SKIET Q2 Revenue 61.6 Billion KRW, Operating Loss 58.7 Billion KRW... Continued Deficit

"Negotiating Mid- to Long-Term Supply Contracts with 5 Companies in the North American Region"

SKIET announced on the 31st that its sales for the second quarter of this year increased by 15.4 billion KRW compared to the previous quarter, reaching 61.6 billion KRW, while operating losses amounted to 58.7 billion KRW.

Specifically, the core lithium-ion battery separator business reported a sales volume increase of about 30% compared to the previous quarter. However, it was analyzed that the improvement in performance was suppressed due to the burden of fixed costs caused by low facility utilization rates amid weakening demand in the downstream industry.

An SKIET official stated, "From the second half of this year, gradual sales volume improvement is expected due to shipments to new customers in the North American region and increased demand from existing customers." SKIET is pursuing an expansion of its customer portfolio to strengthen mid- to long-term business stability.

In the earnings announcement, SKIET revealed, "We are conducting specific mid- to long-term supply contract negotiations with at least five battery cell manufacturers in North America and global automakers."

If multiple supply contracts currently under negotiation in the North American region are signed, long-term performance improvement is expected based on the proactively secured demand in the North American market.

Regarding new investments in separator factories in North America, a decision is planned to be made in the first quarter of 2025, after the U.S. presidential election. SKIET stated that it is currently negotiating to initially enter with coating facilities only.

Additionally, SKIET is reviewing asset securitization of the Flexible Cover Window (FCW) business, which has been decided to be discontinued, to reduce fixed costs associated with factory operations. This is intended to improve financial soundness.

SKIET will continue research on next-generation battery materials such as solid electrolytes linked to its own separator development and production capabilities. To enhance the technological competitiveness of its separator products, SKIET internalized R&D assets and personnel from SK Innovation in May.

Meanwhile, regarding rumors of share sales, SKIET stated, "SK Innovation disclosed through a public announcement that it is reviewing various options including the sale of some shares," and added, "SK Innovation’s management also mentioned at a recent press briefing that they are considering various options to strengthen SKIET’s long-term competitiveness."

An SKIET official said, "We plan to smoothly conclude negotiations with global customers currently underway and achieve results including signing multiple mid- to long-term supply contracts," adding, "Although management uncertainty is high due to the slowdown in the downstream industry, we view this as an opportunity for mid- to long-term growth and will respond agilely."

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