Solus Advanced Materials Reports KRW 15 Billion Operating Loss in Q2... Deficit Widens

Battery Foil and Copper Foil Sales Down 12%

Solus Advanced Materials announced on July 23 that its consolidated sales for the second quarter of this year amounted to KRW 143.9 billion, with an operating loss of KRW 15 billion. Compared to the same period last year, sales decreased by 3.6%, and the operating loss widened from KRW 10.5 billion.

Solus Advanced Materials Hungary Battery Foil Factory. Solus Advanced Materials

Solus Advanced Materials explained that the continued operating loss was due to a prolonged slump in electric vehicle demand, which led to a decrease in battery foil sales volume. The company also cited fixed cost burdens and exchange rate fluctuations as contributing factors.

By business segment, sales in the battery foil and copper foil division reached KRW 112.1 billion, a 12% decrease from KRW 127.9 billion in the previous quarter. Sales in the battery foil business for batteries dropped by 23%, from KRW 59.8 billion in the previous quarter to KRW 46 billion.

For copper foil, sales amounted to KRW 66.1 billion, a 2.9% decrease from the previous quarter. The organic light-emitting diode (OLED) division recorded sales of KRW 31.8 billion, a 7% increase compared to the previous quarter.

Solus Advanced Materials plans to expand its battery foil customer base in Europe and North America from the current four companies to eight companies this year.

Kwak Geunman, CEO of Solus Advanced Materials, stated, "Although it is difficult to expect a significant recovery in the electric vehicle market, which has the greatest impact on our performance, even in the second half of the year, we are making every effort to ensure that new contracts proceed without any issues. We also believe we will be able to establish competitiveness in new growth areas such as energy storage systems (ESS)."

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