Daehan Electric Wire Posts Surprise Operating Profit of 29.1 Billion KRW in First Half

[Asia Economy Reporter Changhwan Lee] Daehan Electric Wire announced a surprise performance for the first half of the year.

On the 20th, Daehan Electric Wire disclosed that its second-quarter sales reached 378.3 billion KRW and operating profit was 20.9 billion KRW, marking an increase of approximately 16% and over 800%, respectively, compared to the same period last year.

The cumulative sales for the first half amounted to 741.3 billion KRW, and operating profit was 29.1 billion KRW, representing about a 16% increase in sales and a 1450% increase in operating profit compared to the same period last year.

The cumulative net profit for the first half was 7.3 billion KRW, successfully turning to a profit from a loss of 17.8 billion KRW in the previous year.

In particular, the company emphasized that the first half operating profit already exceeded the full-year operating profit of 25.9 billion KRW in 2019 by more than 12%, marking the best performance in nine years since 2011 on a first-half basis.

The operating profit margin improved significantly from 2.3% in the previous quarter to 3.9%.

This is analyzed as a result of establishing overseas regional headquarters to expand the global market and continuously focusing capabilities on securing orders for high-profit products.

Since the second half of last year, Daehan Electric Wire has steadily increased its order backlog by winning large-scale projects in the United States, Australia, Singapore, and the Netherlands.

A Daehan Electric Wire official said, "This excellent performance is even more meaningful as it came amid a more than 10% decline in the price of copper, a major raw material, compared to the previous year due to the impact of COVID-19, and a decrease in sales in the materials business sector." He added, "To minimize the impact of the prolonged COVID-19 pandemic and continuously improve performance, we will devote all efforts to securing orders and executing projects through a strong emergency management system."

He continued, "We will continue to expand the supply of products related to new renewable energy such as offshore wind power and solar power for the Green New Deal, as well as the highly competitive underground power grid business."

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