Piline Motors Withdraws KOSDAQ Listing... "Will Reattempt After Establishing Growth Foundation"

Eco-friendly electric bus specialist company Piline Motors announced on the 15th that it will withdraw its KOSDAQ listing procedure through a disclosure on the 7th of this month. This decision is a strategic judgment prioritizing the strengthening of business competitiveness amid increased uncertainty due to global volatility expansion. However, the company plans to relaunch the listing after enhancing its business competitiveness.

Piline Motors produces electric buses by sourcing parts from global component suppliers. In this process, the business structure is such that the cost ratio can increase depending on the exchange rate level when purchasing overseas parts. However, with the unprecedented weakness of the Korean won in 2024, it is likely that Piline Motors' parts purchase prices have significantly increased. This has had a major adverse effect on profitability.

According to a Piline Motors official, "It is true that due to domestic and international uncertainties, the exchange rate surged, raising import costs and causing difficulties in securing profitability," adding, "In the future, we expect to reduce costs through SKD (Semi-Knocked-Down, a semi-assembly production method where major parts are assembled domestically) and effectively respond to exchange rate volatility by strengthening negotiation power with suppliers, thereby improving profitability."

Additionally, the company revealed plans to expand its sales network, which was previously concentrated only in the metropolitan area, nationwide, and to establish an eco-friendly commercial vehicle cluster in Seocheon, Chungcheongnam-do, gradually building a production system for eco-friendly commercial vehicles by 2028, thereby expanding its business scope.

Kim Manyong, CEO of Piline Motors, stated, "This withdrawal of the listing is not a mere suspension of work but a strategic decision for a leap forward," and added, "We plan to relaunch the listing in a more stable environment through strengthening business competitiveness and improving performance."

Meanwhile, regarding claims raised by some that "Piline Motors' electric buses are more than 100 million KRW cheaper than competitors," the company denied the allegations as "groundless," explaining, "Prices are the same as domestic competitors, and we compete based on quality, a demand-based model lineup, and prompt and efficient maintenance."