South Korea’s EcoPro Co., a leading battery materials manufacturer, experienced a significant decline in profits in 2023, despite achieving its highest annual sales to date. The company’s operating profit fell by 51.9% to 295.2 billion won ($222.3 million), while its net profit dropped 61.2% to 85.5 billion won, against a backdrop of falling prices for key battery materials such as nickel and lithium, and a slowdown in the global electric vehicle (EV) market. These challenges contributed to an operating loss of 122.4 billion won in the fourth quarter, a stark contrast to the operating profit of 178.0 billion won in the same quarter of the previous year.
Amid these financial challenges, EcoPro, which includes cathode producer EcoPro BM Co. and chemicals firm EcoPro HN Co. under its umbrella, is focusing on strategic measures to recover profitability. This includes expanding its high-nickel product portfolio and acquiring new customers for its mid-nickel offerings. Additionally, EcoPro President and CEO Song Ho-jun emphasized the importance of diversifying customer bases, supply chains, and product lineups to enhance both sales and profits in the coming year.
In a move to improve shareholder value and attract more investors, EcoPro has announced a stock split plan, pending approval from its board of directors and a general shareholders meeting. This plan aims to lower the face value of its stock, thereby increasing the total number of shares and making it more accessible to a broader range of investors.
The company’s stock saw a significant uptick following the announcement, with EcoPro shares surging 13.8% and EcoPro BM shares rising 6.7%, showcasing investor optimism despite the current financial headwinds. As EcoPro navigates these challenges, it remains focused on strengthening its market position and capitalizing on the evolving demands of the EV and battery materials markets.
