Diark "Performance Increase Through Management Normalization After Major Shareholder Change... Net Profit Turnaround"

[Asia Economy Reporter Jang Hyowon] Diarc, a company specializing in automotive interior and exterior materials, announced on the 8th through a public disclosure that it recorded sales of 42.9 billion KRW, operating profit of 2 billion KRW, and net profit of 9.8 billion KRW last year. In particular, operating profit increased by 44.9% compared to the previous year.

The rise in Diarc's operating profit last year is explained as the result of efforts for management normalization by the new management team appointed by Hurim Robot. Diarc's new management team stabilized the existing automotive interior materials business to maintain steady sales volume, while securing financial soundness by reducing excessive selling and administrative expenses, thereby strengthening the company's fundamentals and achieving management normalization.

Diarc's efforts toward management normalization are expected to continue this year as well. The new management team focused on securing professionals with a high understanding of the overall industry last year and recruited Vice President Park Yongwoo.

Vice President Park is a former researcher at Hyundai Motor Company and served as vice president at Dooall, a mid-sized automotive parts specialist company. Diarc plans to hold an extraordinary general meeting of shareholders on February 17 to appoint Vice President Park as a new inside director, leading company operations together with the current management team.

A Diarc official said, "As a result of company-wide efforts over the past year aimed at management normalization, we were able to show achievements in external growth and profit increase," adding, "Diarc will continue responsible management and principled management."

Meanwhile, Diarc was granted a one-year improvement period from June 2 last year to June 2 this year by the Korea Exchange's Corporate Evaluation Committee. Diarc is scheduled to submit an implementation report of the improvement plan within 15 days after the end of the improvement period and undergo a review on whether to resume trading.