▲ Hongjin / CEO Jinki Hong

It is reported that in the first half of this year, global electric vehicle deliveries increased by 40% compared to the previous year. The brand that ranked first in market share was BYD. Headquartered in Shenzhen, China, BYD sold more than 440,000 units in China, the world＊s largest auto market, in the first quarter of this year. With this, BYD has surpassed Volkswagen, which has been holding on to the first place in the market, and has risen to the leading position. On the other hand, Hyundai and Kia in Korea are in contrast to the fact that their sales in the first quarter increased by 0.3 percent year-on-year to 165,000 units, pushed from fifth place to seventh. Among them, it is difficult to omit the story of Hongjin, which has continued to make an unparalleled move in the domestic lithium battery forklift market. Hongjin is the first company to bring the ＆BYD electric forklift equipped with lithium battery＊ to the Korean market, which has been praised for its superiority in terms of working environment, stability, and maintenance. As of 2023, Hongjin has continued to introduce the special features of secondary batteries, which are located as the ※eye of the typhoon§ in Korea. Then, on the 11th of last month, Hongjin announced that it would select DB Financial Investment as the organizer and start promoting a full-fledged IPO.

Toward IPO under guidance of DB Financial Investment

Focusing on requirements

Hongjin CEO Jinki Hong says “We have been actively communicating with shareholders and other stakeholders about Hongjin’s future vision and growth strategy. We will strive to maximize the corporate value as well as the interests of all shareholders in the long term through this IPO. In the process, DB Financial Investment was selected as the organizer, and we will focus more on attracting investment and meeting the requirements.” Hongjin has received a lot of attention for its nationwide distribution network of logistics equipment, especially for its LFP battery technology. The company is taking a leap forward in the domestic electric forklift market by preemptively supplying lithium iron phosphate logistics equipment and batteries of EP and EVE, which are known as the world’s leaders in logistics equipment, as well as KLIFT lithium battery forklifts, which are the company’s own brands. The company’s strategy is to further consolidate its position as the only lithium iron phosphate battery brand in Korea through this IPO.

Establishment of Korea’s only iron phosphate packing line construction system

Leading the electric forklift battery market

The company has built a more stable battery network based on the only iron phosphate packing line construction system in Korea. As the Korean distributor of electric vehicle manufacturer BYD, the company has demonstrated its strength in sales and maintenance of electric forklifts. In addition, it is worth noting that since the introduction of eco-friendly electric forklifts, it has continued an organic cooperation system by collaborating with various domestic and foreign large companies. In particular, the company supplies electric forklifts of HANGCHA, EP, EPK LIFT, as well as BYD, and is introducing lithium iron phosphate batteries with higher economy and safety in Korea. In the first half of this year, Hongjin introduced Hangcha forklift that is establishing its position as a global forklift brand. An official says “Hangcha forklift accounts for a high proportion of forklift sales in the world, and its biggest feature is that it has complemented the durability and stability of forklifts with its long history. In the first half of this year, we offered a wide range of Hangcha forklift lineups, ranging from 1.5 tons to 3 tons of new to used lifts. In particular, our forklift engineers are doing careful testing of lithium battery forklifts before leaving the factory. Lithium battery forklifts are preferred by the field because their maintenance costs are greatly reduced compared to diesel forklifts.” CEO Hong adds “The establishment of a stable battery supply chain is always an important for the company. Based on this, we have taken a more active stance to share our high understanding of lithium iron phosphate batteries and technology with the industry. Electric forklifts are no longer an option, but a necessity. We will continue to lead the domestic electric forklift battery market.”

Selected as a preliminary operator for the forklifts electrification project

Contribution to carbon neutrality

The company has been selected as a preliminary operator for the forklifts electrification project through a consortium of three companies: Ceracomb, Hongjin, and AutoGlobal.

Older diesel forklifts, which are estimated to be more than 40,000 units, generate smoke, noise, and fine dust, and can also cause health problems for workers. The company official says “Hongjin has been supplying optimized equipment as a specialist in electric forklifts. As a company specializing in automobile modification, AutoGlobal has been showcasing high-quality conversion technology through JS Limousine. Ceracomb has long experience and management capabilities in the field of abatement business. We are very pleased that the three companies will be able to work together to contribute to the technological leadership in the electrification sector.” Ceracomb will be in charge of the project, AutoGlobal will be in charge of structural and electronic design and electrification modification, and Hongjin will be in charge of developing and supplying electrification parts. Through this, the aging diesel vehicles will be converted into eco-friendly vehicles and released in the market in the second half of the year. CEO Hong says “Compared with the forklifts currently on the market, electric forklifts are also advantageous for component compatibility, and the technical perfection is very high, so it will be possible to distribute them immediately after the completion of the applicability evaluation. Above all, the cooperation of the three companies will contribute to achieving carbon neutrality and reducing fine dust.”