W-Scope Chungju Plant (393890) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q25 rose to KRW 38.2bn, up 134% sequentially from 1Q25 but down 67% year-over-year from 2Q24.

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

• Revenue for H1 2025 was KRW 54.5 billion, with a net loss of KRW 61.4 billion, reflecting a sharp downturn from previous years.

• The company is expanding production capacity domestically and in Hungary to meet anticipated global EV demand.

• Major customers are global battery and automotive manufacturers; exports dominate sales mix.

Financial highlights

• Gross profit in 2Q25 was -KRW 23.0bn (-60.2% margin), an improvement from -KRW 26.5bn in 1Q25.

• Operating loss in 2Q25 was -KRW 26.0bn (-68.1% margin), better than -KRW 30.4bn in 1Q25.

• H1 2025 revenue: KRW 54.5 billion, down sharply from KRW 322.1 billion in FY2024.

• Cash and cash equivalents at period end: KRW 53.1 billion.

• Total assets: KRW 1.97 trillion; total liabilities: KRW 1.03 trillion; equity: KRW 938.2 billion.

Outlook and guidance

• Stronger growth expected in 2H25, with rising demand for both small and large battery products.

• Global EV battery separator demand expected to grow at double-digit rates through 2030.

• Hungary plant to begin trial operations in 2026, supporting European market expansion.

• Over 60% of revenue targeted from the North American market; Ion Exchange Membrane business identified as a future growth engine.

• Mid- to long-term goal to reach KRW 1tn in revenue and a fivefold sales volume increase over five years.