LG Innotek Reports 53% Increase in Operating Profit Last Year... Growth Driven by Premium Smartphone Component Sales (Comprehensive)

Q4 Sales Increased by 22.0% to 2.9652 Trillion KRW

[Asia Economy Reporter Dongwoo Lee] LG Innotek announced on the 29th that its fourth-quarter operating profit increased by 102.0% year-on-year to KRW 209.251 billion. Sales during the same period rose 22.0% to KRW 2.965167 trillion.

An LG Innotek official stated, "Sales and operating profit both increased due to higher sales of high-end components applied to premium smartphones, such as high-performance camera modules."

Meanwhile, LG Innotek's annual sales last year reached KRW 8.3021 trillion, with an operating profit of KRW 403.1 billion. Compared to the previous year, sales increased by 4% and operating profit by 53%. The growth was driven by the Optical Solutions business, which produces camera modules, and the Substrate Materials business, which manufactures semiconductor substrates.

Looking at the performance by business division, the Optical Solutions business recorded sales of KRW 2.2472 trillion, up 34% year-on-year and 34% quarter-on-quarter. The company attributed this to expanded sales of differentiated high-performance and high-quality products such as multi-camera modules for smartphones. Annual sales reached KRW 5.4257 trillion, a 6.5% increase from the previous year.

The Substrate Materials business posted sales of KRW 286.2 billion, down 8% year-on-year and 6% quarter-on-quarter. Although sales of semiconductor substrates and photomasks increased, sales declined due to seasonal demand reduction for display substrates and the termination of the HDI business. Annual sales were KRW 1.1261 trillion, a 2.8% decrease from the previous year.

The Automotive Components business recorded sales of KRW 301 billion, up 14% year-on-year and 3% quarter-on-quarter. This was driven by increased sales of vehicle motors and communication modules, along with higher sales of ADAS (Advanced Driver Assistance System) camera modules and power components for electric vehicles. Annual sales reached KRW 1.132 trillion, a 17.5% increase from the previous year.

The LED business posted sales of KRW 67 billion, down 29% year-on-year and 27% quarter-on-quarter. Sales declined as the company reduced the proportion of low-profit products such as general lighting sources and streamlined its business structure focusing on high-growth products like automotive lighting modules. Annual sales were KRW 354.6 billion, a 22.3% decrease from the previous year.

This content was produced with the assistance of AI translation services.