Sales of 554.8 Billion KRW... 59% Decrease Compared to Previous Year
LNDF announced on the 6th that it recorded consolidated sales of 554.8 billion KRW and an operating loss of 84.2 billion KRW in the second quarter of this year. Compared to the previous year, sales decreased by 59.4%, and operating profit turned to a loss. Compared to the previous quarter, sales decreased by 12.7%, while operating profit increased by 58%.
LNDF cited the decline in average selling prices due to the drop in raw material prices as the main reason for the sales decrease. Regarding the operating loss, the company stated, "High cost pressure due to the decline in raw material prices continues," and "Low operating rates caused by the global demand slowdown also increased the burden on performance."
Total shipments rose by about 3% compared to the previous quarter, but a sharp demand slowdown occurred from the end of the second quarter. External uncertainties expanded due to the continued global electric vehicle demand slowdown, customer inventory adjustments, and business structure reorganizations by secondary battery companies.
LNDF expects total sales volume in the second half of the year to decrease by 7% compared to the first half. On the other hand, products with nickel content of 90% or higher are expected to grow by 9% compared to the first half due to the launch of new high-nickel products.
Regarding the average selling price in the second half, it is forecasted to decline by 8% compared to the first half. Operating profit in the second half is expected to improve as the loss-making inventory continues to be depleted. LNDF plans to continue inventory management in the second half and implement company-wide cost reductions and line efficiency improvements to enhance profitability.
The company plans to launch a nickel content 95% single-crystal product to be installed in 4680 cylindrical batteries and a nickel content 95% polycrystalline product for next-generation 2170 cylindrical batteries in the second half. Both products are undergoing customer testing and pilot production testing. To this end, production preparations are being accelerated, including allocating a mass production line at the Guji 3 plant.
The company stated, "Development of high-voltage mid-nickel and cathode materials for LFP batteries, products aimed at mid-to-low price segments, is progressing smoothly," adding, "For LFP cathode materials, we are the only domestic company to have completed pilot line construction and are currently conducting customer tests."
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