Hyosung Group's holding company, Hyosung, achieved its highest quarterly profit in history in the second quarter of this year (April to June) thanks to the power equipment business of its subsidiary, Hyosung Heavy Industries. Affiliates in the chemical institutional sector, such as Hyosung Chemical, have not been able to overcome poor performance.
Hyosung announced on the 25th that its second-quarter revenue was 601.9 billion won, an increase of 6.7% compared to the second quarter of last year. During the same period, operating profit increased by 159.5% to 99.1 billion won. Net profit for the period was recorded at 89.7 billion won, up 492.7%.
The subsidiary that contributed the most to the performance of Hyosung, the holding company, is Hyosung Heavy Industries. Hyosung Heavy Industries' second-quarter revenue was 1.5253 trillion won, a 27.77% increase compared to the second quarter of last year. Operating profit during the same period rose by 162.15% to 164.3 billion won. Net profit increased by 209.70% to 87.3 billion won.
Hyosung Heavy Industries is experiencing a surge in exports of ultra-high voltage transformers due to increased demand for electrical equipment in the United States. U.S. projects account for 41% of Hyosung Heavy Industries' backlog.
In contrast, the chemical institutional sector remains in a poor situation. Hyosung TNC's second-quarter revenue was 1.8892 trillion won, a decrease of 4.7% compared to the second quarter of last year, and operating profit during the same period fell 13.4% to 73.3 billion won. The company explained that profits decreased due to reduced demand in overseas textile markets, including the United States and China.
Hyosung Chemical continued to incur losses. Hyosung Chemical's second-quarter revenue was 617 billion won, a 3.25% increase compared to the second quarter of last year. The second-quarter operating loss was recorded at 9 billion won. This represents a reduction in the loss compared to the second quarter of last year, which experienced a loss of 60.7 billion won. The second-quarter net debt ratio also decreased to 380.3% from 628.5% in the first quarter.