Hyosung posts ₩1 trn in operating profit again in 3 years

March 02, 2020 - South Korea

The combined operating profit of Hyosung Group’s five major affiliates – Hyosung Corp, Hyosung TNC, Hyosung Heavy Industries, Hyosung Advanced Materials, and Hyosung Chemical – topped 1 trillion won (1.01 trillion won) again in three years. The combined group sales amounted to 18.011 trillion won. The outcome came amid a poor showing made by Hyosung’s competitors.

The group’s operating profit surpassed 1 trillion won again in three years after it first recorded 1.016 trillion won in operating profit on sales of 11.929 won trillion in 2016.

Research analysts believe that this improvement in performance will increase shareholders’ trust in chairman Cho Hyun-joon’s management system. As a result, the prospect of chairman Hyun-joon’s successful reappointment of the CEO, which will be decided at the general shareholders' meeting next month, is predominant.

Factors influencing Hyosung’s results positively are increased sales of premium textile goods that satisfy customer needs in China and other competitive markets where supply exceeds demand; improved performances of Hyosung’s major overseas corporations in Vietnam, China and India; increased exports from Hyosung TNS and other affiliates, and improved profitability of promising businesses such as carbon fibres and aramid fibres.

Hyosung’s performance improvement in recent years shows that chairman Hyun-joon’s global management style has taken hold three years after he was inaugurated as chairman.

Chairman Hyun-joon has practiced up-close-and-personal management by visiting the group’s global business sites frequently to listen to those who work on the production lines and visiting global textile fairs in France and China to listen directly to customers.

Also, he met with India’s prime minister Narendra Modi, Vietnam’s prime minister Nguyen Xuan Phuc and Mexico’s president Andres Manuel Lopez Obrador to discuss business cooperation and build his network with political leaders of countries important to the growth of the group.

Chairman Hyun-joon utilised his IT business expertise and global management sense to drive the growth of Hyosung TNS’ overseas sales. The ATM manufacturer supplied its ATMs to large banks in about 30 countries including the US and Russia, posting its biggest ever results last year.

Hyosung TNC is a manufacturer of nylon textile filament.