South Korean battery materials manufacturer EcoPro Group reported wider losses in the fourth quarter as sales volumes declined and the company took a significant inventory writedown.
The operating loss widened to 121.3 billion won ($82.5 million) from 108.8 billion won in the previous quarter, the company said in a statement Tuesday. Revenue fell 6.2% quarter-on-quarter to 631.3 billion won.
The deteriorating performance reflects weaker demand for electric vehicle battery materials, with the company’s flagship EcoPro BM unit seeing revenue drop 11% from the third quarter. A writedown of 82.6 billion won on inventory at unlisted subsidiaries EcoPro Innovation and EcoPro CnG further pressured results.
The company’s debt ratio improved to 112.4% from 132.2% in the previous quarter after subsidiaries raised capital. Inventory levels declined 10% as the group focused on optimizing working capital.
Looking ahead, EcoPro expects sales volumes to recover in early 2025 as customers work through excess inventory and new electric vehicle models launch. The company plans to expand in Indonesia and is focusing on cost reduction to offset impacts from the US Inflation Reduction Act.
The shares have dropped 42% over the past year. The company will hold an earnings call with investors later Tuesday.
