Gwangmu Reports 18.2 Billion KRW Net Profit in H1, Up 1079% YoY

Gwangmu achieved net profit growth for two consecutive quarters.

Gwangmu, a specialist company in secondary battery materials, announced on the 14th that its cumulative sales for the second quarter of this year based on consolidated financial statements reached 11.16724 billion KRW, and net profit was 18.26448 billion KRW, representing increases of 41% and 1079% respectively compared to the same period last year. This performance is the result of efforts to improve the company’s structure through system improvements, organizational restructuring, and management efficiency since entering the secondary battery business last year, as well as profitability-focused sales management.

However, operating loss recorded 1.623 billion KRW due to increased one-time expenses. One-time selling and administrative expenses such as capital expenditures (CAPEX) and payment fees (exchange investigation response and legal costs) affected the performance.

Excluding temporary factors, Gwangmu’s financial soundness has greatly improved. As of the end of June, total equity stood at 124.76818 billion KRW, up 55.8% from 80.09578 billion KRW at the end of December last year, and the debt ratio recorded 15%, the lowest level since the company’s establishment.

Amid this, the solid financial structure provides the foundation to proceed with the expansion of the Jecheon Plant (Plant 1) and the construction of a new additive plant at the Jecheon Industrial Complex Plant (Plant 2). Gwangmu plans to pursue additional M&A within the year based on ▲excellent capital capacity ▲maintaining a solid profit base ▲and stable asset soundness.

A Gwangmu representative said, “Since entering the secondary battery materials business last year, we have focused on strengthening product competitiveness and reorganizing distribution channels to solidify our foundation,” adding, “Thanks to stable sales generation within the K-battery value chain, we have built strong resilience.”

He added, “With new volume supply starting from the third and fourth quarters of this year, expectations for performance in the second half are high.”

This content was produced with the assistance of AI translation services.