Global SM Achieves Highest First Half Performance... "Profitability in Electric Vehicle Sector Increases"

[Asia Economy Reporter Yoo Hyun-seok] Global SM, a fastener specialist company, achieved strong performance in the second quarter following the first quarter. This marks the best half-year performance since its listing.

On the 30th, Global SM announced that it achieved cumulative consolidated sales of 58 billion KRW (335.7 million CNY) in the first half of this year, a 42% increase compared to the same period last year. Operating profit for the same period was 4.2 billion KRW (24.17 million CNY), and net profit was 2.4 billion KRW (13.6 million CNY), both turning profitable compared to the previous year.

Consolidated operating profit and net profit for the second quarter were 1.5 billion KRW (8.49 million CNY) and 900 million KRW (5.07 million CNY), respectively, also turning profitable compared to the same period last year. Sales for the same period increased by 70% to 28.7 billion KRW (165.35 million CNY) compared to the previous year.

Despite the prolonged global COVID-19 pandemic, all overseas subsidiaries recorded strong performances. Sales related to eco-friendly vehicles such as electric vehicle batteries and hybrid cars, which newly emerged since the fourth quarter of last year, are continuously increasing.

A Global SM official stated, “Last year, we significantly improved the profitability structure of all overseas subsidiaries amid the special situation caused by COVID-19, and sales greatly increased due to the base effect and deferred demand caused by COVID-19. Since all overseas subsidiaries are showing balanced sales growth and improved profit margins, positive performance trends are expected in the second half of the year.”

In the first half of this year, Global SM supplied electric vehicle battery fasteners worth over 2 million USD (approximately 2 billion KRW) to major domestic secondary battery companies through its Tianjin, China subsidiary. Based on high-strength fastener technology directly related to the safety of electric vehicle batteries, the company plans to enter the European electric vehicle market by using its Spain and Romania subsidiaries as local bases.