[Asia Economy Reporter Yoo Hyun-seok] Global SM, a fastener specialist company, announced through a notice of the convening of the general meeting of shareholders on the 12th that its operating profit on a consolidated basis for 2020 increased by 1.3% year-on-year to 5.9 billion KRW (34.81 million CNY).
During the same period, net profit on a consolidated basis increased by 2.3% year-on-year to 3.5 billion KRW (20.25 million CNY), while sales decreased by 9.2% to 99.2 billion KRW (580.5 million CNY).
Despite the contraction of upstream industries and factory shutdowns due to COVID-19, performance significantly recovered starting in the second half of the year. A Global SM official stated, "Due to the global spread of COVID-19 last year, each overseas subsidiary consecutively suspended factory operations for more than a month and a half, but from the second half, production lines were normalized, enabling us to achieve performance levels similar to those of 2019. The operating profit and net profit in KRW slightly increased due to average exchange rate fluctuations."
He added, "In particular, by expanding our business area to fasteners for electric vehicle batteries, we recorded our first sales in the fourth quarter of last year. Having proven reliability and competitiveness in technology through supply to major domestic secondary battery companies, we expect related sales to continue increasing this year. We will expand the supply of fasteners for electric vehicle batteries centered on our Tianjin, China subsidiary and our Spain subsidiary."
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