Korea Zinc Company (010130) Q2 2025 earnings summary

Executive summary

• Achieved record-high quarterly consolidated revenue in 2Q25, driven by strong precious metal prices and robust rare metal sales despite weak zinc and lead prices.

• The company operates as a comprehensive non-ferrous metal smelting group, with 83 consolidated subsidiaries and a diversified portfolio including zinc, lead, gold, silver, copper, and new businesses in renewable energy and battery materials.

• Operating profit and net profit increased significantly year-over-year, with net profit up by KRW 155 billion compared to 2Q24.

• Recent corporate actions include significant treasury stock buybacks and cancellations, changes in major shareholders, and ongoing legal disputes regarding shareholder rights and board composition.

• Cost reduction initiatives, including LNG and solar power, resulted in substantial savings and CO2 emission reductions.

Financial highlights

• Consolidated sales reached KRW 3,825 billion in 2Q25, up 25.1% year-over-year.

• Consolidated revenue for the half-year ended June 2025 was KRW 7,658.2 billion, with net income attributable to controlling interests at KRW 493.6 billion.

• Gross profit was KRW 390 billion, up 7.7% year-over-year; operating profit was KRW 259 billion, down 3.7% year-over-year.

• Net profit surged to KRW 330 billion in 2Q25, a 102.9% increase year-over-year.

• Total assets stood at KRW 14,837.8 billion, with equity of KRW 7,854.6 billion and a debt ratio of 89.2%.

Outlook and guidance

• Profit-focused strategy to maintain stability amid U.S. tariff uncertainties.

• Revenue and profitability expected to improve in 3Q25 due to stable operations and deferred sales volume.

• High rare metal prices likely to persist due to China’s export restrictions.

• The company targets a shareholder return rate of at least 40% over the next three years, with a focus on maintaining financial soundness and a payout ratio below 8,000%.

• Ongoing investments in battery materials, recycling, and renewable energy are expected to drive future growth.