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[Alpha Biz=(Chicago) Reporter Kim Jisun] The return on equity (ROE) of SK Hynix's Chinese subsidiary fell for the first time in the past three years, recording negative for the first time last year.
According to the Social Responsibility Report (Sustainability Report) of SK Hynix's Chinese subsidiary on the 18th, the Chinese subsidiary recorded a net loss of 119.66265 billion won last year, down 129% from the previous year. The drop was large compared to the net profit of 2.985 billion yuan in 2020 and 2.184 billion yuan in 2021.
Operating profit also plunged 128% from 2.443 billion yuan in 2021 to 701 million yuan last year. As a result, ROE, a major indicator of the company's profitability, also recorded negative (-1%) for the first time last year from 7.86% in 2020 and 5.23% in 2021, worsening the Chinese business.
Investment in safety production also plunged last year from a year earlier. It is heard that the more active the factory operation rate and production are due to investments for the safety of workers in the process and production process, the more investment will increase. Safety production investment, which was 175.95 million yuan in 2020, also halved to 74.25 million yuan last year.
"China and South Korea have different accounting standards," an SK Hynix official said. "It is not a deficit in the domestic standard due to the foreign exchange caused by the depreciation of the yuan due to the rise of the dollar exchange rate."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
