Chemical fiber company, Huvis (President Shin Yoo-dong, 079980), recorded a revenue of 269.5 billion won, operating loss of 14.7 billion won and net loss of 13.3 billion won for the second quarter of 2022, with a cumulative revenue of 551.1 billion won, operating loss of 27.3 billion won, and net loss of 23.4 billion won for 2022 up to date, it announced through its performance disclosure on the 16th. Based on the company’s consolidated statements, revenue rose by 2.1% from a year earlier (2Q21) but its operating profit and net profit have turned to the red. Compared to the preceding quarter (1Q22), the revenue and the operating profit dropped by 4.3% and 16.2%, respectively.
 
The increase in raw materials prices caused by the recent global supply chain crisis, inflation and consumer confidence weakened by the prolonged economic depression have all led to the company's deteriorated profitability. This is also partially attributed to the heated competition among suppliers as the war in Ukraine has led to reduced industrial production in Europe, the company’s major export destination, while demand has also decreased due to the recent global economic recession.
 
A source from Huvis said, “We tried to overcome the complex situation but there was a limit to what we could do to restore our profitability. The prospects for the second half are also gloomy but we will do our best to restore profitability by reducing costs under an emergency management system and expanding our portfolio with specialty products while diversifying our overseas markets.”

[Summary of consolidated income statement]                                          [Units: Million KRW]