SONGWON achieves fruitful results in fiscal 2021

• Total sales of 998.
19 billion won in 2021

• FY21 net profit totaled KRW 71.
209 billion

• SONGWON's gross profit margin maintained at 24.
5% in 2021

Recently, SONGWON Industrial Group released its financial performance report for fiscal year 2021
.
Sales revenue continued to grow in the fourth quarter of 2021, totaling KRW 283.
475 billion as of December 31, 2021, an increase of 39.
1% over the same period in 2020 (Q4 2020: KRW 203.
843 billion)
.
Net profit in the fourth quarter of 2021 reached KRW 26.
1 billion, an increase of 765.
7% from the net profit in the fourth quarter of 2020 (KRW 3.
015 billion), a record
.
At the end of 2021, SONGWON performed strongly, with overall consolidated sales totaling KRW 998.
19 billion, an increase of 23.
6% from the previous year (KRW 807.
768 billion in fiscal 2020)
.

SONGWON is off to a good start in fiscal 2021, despite the global challenges and economic crisis caused by the ongoing COVID-19 pandemic
.
Throughout the year, the demand of various departments continued to increase, showing a healthy development trend
.
Overall revenue improved significantly compared to fiscal 2020
.
In particular, in the last quarter of the year, SONGWON's various divisions achieved solid performance with improved profit margins and returns
.

For the Chemical Materials segment, revenue in the fourth quarter of 2021 increased by 32.
3% to KRW 202.
611 billion compared with the fourth quarter of 2020; sales in fiscal 2021 (KRW 735.
654 billion) were higher than the previous year 613.
593 billion won in 2018), an increase of 19.
9%
.
The Performance Chemicals segment also performed strongly in the fourth quarter of 2021
.
Compared with the fourth quarter of 2020 (KRW 50.
69 billion), the segment's sales increased by 59.
5% to KRW 80.
864 billion, a significant increase of 35.
2% compared to the same period in 2020 (KRW 194.
175 billion in fiscal 2020) , reaching 262.
536 billion won
.

The Chemical Feedstocks segment delivered solid sales performance in the fourth quarter of 2021, supported by strong global demand and limited supply of some chemical products
.
Previously, we raised prices across our product mix to offset skyrocketing raw material and transportation costs, which also had a positive impact on performance
.
In the fourth quarter of 2021, the sales volume of SONGWON's core business polymer stabilizers doubled due to insufficient market supply to maintain balance, huge demand in various regions, and a certain positive impact from foreign exchange
.
Fuel and lubricant additives also performed strongly in the fourth quarter of 2021
.
Against the background of the overall rise in demand across the industry, the business set a new sales record
.
The force majeure event and the formula-driven price increase implemented in the previous quarter successfully offset the increase in raw material and logistics costs, and the company's performance has been positive and further improved
.
The fourth quarter of 2021 saw a record for SONGWON coatings business
.
Although the performance exceeded the budget by a large margin, customers continued to order in December, subverting the previous phenomenon of destocking, but in order to offset the skyrocketing raw material prices and logistics costs, product prices must be raised
.

Given that SONGWON's revenue and profit growth were much higher than in the fourth quarter of 2020, the Performance Chemicals segment performed well in the final quarter of 2021, far exceeding initial expectations
.
There are signs of increased demand for tin intermediates in Asia, especially China, and a strong performance in the fourth quarter of 2021
.
Although the necessary maintenance on the plant in November had some impact on sales, turnover and profit margins continued to grow steadily
.
SONGWON's PVC business grew rapidly in the fourth quarter of 2021 due to improving market conditions, especially in Korea, with sales significantly higher than in fiscal 2020, delivering a solid performance
.

In 2021, we have encountered unprecedented supply bottlenecks, logistical challenges, soaring raw material prices and the emergence of new variants of the coronavirus
.
Nonetheless, we have executed our corporate strategy, have delivered positive financial results, and are driving strong momentum into 2022
.
Going forward, SONGWON expects supply and logistics conditions as well as raw material costs and pricing to continue to fluctuate and demand to remain high
.

To ensure reliable products and services to customers, SONGWON will expand production capacity to meet high demand, minimize negative impact on the company's supply chain, and balance rising raw material and logistics costs
.
The current market environment is still unclear, and it is difficult to make a forecast for fiscal year 2022.
Therefore, SONGWON remains cautious about the company's prospects
.
However, given the strong demand forecast to continue, SONGWON expects the Group's positive performance to continue into FY2022 by strengthening the supply chain, improving operational efficiency and continuing to execute on the company's strategy
.