[Public Notice+] Global SM Reports Q1 Operating Profit of 700 Million KRW... "Stable Growth Through Diversification of Overseas Subsidiary Sales"

[Asia Economy Reporter Hyunseok Yoo] Global SM, a fastener specialist company, announced on the 27th that it recorded consolidated sales of 23.9 billion KRW and operating profit of 700 million KRW in the first quarter of this year. Net profit for the same period was 500 million KRW.

Despite the global economic downturn caused by the COVID-19 pandemic, the company minimized the impact through sales diversification of overseas subsidiaries located in Europe, Southeast Asia, and China.

Sales to Huawei, China’s largest telecommunications equipment company, continued to increase in the first quarter. Starting in the second half of the year, deliveries to Huawei’s 5G repeaters will begin, and sales to Huawei are expected to steadily grow throughout this year.

A Global SM official explained, “Due to the impact of COVID-19, some factories of Chinese subsidiaries were shut down for about a month, causing a slight decrease in sales and operating profit compared to the same period last year. However, with factories operating normally in the Vietnam and Spain subsidiaries, relatively stable performance was achieved.”

He added, “The Tianjin subsidiary in China plans to start supplying parts for vehicle batteries and ESS (Energy Storage Systems) from June. The Spain subsidiary is also developing parts for vehicle batteries and ESS, which are expected to become key products driving Global SM’s sales in the future.”

Furthermore, he said, “Since it is difficult to predict the course of the COVID-19 pandemic this year, we are thoroughly preparing in advance, keeping all possibilities in mind, including a prolonged crisis.”

Global SM is expanding its electronic device and automotive fastener business centered on its Vietnam and Spain subsidiaries, which account for more than 60% of total sales. Through its Dongguan subsidiary in China, it supplied new 5G smartphone parts worth 2.8 million USD (3.4 billion KRW) to Huawei last year.

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