i-AD "Secondary Battery Business, Expected to Benefit from Korean New Deal Policy"

[Asia Economy Reporter Yoo Hyun-seok] EID announced on the 15th that expectations for performance improvement in the secondary battery business are rising as the government is promoting the eco-friendly mobility project, which involves a total project cost of about 20 trillion won, as one of the New Deal projects. EID operates the secondary battery business through its wholly-owned subsidiaries GI and KIT.

The eco-friendly mobility project will invest 8.6 trillion won by 2022 and a total of 20 trillion won by 2025. This includes the expansion of charging infrastructure and the supply of electric vehicles such as passenger cars, buses, and freight vehicles, as well as future-oriented electric vehicle parts technology development projects. As it is the New Deal's top 10 representative tasks with the largest project budget, related companies' businesses are expected to gain momentum.

A company official stated, "As the global electric vehicle market explosively grows due to eco-friendly issues and the secondary battery market has entered a trend of upward growth, the government's promotion of the New Deal mobility policy is analyzed to have added a strong momentum for performance improvement."

EID entered the secondary battery business by acquiring GI and KIT in the third quarter of last year. GI, the only domestic company specializing in the entire process equipment for secondary batteries, has strengths in layout technology and 4D simulation technology. It supplies process logistics equipment to overseas bases of major customers. KIT, an anode material equipment company with a stable client base centered on large corporations, has an operating profit margin exceeding 20%.

EID's secondary battery subsidiaries are significantly improving their performance thanks to aggressive facility investment expansion by battery companies. Due to the favorable performance of these subsidiaries, EID is achieving both scale growth and profitability improvement simultaneously. In the first quarter of this year, sales reached 60 billion won, a 240% increase compared to the same period last year, and operating profit recorded 4.6 billion won, turning profitable. This marks the second consecutive quarter of profitability.

The company also shows confidence in future performance improvement. EID expects this eco-friendly mobility project to be a powerful catalyst for additional performance improvement.