 billion won in corporate tax in its regular tax audit last year.
