Sewon Q1 Net Profit 7.6 Billion Won... "Expansion of Electric Vehicle Orders and Continued Sales Growth"

[Asia Economy Reporter Jang Hyowon] Sewon, a specialized automotive air conditioning parts company, continues its sales growth trend by expanding orders for electric vehicle parts.

On the 17th, Sewon announced that its separate basis sales for the first quarter of this year reached 17.7 billion KRW, with an operating profit of 400 million KRW. During the same period, net profit on a separate basis was 7.6 billion KRW, a 2711% increase compared to the same period last year.

On a consolidated basis for the first quarter, sales were 17.8 billion KRW, operating profit 200 million KRW, and net profit 7.5 billion KRW. The exclusion of its subsidiary Trinotechnology from the consolidated financial statements caused significant fluctuations compared to the same period last year.

A Sewon representative stated, “Sales increased by about 1.7% compared to the first quarter of last year, and with the expansion of orders for parts to global electric vehicle companies, the sales growth trend is expected to continue. We will actively expand production capacity and target the North American electric vehicle market through the expansion of production facilities at domestic and Mexican subsidiaries.”

Sewon supplies air conditioning parts to major models of global electric vehicle companies such as Hyundai Kia Motors, Tesla, Lucid Motors, Rivian, GM, and Ford. To expand its supply of electric vehicle parts, it recently decided to issue convertible bonds (CB) worth 20 billion KRW. The funds will be used for facility investments of 15 billion KRW for land and building acquisition and domestic and overseas facility expansion, and 5 billion KRW for raw material purchases and overseas subsidiary operating funds. Both the nominal interest rate and maturity interest rate are 0%.

Along with growth in its core business, Sewon decided in April to acquire Uno & Company, a specialized synthetic fiber manufacturer for wigs, to secure additional growth engines. Uno & Company mainly produces PVC (polyvinyl chloride) yarn and eco-friendly flame-retardant PET (synthetic resin) wig yarns, holding outstanding technological capabilities in the synthetic fiber sector for wig yarns.

A company representative said, “Continuous performance growth is expected this year through the expansion of the electric vehicle air conditioning parts business and the promotion of new businesses with high growth potential. We will strengthen future growth by expanding synergy with the largest shareholder Polaris Works.”