Mirae Industry's Q2 Net Profit Up 20% YoY... "Accelerating Profitability Improvement"

[Asia Economy Reporter Minji Lee] Mirae Industry announced on the 17th that its net profit surged significantly, driven by cost of goods sold reduction and favorable exchange rate effects.

On the previous day, Mirae Industry disclosed that its consolidated net profit for the first half of this year reached 9.9 billion KRW, marking a 20.74% increase compared to the same period last year. Compared to the previous quarter, this figure soared by an impressive 269%. The first half sales amounted to 25 billion KRW, down 5.38% from the same period last year, and operating profit was tentatively recorded at 4.6 billion KRW, a 9.69% decrease. The burden of cost of goods sold decreased by nearly 16% during the same period, resulting in a 17% increase in gross profit to 9.8 billion KRW.

The strong dollar contributed significantly, generating 1.9 billion KRW in foreign exchange gains mainly from the components business. This represents a 138% increase compared to the same period last year, with foreign exchange gains and foreign currency translation gains rising by 243% and 189%, respectively, during the same period.

Sales in the Test Handler business division (ATE) for the first half declined by 4.4% year-on-year. This was due to a decrease in semiconductor demand in China caused by the resurgence of COVID-19 and worsening US-China diplomatic relations, which also led to a slowdown in handler supply. A Mirae Industry official explained, "There is a substantial accumulated backlog of handler demand, so if external adverse factors are resolved, there remains a high possibility of sales recovery and improvement."

The Test Handler is equipment independently developed by Mirae Industry that connects to testers to inspect the performance and defects of semiconductors after all processes are completed, and classifies them by grade based on inspection results.

Seongwoong Up, CEO of Mirae Industry, stated, "Cost reduction through efficiency improvements and exchange rate effects from the strong dollar contributed to profits," adding, "We will consider various scenarios such as securing a stable supply chain and reducing capital expenditures to improve profitability."