Enchem (348370) Q3 2024 earnings summary

Executive summary

• Specializes in manufacturing and selling electrolytes and additives for secondary batteries and EDLCs, with global expansion and new recycling business initiatives.

• Operates production facilities in Korea, Europe, China, and the US, supplying major battery makers and expanding into recycling and raw material joint ventures.

• Achieved rapid sales growth, with 2023 revenue at KRW 424.7 billion, but faced a significant net loss in 2024 YTD.

Financial highlights

• 2024 Q3 cumulative revenue: KRW 287.9 billion, down from KRW 424.7 billion in 2023 Q3.

• Operating loss for 2024 Q3: KRW -16.6 billion, compared to operating profit of KRW 3.0 billion in 2023 Q3.

• Net loss attributable to controlling interests: KRW -364.8 billion for 2024 Q3, compared to KRW -50.1 billion in 2023.

• Basic EPS for 2024 Q3: KRW -19,059, compared to KRW -3,115 in 2023.

• Cash and cash equivalents at Q3-end: KRW 56.8 billion, up from KRW 44.6 billion at 2023 year-end.

Outlook and guidance

• Continues to invest in expanding production capacity and entering new business areas such as NMP recycling.

• Expects further sales growth as overseas plants ramp up, leveraging global EV market expansion.