Samsung Electronics fourth quarter net profit of $8.97 billion, an increase of 64%

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Tencent technology news on January 27, Samsung Electronics released its fourth quarter and full year financial results of 2021 on Thursday. According to the financial report, the net profit of Samsung Electronics in the fourth quarter was 10.8 trillion won (about US $8.97 billion), an increase of 64% year-on-year; The operating profit was 13.8 trillion won (about US $11.46 billion), a year-on-year increase of 53%; Revenue was 76.5 trillion won (about US $63.5 billion), a year-on-year increase of 24.4%.
Fourth quarter performance analysis:
Samsung Electronics’ revenue in the fourth quarter reached 76.5 trillion won (about US $63.5 billion), an increase of 24.4% and 3.5% month on month compared with 61.5 trillion won in the same period last year, hitting a record high for the fourth consecutive quarter. The fourth quarter revenue growth of Samsung Electronics was mainly driven by the finished product business, and the sales of high-end smart phones, TVs and household appliances, including foldable mobile phones, expanded.
The gross profit of Samsung Electronics in the fourth quarter was 31.6 trillion won (about US $26.2 billion), an increase of 39.0% over 23.75 trillion won in the same period last year; Operating profit was 13.9 trillion won (about US $11.46 billion), up 53.3% year-on-year and down 12.3% month on month compared with 9.05 trillion won in the same period last year. The strength of the US dollar against the won had a positive impact on Samsung Electronics’s operating profit of about 300 billion won in the fourth quarter. In addition, due to the special bonus paid to employees, the operating profit decreased compared with the previous quarter, but driven by the semiconductor business, the operating profit increased compared with the same period of the previous year.
Samsung Electronics spent 17.75 trillion won (US $14.7 billion) on general and administrative sales in the fourth quarter, compared with 14.70 trillion won in the same period last year; R & D expenditure was 6.47 trillion won (about US $5.37 billion), compared with 5.22 trillion won in the same period last year.
The net profit of Samsung Electronics in the fourth quarter reached 10.8 trillion won (about US $8.97 billion), an increase of 64% year-on-year, but it was lower than the market expectation of 11.1 trillion won. The net profit of Samsung Electronics in the fourth quarter was lower than the market expectation, mainly because the company issued a special bonus to employees at the end of last year and increased spending on advanced production technology of chips and displays; The EBITDA ratio was 30%, compared with 26% in the same period last year.
According to the business division, the revenue of Samsung’s consumer electronics business was 15.35 trillion won (about US $12.75 billion), an increase of 13% over 13.61 trillion won in the same period of last year and 9% over 14.10 trillion won in the previous quarter; Operating profit was 0.70 trillion won (about US $580 million), compared with 0.82 trillion won in the same period last year and 0.76 trillion won in the previous quarter.
The revenue of the mobile sector, including mobile phone business, was 28.95 trillion won (about US $24 billion), an increase of 30% over 22.34 trillion won in the same period last year and 2% over 28.42 trillion won in the previous quarter; Operating profit was 2.26 trillion won ($1.88 billion), compared with 2.42 trillion won in the same period last year and 3.36 trillion won in the previous quarter.
The revenue of the equipment solutions department, including the chip business, was 34.72 trillion won (about US $28.8 billion), an increase of 24% over 27.92 trillion won in the same period last year and a decrease of 1% from 35.09 trillion won in the previous quarter; Operating profit was 10.17 trillion won ($8.45 billion), compared with 5.63 trillion won in the same period last year and 11.58 trillion won in the previous quarter.
Harman’s revenue was 2.85 trillion won (about US $2.34 billion), down 2% from 2.92 trillion won in the same period last year and up 19% from 2.40 trillion won in the previous quarter; Operating profit was 0.22 trillion won (about $182 million), compared with 0.18 trillion won in the same period last year and 0.15 trillion won in the previous quarter.
2021 performance analysis:
Samsung Electronics’ revenue in 2021 was 279.6 trillion won (about US $232.2 billion), an increase of 18.1% over 236.8 trillion won in the same period last year.
Samsung Electronics’ gross profit in 2021 was 113.19 trillion won (about US $94 billion), compared with 92.32 trillion won in the same period last year; Operating profit was 51.6 trillion won (about US $42.9 billion), compared with 35.99 trillion won in the same period last year.
Samsung Electronics’ sales, general affairs and administrative expenses in 2021 were 61.56 trillion won (about US $51.1 billion), compared with 56.32 trillion won in the same period last year; R & D expenditure was 22.40 trillion won (about US $18.6 billion), compared with 21.11 trillion won in the same period last year.
Samsung Electronics’ net profit in 2021 reached 39.9 trillion won (about US $33.1 billion), an increase of 51% over 26.41 trillion won in the same period last year; The EBITDA ratio was 30%, compared with 27% in the same period last year.
Operation of each business department:
The profit of Samsung’s electronic storage business decreased compared with the previous quarter because the product price fell to a certain extent, resulting in the growth lower than the company’s guidance. The chip foundry business announced a new quarterly revenue record, but its profitability decreased slightly compared with the previous quarter due to the increase in costs related to the promotion of advanced process nodes.
In terms of display panel business, the profit of mobile panel continued to improve, while the loss of large panel expanded due to the decline of LCD price and the cost related to QD display.
The revenue of Samsung’s mobile e xperience increased slightly, mainly due to the sales of high-end products such as foldable mobile phones and device ecosystem products. With the increase of marketing expenses, the profit decreased month on month. With the growth of domestic and global business revenue in South Korea, the performance of network business improved compared with the previous quarter.

Due to the strong sales of high-quality products, Samsung Electronics’s consumer electronics business recorded a record revenue in the fourth quarter, but its profit fell slightly due to rising costs.
Worried about price fluctuations, rising inventories and cyclical recession, the share price of Samsung Electronics and SK Hynix, a memory chip competitor, has continued to fall since the second half of last year. However, the price drop proved to be milder than expected, because the use of chips has expanded in all walks of life, and memory manufacturers have taken pre emptive measures to stabilize supply and prevent price shocks. Samsung’s bold OEM business – producing chips for customers who don’t have their own semiconductor factories – also helps stabilize revenue.
Samsung Electronics is optimistic about the continued demand for chips this year and is investing in accelerating the development and expansion of its latest technology production. Memory and OEM departments will need more ASML lithography machines. (compiled by Tencent technology / Wuji)