Mando announces strategy to evolve into companies specializing in “EV solutions” and “autonomous driving” to reach KRW 9 trillion in revenue by 2025
KRW 7.4 trillion of the electrified chassis product and with the new xEV companies, 2,000 billion KRW of ADAS & mobility solutions
Decision to split the autonomous driving division (ADAS); ‘Mando (Existing Co.) and MMS (Split-off’ New Co. ‘)’ will each become specialized companies in their own right
Seoul, South Korea, June 11, 2021 / PRNewswire / – Mando, a subsidiary of Halla Group, recently announced its vision to achieve 9 trillion KRW in revenue by 2025 thanks to growth in two main activities, “EV solutions (electrified chassis products and with new xEV-related activities)” and “Autonomous driving (ADAS and mobility solutions)”. The key strategies are 1) the existing company (Mando) will grow as a highly focused EV solutions company through the electrification of the chassis (brake, steering, suspension), and 2) the new company (MMS) will separate from Mando and will position itself as a “company specializing in autonomous driving and mobility”.
Mando announced on June 9e 2021, that its board of directors approved the company’s plan to split its “autonomous driving (ADAS)” activity. The demerger plan should be presented to the general meeting of shareholders to be held in July 2021, and the spin-off transaction must be concluded on September 1stst 2021, according to regulatory requirements. Existing Co., the parent company of New Co., will maintain managerial control over New Co. to create synergy between the two entities and strengthen its position as a “leader in integrated chassis systems solutions”. In addition, he plans to accelerate the growth of New Co.’s autonomous driving business through a timely financing structure.
“MMS (Mando Mobility Solutions) -tentative”, the New Co., will emerge as a specialist provider of autonomous driving solutions in the areas of autonomous vehicle parts, autonomous robots and mobility services. In order to create a commercial synergy for autonomous driving, MHE (MANDO-HELLA Electronics) will become a 100% subsidiary of MMS. In addition, the revenues and profits of MSS and MHE will be fully reflected in the financial statements of Existing Co .. MMS and MHE aim to achieve 2,000 billion KRW of turnover by 2025 ‘, an increase of 800 billion KRW that of the 2021 business plan.
Mando, the Existing Co., aims to become a highly focused EV solutions company by leveraging its business experiences with leading global EV companies and advancing software solutions. The mainstay of Existing Co.’s main business are electrified chassis products (brake, steering, suspension) and specialized xEV products such as e-Drive (motor) for electric vehicles, e-Corner module (module integrated electrified chassis) and the hydrogen car. battery charge converter are under development. The target turnover of the existing company by 2025 is KRW 7.4 trillion, which represents an increase of KRW 2.2 trillion of the 2021 business plan. The total turnover of existing and new companies in 2025 is expected to reach 9 trillion KRW on a consolidated basis (excluding intercompany transactions), which represents additional growth of 3 trillion KRW business plan from 2021 (KRW 6.1 trillion).
Cho Seong Hyeon, Chairman and Representative Director of Mando, said that “specialization of core businesses is inevitably required for Mando to actively respond to rapidly changing market conditions” and that “we will do our utmost to maximize shareholder value by recognizing fully the values of the existing company. and MMS as highly specialized companies “.
With the rapid growth of the electric vehicle market, Mando strives to become the automotive industry cleantech leader as a premier ESG company, ultimately maximizing the value of the company.