Enchem (348370) Q4 2025 earnings summary

Executive summary

• Revenue for FY2023 was ₩424.7 billion, down 16.6% year-over-year, with operating income dropping 66.6% to ₩5.1 billion and a net loss of ₩49.2 billion, reversing a prior year profit.

• The company’s core business is the manufacture and sale of electrolyte solutions for secondary batteries, with global operations and major customers in the battery and automotive sectors.

• Significant investments were made in overseas plant expansions and new business areas, including NMP recycling and joint ventures for raw material supply.

Financial highlights

• Total assets increased 30.3% year-over-year to ₩886.9 billion, while total liabilities rose 54.2% to ₩596.8 billion.

• Cash and cash equivalents at year-end were ₩45.7 billion, up from ₩33.3 billion the previous year.

• Gross margin remained stable at ₩50.1 billion, but operating margin contracted sharply due to higher SG&A and financial costs.

• Major financial activities included issuance of convertible bonds and rights offering, with significant capital expenditures for capacity expansion.

Outlook and guidance

• The company expects continued growth in the global EV and battery markets, with further expansion of overseas production capacity and new business lines.

• Management is focused on strengthening supply chain stability and cost competitiveness through vertical integration and recycling initiatives.