BMW Black Box Supply Begins... Overseas Black Box Sales Up 124%
Operating Profit Declines Due to Global Market Issues Including Raw Material Price Increases
Subsidiary Accelerates Autonomous Driving Map Development... Revenue Improvement Expected
[Asia Economy Reporter Kwak Min-jae] Thinkware's sales surged significantly in the first quarter of this year, driven by the supply of black boxes for BMW vehicles. However, profitability deteriorated due to factors such as an unstable external environment during the same period.
According to the Financial Supervisory Service's electronic disclosure system on the 14th, Thinkware's consolidated sales for the first quarter of this year amounted to 67.8 billion KRW, a 44.7% increase compared to the same period last year. On the other hand, operating profit was 700 million KRW, down 48.1% from the previous year, and net profit was 200 million KRW, a decrease of 84.4% year-on-year.
The increase in sales was thanks to global supply to BMW and strong sales of high-end black boxes and environmental appliances domestically. The black box business segment recorded 43.4 billion KRW, up 25.8% from the same period last year. Overseas black box sales achieved 17.6 billion KRW, a 124% increase year-on-year. Thanks to the supply to BMW, new markets such as Europe accounted for 70% of overseas sales, showing significant growth. However, operating profit sharply declined due to rising international raw material prices and lockdown measures in China.
Thinkware expects its business performance to gradually improve as global uncertainties ease with the COVID-19 endemic turning point. It explained that with the relaxation of black box regulations and a shift in perception overseas, demand for black boxes is increasing, leading to expected sales growth in new supply markets.
Currently, Thinkware supplies the global BMW black boxes ACE3.0Pro and ACE3.0 to 77 countries where BMW vehicles are launched. It anticipates total sales exceeding 200 billion KRW by 2025 for both global and China markets. The company is initially supplying to seven countries: China, Japan, the United States, the United Kingdom, Russia, Hong Kong, and Macau, with plans to expand to other countries in the future. This year, Thinkware's black boxes will also be installed in BMW vehicles sold domestically.
Kang Jeong-gyu, head of Thinkware's management division, said, "We expect profitability to improve as raw material price increases ease and the number of countries supplied to BMW expands gradually." He added, "Our subsidiary, iNavi Systems, has won national autonomous driving projects for two consecutive years, accelerating related development. We plan to expand new supply channels such as automakers through the development of a Level 4 autonomous driving platform."
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