[Market Focus] Dongwha Enterprise Rises on Subsidiary's Large-Scale Order News

As of 9:30 a.m. on May 20, Dongwha Enterprise shares were trading at 9,180 won on the KOSDAQ market, up 12.78% from the previous day's closing price. This appears to be due to news of a large-scale order received by its unlisted subsidiary, Dongwha Electrolyte.

On this day, Dongwha Electrolyte announced that it had signed a contract to supply 20,000 tons of lithium iron phosphate (LFP) battery electrolyte for energy storage systems (ESS) to a global battery cell manufacturer. The contract period runs from next year through 2027. The name of the client and the contract amount were not disclosed due to a confidentiality agreement.

Dongwha Electrolyte stated, "We have proven our product development and production capabilities to keep pace with market trends by successfully winning orders for not only the ternary systems, which have been our main focus, but also for electrolyte for LFP batteries." LFP batteries are gaining market share alongside ternary batteries due to their superior fire safety, price competitiveness, and long lifespan.

Dongwha Enterprise holds a 72.7% stake in Dongwha Electrolyte.

Dongwha Enterprise is composed of three business divisions: the materials business, which supplies board products such as PB and MDF; the chemical business, which handles electronic materials such as TEGO and electrolytes; and the housing business, which supplies construction materials such as flooring. According to last year's consolidated financial statements, Dongwha Enterprise recorded sales of 918 billion won and a net loss of 16.2 billion won.

Dongwha Electrolyte, which manufactures and sells electrolytes and additives for lithium-ion secondary batteries, posted sales of 66 billion won and a net loss of 15.7 billion won last year, based on consolidated financial statements.