W-Scope Chungju Plant (393890) Q1 2026 earnings summary

Executive summary

• Revenue reached 42.9 bn KRW in Q1 2026, up 57% year-over-year and 58% sequentially from 4Q25, but down from previous years.

• Operating loss narrowed to -20.5 bn KRW, a significant improvement from -39.3 bn KRW in 4Q25.

• Net loss deepened to -48.4 bn KRW, compared to -43.9 bn KRW in 4Q25 and -33.3 bn KRW in 1Q25.

• Manufactures lithium-ion battery separators, focusing on wet and ceramic-coated types for EVs and ESS applications.

• Over 99% of Q1 2026 revenue came from a single customer group, highlighting high customer concentration risk.

Financial highlights

• Gross profit improved to -15.7 bn KRW from -35.9 bn KRW in 4Q25, with gross margin at -36.6%.

• EBITDA loss reduced to -5.2 bn KRW from -24.2 bn KRW in 4Q25.

• CAPEX dropped sharply to 5.8 bn KRW from 19.5 bn KRW in 4Q25 and 142.2 bn KRW in 1Q25.

• Cash and cash equivalents at Q1 2026 end: KRW 57.7 billion, up from KRW 27.0 billion at FY2025 end.

• Total assets: KRW 1.97 trillion; total liabilities: KRW 1.09 trillion; equity: KRW 888.1 billion.

Outlook and guidance

• 1H26: ESS segment preparing LFP supply to US and aligning with new local clients; steady shipments in EV & Small segments.

• 2H26: Overseas ESS supply to key and new customers; EV segment in supply discussions with US/JP clients.

• 2027-2028: Revenue expected to rise with new major clients and full production at Hungary plant.

• Short-term demand for EV battery separators remains weak due to global EV market slowdown, but medium- to long-term growth is expected as the market recovers.

• Ongoing expansion of production lines in Korea and Hungary to prepare for future demand recovery.