Seoul Semiconductor Achieves KRW 283.3 Billion in Revenues and KRW 6.6 Billion in Operating Profits for Second Quarter 2019

Seoul Semiconductor Co., Ltd. (KOSDAQ 046890), a leading global innovator of LED products and technology, announced consolidated second-quarter revenues of KRW 283.3 billion, operating profit of KRW 6.6 billion, and EBITDA of KRW 35.7 billion. The Company achieved its guided range of KRW 280 billion to KRW 300 billion for revenues of the quarter.

The LED industry peers are expected to witness more than double digit fall in revenues and profits year-over-year (YoY) for the second quarter after falling double digits in the first quarter due to the global weakening demand and high level of inventory. However, the Company was able to achieve stable revenues due to its higher exposure to fast growing automotive lighting and display related business. The company’s TV sales grew more than double digit YoY continuing to enlarge the mix of its differentiated technology products. Thanks to the enlarged business from its portfolio of differentiated products, gross profit margin rebounded to 24.5% in the second quarter from 22.8% in the first quarter.

For the second quarter, the relocation costs and interrupted production due to relocating of its manufacturing equipment from South Korea to Vietnam to focus on expanding global customer base affected the operating profit. In addition, a total of KRW 13 billion of additional expense were reflected in the quarter compared to the previous quarter due to the revision of the International Financial Reporting Standards (IFRS) and its management’s intend to conservatively account for future bad debts. This resulted in a 62% YoY decline of operating profits recording KRW 6.6 billion for the quarter.

The Company expects to see increased revenues and profits for the second half due to stabilization of its new manufacturing facilities in Vietnam and seasonal demand from business of automotive, TV, mobile phone, display and human-centric lighting with SunLike Series LEDs. However, considering elevating uncertainties in international trade and unfavorable global economy conditions, Seoul Semiconductor conservatively guided for KRW 280 to 300 billion revenues for the upcoming third-quarter.

“Seoul Semiconductor has recently received production approval from our customer to supply Micro LED products. So we will showcase our advanced Micro LED in the second half of the year,” said Sam Ryu, executive vice president of IT sales at Seoul Semiconductor. “Micro LED is the combined result of our years of devotion in developing leading technologies and all of our know-hows, and will help us reshape the paradigm of future displays to develop new markets and create values for our customers.”

FY2019 Q2 Earnings (Consolidated, Unit: Billion KRW)

About Seoul Semiconductor

Seoul Semiconductor develops and commercializes LEDs for automotive, general illumination, specialty lighting, and backlighting markets. As the second-largest LED manufacturer globally excluding the captive market, Seoul holds more than 14,000 patents, offers a wide range of technologies, and mass produces innovative LED products such as SunLike – delivering the world’s best light quality in a next-generation LED enabling human-centric lighting optimized for circadian rhythms; WICOP – a simpler structured package-free LED which provides market leading color uniformity and cost savings at the fixture level, providing high lumen density and design flexibility; NanoDriver Series – the world’s smallest 24W DC LED drivers; Acrich, the world’s first high-voltage AC-driven LED technology developed in 2005, including all AC LED-related technologies from chip to module and circuit fabrication, and nPola, a new LED product based on GaN-substrate technology that achieves more than ten times the output of conventional LEDs. For more information, please visit www.seoulsemicon.com/en.

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