EcoPro(086520) disclosed on the 4th that second-quarter operating profit on a consolidation basis was 32.9 billion won, up 102.7% from a year earlier. Revenue for the same period fell 11.9% to 820.814 billion won. Net profit swung to a gain of 49.187 billion won.
Higher metal prices and exchange-rate effects boosted revenue in the recycling institutional sector and increased operating profit in the lithium business, positively affecting results.
By contrast, heavy rains in Indonesia temporarily lowered the operating rate of a local nickel smelter, slightly weakening profitability from the previous quarter. Recovery work at the smelter has now been completed.
By business institutional sector, EcoPro BM, which produces cathode materials, posted revenue of 576.7 billion won and operating profit of 18 billion won. Due to stagnant demand in the European electric-vehicle market, revenue and operating profit decreased from a year earlier.
EcoPro Materials, which handles the precursor business, recorded second-quarter revenue of 178.8 billion won and an operating loss of 10.6 billion won. The loss stemmed from a temporary drop in the operating rate at the Green Eco Nickel (GEN) smelter in Indonesia due to torrential rain. The company expects profitability to improve in the mid to long term due to changes in external conditions such as a recovery in the GEN smelter's operating rate, the addition of new customers in North America, and the abolition of China's value-added tax refunds.
EcoPro HN, which runs an eco-friendly materials business, posted second-quarter revenue of 51.5 billion won and operating profit of 5.8 billion won. Orders are increasing on the back of a boom in the semiconductor market, and revenue is rising based on stable supply to overseas LNG power plants.
EcoPro plans to expand into businesses such as waste-battery recycling and urban mining. It is also pushing the development of next-generation battery materials, including cathode materials for all-solid-state batteries, solid electrolytes, and lithium metal anodes. The company will also strengthen the semiconductor materials business centered on EcoPro HN.
Song Ho-jun, CEO of EcoPro, said, "Although uncertainty in the business environment continues, we are moving ahead as planned with investments to strengthen supply-chain competitiveness and in future-growth businesses," and added, "We will build a foundation for sustainable growth through stable operations in existing businesses and by generating results in new businesses."