SL Bionics Secures Financial Soundness Through New Energy Business

[Asia Economy Reporter Jang Hyowon] SL Bionics announced on the 26th that it is expected to enter a growth trajectory through new business initiatives following the acquisition and merger of the oil refining company Woosung Industry, signaling a green light for securing financial soundness.

SL Bionics signed a contract to acquire 100% of Woosung Industry's shares in February, and paid the intermediate payments in two installments in April and May. Subsequently, the final payment was completed in July, smoothly concluding the acquisition and merger.

In August, the energy division generated sales of KRW 3.539 billion and operating profit of KRW 871 million (19.5%), with the division's pure operating profit excluding selling and administrative expenses amounting to KRW 685 million. This performance significantly exceeds the simple arithmetic calculation of the previous monthly average sales, compared to the half-year sales of approximately KRW 13.6 billion and an operating loss of KRW 1 billion in the same year.

SL Bionics plans to make every effort to secure new sales and operating profits based on its capabilities in producing eco-friendly fuel oil. With gradual improvements in financial structure observed just one month after the merger, it is anticipated that SL Bionics will receive a 'green light' for securing financial soundness through new business initiatives.

Woosung Industry, acquired by SL Bionics, is a company producing and selling eco-friendly fuel oil, with an annual production capacity of 144,000 tons. It produces and sells the high-efficiency clean raw material 'WSB-C Oil' as its main product, and is recognized as a carbon-neutral leading company with ESG (Environmental, Social, Governance) competitiveness in the industry. According to Samjong KPMG, which conducted the evaluation, this year's sales are estimated to reach approximately KRW 67 billion, with an operating profit of about KRW 5.5 billion.

Meanwhile, SL Bionics recently signed a supply contract for lithium hydroxide with AVC, a partner company of China’s largest lithium company, Ganfeng Lithium. Given that the price of Chinese lithium carbonate, which is evaluated based on the global market, has tripled over the past year, this is expected to act as a green light for the company’s financial structure improvement and business expansion.