[Public Notice+] IA posts 2.2 billion KRW operating profit in Q1, sustaining profit... Steady growth for 2 years

[Asia Economy Reporter Jang Hyowon] IA, a core parts company for future vehicles, announced on the 15th that it achieved an operating profit of 2.2 billion KRW on a consolidated basis in the first quarter of this year, successfully turning a profit compared to the same period last year.

During the same period, consolidated sales amounted to 14.6 billion KRW, and net profit was 2.4 billion KRW. On a separate basis, the first quarter operating profit was also 1.9 billion KRW, achieving a turnaround to profit compared to the same period last year, with sales and net profit recorded at 12 billion KRW and 1.3 billion KRW, respectively.

IA explained that despite the impact of the COVID-19 pandemic, significant improvement in operating profit was possible in the first quarter as it has been stably receiving technology development service fees from IA Power Electronics Co., Ltd., a joint venture (JV) established with the government of Yancheng City, China, to enter the electric vehicle market.

An IA official said, “Despite internal and external variables due to the spread of COVID-19, we succeeded in turning a profit in the first quarter. We recognized 3 billion KRW in technology development service sales in the first quarter of this year based on progress rates, and since most of the sales are reflected as revenue, continuous performance growth is expected this year.”

IA is developing and producing power modules and power controllers together with IA Power Electronics Co., Ltd. IA provides related technology services to IA Power Electronics Co., Ltd. and agreed to receive a total of 21 million USD (approximately 25.7 billion KRW) in technology development service fees over three years from 2019 to 2021. So far, it has received a total of 16.7 billion KRW, recognizing 6.3 billion KRW last year and 3 billion KRW in sales in the first quarter of this year.

The official added, “IA Power Electronics Co., Ltd. plans to launch prototypes of power modules and power controllers in the second half of this year. Since the business is being conducted from a long-term perspective aiming to enter the Chinese electric vehicle market, it is progressing without major setbacks despite the impact of COVID-19.”

He continued, “We will create visible results this year by synergizing with group affiliates Sewon, IA Networks, and Infraware.”

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