Battery company Sungwoo said on Sunday it recorded 85.6 billion won in 2025 revenue and 1 billion won in operating profit. Revenue fell 34.7 percent from a year earlier and operating profit dropped 92.9 percent. Net profit declined 73.0 percent to 4.9 billion won. Fourth-quarter revenue fell 34.9 percent to 19.4 billion won, but operating profit came to 1.3 billion won, returning to the black.

The company cited a global economic slowdown and reduced investment in the battery industry for the earnings decline. It also said lower selling prices and higher research and development spending for new product development weighed on results.

A Sungwoo official said recurring R&D expenses rose by about 2 percent from a year earlier as a share of revenue, temporarily hurting profit and loss as the company expanded new product development. The official added that profitability was defended as the burden of cost of sales eased due to higher inventories than at the end of last year and internal cost improvements.

Sales at its overseas subsidiary, the Nanjing entity, declined. Some profit and loss fell due to the impact of reducing ending inventories, but the company said it generated financial income of about 4 billion won mainly at headquarters. Financial soundness stayed at a good level. The debt ratio is around 10 percent and cash and cash equivalents total about 148.0 billion won.

Sungwoo also disclosed a dividend plan on Sunday. The total dividend is about 3 billion won and will be carried out as a capital reduction dividend. Ordinary shareholders excluding the controlling shareholder will be fully exempt from 15.4 percent dividend income tax based on the Income Tax Act and the Corporate Tax Act. The expected dividend payment date is within 1 month after approval at the 34th annual general meeting of shareholders in March. The company previously paid an interim dividend totaling 1.5 billion won in July last year.

Chief Executive Park Jong-heon (박종헌) said the results reflect an adjustment due to an overall demand slowdown in the battery market and reduced delivery volumes. He said the company will focus on diversifying its product portfolio, strengthening production capabilities and securing overseas production bases, based on IPO proceeds and cash on hand. Park added that it will continue to return profits to shareholders through dividends and will realise a sustainable expansion of dividends based on improved results in the future.