Daedong Achieves Operating Profit of 36.1 Billion KRW in Q2, Up 22% YoY

Agricultural Robot Equipped with AI Technology to Launch Domestically in Q4
Expansion of Smart Farming Solution Distribution Project

Daedong announced on the 14th that despite the domestic and international agricultural machinery market downturn in the first half of this year, it achieved consolidated sales of 412.4 billion KRW and an operating profit of 36.1 billion KRW in the second quarter. Compared to the same period last year, sales decreased by about 5%, but operating profit increased by 22%.

Due to high interest rates and economic recession, the agricultural machinery markets overseas including North America, Europe, and Australia, as well as domestically, recorded an average decline of around 10% compared to the previous year in the first half of this year. In fact, in the domestic agricultural machinery market, the total sales volume of tractors and rice transplanters in the first half decreased by 11% and 14%, respectively, compared to the previous year based on NongHyup loan performance. Additionally, due to the construction recession in North America and Europe, the performance of the construction machinery sector sharply declined, making the small construction equipment business, which is being promoted as a new business, challenging as well.

Since last year, Daedong has anticipated a decrease in demand for small and medium-sized tractors under 60 horsepower in its core market of North America, and has intensified sales efforts for medium and large tractors ranging from 60 to 140 horsepower, implements, and small construction equipment in key markets such as North America, Europe, and Australia. Based on thorough market research, it has implemented more effective strategic promotions. As a result, the number of medium and large tractor exports overseas in the first half of this year increased by about 17% compared to the previous year, and small construction equipment is expected to achieve the target of 1,000 units sold overseas.

Daedong plans to expand sales and market share in the second half in the North American market, where it has completed organizational rebuilding. In this regard, through the ‘Kioti Connect’ app launching in North America and Europe in October this year, it will provide remote agricultural machinery monitoring services and smart remote diagnostic services to dealers and end-users, aiming to maximize service and parts sales. To increase domestic sales, it will actively promote the ‘realization of future businesses.’

Won Yuhyun, CEO of Daedong, said, “Although we achieved relatively good results in the second quarter, the global economic recession situation has not changed,” and added, “We will respond to the current situation by establishing more effective management strategies based on market research and analysis using the group’s AI-based business capabilities, and will actively realize future businesses.”