Storage Manufacturer releases most recent earnings report

● It is 4.193 trillion won for Operating profit, and combined 13.811 trillion won for sales from storage manufacturer.

● The investment strategy for the following year will be related to the prediction of declining demand in the next half of the year.

SK Hynix – Storage Manufacturer

SK Hynix, one of the storage manufacturer, published its financial report today (July 27) for the second quarter of the fiscal year 2022. Consolidated revenue for the business was KRW 13.811 trillion. Furthermore, operating profit was KRW 4.193 trillion. Refer to the data in 2022, the operating margin was 30% as well as the net profit margin was 21%.

Besides it, the company’s quarterly revenue exceeded 13 trillion won. Previously, the fourth quarter of last year saw the company’s greatest quarterly sales of 12.377 trillion won.

According to SK Hynix, although the price of DRAM products fell in the second quarter, the price of NAND chips rose instead. Meanwhile the rise in the business’s overall sales resulted in an increase in revenue. In addition, the dollar’s ongoing strength as well as the consolidation of the subsidiary Solidigm’s results have also been helpful.

Moreover, the profitability increased because of improvement of the production yield of the key products. That was 176-layer 4D NAND, in other words, we called it as 10nm-class fourth-generation (1a) DRAM. And two quarters following the fourth quarter of last year,the corporation once again generated operating profits of over 4 trillion won and an operating margin of over 30%.

Financial Statements for the Second Quarter of Fiscal 2022 Subject to the consolidated report

Unit: Billion KRW

What’s more, the financial results discussed herein are preliminary and speak only as of June 30, 2022. Generally speaking readers should not assume that this information remains operative at a later time. In addition, this information many include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. Therefore, readers should refer to SK hynix Inc.’s filings with the Korea Exchange. In a word, this document is neither an offer to sell nor a solicitation of an offer to sell any security of SK Hynix Inc.

Revenue in past years

● At the beginning of fiscal 2022, the storage manufacturer’s consolidated revenue was KRW 12.156 trillion, and net profit was KRW 1.983 trillion.

● In fact, the company’s operating profit for the fourth quarter of fiscal 2021 was KRW 4.220 trillion.

The company said, “It is significant to have achieved good commercial success despite the challenging economic climate, such as global inflation, protracted Russian and Ukrainian conflicts, and COVID-19 lockdown in some regions of China.”

The next half of the year, according to SK Hynix, will see a slowdown in the demand for memory. This is due to the fact that memory-equipped PC and smartphone shipments are anticipated to decline more than previously anticipated. Additionally, because customers will preferentially use up their stocks, the demand for server RAM provided to data center clients is also anticipated to slow down. However, the business anticipates that over the medium to long term, data center memory demand would increase gradually.

Business strategy for storage manufacturer

In terms of the long-term business strategy, SK Hynix said it will carefully examine the investment plan. Especially for the following year, SK Hynix will keep an eye on product inventory levels in the rest half of the year.

Kevin (Jongwon) Noh, president & chief marketing officer (CMO) of SK hynix said:“Despite recent increases in business climate uncertainties,we have confidence in the memory industry’s prospects for long-term growth.While being flexible in our adaptation to changes in the business environment, our main goal is to increase core business competitiveness.”