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L&F |
[Alpha Biz= Reporter Kim Sangjin] L&F reported an operating loss of 84.2 billion won for the second quarter of the year, primarily due to weakened demand in the electric vehicle (EV) market. In response, the company is considering adjusting its investment pace to align with the reduced investment activities of its clients and to reassess its profitability.
For Q2, L&F's consolidated revenue amounted to 554.8 billion won, a 59.4% decrease compared to the same period last year. The company transitioned from a profit of 3 billion won in Q2 of the previous year to a substantial operating loss. Compared to the previous quarter, revenues declined by 12.7%, while the operating loss decreased from 203.9 billion won, reflecting a reduction in the impact of high-cost inventory.
During a conference call, L&F expressed a desire to achieve a turning point in the latter half of the year, although they acknowledged the challenge. The company anticipates that the launch of high-nickel products in Q4 and the impact of new vehicle releases will contribute positively to performance improvement. However, due to the slowdown in EV demand, L&F is planning to adjust the pace of its investments and reassess the profitability of its cathode material investments and new ventures.
Despite the challenges, L&F continues to actively develop new customer products and new technologies. The company plans to introduce next-generation 4680 cylindrical batteries with 95% nickel single-crystal products and next-generation 2170 cylindrical batteries with 95% nickel polycrystalline products in the latter half of the year.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
