DK&D Surpasses 56 Billion KRW in First Half Sales... Highest Performance Since Establishment

[Asia Economy Reporter Kim Jonghwa] Global synthetic leather specialist DK&D announced on the 18th that it achieved its highest-ever performance in the second quarter of this year.

DK&D recorded consolidated sales of 30.9 billion KRW and operating profit of 3.7 billion KRW in the second quarter of this year, and achieved consolidated sales of 56.2 billion KRW and operating profit of 5.5 billion KRW in the first half. These figures surpassed the previous record quarterly performance of 25.3 billion KRW in sales and 1.8 billion KRW in operating profit recorded in the first quarter. Compared to the first half of last year’s sales of 36 billion KRW and operating profit of 2.5 billion KRW, sales increased by 56% and operating profit grew by 117%.

The background to achieving the highest performance since its founding in 2001 includes Dada CNC. Dada CNC, which was incorporated as a subsidiary in the third quarter of last year, achieved sales of 8.3 billion KRW in the first quarter and 9.8 billion KRW in the second quarter this year. A DK&D official explained, "The reason we were able to achieve record performance again in the second quarter following the first quarter was due to improved profitability through increased delivery prices and a sales strategy focused on high-margin products that succeeded in the market."

DK&D owns subsidiaries including Dada CNC, Vietnam’s "DK Vina," and China’s "Shanghai DK&D." Thanks to the strong performance of its subsidiaries and the improvement in its own product competitiveness, the company expects to achieve its highest-ever performance by the end of this year. A DK&D official said, "Through synergy among subsidiaries, we have established an integrated value chain from raw material sourcing and development to finished product production and export," adding, "We will overcome the current situation where our technology and performance are undervalued in the stock market."

Recently, DK&D signed a synthetic leather supply contract worth 10.6255 billion KRW for headsets with Huifa. DK&D’s market capitalization is approximately 51.9 billion KRW.