Battery materials group EcoPro announced on the 3rd that it achieved sales of 2.0172 trillion KRW and an operating profit of 170.3 billion KRW in the second quarter of this year. Although sales slightly declined compared to the previous quarter, they remained above the 2 trillion KRW mark. Operating profit decreased by 6.6% from 182.4 billion KRW in the previous quarter, which EcoPro explained was mainly due to fluctuations in metal prices and exchange rates.
On a consolidated basis, EcoPro reported cumulative sales of 4.0816 trillion KRW and operating profit of 352.7 billion KRW for the first half of the year, representing increases of 113.4% and 57.6% respectively compared to the same period last year. Looking at subsidiaries, EcoPro BM, a leading company in high-nickel cathode materials, recorded sales of 1.9062 trillion KRW and operating profit of 114.7 billion KRW in the second quarter. Sales decreased by 5.2% from 2.011 trillion KRW in the previous quarter, but operating profit increased by 6.9% compared to 107.3 billion KRW in the previous quarter. For the first half of the year, cumulative sales reached 3.9172 trillion KRW and operating profit 222 billion KRW, up 111.8% and 54.2% respectively from the same period last year.
Specifically, sales volume of cathode materials for power tools decreased, but sales volume for electric vehicles (EV) increased, raising the proportion of EV cathode materials. It is analyzed that production efficiency improved as sales of EV cathode materials, which are produced in large quantities but fewer varieties, increased compared to power tool cathode materials, which are produced in small quantities but many varieties. In the third quarter, average selling prices are expected to decline temporarily due to falling metal prices, weakening profitability, but recovery is anticipated from the fourth quarter. Additionally, EcoPro’s new growth engines, the lithium and recycling businesses, are maintaining solid operating profit margins despite metal price fluctuations.
EcoPro HN recorded sales of 56.5 billion KRW and operating profit of 11.2 billion KRW in the second quarter. Compared to the previous quarter’s sales of 59.5 billion KRW and operating profit of 12 billion KRW, this represents decreases of 5% and 6.7% respectively. However, on a consolidated basis for the second quarter, cumulative sales were 116 billion KRW and operating profit 23.2 billion KRW, increases of 70% and 170.5% respectively compared to the same period last year. Sales volume of cleanroom chemical filters for semiconductors declined, causing slight decreases in sales and operating profit in the second quarter compared to the first quarter. In the third quarter, a temporary demand weakness is expected for cleanroom chemical filters and greenhouse gas reduction businesses, but overall, the company is forecasted to exceed targets due to increased demand in the fine dust business sector.
Meanwhile, through this earnings announcement, EcoPro disclosed plans for new business initiatives at EcoPro HN. EcoPro HN plans to produce electrolyte additives using lithium salts to expand the value chain with affiliated companies related to cathode materials. It will also produce 'dogani' (crucibles), containers used during the cathode material process, and 'dopants,' additives to enhance cathode material energy density. By participating in the battery materials business, EcoPro HN aims to maximize synergy among family companies and secure new future growth engines.
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