IAI Reports 9.6 Billion KRW Cumulative Net Profit in Q3, Up 137% Year-on-Year

[Asia Economy Reporter Jang Hyowon] Future car core parts company IAE succeeded in maintaining a strong profit trend in the third quarter of this year despite the COVID-19 pandemic situation.

On the 16th, IAE announced that its consolidated operating profit for the third quarter increased by 36% year-on-year to 2.2 billion KRW. During the same period, sales and net profit were 14.1 billion KRW and 3.3 billion KRW, respectively.

The cumulative consolidated sales for the third quarter amounted to 39.2 billion KRW, with operating profit and net profit at 5.7 billion KRW and 9.6 billion KRW, respectively. Operating profit increased by 4087% year-on-year, and net profit rose by 137%.

An IAE official explained, “Despite the impact of COVID-19, profitability significantly improved due to technology development service fees through the China JV (joint venture) business,” adding, “Non-operating income also increased substantially due to evaluation gains from convertible bonds of affiliates.”

IAE is advancing into the electric vehicle market by establishing IAE Power Electronics Co., Ltd. with the government of Yancheng City, China, and is currently engaged in power module and power controller businesses. The structure involves providing related technology services and receiving technology development service fees totaling 21 million USD over three years. Last month, IAE Power Electronics Co., Ltd. signed its first supply contract for a new power module and supplied power modules to two electric vehicle models of Company B, the leading electric vehicle company in China.

A company representative added, “This year, we are minimizing the impact of COVID-19 while expanding our entry into future growth markets such as electric vehicles and hydrogen vehicles to enhance competitiveness.”