KoAsiaOptics, 2Q Smartphone Market Slump... "Expecting Camera Module Impact in 2H"

[Asia Economy Reporter Yoo Hyun-seok] KoAsia Optics announced on the 17th that it recorded sales of 12 billion KRW and an operating loss of 4.5 billion KRW in the second quarter. The net loss for the same period was 5 billion KRW.

A KoAsia Optics official stated, "In the second quarter, the shipment volume of smartphones from major clients sharply declined by 25% compared to the previous quarter, resulting in poor performance due to the sluggish market conditions," adding, "This is due to the smartphone market downturn and production disruptions caused by COVID-19."

The company expects the smartphone market to rebound starting in the second half of the year. It also explained that profitability will improve due to the inclusion of the camera module business division acquired last month.

The company said, "To strengthen business competitiveness and expand profitability, we acquired the core business division of KoAsia Camera Module last month," and added, "We will pursue a turnaround in the second half through a one-stop system capable of production, sales, and delivery."

Meanwhile, KoAsia Optics announced on the 28th of last month that it is officially entering the camera module business by acquiring new shares of KoAsia CM and securing part of the shares of KoAsia CMB VINA. KoAsia CM is a core corporation of the KoAsia Group's camera module business division, specializing in camera module research and development, procurement, supply of raw materials, and sales. Its main client is Samsung Electronics Wireless Division's first-tier vendor KoAsia CMB VINA (a Vietnam-based production corporation).

A company official emphasized, "The sales proportion of high value-added products such as rear high-pixel products is increasing, which is positive," and added, "We will make every effort to improve performance through module business integration and expansion of the proportion of high value-added products."

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