PNT Co., Ltd. (KOSDAQ 137400): Corporate Site Visit Report - Future Growth Strategy and Operational Excellence

[Site Visit Date: December 20, 2024]

During our recent visit to PNT Co., Ltd.'s headquarters in Gumi, South Korea, we conducted an extensive facility tour and management meeting that extended well beyond the scheduled 30 minutes to approximately 90 minutes, encompassing visits to two factory sites.

1. Corporate Communication and Business Strategy

1.1 Disclosure Policy
The company explained its constraints regarding voluntary disclosure of orders, citing disclosure requirements and client confidentiality agreements. While management expressed willingness to consider disclosures for non-NDA orders, the prevalence of NDAs in contracts presents practical limitations.

Patent disclosures, previously delayed due to workload, are scheduled to be more actively pursued moving forward.

1.2 Customer Relations
Client sensitivity regarding information disclosure was noted as particularly high, with instances of clients requesting removal of even indirect news coverage. This validates that allegations of intentional information withholding by the company are unfounded.

Notably, reports suggesting discontinued business relations with LG Energy Solution were confirmed to be incorrect, with ongoing efforts to maintain the strategic partnership.

1.3 Business Diversification Status
Beyond secondary battery equipment, PNT supplies machinery to various industries utilizing roll-to-roll processes. While individual revenue streams from non-battery sectors are smaller, they provide stable and diverse income sources.

1.4 LFP Business Strategy
The company clarified that LFP battery production primarily serves to demonstrate their comprehensive turnkey solution capabilities. Management suggested potential high-value turnkey line orders as an ideal scenario, while emphasizing that the primary purpose of the LFP production line is to prove turnkey solution capabilities.

1.5 China Market Strategy
PNT maintains a clear position on the Chinese market, emphasizing its importance alongside the U.S. market. Notably, despite price competition from local Chinese manufacturers, Chinese clients consistently choose PNT equipment, demonstrating the company's superior technology and reliability.

1.6 Dry Process Technology
The company confirmed capabilities in both cathode and anode dry processing. Management emphasized mixing process as crucial, particularly addressing the technical challenge of uniformly combining binder and active materials without water.

1.7 Solid-State Battery Initiative
PNT offered an intriguing perspective on solid-state battery commercialization, projecting possible commercialization within two years rather than the commonly cited 10+ years. The company is already engaged in solid-state related material business.

1.8 Currency Impact
With approximately 80% of revenue derived from exports (primarily in USD, with some CNY and EUR), and raw material purchases mainly in JPY, the current won/dollar exchange rate benefits the company's financial performance.

2. Production Facility Overview
   The site visit revealed facilities operating at full capacity, with finished products awaiting shipment occupying both factory grounds and headquarters parking areas, indicating robust order execution.
3. Shareholder Value Enhancement
   Plans include strengthening IR capabilities through dedicated personnel in the Seoul office and enhancing shareholder returns through increased dividends, transparency, and corporate value improvement initiatives.
4. Stakeholder Communication
   Regular shareholder meetings following annual general meetings demonstrate commitment to stakeholder engagement. Despite Gumi's relative geographic isolation, the site visit provided valuable insights into operational excellence and growth potential.
5. Conclusion
   The site visit confirmed PNT's strong operational momentum, highlighted by:

• Robust production activity
• Strong position in the Chinese market
• Strategic diversification across industries
• Proactive approach to solid-state battery technology
• Positive currency exposure
• Commitment to shareholder value creation

Management, led by CEO Jun-seop Kim, demonstrated genuine commitment to long-term value creation, dispelling concerns about shareholder engagement during stock price fluctuations.

[Special Notes]

• Export Focus: 80% of revenue from overseas markets
• Technology Leadership: Dominant position in Chinese market despite local competition
• Future Growth: Early positioning in solid-state battery technology
• Financial Strategy: Beneficial currency exposure structure
• Infrastructure: Operating at full capacity with substantial order backlog