OCI Holdings Reports Operating Profit of 531 Billion KRW Last Year, Down 45.6% YoY

Sales down 43.3% to 2.65 trillion won
"Solid performance despite high interest rates and inflation impact"

OCI Holdings announced on the 7th that it recorded consolidated sales of 2.65 trillion KRW and operating profit of 531 billion KRW last year, achieving an operating profit margin of 20%. Sales decreased by 43.3% and operating profit by 45.6% compared to the previous year.

Regarding last year's performance, OCI Holdings stated, "Despite market deterioration due to high interest rates and inflation, we achieved relatively favorable results compared to peers by maintaining a non-China premium for polysilicon used in solar power and through the sale of solar power generation projects," adding, "We continued a stable growth trend since the launch of the holding company."

Looking at the Q4 performance of major subsidiaries, OCIM, a polysilicon production subsidiary for solar power, recorded sales of 217.4 billion KRW and operating profit of 70.9 billion KRW. Although sales volume slightly decreased compared to the previous quarter, the non-China polysilicon premium was firmly maintained.

OCI Enterprise, the U.S. solar business holding company, posted sales of 36.5 billion KRW and an operating loss of 9.1 billion KRW, reducing the deficit compared to Q3. The reduction in losses was influenced by Mission Solar Energy, a module production subsidiary, resuming sales after receiving returned products from customers in Q3.

At this earnings announcement, OCI Holdings also unveiled its mid- to long-term vision, key management strategies, and shareholder return policies.

Under the holding company system, OCI Holdings announced plans to reorganize its core businesses into renewable energy and advanced materials, and pharmaceutical and bio sectors to secure mid- to long-term growth engines. Based on a joint management system following integration with Hanmi Group, the company aims to build a diverse business portfolio and enhance corporate value.

OCI Holdings secured new power supply in Sarawak, Malaysia. Accordingly, it confirmed the expansion of OCIM’s polysilicon production capacity for solar power from the current 35,000 tons to 56,600 tons by 2027. OCI Holdings stated it will strengthen its leadership as a key player in the non-China solar value chain based on improved profitability through external growth and cost reduction.

OCI Holdings plans to accelerate full-scale business expansion and the discovery of new business opportunities centered on Southeast Asia through the newly established Malaysia regional headquarters in Kuala Lumpur. Simultaneously, it intends to explore clinical and research & development (R&D) and business entry opportunities through joint reviews with Hanmi Group in the future.

OCI Holdings finalized the annual dividend for 2023 at 3,300 KRW per share and decided to cancel all existing treasury shares (248,732 shares, 1.26%). From this year through 2026, the company will actively pursue additional treasury share repurchases and cancellations to enhance real shareholder value.

Lee Woo-hyun, Chairman of OCI Holdings, said, "Despite the global economic downturn last year, we strengthened the competitiveness of our core polysilicon business for solar power and completed the transition to a holding company system, securing a foundation for future growth."

Chairman Lee added, "Through integration with Hanmi Group, we will create greater synergy by focusing on renewable energy, advanced materials, and pharmaceutical and bio sectors as two pillars. We will do our best to enhance shareholder value through continuous shareholder return policies."

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