Kolon Sees Revenue and Operating Profit Rise in Q1 on Strong Subsidiary Performance

Sales Reach 1.4481 Trillion Won, Operating Profit at 39.7 Billion Won
Strong Performance in Industrial Materials, Premium Cars, and Non-Residential Orders

Kolon Group's holding company, Kolon Corporation, saw both its revenue and operating profit increase in the first quarter of this year, driven by improved performance from its subsidiaries. However, due to the downturn in the housing pre-sale market, Kolon Global recorded a net loss for the period as a result of increased allowance for bad debts.

On May 15, Kolon Corporation announced through a regulatory filing that its consolidated revenue for the first quarter of this year reached 1.4481 trillion won, with operating profit at 39.7 billion won and a net loss of 28.9 billion won. Compared to the same period last year, revenue increased by 4.0% and operating profit rose by 55.3%. Net profit decreased by 22.7 billion won, resulting in a shift to a net loss.

The net loss was primarily due to increased allowance for bad debts at Kolon Global, the group's construction subsidiary. The recent slowdown in the housing pre-sale market has heightened the risks of delayed or unsold units, leading the company to preemptively recognize losses on receivables with low collectability. This was reflected as an accounting expense, resulting in a net loss.

The increases in revenue and operating profit were attributed to improved performance at major subsidiaries. Kolon Industries, an equity-method affiliate, saw revenue growth driven by expanded sales of industrial materials amid growth in the automotive sector, as well as increased demand in the chemicals division. Kolon Mobility Group, a consolidated subsidiary, improved its performance through expanded sales of premium brands and the effect of new model launches.

Kolon Global saw a decline in revenue due to the completion of large-scale projects last year, but operating profit increased thanks to expanded new construction starts in the non-residential sector. New orders in the first quarter totaled 326.9 billion won, with 209.3 billion won coming from the non-residential sector.

Kolon Corporation expects major subsidiaries to continue their growth momentum. Kolon Industries is pursuing company-wide operational efficiency improvements. Kolon Global plans to continue its portfolio diversification strategy. Kolon Mobility Group intends to expand its used car branches and service centers.

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