L&F (066970) investor relations material

Executive summary

• Achieved record-high quarterly shipments and strong revenue growth in Q2 2026, with revenue reaching KRW 885 billion, up 20% QoQ and 70% YoY, driven by product volume growth and favorable FX impact.

• Manufactures and sells cathode active materials for secondary batteries, with 100% of sales from this segment as of June 30, 2026.

• Operates three consolidated subsidiaries, with no changes in consolidation scope during the period.

• Recently transitioned from KOSDAQ to KOSPI market as of January 29, 2024.

• Net profit turned positive at KRW 52.9 billion in Q2 2026, compared to a net loss in the prior year quarter.

Financial highlights

• Revenue: KRW 885 billion in Q2 2026 (+20% QoQ, +70% YoY); H1 2026 consolidated revenue: KRW 1,624.7 billion, up from KRW 884.9 billion in H1 2025.

• Operating profit: KRW 20.8 billion in Q2 2026 (-82% QoQ, YoY turnaround); H1 2026 operating income: KRW 138.1 billion (vs. loss of KRW 261.4 billion in H1 2025).

• Net profit: KRW 52.9 billion in Q2 2026; H1 2026 net income attributable to owners: KRW 53.4 billion (vs. net loss of KRW 12.0 billion in H1 2025).

• Total assets as of June 30, 2026: KRW 3,684.5 billion; total liabilities: KRW 2,905.1 billion; cash and cash equivalents: KRW 360.6 billion.

• Inventory valuation loss of KRW 14 billion and LFP new business ramp-up costs of KRW 4 billion impacted profitability.

Outlook and guidance

• 2026 annual shipment outlook significantly above initial plan, with continued record sales in NCM cathode materials.

• Initiation of LFP cathode supply for U.S. ESS in Q3 and 30kt capacity expansion ahead of plan for U.S. ESS demand.

• LFP shipments expected to exceed 50kt in 2027, with expanding customer base in defense and EV sectors.

• The cathode active material industry is expected to see mid- to long-term growth, driven by EV and ESS market expansion and diversification of application industries.

• Company plans to maintain stable production capacity and expand supply to customers, with future facility investments to be reviewed based on market and customer trends.