[Public Notice+] KR Motors Turns Operating Profit Positive in Q1... "First Time in 14 Quarters Since Q3 2016"

[Asia Economy Reporter Yoo Hyun-seok] KR Motors, a domestic two-wheeler specialized company, succeeded in turning its operating profit positive in the first quarter of this year through performance improvement.

According to the earnings announcement on the 23rd, KR Motors' first-quarter performance this year recorded consolidated sales of 28.6 billion KRW and an operating profit of 400 million KRW, which contrasts with the previous year's first quarter sales of 27.5 billion KRW and an operating loss of 3.1 billion KRW. Notably, despite the COVID-19 pandemic, this operating profit marks the first positive operating income in 14 quarters since the third quarter of 2016.

This turnaround to profitability was mainly due to the full-scale operation of the production plant of the China joint venture (China JV), which secured quality and price competitiveness. Additionally, domestically, the company improved profitability by streamlining unprofitable models, restructuring, and consolidating departments to enhance management efficiency, according to the company.

A company official emphasized, "The fact that the China joint venture achieved this turnaround to profitability even though the plant was not operating normally due to the impact of COVID-19 makes it more meaningful," adding, "As the number of confirmed COVID-19 cases in China significantly decreases and society is rapidly normalizing, and domestically the structural improvements for profitability enhancement have been completed, better future performance is expected."

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