EcoPro announces 5-for-1 stock split as profit halves

EcoPro plans to split its stock on a five-for-one basis after reporting an 83 percent drop in net profit due to slowing EV sales. Kosdaq-listed EcoPro BM aims to transfer its listing to the Kospi.

EcoPro founder Lee Dong-chae speaks during a groundbreaking ceremony for the company's Hungary cathode plant in April. [ECOPRO]

EcoPro will split its stock on a five-for-one basis after reporting more than halved profits last year on slowing global EV sales.

The Korean company said Wednesday that it will lower the face value of its stocks from 500 won ($0.40) to 100 won per share to push up the number of shares from 26,627,668 to 133,138,340.

The stock split aims to make “investing in EcoPro more accessible to a broader base of investors,” it said.

The details, including a timeline, will be announced later.

The company also said that Kosdaq-listed EcoPro BM, its battery materials subsidiary, will push to transfer its listing to the Kospi. EcoPro BM produces cathodes, one of the four main components of EV batteries that make up 40 percent of a battery's cost.

“We're considering the transfer in an attempt to develop shareholders' value,” said EcoPro BM Vice President Kim Jang-woo said during the company's earnings call. “Details about the time and method will be declared later.”

EcoPro's groundbreaking ceremony for a plant in the Hungarian city of Debrecen in April [ECOPRO]

The company logged 295.2 billion won in operating profit last year, an on-year decrease of 52 percent.

The figure fell far short of the market consensus of 479 billion won compiled by FnGuide.

Revenue hit a record high of 7.3 trillion won, up 29 percent on year, which also missed analyst estimates of 7.7 trillion won.

Net profit plunged 61.2 percent to 85.5 billion won.

EcoPro reported 122.4 billion won in operating losses in the fourth quarter alone. It logged 178 billion won of operating profit during the same period of the previous year.

EcoPro blamed “declining raw materials prices and slowdown of EV sales,” for the poor performance but said it expects a rosy 2024.

EcoPro BM posted 153.2 billion won of operating profit last year, a 60 percent year-over-year decrease, while revenue rose 29 percent to 6.9 trillion won.

EcoPro shares jumped 14 percent to close at 579,000 won on Wednesday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]