DIC Achieves Record High Sales and Operating Profit... Improved Performance of Chinese Subsidiary

China Da Ilgi Cup, Sales Increase and Turn to Profit
US Corporation Performance to Fully Launch from Second Half of This Year

DIC's performance has significantly improved, thanks to the turnaround to profitability of its Chinese subsidiary, which had been a long-term headache last year. DIC is an exclusive parts supplier to Hyundai Motor Group, specializing in the production of automotive gears and electric vehicle (EV) reducers.

According to the business report submitted by DIC on the 15th, consolidated sales last year reached 728.7 billion KRW, up 4.71% compared to 2022. Operating profit increased by 15.41% to 36.1 billion KRW. Both sales and operating profit marked the highest levels since the company's establishment.

Pre-tax income rose by 95.94% to 29.7 billion KRW, and net profit surged by an impressive 343.47% to 21.0 billion KRW. A DIC representative explained, "The Chinese subsidiary Da-il Giba, which had recorded large-scale losses until last year, improved its sales and turned profitable (based on operating profit), leading to a significant improvement in the overall consolidated performance."

DIC's performance improvement trend is expected to continue this year. From this year, sales from its U.S. subsidiary Da-il USA will begin in earnest. Starting from the second quarter, it is expected to supply gear parts to local Hyundai Motor Group affiliates such as Hyundai Transys and Hyundai Mobis, adding approximately 50 billion KRW in new sales this year.

Additionally, orders for EV reducers from Hyundai Motor Group's U.S. Georgia plant are expected to begin in the second half of this year. Hyundai Motor Group plans to launch a total of 13 new models through the second-generation dedicated EV platform once the Meta Plant America (HMGMA) in Georgia is completed.

An industry insider said, "DIC will increase its U.S. sales by supplying EV reducers in addition to existing internal combustion engine vehicle parts," and added, "As it expands its global customer base including Tesla, sales and profits are expected to grow."

Meanwhile, DIC has recently ventured into the robot reducer business. It has completed the development of high-output cycloidal (RV) robot reducers, essential components for industrial and collaborative robots, and is currently working on system and detailed part designs for about 15 types.