Samsung Electronics’ Q3 net profit was US$8.3 billion, a year-on-year increase of 48.9%

On October 29, Samsung Electronics released its third-quarter financial report as of September 30 on Thursday.

The financial report shows that Samsung Electronics' net profit in the third quarter reached 9.36 trillion won (approximately US$8.3 billion), an increase of 48.9% year-on-year; operating profit was 12.35 trillion won, an increase of 58.8% year-on-year; Revenue increased by 8% year-on-year, reaching 66.96 trillion won (approximately 75.51 billion U.S. dollars). The company expects earnings to decline in the fourth quarter due to weak chip demand.

Samsung Electronics (Korean:????) is South Korea’s largest electronics industry company and the largest subsidiary of the Samsung Group. Samsung Electronics was established in Daegu, South Korea in March 1938, and its founder was Lee Bingzhe. The current chairman is Lee Kin-hee, the vice-chairmen are Lee Jae-yong and Kwon Oo-hyun, the president is Cui Zhi-sung, and the chief executive officer is the co-CEO of Kwon Oo-hyun, Shen Zongjun, and Yoon Fu-geun. In the list of the 100 most famous trademarks in the world, Samsung Electronics is the only Korean trademark and a symbol of Korean national industry. On February 21, 2020, Samsung Electronics announced the appointment of 65-year-old former South Korean Finance Minister Park Jae-wan as the new chairman of the board of directors.

The financial report released by Samsung Electronics on Thursday showed that thanks to strong sales of memory chips and consumer products, the company's operating profit in the third quarter reached 12.35 trillion won, a year-on-year increase of 58.8%; thanks to smartphones and consumption The growth in demand for Electronic products and efficient cost management increased by 52% from the previous month. Samsung Electronics’ revenue in the third quarter reached 66.96 trillion won (approximately 75.51 billion U.S. dollars), an increase of 8% year-on-year.

According to the division, due to the healthy demand for mobile and personal computer products, shipments were higher than expected and exceeded the impact of the decline in the price of memory chips. Samsung Electronics' semiconductor business announced stable earnings. In the third quarter, Samsung Electronics' semiconductor business revenue reached 18.8 trillion won and operating profit reached 5.54 trillion won. As far as the outlook for next year is concerned, although the possibility of geopolitical issues and the long-term impact from the new crown pneumonia epidemic still exists, as 5G continues to expand to low-end models, mobile demand is expected to maintain steady growth until the first half of this year. . For servers, with the normalization of inventory levels and the recovery of customer investment, demand in the first half of the year is very likely to reverse.

Samsung Electronics' capital expenditure in the third quarter was 8.4 trillion won, of which 6.6 trillion won was invested in the semiconductor business and 1.5 trillion won in the Display business.

Overall, Samsung Electronics expects that due to weakened demand for memory chips from server customers and increased competition from mobile phones and consumer electronics products, the company’s fourth-quarter profit will decline. As far as 2021 is concerned, the company expects that overall global demand will recover, but the possibility of a recurrence of the new crown pneumonia epidemic remains uncertain.

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