GV, Full-Scale Entry into Thailand Lighting Market... "112.8 Billion KRW Supply Contract for LED Screens"

Reviewing Establishment of Local Production Subsidiary... Accelerating 'Southeast Asia Strategy'

Kim Cheol-hyun, CEO of Geumbit, held an LED screen supply contract meeting with Hong Sharahrodleung, CEO of Golden Eagle Tail Group, in Bangkok, Thailand, on the 5th (local time). Photo by GV

[Asia Economy Reporter Yoo Hyun-seok] KOSDAQ-listed company Geumbit (stock code GV, formerly DB Lytek) is set to intensify its pursuit of the Southeast Asian LED lighting market following a large-scale export contract signed in Thailand.

On the 8th, Geumbit announced that it signed a contract on the 4th in Thailand with Golden Eagle Retail Group to develop and supply outdoor LED screens.

According to the contract, Geumbit will supply Golden Eagle with color modules and controllers for outdoor LED screens six times within this year. The total contract value is $97.5 million (approximately 112.8 billion KRW), which is 212.18% of last year's sales revenue.

Golden Eagle is a retail specialist company with a strategic business structure alongside Sahagroup, a major distribution company in Thailand. Until now, Golden Eagle has sourced LED screens and lighting from Chinese companies. However, due to frequent defects in existing products leading to high maintenance costs, Golden Eagle decided to switch its supplier to Geumbit after comprehensively considering product quality, efficiency, and price competitiveness.

Starting with this supply, Geumbit is also planning to establish a local production corporation to supply products worth 1 trillion KRW within several years at Golden Eagle's request. Subsequently, based on Sahagroup's network, the company plans to expand strategic cooperation into various fields, including entering the Thai LED lighting market.

Kim Cheol-hyun, CEO of Geumbit, stated, "We expect high operating profit margins from this supply contract in Thailand," adding, "The two companies will establish a production line locally in Thailand soon based on a mid- to long-term partnership and jointly enter the Thai LED lighting market."

He continued, "Following Thailand, we will rapidly expand our export base to Southeast Asian markets such as Indonesia," and said, "Rather than uncertain new businesses, we will make 2020 the first year of our second leap through sustainable growth in our core business areas, such as LED lighting, where we have strengths."

This content was produced with the assistance of AI translation services.