W-Scope Chungju Plant (A393890) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q24 was KRW 65.5bn, down 51.1bn sequentially and up 3.9bn year-over-year.

• Operating profit turned negative at -19.4bn (-29.6%), a sharp decline from both the previous quarter and last year.

• Net profit was -21.0bn (-32.1%), a significant deterioration from 3.4bn in 2Q24 and 14.9bn in 3Q23.

• EBITDA dropped to -4.2bn from 17.0bn in 2Q24 and 22.3bn in 3Q23.

Financial highlights

• Gross profit margin fell to -22.4% from 5.7% in 2Q24 and 21.6% in 3Q23.

• CAPEX increased to 129.9bn, up 54.5bn sequentially but down 6.8bn year-over-year.

• Depreciation remained steady at 15.2bn.

Outlook and guidance

• Prismatic battery segment pressured by main customer inventory control; 2170 segment affected by weak US OEM sales.

• 4Q24 forecast includes completing supply for main buyer and ongoing disruptions in US OEM sales.

• New product development continues, including sodium-ion and solid-state batteries.

• North America investment plan to be announced in 1H25.