SK hynix (SKHY) books ₩3.98T non-cash derivative loss, says equity impact minimal
Rhea-AI Filing Summary
SK hynix Inc. reported an accounting loss related to derivative transactions tied to its exchangeable bonds. The Company recognized a loss on transaction of derivatives of ₩3,977,121,095,025, which equals 3.3% of its total equity of ₩120,666,750,890,698 as of December 31, 2025. The loss arose mainly from exercises of exchange rights under exchangeable bonds issued on April 11, 2023 and increases in the Company’s share price. Under International Financial Reporting Standards as adopted in Korea, embedded derivatives in these bonds are measured at fair value, so there is no actual cash outflow. The Company states that these derivative losses are offset by gains on disposal of treasury shares when the bonds are exchanged into common shares, resulting in a minimal overall impact on total equity. The confirmation date of the loss is August 14, 2026, and the cumulative loss on derivatives for the first half of 2026 matches the reported loss amount.
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Key Figures
Loss on transaction of derivatives: ₩3,977,121,095,025
Total equity: ₩120,666,750,890,698
Loss as percentage of equity: 3.3%
+2 more
5 metrics
Loss on transaction of derivatives
₩3,977,121,095,025
Recognized in connection with exchangeable bonds; first half of 2026
Total equity
₩120,666,750,890,698
Company’s total equity as of December 31, 2025
Loss as percentage of equity
3.3%
Ratio of loss on transaction of derivatives to total equity
Cumulative loss on derivatives H1 2026
₩3,977,121,095,025
Cumulative for January 1, 2026 to June 30, 2026
Date of loss confirmation
August 14, 2026
Date of incurrence/confirmation of loss on derivatives
Key Terms
exchangeable bonds, embedded derivatives, International Financial Reporting Standards, loss on valuation of derivatives, +1 more
5 terms
exchangeable bonds financial
"due to exercises of the exchange rights under the exchangeable bonds issued by the Company"
Exchangeable bonds are debt securities that pay regular interest like a loan but give the holder the right to swap the bond for shares of a different company (often a subsidiary or an investment the issuer owns) instead of being repaid in cash. For investors they combine steady income with a built‑in option for stock upside—think of lending money that can later be traded for someone else’s stock—so they matter for potential return, price volatility and how ownership of the underlying shares may be diluted.
embedded derivatives financial
"the embedded derivatives in the exchangeable bonds have been measured at fair value"
An embedded derivative is a hidden financial option or payout rule built into a larger contract—like a bond, loan, or supply agreement—that makes part of the deal behave like a separate financial bet whose value swings with interest rates, currencies, commodity prices, or a company’s stock. Investors care because these built‑in features can change reported assets, liabilities and profits and add unexpected risk or upside, like finding a bonus or penalty clause inside a rental lease.
International Financial Reporting Standards financial
"Under International Financial Reporting Standards as adopted in Korea, the embedded derivatives"
International Financial Reporting Standards are a common set of accounting rules used by companies in many countries to prepare and present their financial statements. They matter to investors because they make results easier to compare across borders — like using the same measuring tape — so investors can assess profitability, cash flow and risk more reliably and spot differences that come from business performance rather than differing accounting methods.
loss on valuation of derivatives financial
"The loss on transaction of derivatives and loss on valuation of derivatives were recognized"
FAQ
What derivative loss did SKHY (SK hynix Inc.) report in this Form 6-K?
SK hynix reported a loss on transaction of derivatives of ₩3,977,121,095,025. This loss relates to exchangeable bonds and reflects fair-value accounting under IFRS rather than a cash loss.
How large is SKHY’s derivative loss compared with its total equity?
The derivative loss equals 3.3% of SK hynix’s total equity. Total equity was ₩120,666,750,890,698 as of December 31, 2025, providing scale for the reported loss.
Does the derivative loss reported by SKHY involve cash outflow?
No, SK hynix states there is no actual cash outflow from this derivative loss. The loss arises from fair-value measurement of embedded derivatives under IFRS as adopted in Korea.
What caused SKHY’s loss on transaction of derivatives in the first half of 2026?
The Company attributes the loss mainly to exercises of exchange rights on exchangeable bonds issued April 11, 2023 and increases in its share price, which affected fair-value measurements.
What is SKHY’s cumulative loss on derivatives for the first half of 2026?
For January 1 to June 30, 2026, SK hynix reports cumulative loss on derivatives of ₩3,977,121,095,025. This consists entirely of loss on transaction of derivatives, with no separate loss on valuation reported.
How does SKHY describe the impact of the derivative loss on its equity?
SK hynix states the impact on total equity is minimal. The Company explains that derivative losses are offset by gains on disposal of treasury shares when exchangeable bonds are converted.
AI-generated analysis. How Rhea-AI works. Not financial advice.
