HLB Declares Itself a 'Complete Bio Company'... Decides on Physical Division of ENG Business

Started as Hyundai subsidiary Kyungil Yacht in 1975
Entered bio sector after acquiring InnoGDN in 2009
"Already recognized as a bio company in the market"

Jinyang Gon, Chairman of HLB [Photo by HLB]

[Asia Economy Reporter Lee Chun-hee] HLB, which started as a ship subsidiary of Hyundai Group, has embarked on a complete transformation into a bio company.

On the 17th, HLB announced through a public disclosure that the board of directors approved the “Approval of the Split Plan,” which involves a physical division of the ENG business division responsible for HLB’s ship and pipe business, and the establishment of an unlisted company named 'HLB ENG (tentative name).' This will be finally decided at the shareholders' meeting scheduled for the 30th of next month. Once the physical division is completed, all issued shares of the newly established company HLB ENG will be allocated to the dividing company, HLB. The split date is set for May 19.

HLB’s origin dates back to 1975 when Kyungil Yacht was established as a subsidiary of Hyundai Group. In 2000, it was renamed Hyundai Lifeboat. Later, Chairman Jin Yang-gon, who led Hyundai Lifeboat, acquired the KOSDAQ-listed company InnoGDN (formerly Kukje Jeonggong), and in 2009, renamed Hyundai Lifeboat to the abbreviated HLB. Subsequently, HLB created the current HLB by acquiring and merging Hyundai Lifeboat. During this process, Chairman Jin, who took note of LSK Biopartners (now Eleva), a bio subsidiary established by InnoGDN in the U.S., designated the bio industry as a new growth engine instead of the ship business, and the research and development (R&D) of the anticancer drug 'LivoCeranib' held by LSK Biopartners began in earnest.

Additionally, in October 2021, HLB laid the foundation for its transition into a bio company by absorbing and merging with FA, an in vitro diagnostic medical device company. As a result, HLB’s sales structure showed that until 2020, the ENG business division led with 42.3 billion KRW in sales compared to 13.9 billion KRW from the bio medical device division. However, from 2021, sales from the ENG business were 25.8 billion KRW, while the bio medical device business recorded 44.1 billion KRW, surpassing the ENG division. By the third quarter of last year, cumulative sales reached 147.3 billion KRW, with the ENG business sales dropping to 13.1 billion KRW, about 8.9%, firmly establishing the bio medical device division’s dominance. In December last year, the company’s industry classification was also changed from ‘Other Transport Equipment Manufacturing’ to ‘Manufacture of Medical Substances and Pharmaceuticals.’

Regarding this, the company stated, “HLB is already recognized as a bio company in the market,” adding, “However, since the original business of manufacturing lifeboats and special vessels is still ongoing, we have long received requests from shareholders for a split,” explaining the background of this corporate division.

HLB logo
Photo by HLB

Through this physical division, HLB plans to focus on the new drug approval of 'LivoCeranib' and the expansion of clinical trials for new indications. Currently, LivoCeranib has completed global Phase 3 trials for liver and stomach cancers and Phase 2 trials for salivary gland cancer, and preparations are underway to submit a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA).

The ENG business division is also pursuing continuous acquisition of new technologies, including the development of ‘eco-friendly propulsion ships’ following the production of special vessels, lifeboats, and ship pipes. The hydrogen-powered ship ‘Bluebird,’ developed in-house last year, successfully completed dozens of marine demonstration operations, proving its commercialization potential. Accordingly, hydrogen propulsion technology will be applied to the types of ships previously produced.

Baek Yoon-gi, Head of HLB’s Financial Strategy Division, said, “We have established the framework for the long-awaited complete transition to a bio company by shareholders,” adding, “This year, along with the physical division, we will do our best in the NDA process for LivoCeranib to fulfill the hopes of our shareholders.”

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