LK Chem Reports 500 Million KRW Operating Profit in Q1 2025... "Securing Mid- to Long-Term Growth Foundation"

LK Chem announced on May 15 that, on a consolidated basis, its sales for the first quarter amounted to 3.4 billion KRW, a 37% decrease compared to the same period last year (5.3 billion KRW). During the same period, operating profit was 500 million KRW and net profit for the quarter was 400 million KRW, representing decreases of 75% and 76%, respectively, compared to the previous year's figures (2.0 billion KRW and 1.7 billion KRW).

The main reason for this decline in performance was that prolonged global trade disputes increased uncertainty across the industry, leading major clients to adjust their inventory management strategies. As a result, there was a temporary increase in demand for relatively low-cost general-purpose High-k ligands instead of high-performance precursor products, which led to a higher sales proportion of these products and temporarily affected overall profitability.

Nevertheless, the company maintained its original sales outlook and expressed confidence in achieving its targets. Starting in the second quarter, demand for high-performance High-k ligands has been gradually normalizing. With preparations for the operation of new facilities for the production of Mo·Y·Sn precursors now complete, the company expects significant improvements in production efficiency and supply responsiveness.

The company is actively expanding its entry into new client bases as well as existing ones, leveraging a new product portfolio that has been in development for a long time. Through these efforts, it is simultaneously pursuing diversification of its sales channels. In addition, by developing new materials such as hafnium (Hf) and perovskite, it is continuously securing mid- to long-term growth engines.

Lee Changyeop, CEO of LK Chem, stated, "The first quarter's performance was temporarily affected by increased internal and external uncertainties, but the sales of new products currently being planned are progressing actively, so we expect a recovery and growth in performance. Through the soon-to-be-operational new production line, we will further strengthen our responsiveness to customers and expand our position within the global semiconductor supply chain."