Chunbo (A27828) Q3 2025 earnings summary

Executive summary

• Founded in 2007 and listed in 2019, the company specializes in fine chemistry for secondary batteries, semiconductors, displays, and pharmaceuticals.

• Major milestones include global firsts in lithium salt commercialization and significant plant expansions in 2023 and 2024.

• Supplies advanced battery materials to global top-tier clients such as LGES, Samsung SDI, CATL, Tesla, and Panasonic.

• Revenue for the first nine months of 2025 was KRW 99.3 billion, down 31.5% year-over-year, with an operating profit of KRW 6.3 billion and a net loss of KRW 8.8 billion, reflecting continued margin pressure and weak demand in key segments.

• Electronic materials showed resilience, while secondary battery materials and pharmaceuticals experienced significant declines in both sales and profitability.

Financial highlights

• 2025 Q3 revenue was KRW 99.3 billion, down from KRW 144.9 billion in 2024 and KRW 182.7 billion in 2023.

• Operating income for 2025 Q3 was KRW 6.3 billion, a turnaround from losses of KRW 22.8 billion in 2024 and KRW 8.0 billion in 2023.

• Net loss for 2025 Q3 was KRW 8.8 billion, improving from net losses of KRW 32.3 billion in 2024 and KRW 45.5 billion in 2023.

• Gross margin improved to 13.3% in 2025 Q3 from a loss of KRW 14.1 billion in 2024, driven by cost controls and product mix.

• Total assets at 2025 Q3 were KRW 833.0 billion, with total liabilities at KRW 426.9 billion and equity at KRW 406.1 billion.

Outlook and guidance

• Commercial production at new plants in Gunsan and Chungju is set for January 2025, with significant tax incentives.

• Plans to achieve 25% operating margin through cost reduction and process optimization.

• Management expects continued volatility in demand for secondary battery materials but anticipates stabilization in electronic materials.

• Ongoing cost optimization and R&D investment are expected to support margin recovery.

• Global battery market capacity is projected to grow significantly in North America and Europe through 2030.