Lotte Energy Materials Reports Operating Profit of 12 Billion KRW Last Year, Down 86% YoY

Lotte Energy Materials announced on the 29th that its consolidated operating profit for last year was 12 billion KRW, a decrease of 86% compared to the previous year. During the same period, sales increased by 11% to reach 809 billion KRW.

In the fourth quarter, consolidated sales and operating profit were 229.5 billion KRW and 1.3 billion KRW, respectively. Sales increased by 34% compared to the previous year, but operating profit decreased by 91%. The downturn in the electric vehicle market and price declines due to product oversupply affected profitability.

At the end of last year, cash equivalents decreased by 27.5% compared to the previous year to 675 billion KRW due to the expansion of factories 5 and 6 in Malaysia and the repayment of convertible bonds following integration into the Lotte Group. However, the company explained that the debt ratio remained healthy at 21.6%, maintaining sound financial stability.

Lotte Energy Materials is pursuing corporate management innovation activities and making strategic investments to become a sustainable company. In December, through three rounds of paid-in capital increases, it secured funds to build a smart factory in Spain, which serves as a forward base for the European market. Additionally, it established a corporation in the United States, considered the largest electric vehicle market, and is conducting a final review of candidate locations for a production plant.

A representative of Lotte Energy Materials stated, "This year, amid the rapidly changing secondary battery materials market including electric vehicles and batteries, we will create profitability and corporate value through overwhelming technological capabilities and comprehensive innovation activities to ensure the company’s sustainable growth."

Meanwhile, Lotte Energy Materials decided on a year-end cash dividend of 200 KRW per common share. This will be finalized at the regular shareholders' meeting in March.