Neontech records 37% higher sales in 2020

Neontech said on Tuesday that it recorded sales of 39.3 billion won and operating income of 1.4 billion won for the entire year of 2020.

Sales increased 37.4% from 2019 while operating income dropped 4.6%. The company’s operating margin rate was 3.6%.

Neontech said demand for its cutting equipment for multi layer ceramic capacitors (MLCC) recovered in 2020. It also secured new customers in China and reaped sales from its new mask equipment business.

Operating income dropped due to intense competition for orders caused by the COVID-19 pandemic. The company also hired more during the year to prepare for the future, Neontech said.

The firm also posted a net loss of 4.8 billion won. This was caused by losses from its convertible bond and cost of its merger with factory automation company KYS.

Neontech is expecting the equipment market to recover this year. Its new equipment is also being well received by customers, the company said. 

Neontech listed on KOSDAQ in February 2020.