[Asia Economy Reporter Jang Hyowon] Indong Advanced Materials announced on the 28th that it is expected to record its highest sales since its establishment this year. The cumulative sales up to the third quarter already reached 12.4 billion KRW, which is three times last year's annual sales, and considering the current sales situation, the overall growth trend is expected to continue into the fourth quarter.
Over the past five years, the average annual growth rate exceeded 130% based on the cumulative results up to the third quarter this year, and considering the improvement in the fourth quarter performance, it is expected to exceed 140%. High sales growth continues as Indong Advanced Materials' heat dissipation materials are adopted mainly by major large corporations.
The core business profit margin is also rapidly improving. Although the operating loss in the third quarter was 13 billion KRW, this was due to a one-time expense of 13.9 billion KRW invested in new business, and excluding this one-time cost, the operating profit was 900 million KRW, resulting in a third-quarter operating profit margin of 20%. In the first and second quarters, which recorded operating profit, the operating profit margins were 20% and 10%, respectively, so the cumulative operating profit margin excluding one-time expenses for the third quarter was 18.9%.
Indong Advanced Materials plans to expand applications centered on heat dissipation sheets using carbon developed based on its core competency, ‘micro grinding technology,’ to heat-sensitive IT devices and secondary battery thermal management.
A company official stated, “Sales are rapidly growing as the commercialization of heat dissipation materials developed based on micro grinding technology is progressing quickly. Although we cannot disclose names due to confidentiality agreements, applications are expanding not only domestically but also to global companies, so the future growth outlook is positive.”
He added, “The application range will expand to secondary batteries using micro grinding technology. Utilizing micro grinding technology enables the production of basic materials that can manufacture upgraded anode materials as well as cathode materials containing lithium, so entry into the secondary battery materials business is also expected.”
Indong Advanced Materials received an A-grade certification as a technology-innovative small and medium enterprise last November, evaluated for its technological capabilities including nano grinding technology and business feasibility, and was also certified as a ‘SoBuJang Company’ based on its achievements in carbon material development.
In September, Indong Advanced Materials held an extraordinary general meeting of shareholders and added the following to its articles of incorporation: ▲domestic and overseas resource and energy exploration, extraction, development, and technical service provision ▲mining industry and mineral sales ▲resource development and sales ▲non-ferrous metal smelting and sales, raising expectations for new business promotion.
Meanwhile, Indong Advanced Materials owns the secondary battery value chain from materials to finished products through its affiliates FIC New Materials and Eurocell. Based on micro grinding technology, FIC New Materials produces silicon graphite composite anode materials, and Eurocell uses these to manufacture high-capacity batteries.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
