Recently, SK Hynix announced related financial results for 2019. According to the financial report, due to the impact of falling memory chip prices, it suffered a loss of nearly $ 100 million in the fourth quarter of 2019.
According to the financial report, SK Hynix's full-year operating income in 2019 reached 26.99 trillion won, a year-on-year decline of 33%; operating profit was 2.71 trillion won, a 87% decrease from the same period last year. As for the fourth quarter of 2019 (October-December), SK Hynix's operating profit fell by 95% to 236 billion won; the net loss was 118.2 billion won ($ 99.5 million), a significant decrease from the 3.4 trillion won in net profit a year ago.
In a statement, Sk Hynix pointed out that the worsening of the performance is because the global trade conflict has increased the uncertainty of the world economy. On the other hand, customers' hoarding of inventory and a more conservative procurement policy have led to sluggish memory chip demand and lower prices.
However, SK Hynix is still optimistic that the DRAM market will recover this year, as demand for server chips and 5G smartphones is growing simultaneously. The company predicts that DRAM chip shipments will jump by more than 10% in 2020.
