Enchem (348370) Q1 2025 earnings summary

Executive summary

• Manufactures and sells electrolytes and additives for secondary batteries and EDLCs, with global operations in Korea, China, Europe, and the US.

• Expanded into NMP recycling and plans further vertical integration via joint ventures in solvents and lithium salts.

• Holds a BB+ credit rating as of June 2024.

Financial highlights

• Q1 2025 consolidated revenue: KRW 68.2 billion, down sharply from KRW 365.7 billion in Q4 2024 and KRW 424.7 billion in Q4 2023.

• Q1 2025 operating loss: KRW 19.2 billion; net profit: KRW 57.6 billion, driven by significant non-operating gains.

• Q1 2025 gross margin: 4.3% (KRW 2.9 billion gross profit on KRW 68.2 billion revenue).

• Q1 2025 basic EPS: KRW 2,750; diluted EPS: KRW 2,643.

• Cash and cash equivalents at Q1 2025 end: KRW 25.9 billion, down from KRW 102.0 billion at 2024 year-end.

Outlook and guidance

• Industry expects continued growth in electrolyte demand, especially for EV and ESS markets.

• Company is investing in overseas capacity and NMP recycling to address supply chain risks and support global customers.