HiSonic, "Full Effort on New Businesses to Secure Financial Soundness This Year"

HiSonic announced on the 10th that it will fully implement business restructuring, including discontinuing the VCM AF actuator business. Prior to this, the company had disclosed on the 29th of last month that it would halt production and sales of the VCM AF business.

The VCM AF business has experienced continuous profitability decline over the past few years due to the slowdown in the smartphone market and intensified price competition with Chinese companies. In response, HiSonic adopted a downsizing strategy and has entered the final stages of liquidating overseas production facilities in the Philippines and Vietnam. At the same time, since last year, the company has been pursuing a rigorous financial structure improvement by reflecting impairment losses as expenses.

HiSonic has secured a stable cash cow by focusing on the IRCF (Infrared Cut Filter) business for smartphone camera modules, which is highly profitable among its core businesses. On the 22nd of last month, through the acquisition of InnoWave’s Suzhou, China subsidiary, the company internalized all processes including the core infrared (IR) and anti-reflective (AR) coating processes of IRCF.

Visible results are also expected in the new secondary battery business, which will be HiSonic’s new growth engine. Demand for prismatic secondary batteries is expected to continue, and the company supplies essential safety-maximizing components and manufacturing equipment for prismatic batteries such as cans and cap assemblies. In particular, as HiSonic was recently registered as a vendor for the global company AESC, related orders are expected to increase significantly this year.

A company official explained, “We chose a downsizing strategy for the VCM AF business in response to the rapidly changing smartphone market environment,” adding, “We will focus all efforts on improving financial soundness this year while actively pursuing a ‘two-track’ strategy to secure future growth engines and improve our corporate structure.” The official further stated, “In the camera module business sector, we plan to expand the highly profitable IR filter business and promote new businesses in the secondary battery field to lay the foundation for a new leap forward.”

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