[Public Notice+] Hwaseung R&A Q3 Operating Profit 8.1 Billion KRW "Turned Profitable Compared to Q2"

[Asia Economy Reporter Oh Ju-yeon] Hwasung R&A announced that its performance is gradually improving this year as it moves away from the impact of the novel coronavirus infection (COVID-19).

Hwasung R&A, a specialized automotive parts company, disclosed on the 16th that it recorded sales of 349.8 billion KRW and an operating profit of 8.1 billion KRW based on consolidated financial statements for the third quarter. It succeeded in turning a profit compared to the previous quarter, when business activity restrictions due to COVID-19 were at their peak.

A representative of Hwasung R&A said, "Compared to the second quarter, when the impact of COVID-19 was at its peak, we achieved improved performance, allowing us to switch to a cumulative profit trend this year. We will strive to achieve stable results in the fourth quarter amid the gradually recovering business environment."

Hwasung R&A is particularly focusing on the performance rebound of its overseas subsidiaries in the United States, Mexico, China, and India. It is analyzed that the normalization of operations at local subsidiaries in each country, where product production was disrupted due to COVID-19 since the beginning of the year, was the key to performance recovery.

In September, Hwasung R&A decided on a spin-off dividing into the continuing corporation ‘Hwasung Corporation,’ which pursues both business and investment, and the newly established corporation ‘Hwasung R&A,’ which focuses on existing business. Hwasung Corporation will handle overall matters related to investment and non-automotive sectors, while Hwasung R&A will concentrate on the automotive parts business to strengthen expertise and quickly respond to the changing business environment.

A representative of Hwasung R&A said, "By innovating the business structure through the spin-off, we plan to enhance business competitiveness and strengthen global strategies by separating investment and operations, as well as automotive and non-automotive sectors. Centered on Hwasung Corporation, we will allocate internal resources in a balanced manner and discover new growth engines to make effective investment decisions, becoming a sustainably growing company."