Enchem (348370) Q2 2025 earnings summary

Executive summary

• Manufactures and sells electrolytes and additives for secondary batteries, mainly for electric vehicles, with global production facilities in Korea, the US, Europe, and China.

• Expanded into NMP recycling and lithium salt manufacturing, with ongoing investments in US and European plants.

• Holds a BBB- (T3) technology credit rating and BB+ corporate credit rating.

Financial highlights

• H1 2025 consolidated revenue: KRW 132.3 billion, down from KRW 365.7 billion in FY2024.

• Operating loss: KRW 21.9 billion (H1 2025), compared to operating profit of KRW 36.9 billion in FY2024.

• Net profit: KRW 38.5 billion (H1 2025), compared to net loss of KRW 65.3 billion in FY2024.

• Cash and cash equivalents at period end: KRW 14.1 billion, down from KRW 101.2 billion at FY2024 year-end.

• Total assets: KRW 1.03 trillion; total liabilities: KRW 508.5 billion; total equity: KRW 517.1 billion.

Outlook and guidance

• Plans to expand US and European production capacity by 252,000 tons by 2026.

• Focus on scaling NMP recycling and lithium salt businesses to capture growing EV and battery market demand.