For the third year in a row since 2020, HL Mando changed the first digit of its annual sales figure, ushering in the era of 8 trillion won in sales.
HL Mando announced on Feb. 5 that its sales increased 11.7 percent from the previous year to 8.3930 trillion won (US$6.3255 billion) and its operating profit 12.6 percent to 279.2 billion won, respectively, on a consolidated basis in 2023.
HL Mando’s improved annual business performances were driven by strong sales to automakers, including Hyundai and Kia. HL Mando is a comprehensive parts company that develops and produces vehicle braking, steering, and suspension systems. Through its subsidiary HL Klemove, the company also provides core hardware and software solutions for the Advanced Driver Assistance System (ADAS) and autonomous driving.
In the fourth quarter of last year, HL Mando racked up 2.1904 trillion won in sales and 50.5 billion in operating profit. Compared to the fourth quarter of 2022, its sales were up by 0.4 percent and operating profits down by 11 percent. HL Mando’s fourth-quarter results were impacted by inventory adjustments by Chinese electric vehicle companies, which are HL Mando’s corporate customers, and line adjustments by Hyundai and Kia ahead of the introduction of new models.
HL Mando has been winning more new orders for key components for electrification including electric vehicles and autonomous vehicles. In 2023, HL Mando’s new orders amounted to 16.6 trillion won. This was 2.2 trillion won (15.3 percent) more than 14.4 trillion won, which the company had set as its annual order target at the beginning of 2023.
“We have secured an opportunity to supply next-generation products for Hyundai Motor Group’s major electric vehicle platforms,” HL Mando said in an investor relations material. “We are steadily secure additional suspension orders and rack type electric power steering orders from major North American electric vehicle makers.”
In addition, HL Mando has secured new ADAS orders from major automakers other than Hyundai Motor Group. The company is eyeing 15.1 trillion won in new orders this year.