L&F (066970) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was 364,782 million KRW, a 0.2% decrease QoQ and 31.2% increase YoY, with all sales from cathode active materials for secondary batteries.

• Operating loss improved by 29.2% QoQ to -140,253 million KRW, driven by cost ratio improvements and reduced inventory loss.

• Shipment volume increased 5% QoQ, led by new product launches and Hi-Ni growth; NCMA90 regained market share.

• Two subsidiaries, JH Chemical Industry and Guang Future New Materials, are consolidated and focused on battery materials.

• The company is listed on KOSPI since January 2024, after moving from KOSDAQ.

Financial highlights

• Gross profit for Q1 2025 was -120,078 million KRW, with a gross margin of -33%.

• Net loss for Q1 2025 was -111,263 million KRW, net margin -31%.

• Cash and cash equivalents at quarter-end were 305,102 million KRW, up 9.2% QoQ but down 27% YoY.

• Operating cash flow was -19,224 million KRW, with positive cash trend maintained through lower raw material buys.

• Basic EPS for Q1 2025 was -3,305 KRW, and diluted EPS was -3,527 KRW.

Outlook and guidance

• Ni95 new product shipments to ramp up in Q2, exceeding early-year plans.

• High nickel product shipment forecast revised upward for 2025.

• Inventory impact expected to resolve after H1 as raw material prices stabilize and purchases reduce.

• 450,000 tons order backlog secured, with supply starting in 2026; focus on ESS and EV applications in the American market.

• The company continues to invest in R&D for next-generation battery materials, including high-nickel, cobalt-reduced, and solid-state battery cathodes.