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 062-950-1530 Common shares O/S 2,200,000 President Gwon,Yeong Du/Gwon,Yeong Ryeol Preferred shares O/S No.of Employees 292(2008. 9) Firm's year-on-year sales fell, due to poor domestic sales of CNC millings and machining centers - firm's flagship products. Through operating profit fell on the same period last year, due to expense burden deriving from reduced biz revenue, firm's net profit rose, thanks to improvement in non-operating balance, such as gain on foreign exchange and gain on valuation of investments using the equity method. Firm maintains stable financial structure including low debt ratio and dependence on borrowings in view of good cash creation ability thru operating activities. Firm's biz revenue growth is forecast thanks to export upbeat thru active overseas market penetration including establishing a local office in India based on subsidiaries in the U.S., Europe and Singapore. Firm's sales recovery is likely possible in the domestic sector, due to demand increase stemming from expected facility investment recovery in the domestic manufacturing industry and continuous growth trend in automobile, machinery and shipbuilding sectors. Firm's profitability improvement is forecast, due to gain on valuation of investments using the equity method in view of having superior subsidiaries like Hwacheon Machinery Works and Seoam Machinery. (date: 2008.06, unit : %) Name Kwon Yeongryeol Kwon Yeongdu Yurie Asset Mng. Portion 31.0 9.2 6.6 (unit : %) Sales Metal Machine Tools 84.1 Cost Raw Materials Casting parts 15.8 Labors Overhead (Unit : 100Mn.Won,Won) Year 99.11 99.11 06. 3    -    - Type LI RI BI -  -  Amount 58.80  25.20  26.00  -      -