KIB Plug Energy, Stock Plunge Due to Supply-Demand Issues... "Efforts to Strengthen Major Shareholder's Responsible Management"

KIB Plug Energy recently stated on the 7th that the recent sharp decline in stock price is a supply-demand issue and that the responsible management by the largest shareholder will be strengthened.

KIB Energy Infrastructure Holdings said, "We consider the undervaluation due to the recent stock price drop as an opportunity to expand our stake," and added, "We are considering various measures to strengthen responsible management, including rights offerings and mezzanine participation."

According to the Financial Supervisory Service's electronic disclosure system, last week, the major shareholder KIBQ Special Purpose Acquisition Company 2 disposed of 25,534,584 shares due to illegal sales by the representative. As a result, the 1st, 3rd, and 4th tranches executed sell-off liquidation procedures according to the joint operation agreement, which led to the sharp decline in stock price.

The company stated, "Apart from supply-demand issues, there are no internal issues affecting the stock price amid the favorable market conditions of the existing heat exchanger business," and added, "Following the record-high net profit in the first half of last year, the full-year net profit last year marked the highest in about 14 years, demonstrating structural growth."

KIB Plug Energy has entered new businesses such as secondary batteries and hydrogen energy based on the stability of its existing heat exchanger business. The improvement in the chemical plant business sector, a traditional business, and cost reductions through business efficiency are driving performance growth. Additionally, the know-how accumulated in the production and operation of heat, fluid, and energy management devices is being utilized in future new businesses.

Meanwhile, on a consolidated basis, last year's sales increased by 29.88% year-on-year to 137.3 billion KRW. Operating profit for the same period was 12.9 billion KRW, and net profit was 14.3 billion KRW, the highest performance since 2009. Earnings before income tax from continuing operations were 16.3 billion KRW, up 56.56% from the previous year.