SK Hynix (KRX: 000660) announced its financial results for the year ending December 31, 2022.
The company reported revenue of 44.648 trillion won and an operating profit of KRW 7.007 trillion, with a net income of KRW 2.439 trillion.
Operating and net profit margins were 16% and 5%, respectively.
According to the company, operating profit decreased year-on-year as the industry experienced a downturn in the year’s second half.
The company said it would continue to reduce its investments and costs while focusing on markets with high growth potential to minimize the impact of the downturn.
SK Hynix increased its shipments of high-performance memory DRAM for the server and PC markets and boosted sales of DDR5 and HBM, where the company said it has solid market leadership to customers in the AI, Big Data, and cloud computing sectors.
The company more than quadrupled its data center SSD revenue year-over-year.
However, SK Hynix posted an operating loss in the fourth quarter of 2022 due to weak demand and a sharp drop in memory chip prices.
Revenue for the quarter was KRW 7.699 trillion, with an operating loss of KRW 1.701 trillion, representing an operating loss ratio of 22%.
Net loss was KRW 3.524 trillion, representing a net loss ratio of 46%. This was the first quarterly operating loss since the third quarter of 2012.
Despite the downturn in the industry in the first half of the year, SK Hynix expects market conditions to improve gradually in the second half.
The company expects a gradual recovery in demand as global technology companies use more memory French fries as prices fall.
CFO, Kim Woohyun, said that with the world’s best technologies for DDR5 for data centers and 176-layer NAND flash-based enterprise SSD, the company expects a quick turnaround when the market bottoms out.
SK Hynix has decided to more than halve its investment volume from KRW 19 trillion in 2022.
However, the company will continue to invest in mass production of mainstream products such as DDR5, LPDDR5, and HMB3, as well as in markets with growth potential.
Kim said overcoming the current downturn will help the company strengthen its fundamental business competitiveness and eventually become a leading technology company.