DaeHan Electric Wire Reports Q3 Operating Profit of 5.6 Billion KRW, Down 33% YoY

Cumulative Operating Profit for Q3 This Year Exceeds Last Year's Annual Total

[Asia Economy Reporter Ki-min Lee] Taihan Electric Wire announced on the 16th that its consolidated sales for the third quarter of this year reached 326.9 billion KRW, and operating profit was 5.6 billion KRW. These figures represent decreases of 11% and 33%, respectively, compared to the third quarter of last year.

Taihan Electric Wire explained that the temporary decline was due to some project sales being postponed to the fourth quarter because of client circumstances.

The net loss for the period expanded from 19 billion KRW accumulated in the third quarter of the previous year to 22.6 billion KRW in this year's third quarter. The company stated, "This is a one-time accounting loss caused by the reclassification of previously recognized foreign business translation losses from the capital adjustment account to the current loss account during the liquidation process of the overseas non-performing affiliate TGH (Taihan Global Holdings). This is unrelated to the company's profitability or cash flow." In fact, the debt ratio in the third quarter of 2020 was 262%, down 19 percentage points compared to the same period last year, and the capital erosion ratio also decreased by 5 percentage points to 27%.

Accumulated sales up to the third quarter of this year reached 1.121 trillion KRW, and operating profit was 37.1 billion KRW, marking increases of 5% and 210%, respectively, compared to sales and operating profit in the third quarter of last year. Notably, this exceeded last year's annual operating profit of 33.2 billion KRW by 12%.

A Taihan Electric Wire official said, "Although the third-quarter performance was somewhat sluggish, the projects postponed to the fourth quarter are progressing smoothly, so performance improvement is expected. Although net loss occurred due to the liquidation of TGH, it is significant in that a healthier business environment has been created, allowing us to focus on the electric wire industry."

Meanwhile, Taihan Electric Wire continues efforts to streamline non-core and non-performing affiliates and focus on its core electric wire business. Accordingly, the number of consolidated subsidiaries, which was as high as 19 in the third quarter of 2015, has been drastically reduced to 9 in this year's third quarter, while the number of companies related to the electric wire business increased from 3 to 7.

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