[Asia Economy Reporter Yoo Hyun-seok] IA, a semiconductor company specializing in automotive electronics, announced on the 25th that it achieved an operating profit of 4.4 billion KRW and a net profit of 13.1 billion KRW on a consolidated basis in 2020, setting a record high net profit. Compared to the previous year, operating profit increased by 62%, and net profit surged by an impressive 955%.
On a separate basis in 2020, operating profit and net profit were 4.4 billion KRW and 11.4 billion KRW respectively, marking increases of 27% and 17% compared to the previous year. During the same period, sales recorded 58.4 billion KRW on a consolidated basis and 45.4 billion KRW on a separate basis.
Although sales slightly declined due to sluggish demand in upstream industries caused by the COVID-19 pandemic and the overall economic downturn last year, the company explained that revenue from technology development services provided to the joint venture 'IA Power Electronics Co., Ltd.', established with the government of Yancheng City, China, significantly contributed to profit growth. Gains from the disposal and valuation of investment securities also led to improved profitability.
An IA official stated, “Following nearly 10 billion KRW in net profit on a separate basis in 2019, this fiscal year we have continued to achieve record-high performance with net profits exceeding 10 billion KRW on both separate and consolidated bases. This year, we plan to expand sales in each business sector, driven not only by technology development service revenue from the Chinese joint venture but also by expectations for sales growth within China through the joint venture and the recovery of the automotive industry.”
He added, “In particular, with the recent shortage of automotive semiconductors and the rapid recovery of the automotive upstream industry, greater growth is expected in the future.”
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