RF Tech Reports Operating Profit of 9.8 Billion KRW Last Year... "Expecting Performance Improvement This Year"

[Asia Economy Reporter Hyunseok Yoo] RF Tech announced on the 22nd that its consolidated sales last year amounted to 257.9 billion KRW, a 9.3% decrease compared to the previous year, and operating profit was 9.8 billion KRW, down 25.7%. Due to derivative valuation losses, the net loss for the period increased to 19 billion KRW compared to the same period last year.

Last year, the overall performance declined as major countries such as the United States and Japan postponed 5G infrastructure construction and investment due to the spread of COVID-19. However, in the fourth quarter, steady sales were maintained in the mobile components business and the HA filler business of its subsidiary RF Bio, resulting in operating profit turning positive.

An RF Tech official stated, "This year, there is a high possibility that domestic and overseas 5G infrastructure investments will resume, raising expectations for orders. Based on the core business of 'mobile components,' investments in the botulinum toxin and HA filler businesses of our subsidiary RF Bio are also expected to accelerate, so the contribution of subsidiary performance will improve."

Meanwhile, under the International Financial Reporting Standards (IFRS), when a company issues convertible bonds (CB) or bonds with warrants (BW) and the stock price rises, the increase in value of CBs and BWs due to the stock price rise is recorded as derivative financial liabilities and treated as non-operating expenses.

This is a one-time loss reflected in accounting. Due to the stock price increase last year, RF Tech incurred approximately 25 billion KRW in derivative financial liabilities related to the second series of convertible bonds issued in January 2019, which was recognized as a non-operating loss.

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