■ Consolidated sales recorded at 158 billion KRW, with an operating loss of 46 billion KRW due to a decline in sales volume and revenue, primarily driven by continued battery inventory adjustments by key customers. 

■ Profitability expected to improve in Q2 as a result of proactive inventory reduction efforts and a gradual recovery in utilization rates following inventory depletion by customers…Turnaround anticipated in the second half with increased sales from new supply of products to North American OEMs and customer joint ventures (JVs). 

■ The Company is focused on strengthening profitability and securing leadership in the high-end copper foil market for next-generation batteries… Stable supply through the Malaysian plant is expected to support this, with 2026 sales volume projected to increase 2.5 times compared to this year.

LOTTE Energy Materials reports Preliminary Performance Results for Q1 2025 Results (Consolidated). The Company recorded sales of 158 billion KRW and an operating loss of 46 billion KRW for the first quarter of 2025. 

Sales decreased by approximately 15% compared to the previous quarter, primarily due to reduced shipment volumes stemming from battery inventory adjustments by key customers. This decline contributed to continued operating losses.  

LOTT Energy Materials stated that, despite weakened profitability caused by reduced utilization rates driven by demand volatility and customer inventory adjustments exacerbated by global uncertainties such as U.S. tariff policies, it plans to respond flexibly to the rapidly changing market based on its industry-leading financial stability. 

As of the end of Q1 2025, the Company maintained a consolidated debt ratio of 19.9% and a borrowing ratio of 5.8%.  

Regarding the outlook for Q2, the Company acknowledged that uncertainty remains in downstream industries due to U.S. trade policies. However, it expects a gradual recovery in utilization rates and a step-by-step improvement in profitability, driven by the effects of active inventory reduction efforts implemented since the second half of last year and the depletion of copper foil inventory at customer sites.    

In the second half of the year, the Company anticipates a turnaround to profitability through increased sales from new product supply to North American OEMs and customer joint ventures. It also aims to achieve steady growth through enhanced operational efficiency and conservative inventory management tailored to market conditions.  

CEO Kim Yeon-Seop stated, “We are successfully executing our goal of bringing product inventories to optimal levels, which is a strategy we have actively pursued since the second half of last year.” He added, “Through the ‘RISE 1000’ project at our Malaysian subsidiary, we are steadily upgrading our competitiveness in manufacturing, quality, and cost, thereby securing long-term growth potential. We will do our utmost to overcome current market uncertainties and short-term challenges while meeting the expectations of investors and stakeholders through sustainable long-term growth.”    

Through its “RISE 1000” project, LOTTE Energy Materials plans to ensure stable supply of high-end copper foil products via its Malaysian plant, which is equipped with world-class quality and cost competitiveness. Starting next year, the Company expects to increase sales volume by more than 2.5 times compared to this year through global customer diversification in North America, Europe, and China. The Company is fully committed to strengthening both its leadership in the next-generation battery high-end copper foil market and its profitability.