LX International Reports Operating Profit of 433.1 Billion KRW Last Year, Down 55% YoY

LX International announced on the 2nd that its consolidated operating profit last year was 433.1 billion KRW, a decrease of 55.1% compared to the previous year.

Sales amounted to 14.5143 trillion KRW, down 22.6% during the same period. A company official explained, "The resource market and logistics freight, which showed strong performance in 2022, experienced a downward stabilization trend last year due to the global economic slowdown, resulting in a base effect."

The company is establishing a virtuous cycle structure by investing the liquidity generated from the profitability of existing businesses such as coal, palm, and trading into strategic growth areas like secondary battery minerals and materials to build a future revenue base. Starting with the Indonesian AKP nickel mine, whose acquisition process was completed last month, the company plans to continuously secure additional assets under review, including mines and refineries.

While coal business has been the main focus so far, the company plans to shift towards secondary battery-related minerals such as nickel and lithium. A company official stated, "Due to the recent decline in nickel prices caused by short-term oversupply, a valuation adjustment of related assets is expected, and we will take this as an opportunity to acquire additional high-quality assets." He added, "In the mid to long term, price recovery is expected due to increased demand for nickel-cobalt-manganese (NCM) batteries and a shift to rising demand for stainless steel."

He continued, "This year, external conditions are expected to worsen due to global economic sluggishness originating from China, prolonged high interest rates and inflation, and weak resource market conditions. Despite the challenging business environment, we will enhance asset value and prepare for the future through proactive risk management across all business areas."