- FY2022 revenues at 44.648 trillion won, operating profit at 7.007 trillion won
- First operating loss in 10 years in 4Q due to sluggish demand, price fall of memory chips
- “Preparedness for new market based on technological competitiveness expected to lead to quick turnaround in earnings”
Seoul, February 1, 2023
SK hynix Inc. (or ‘the company’, www.skhynix.com) reported today financial results for 2022 ended on December 31. The company recorded revenues of 44.648 trillion won, an operating profit of 7.007 trillion won and a net income of 2.439 trillion won. Operating and net profit margin for the full year was 16% and 5%, respectively.
“Revenues continued to grow last year, but the operating profit decreased compared with a year earlier as the industry entered into a downturn from the second half,” the company said. “With uncertainties still lingering, we will continue to reduce investments and costs, while trying to minimize the impact of the downturn by prioritizing markets with high growth potential.”
In 2022, SK hynix increased high-capacity DRAM shipments for server/PC markets, while boosting sales of DDR5 and HBM – of which products that the company has a solid market leadership – to customers in the growing markets of AI, Big Data, and cloud computing. Particularly, revenues for the data center SSD more than quadrupled compared with a year earlier.
However, SK hynix recorded an operating loss in the fourth quarter of last year due to weak demand and a sharp fall in memory-chip prices. The revenues for the three months on a consolidated basis were 7.699 trillion won, while the operating loss amounted to 1.701 trillion won (operating loss ratio at 22%) and net loss was at 3.524 trillion won (net loss ratio at 46%). The latest result was the first quarterly operating loss since the third quarter of 2012.
“Despite a deeper industry downturn in the first half, SK hynix forecasts market conditions to gradually improve into the latter part of the year,” the company said. “Industry experts do not expect an increase in supply of memory chips as market players are planning to reduce investments and production, which will lead the inventories to peak within the first half.”
In addition, SK hynix forecasts a gradual recovery in demand as global tech companies start to adopt more memory chips as the prices are low.
“Intel’s launch of new server CPU adopting DDR5 and apparent positive signs of demand for new AI-based server memory chips bode well for a quick business turnaround,” Chief Financial Officer Kim Woohyun said. “With the world’s best technologies for DDR5 for data centers and 176-layer NAND flash-based enterprise SSD, we expect to see a quick turnaround when the market bottoms out.”
SK hynix will stay with the decision announced in October to more than halve the volume of investments compared with 19 trillion won in 2022. However, investments for mass production of mainstream products such as DDR5, LPDDR5, and HMB3 and markets with growth potential will be continued.
“A successful overcome of the current downturn will help us strengthen fundamental business competitiveness before eventually leaping forward as a leading technology company,” Kim said.
About SK hynix Inc.
SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.
Media Contact
SK hynix Inc.
Global Public Relations
Technical Leader
Minseok Jang
E-Mail: global_newsroom@skhynix.com
Technical Leader
Kanga Kong
E-Mail: global_newsroom@skhynix.com
