L&F, Last Year Sales 4.6 Trillion Won and Operating Loss of 223.2 Billion Won

LNDF reported consolidated financial results for the previous year with annual sales of 4.6 trillion KRW and an operating loss of 222.3 billion KRW.

At the earnings presentation, LNDF stated that sales in 2023 increased by 19.5% compared to the previous year. This was attributed to a 4% increase in shipment volume and an 18% rise in average selling price. Furthermore, the main cause of the operating loss turnaround was a large inventory asset valuation loss due to the plunge in lithium prices. They explained that this impact continued into the first quarter and is expected to gradually be resolved after the first half of the year.

Additionally, LNDF explained that with the completion of the Guji 2 plant and the expansion of the Guji 3 plant last year, assets increased by 10.5% compared to the previous year. Continuous facility investments led to external growth, significantly increasing tangible assets.

They mentioned that shipment volume hit its lowest point in the fourth quarter of last year, and a double-digit improvement in shipment volume is expected in the first quarter of this year compared to the previous quarter. Furthermore, they added that the inventory asset valuation loss amount can be reversed for the remaining balance beyond the amount realized through sales when lithium prices rebound.

Finally, regarding order status, although there were schedule changes due to unexpected variables such as a slowdown in electric vehicle demand and external economic factors, discussions on volume and pricing are ongoing with no change in direction. In terms of new product development, they forecast leading technological competitiveness through the launch of new products that raise nickel content to the mid-90% range.