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 KRW 1 trillion again in three years. Hyosung announced that the five affiliates posted a total of KRW 18.011 trillion in sales and KRW 1.01 trillion in operating profit last year. The group’s operating profit surpassed KRW 1 trillion again in three years after it first recorded KRW 1.016 trillion in operating profit on sales of KRW 11.929 trillion in 2016. The outcome came amid a poor showing made by their competitors.
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 his 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 fibers.
Hyosung’s performance improvement in recent years shows that Chairman Cho Hyun-joon’s global management style has taken hold three years after he was appointed in this position. 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.