W-Scope Chungju Plant (393890) Q3 2025 earnings summary

Executive summary

• Revenue declined to 29.1 bn KRW in 3Q25, down 23.8% sequentially and 55.6% year-over-year.

• Specializes in manufacturing separators for lithium-ion batteries, focusing on wet and ceramic-coated separators for EVs and ESS applications.

• Revenue is primarily export-driven, with a growing share of high-margin coated products.

• Operating and net losses deepened, with net loss at -46.1 bn KRW, a 64.6% increase from 2Q25.

• Ongoing margin pressure from competitor price cuts and higher fixed costs due to lower sales.

Financial highlights

• 2025 Q3 consolidated revenue: ₩83.6B, down from ₩322.1B in 2024 and ₩305.0B in 2023.

• Gross profit was -27.7 bn KRW (-95.2% margin), worsening from -23.0 bn KRW in 2Q25.

• EBITDA was -16.5 bn KRW (-56.7% margin), down from -11.6 bn KRW in 2Q25.

• Net loss for 2025 Q3: ₩107.4B (2024: ₩72.2B loss; 2023: ₩53.6B profit).

• Cash and cash equivalents at Q3 end: ₩48.9B (2024: ₩59.7B).

Outlook and guidance

• 4Q25 expects slight QoQ operating profit improvement despite seasonality.

• Early ESS production and cost optimization efforts underway.

• Long-term focus on expanding ESS, acquiring new clients, and preparing for EV growth from 2027.

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

• Hungary plant to begin pilot production in 2026, expanding European market reach.