EcoPro Turns to KRW 1.4 Billion Operating Profit in Q1... "Accelerating Overseas Expansion"

Increase in Cathode Material Sales and Cost Reduction
Acceleration of Overseas Businesses Including Nickel Mining

EcoPro announced on April 30 that its consolidated sales for the first quarter of this year reached KRW 806.8 billion, with an operating profit of KRW 1.4 billion, successfully returning to profitability compared to the same period last year. In the first quarter of last year, EcoPro recorded an operating loss of KRW 29.8 billion.

By affiliate, EcoPro BM, which manufactures cathode materials, posted first-quarter sales of KRW 629.8 billion and an operating profit of KRW 2.3 billion, returning to profitability due to increased sales of cathode materials for electric vehicles and power tools.

The company explained, "The improvement in performance was driven by increased sales of cathode materials for electric vehicles," and added, "First-quarter sales of cathode materials for electric vehicles amounted to KRW 503 billion, a 76% increase compared to KRW 285.9 billion in the fourth quarter of last year."

EcoPro Materials, which manufactures precursors, recorded first-quarter sales of KRW 136.1 billion and an operating loss of KRW 14.8 billion, mainly due to one-off development costs.

The company stated, "We expect profitability to improve in the second half of the year as consolidated earnings from Green Eco Nickel, an Indonesian smelter in which we are a major shareholder, will be reflected." The company also explained, "Green Eco Nickel is a nickel smelter located on Sulawesi Island, Indonesia, which is expected to produce about 20,000 tons of nickel annually, generating KRW 300 billion in sales and KRW 100 billion in operating profit."

Currently, EcoPro Materials has invested about KRW 50 billion to secure a 28% stake in Green Eco Nickel and is proceeding with a business combination filing.

EcoPro HN, an eco-friendly total solution company, recorded first-quarter sales of KRW 34.4 billion and an operating profit of KRW 3.4 billion. EcoPro HN stated, "We plan to maximize profitability through robust chemical filter sales, overseas greenhouse gas orders, and fine dust reduction projects."

EcoPro Holdings' investment in the nickel smelter is also bearing fruit. Last year, on a standalone basis, EcoPro Holdings posted sales of KRW 115 billion, with 42.8% of this coming from raw material (MHP) trading through its investment in the nickel smelter.

This is the first time EcoPro has generated sales through its own trading business. After investing in the Indonesian nickel smelter, the company has achieved diversification of its sales channels by generating profits from product sales.

An EcoPro official said, "With the recovery of the European electric vehicle market, the volume of cathode materials is increasing, and we expect a gradual increase in profits." The official added, "Through the establishment of an integrated corporation in Indonesia, we plan to expand our dominance in the ternary battery market by driving price competitiveness."