The nation's leading boiler company, Kyung Dong Navien, achieved record sales last year as it continued to grow sharply in overseas markets.
The company plans to expand its overseas business to the U.S. and China this year, accelerating its global territorial expansion to open an era of 1 trillion won in annual sales.
According to the Financial Supervisory Service's electronic disclosure system on March 6, sales of the Gyeong Dong Navien reached 774.2 billion won last year, up 6.5 percent from 726.7 billion won the previous year.
This is the highest sales ever. Operating profit also reached 45.1 billion won during the same period, up 10.7 percent from 40.8 billion won a year earlier.
Analysts say that the strong performance of last year's Kyung Dong Navien is largely due to the rise in sales of its overseas subsidiaries. In fact, as of the third quarter of last year, sales of its overseas corporations accounted for 57.8 percent of total sales of 507 billion won.
Since last year's business report has yet to be released, overseas corporate sales cannot be accurately known. “Sales at overseas companies rose across the board,” said an official at Kyung Dong Navien.
The North American market accounts for the largest share of overseas corporate sales. In fact, the U.S.
company's sales are rising every year to 213 billion won in 2016, 244.3 billion won in 2017 and 283.8 billion won in 2018.
The accumulated sales of U.S. corporations in the third quarter of last year amounted to 228.8 billion won, accounting for 78 percent of the total sales of overseas corporations.
The Russian market is also continuing to grow steadily. Sales have been steadily growing over the past three years, with 30.5 billion won in 2016, 34.7 billion won in 2017 and 38.9 billion won in 2018. In addition, sales in the third quarter of last year reached 28.9 billion won, continuing to grow.
Its Chinese company, whose sales plunged in 2018 due to the U.S.-China trade dispute, has also begun to recover. The combined sales of Beijing and Shanghai subsidiaries reached 34.4 billion won in the third quarter of last year, up 7.5 percent from 32 billion won a year earlier.
Meanwhile, starting this year, only domestic boilers certified by the Korea Institute of Environmental Industry and Technology will be allowed to manufacture and sell. Accordingly, the number of households replacing boilers is expected to increase compared to last year.