DB HiTek, Q1 Record Sales of 243.7 Billion KRW... Operating Profit Down 6%

[Asia Economy Reporter Kim Heung-soon] DB HiTek, specializing in system semiconductors, announced on the 14th that its sales in the first quarter of this year reached 243.7 billion KRW, an 8% increase compared to the same period last year, marking the highest quarterly figure ever. Operating profit was recorded at 60.6 billion KRW, a 6% decrease compared to the same period last year.

DB HiTek explained that by reducing the useful life of machinery and equipment (the expected period during which tangible assets can be used in business activities) from 11 years to 6 years, depreciation expenses increased by 15.5 billion KRW from 20.4 billion KRW to 35.9 billion KRW, which led to a decrease in operating profit compared to the same period last year (64.7 billion KRW).

Previously, DB HiTek had achieved record-high performance for two consecutive years due to increased demand for system semiconductors such as power semiconductors, sensors, and display driver chips last year.

The company explained that in the first quarter of this year, foundry (semiconductor contract manufacturing) demand continued across major products, and sales of display driver chips designed by the company expanded, reflecting positively on the performance.

A DB HiTek representative stated, "Both of our fabs (manufacturing facilities) in Bucheon, Gyeonggi Province, and Eumseong, Chungbuk Province, are currently operating at full capacity, and customer orders are expected to remain steady until the end of the year, so we anticipate continuing our growth trend."

DB HiTek plans to expand production capacity to about 9,000 units per month through productivity improvement activities this year and focus on developing new products in high-growth sectors such as 5th generation mobile communications (5G) and electric vehicles.

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