L&F Co (066970) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q 2025 reached 5,201 billion KRW, up 42.6% quarter-over-quarter, driven by strong new product sales and increased shipment volumes.

• The company specializes in cathode active materials for secondary batteries, with 100% of sales from this segment as of June 30, 2025.

• Two subsidiaries are consolidated: JH Chemical Industry and Wuxi Guang Future Advanced Materials, both focused on battery materials.

• The company transitioned from KOSDAQ to KOSPI in January 2024.

• Shipment volume rose 55% quarter-over-quarter, led by Hi-Ni products, which now account for 85% of shipments.

Financial highlights

• Revenue: 5,201 billion KRW in 2Q 2025, up 42.6% quarter-over-quarter.

• Operating loss: -1,212 billion KRW, improved from -1,403 billion KRW in 1Q 2025.

• Net loss: -1,126 billion KRW, with a net margin of -22%.

• Gross margin remained negative at -988 billion KRW.

• End-of-quarter cash balance fell to 1,476 billion KRW, down 51.6% quarter-over-quarter.

• Consolidated revenue for H1 2025 was KRW 884.9 billion, down from KRW 1,190.5 billion in H1 2024.

• Operating loss was KRW 261.4 billion, compared to a loss of KRW 288.0 billion in the prior year.

• Net loss attributable to owners was KRW 222.9 billion, with basic EPS at -6,639 KRW.

• Total assets stood at KRW 2.81 trillion, with total liabilities at KRW 2.31 trillion as of June 30, 2025.

• Cash and cash equivalents at period end were KRW 147.6 billion.

Outlook and guidance

• Shipment growth trend expected to continue, with full-year 2025 shipment volume projected to rise 30–40% year-over-year.

• Hi-Ni product shipments and market share recovery to drive further volume increases.

• Inventory valuation losses expected to decrease as raw material purchase contracts end.

• LFP business expansion planned, with mass production targeted for 4Q 2026 and supply to North American EV and ESS markets.

• The company continues to focus on expanding supply to major global battery and EV manufacturers, with large-scale supply contracts in place through 2030.