View of Kolon Industries headquarters. (Photo = Kolon Industries)

[Alpha Biz= Reporter Kim Jisun] On the 9th, Kolon Industries stated during its Q1 conference call in response to questions about the specific direction of its film business joint venture, 'We are currently discussing the ownership ratio and operating plans with Hahn & Company.' They added, 'Our stake is expected to be a minority stake and will therefore be excluded from the consolidated financial statements.' Industry insiders speculate that Kolon Industries will own a 20% stake in the joint venture.

Kolon Industries' film business has been incurring losses since the second quarter of 2022, recording a total loss of 157.3 billion won over the past two years. Even in the first quarter of this year, classified as a discontinued operation, it incurred a loss of 5.9 billion won. If the film business joint venture is excluded from the consolidated financial statements, any future losses will only be reflected according to the ownership stake. Kolon Industries explained that 'since the performance does not affect the consolidated profit and loss, it will contribute to the improvement of financial results.'

In the first quarter, on a consolidated basis, Kolon Industries recorded sales of 1.1612 trillion won and an operating profit of 30.6 billion won. While sales increased slightly by 0.2% compared to the same period last year, operating profit decreased significantly by 17.7%.

The operating profit of its mainstay industrial materials business, which produces tire cord and aramid, amounted to 31.8 billion won, down 8.4% from the previous year. The profit from the chemical business also decreased by 8.3% to 15.5 billion won, and the profit from the fashion business decreased by 57.1% year-on-year to 2.4 billion won.

 

 

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