Alpha Holdings Turns to Separate Operating Profit in Black Last Year... "Continued Performance Improvement"

[Asia Economy Reporter Jang Hyowon] Alpha Holdings announced its performance for last year through a disclosure of changes in sales or profit structure.

Consolidated operating profit improved by 2 billion KRW compared to the previous year to -5 billion KRW, and separate operating profit improved by about 3 billion KRW compared to the previous year, turning to a profit of about 1.5 billion KRW.

The main reason for the performance improvement is the increase in sales of the semiconductor division, which led to an improvement in operating profit. Specifically, the increase in sales of remote control receiver chips (IR receivers) and the increase in semiconductor chip design service projects and mass production sales in the system semiconductor design service division were the main causes.

According to Alpha Holdings, this year they plan to improve consolidated operating profit through efficiency in selling and administrative expenses and intend to use the semiconductor business as a growth engine. They expect to confirm the effect of selling and administrative expense improvement in the first half of this year, and in the second half, the system semiconductor design service division’s external growth will accelerate due to the effect of new customers.

Alpha Holdings’ new customer, HiDeep, is currently undergoing a merger with NH SPAC 18. According to the disclosed external evaluation report, Alpha Holdings is responsible for 70% of HiDeep’s outsourcing, so it can be expected that Alpha Holdings’ sales will increase as HiDeep’s performance grows.

HiDeep’s models applying IC chips for Samsung Electronics’ smartwatches will expand, and mass production of smartphone IC chips and stylus smartphone IC chips is scheduled to begin from the first and second quarters of next year. As mass production of HiDeep’s system semiconductor chip products expands, Alpha Holdings’ outsourcing will increase.

Additionally, Alpha Holdings expects improvement in consolidated performance through the full-scale external growth of its consolidated subsidiaries engaged in new businesses such as solar power architectural exterior materials and heat dissipation materials.

An Alpha Holdings official stated, “We will strive to improve consolidated operating profit this year, starting with improvements in selling and administrative expenses in the first half and with the full-scale effect of new customers occurring in the second half.”

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