[Asia Economy Reporter Minji Lee] Golden Century, a manufacturer of wheels and tires for tractors, announced on the 1st that its operating profit last year reached 29.5 billion KRW (174 million CNY), a 16% increase compared to the same period last year. Sales amounted to 113.1 billion KRW (671 million CNY), up 26% from a year earlier. Net profit for the period was 21.7 billion KRW (129 million CNY), marking a 1% increase during the same period.
Golden Century stated, “The utilization rate, which was close to 140% in 2018, increased from 60% to the current 80% after expanding the factory,” adding, “Continuous factory expansions and equipment investments have increased production performance, leading to higher sales.”
Since 2018, Golden Century has been expanding its production capacity to meet the growing demand within China. The domestic agricultural machinery market in China has seen explosive demand growth, driven by the Chinese government’s agricultural self-sufficiency support policies. Accordingly, Golden Century, which produces extra-large tractor wheels, has continuously increased orders and clients.
On this day, Golden Century disclosed in its first-quarter report that it recorded sales of 23.8 billion KRW and operating profit of 6.1 billion KRW. The company said, “Due to the impact of COVID-19, results were somewhat lower compared to the same period last year,” and added, “We will improve the business structure by not only growing existing businesses but also restructuring low-profit businesses and entering new businesses, thereby strengthening both external growth and internal stability.”
Meanwhile, Golden Century has applied for and received approval for an exemption from penalties for delayed submission of business reports and other documents to the Financial Supervisory Service, as the external audit and financial statement preparation for the 2019 fiscal year have been delayed due to the impact of COVID-19.
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