Powernet Benefits from 'Mutual Tariff Issue'... "Expecting Record High Sales"

Powernet announced on the 14th that it is overcoming major adversities through swift proactive responses and business structure changes amid crisis situations, laying the groundwork for long-term growth momentum.

Amid the global ripple effects of tariff risks originating from the U.S., the U.S. government announced on the 10th that it would suspend reciprocal tariffs by country for 90 days. Although the shock has somewhat subsided, since the tariff risk has not been completely resolved, everyone is closely monitoring subsequent developments and busily preparing countermeasures.

Many experts cautiously predict that although uncertainty remains after the 90-day period, the global economy experienced significant shocks immediately following the U.S. reciprocal tariff announcement, and with side effects such as long-term economic recession and inflation emerging, measures will be taken to minimize risks.

Meanwhile, Powernet, which has focused on business diversification and customer diversification over the past few years, is turning this global issue into an opportunity.

Since the end of last year, Powernet’s performance in the EMS (finished product manufacturing) and energy (battery pack) sectors has been reflected in its results, and with increased volumes of new models in existing business groups, it recorded its best-ever performance in 2024. The company stated that this trend is expected to continue, forecasting the highest first-half performance despite the overall manufacturing sector downturn.

A Powernet official said, "In preparation for volatility such as tariff policies, we have proactively secured production capacity (CAPA) by doubling production lines and dual-sourcing manufacturing locations for key items." He added, "Following the reciprocal tariff suspension announcement, EMS supply volume increased by 114% in the first half, and other B2B (business-to-business) divisions are expected to pre-supply in anticipation of volatility after the second quarter."

He continued, "With the global issue expected to slow down China’s low-price offensive, our company will proactively prepare for external uncertainties based on technology-centered product competitiveness, and in the short term, we will generate sufficient results in our future growth engines: EMS, energy, and B2C (business-to-consumer) divisions."

Meanwhile, Powernet is directly confronting uncertainties through business diversification while maintaining stable growth in existing business groups. In particular, it is preparing transactions with the largest domestic household goods distribution company and has completed initial supply of the green power supply device 'Gazelle,' jointly developed with a French specialist company related to GaN (next-generation power semiconductors), for the Americas and Europe, signaling its full-scale entry into the B2C market.