After belatedly reflecting Chinese factory performance... SK Hynix's operating loss increases by 200 billion won more

[Asia Economy Reporter Park Sun-mi] SK Hynix revised its operating loss for the fourth quarter of last year to 1.8983 trillion KRW.

On the 23rd, SK Hynix filed a corrected consolidated earnings announcement on the Financial Supervisory Service's electronic disclosure system, revising the operating loss for the fourth quarter of last year from the previously announced 1.7011 trillion KRW to 1.8983 trillion KRW. The operating loss increased by approximately 200 billion KRW compared to the previous announcement.

[Image source=Yonhap News]

The delay in reflecting this in the financial statements was due to delayed negotiations with Intel, the operator of SK Hynix's Dalian factory in China, regarding the settlement related to factory operations. The settlement amount for factory operations in 2022 is determined through negotiations with Intel, but since the negotiations with Intel were not finalized, it was excluded from the fourth quarter results last year. Additionally, some revisions to the financial statements were made due to other settlement adjustments during the audit process.

Regarding the correction of the earnings, an SK Hynix official explained, "This is not an operational issue," and added, "It is only an issue of the timing of accounting treatment and does not have a negative impact on operations."

Meanwhile, SK Hynix will hold its regular shareholders' meeting on the 29th of next month. The agenda includes the appointment of outside directors Han Aera, Kim Jungwon, and Jeong Deokgyun, the appointment of audit committee members Han Aera and Kim Jungwon, and the appointment of Park Seongha as an other non-executive director. If approved at the shareholders' meeting, the number of female outside directors at SK Hynix will increase from one to two (Han Aera and Kim Jungwon).