Hwacheon Machine Tool (000850)   STOCK Address 976-1,JANGDEOK-DONG, GWANGSAN-GU, GWANGJU Home Page www.hwacheon.co.kr Established 1977.10.11 Tel 062-951-5111 Listed 1999.11.18 IR 062-950-1534 Common shares O/S 2,200,000 President Gwon,Yeong Du/Gwon,Yeong Ryeol Preferred shares O/S No.of Employees 292(2010. 6) Year-on-year biz revenue grew, due to huge increase of domestic sales like CNC lathe and CNC milling, arising from the favorable tune in domestic car and IT industries. Firm's operating profit ratio rose, because of reduction in selling and administrative expenses ratio, stemming from productivity improvement, because of order increase, and biz revenue expansion. Year-on-year net profit ratio ascended, thanks to increase in gain on the equity method, stemming from favorable tune in performances of firm's subsidiaries, Hwacehon Machinery and Seoam Machinery Industry. Based on stable market share, firm's growth is likely to continue, according to domestic and international firms' facility investment in the second half. Firm's core part, controller's purchase burden is likely eased, due to the strong Won, firm's profitability is forecast to improve, because of an effort to save selling and administrative expenses. Firm is expected to continue to maintain stable financial structure with almost no borrowings, while cash creation capacity is good thru active operating activities. (date: 2009.12, unit : %) Name Gwon Yeongryeol Shinyoung Asset Management Gwon Yeongdu Portion 31.0 11.8 9.2 (unit : %) Sales Metal Machine Tools 86.2 Cost Raw Materials Casting 13.7 Labors Overhead (Unit : 100Mn.Won,Won) Year 99.11 99.11 06. 3    -    - Type LI RI BI - - Amount 58.80  25.20  26.00  -      -