Solus Advanced Materials Reports Preliminary 1Q Sales of 88.8 Billion KRW, Up 25% Year-on-Year

[Asia Economy Reporter Suyeon Woo] Solus Advanced Materials announced that it recorded provisional results of 88.8 billion KRW in sales and 400 million KRW in operating profit for the first quarter of this year based on consolidated financial statements. This represents a 25% increase in sales and a 95% decrease in operating profit compared to the same period last year.

The Battery Foil Division (Battery Foil Business and Copper Foil Business Headquarters) achieved a record quarterly high with sales of 58.2 billion KRW in the first quarter. The Copper Foil Business Headquarters, which holds a high-end copper foil portfolio for 5G and semiconductors, led the sales increase by recording the highest quarterly sales volume ever.

The Advanced Materials Division (Electronic Materials Business and Bio Business Headquarters) saw the Electronic Materials Business Headquarters achieve the highest first-quarter sales since the start of the business. The main factors were the adoption of aETL in the M11 material set and increased sample supply for TVs. However, operating profit significantly decreased due to initial operating costs incurred at the Hungarian battery foil plant, which successfully began mass production last November.

A Solus Advanced Materials official explained, "The early repayment of borrowings for the Hungarian plant and the resolution of foreign exchange translation losses improved the net loss by a remarkable 93% compared to the previous quarter," adding, "The foundation for the full-scale external growth of the battery foil business, which produces copper foil for secondary batteries, is progressing smoothly."

Solus Advanced Materials expects the steady sales growth across its four main business divisions (Battery Foil, Copper Foil, Electronic Materials, and Bio) to continue into the second quarter. They anticipate stabilization of battery foil mass production, a surge in high-profit copper foil demand driven by rapid growth in the 5G technology-based equipment market, diversification of electronic materials items and customers, and expansion of ceramide materials and finished product businesses.

Meanwhile, Solus Advanced Materials plans to establish an annual production system with a total gross capacity of 105,000 tons by 2025 through expansion, combining 90,000 tons of battery foil and 15,000 tons of copper foil.