LN F, Q3 Operating Profit of 14.8 Billion KRW... 85% Decrease YoY

Sales Increased by 1% to 1.2554 Trillion Won

L&F announced on the 6th that it recorded preliminary results for the third quarter of this year with sales of 1.2554 trillion KRW and an operating profit of 14.8 billion KRW. Compared to the previous year, sales increased by 1%, but operating profit decreased by 85%.

Regarding the third quarter results, L&F explained, "Sales declined this year due to the drop in raw material prices such as lithium and the decrease in electric vehicle (EV) demand," adding, "We reflected a loss amount of 10 billion KRW from inventory evaluation, and the effects of raw material price declines continued to pressure gross profit and inventory valuation."

It continued, "Amid fierce price competition among automobile original equipment manufacturers (OEMs), shipments of the cathode material 'NCM523 (Nickel 50%, Cobalt 20%, Manganese 30%)' product and the nickel content 90% 'NCMA90' product both decreased similarly," and explained, "Overall shipments fell by 7% compared to the previous quarter."

L&F stated that to respond to market demand, it is preparing the development and mass production of next-generation high-voltage mid-nickel cathode materials and mid-to-low-priced lithium iron phosphate (LFP) cathode materials, along with its main high-nickel products. It also mentioned, "We are in discussions with potential customers."

Regarding the fourth quarter, L&F forecasted a shipment decrease of around 20%, considering uncertainties in the EV market demand and the possibility of year-end inventory adjustments by customers.

L&F declared, "Despite the challenging EV market demand, we will achieve stable growth through continuous expansion of new customers and product diversification."

This content was produced with the assistance of AI translation services.