Alpha Holdings Restructures by Dissolving Bio Subsidiary to Focus on System Semiconductor Business

[Asia Economy Reporter Jang Hyowon] Alpha Holdings announced on the 4th through a dissolution reason occurrence disclosure that it has resolved to dissolve its subsidiary Alpha Bio Labs.

They decided to dissolve and liquidate Alpha Bio Labs, a major subsidiary that had been continuously operating at a loss. Through this, the scale of consolidated operating losses is expected to decrease starting from the fourth quarter.

According to the half-year report submitted by Alpha Holdings this year, the separate financial results achieved sales of 47.8 billion KRW and operating profit of 2 billion KRW, but on a consolidated basis, sales were 48.4 billion KRW with an operating loss of 1.3 billion KRW.

Alpha Bio Labs, which is being dissolved this time, had been overseeing the bio business for several years but failed to secure a clear source of profit, recording operating losses of over 3 billion KRW annually. Until the half-year mark this year, it posted an operating loss of 1.4 billion KRW and a net loss of -1.6 billion KRW, but with this dissolution, Alpha Holdings’ overall consolidated operating profit is expected to increase significantly.

Alpha Holdings plans to maximize profits by reducing costs company-wide through the reorganization of non-core businesses, while also improving operating rates in the system semiconductor design sector amid rising exchange rates and delivery prices.

An Alpha Holdings representative stated, “Due to the expansion of new clients and cost reductions, the core system semiconductor design division of Alpha Holdings is experiencing growth in performance,” adding, “We expect a turnaround in consolidated results to be fully possible next year when the effects of proactive restructuring, cost savings, and new client inflows begin to take full effect.”