Solus Advanced Materials Reports 15.3 Billion KRW Operating Loss in Q1, Up 9.3% Year-on-Year

Impact of Weakened Demand in Europe and North America

Solus Advanced Materials announced on April 30 that it recorded an operating loss of 15.3 billion KRW on a consolidated basis in the first quarter of this year. This represents a decrease of approximately 9.3% in operating profit compared to the same period last year.

Solus Advanced Materials Quebec Battery Foil Plant, Canada. Provided by Solus Advanced Materials

Solus Advanced Materials explained, "Due to volume adjustments by customers in Europe and North America, overall supply volume decreased, including a reduction in the supply of some high-margin products. In addition, increased fixed costs at the second plant in Hungary, which began mass production in the second half of last year, contributed to the continued losses."

Sales reached 157.6 billion KRW, a 30% increase compared to the same period last year.

Both the battery foil and copper foil divisions achieved sales growth, reaching 127.9 billion KRW, which is a 42% increase year-on-year.

Of this, sales from the battery foil division recorded 59.8 billion KRW, a 29% increase compared to the same period last year. The company stated, "This result was supported by securing stable supply volumes through customer portfolio diversification via additional contracts." However, it also noted, "Nevertheless, prolonged stagnation in the electric vehicle market and the expansion of U.S. tariff policies have increased external uncertainties, which have affected our customers' businesses and resulted in a decrease in supply volume compared to the previous quarter."

Copper foil sales reached 68.1 billion KRW, marking a significant 56% increase year-on-year. Solus Advanced Materials explained, "The main reason is the expansion in supply volume of copper foil for AI accelerators to a global big tech company, for which we are currently the sole supplier." The company added, "Since the second half of last year, when full-scale mass production of AI copper foil began, we have been preparing dedicated facilities and increasing production volume to respond effectively to demand."

The organic light-emitting diode (OLED) division recorded sales of 29.7 billion KRW. The company explained, "There was a slight year-on-year decrease due to reduced volume from some domestic customers and delays in approval for mobile products from overseas customers." However, it added, "In the second quarter, we expect a recovery in performance as supply volumes for mobile and information technology (IT) devices increase."

Kwak Geunman, CEO of Solus Advanced Materials, stated, "We achieved sales growth through diversification of the battery foil customer portfolio and increased demand for copper foil for AI accelerators, but improving profitability remains a key challenge." He added, "Many companies have entered a period of pause due to market stagnation and changes in the domestic and global industrial landscape. Although we are also facing various difficulties, we will continue our value-up preparations this year so that we can make a significant leap forward when the electric vehicle market recovers, leveraging our unique business competitiveness."