Fine M-Tec Turns Operating Profit Last Year, To Begin Mass Production of End Plates for ESS

Fine M-Tec, a specialist in core components for foldable displays and for electric vehicles and energy storage systems (ESS), announced its consolidated full-year results for last year on February 13.

On a consolidated financial statement basis, Fine M-Tec recorded sales of 239.1 billion won in 2025, down 37.4% from the previous year, but turned profitable at the operating level with operating profit of 1.8 billion won, recovering from an operating loss a year earlier. However, due to large-scale front-loaded investments and the recognition of impairment losses on certain assets, the company posted a net loss of 23.7 billion won.

The company cited as the main factors behind these earnings fluctuations: the slowdown in growth of the electric vehicle market; changes in the global eco-friendly policy stance; adjustments to project schedules by customers; and a temporary sales gap caused by product specification changes.

In particular, Fine M-Tec explained that it had made large-scale preemptive investments in electric-vehicle end plate facilities and processes to respond to a joint battery project between a domestic battery cell manufacturer and Stellantis. However, the slowdown in global electric vehicle demand and rising policy uncertainty delayed the rollout of related volumes compared with initial expectations, weighing on its 2025 results.

It has recently been reported that domestic and overseas battery joint-venture projects have begun to slow their pace due to adjustments in electric vehicle demand and changes in the policy environment. The company assessed that these external environmental changes are affecting the short-term performance of parts suppliers across the board.

In 2025, fixed costs also increased temporarily as changes to the in-fold hinge (back plate) process, improvements in product structure, and expanded investment in research and development and new processes proceeded simultaneously. In addition, the suspension of specific customer business by some subsidiaries led to impairment losses on property, plant and equipment and losses on equity-method investments, which further widened the net loss.

However, the company views 2026 as a turning point for an earnings rebound. Fine M-Tec expects mass production of end plates for ESS (energy storage systems) to begin in earnest, and projects that ESS-related sales will gradually expand, backed by the quality and process technologies accumulated through its existing electric-vehicle products.

The company added that in its main business of in-fold hinges (back plates) for foldable displays, it is securing both cost competitiveness and quality stability through the shift to a new process and improvements in the production structure, and therefore expects to regain market share at major customers.

It further noted that the launch of next-generation foldable products is scheduled for 2026, creating additional potential for earnings improvement as supply of related components increases.

A company official stated, "2025 was a transitional period in which strategic front-loaded investments and process conversions were concentrated to respond to major customers," and emphasized, "The shift to mass production of end plates for ESS and the stabilization effects of the new in-fold hinge process will be fully reflected starting in 2026."