[Asia Economy Reporter Jang Hyowon] LIS announced that its net profit last year was 15.6 billion KRW, a 50,000% increase compared to the previous year.
LIS disclosed on the 14th that its consolidated sales last year amounted to 145.1 billion KRW, operating profit was 11.3 billion KRW, and net profit was 15.6 billion KRW.
The operating profit margin improved from 6.4% in 2018 to 7.8% last year, and net profit increased by 57,744% from 30 million KRW the previous year to 15.6 billion KRW. This is evaluated as largely reflecting efforts to improve the financial structure.
Although LIS experienced a gap in orders in the first half of last year due to delayed investments by Chinese display companies, it stated that from the second half, investments resumed in earnest and equipment orders have been proceeding smoothly.
A company official said, "We continued efforts to reduce costs and showed results with an increased operating profit margin, and the technology contribution to the local Chinese JV was reflected in net profit, resulting in good performance. We expect both sales and profitability to improve this year as well."
Regarding somewhat disappointing sales, the company explained that delivery schedule delays due to customer circumstances caused limited reflection in performance, and it is expected that the related performance will be reflected within the first half of this year. The current order backlog is approximately 100 billion KRW, most of which is expected to be recognized as sales in the first half.
Regarding the relatively frequent deferral of sales recognition by quarter, the company explained that it is simply a difference in the timing of sales recognition in accounting due to the nature of the order-based industry where deliveries are made at the customer's request.
Concerning concerns about the coronavirus issue in China, the company stated, "Currently, we are not directly affected. About 140 local employees are stationed at the Chengdu, Mianyang, and Wuhan factories to respond, and important local factories are operating normally." It added, "We expect the impact from coronavirus to remain limited going forward."
LIS stated that it aims for a performance quantum jump this year through expanding orders for its core business, OLED equipment, and entering new business areas. Regarding solar equipment, one of the new business fields, it expects meaningful sales volume in the first half of this year.
A company official said, "Having previously secured the Chinese OLED market and well understanding the advantages of the first-mover effect, we plan to move quickly to capture the market in new business areas as well. This year marks the first time sales will occur in new business fields, and we place great significance on this as the first step to securing the Chinese market."
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