Top Material 1Q25: Consol. Sales KRW 8.07bn (+84% YoY), Operating Loss Persists; LFP Cathode Production Imminent

1Q26 consol. sales KRW 8,067mn (+84% YoY), operating loss KRW 2,741mn (similar to prior year), net loss KRW 565mn (improved from -989mn YoY)
LFP cathode 3,000t/y mother line completed; mass production target 4Q26 (new growth driver)
Consol. debt-to-equity ratio 71.18% (up from 67.88% at FY25 end); net debt KRW 77,518mn
Allowance for doubtful accounts KRW 27,959mn, 37.05% of trade receivables (high risk)
US subsidiary (Top Material Corp.) fully acquired; contributed KRW 3,175mn sales in the quarter
4th CB of KRW 42bn; conversion price lowered from KRW 64,488 to 45,142 (potential dilution)
Arbitration with overseas client F over PPC equipment payment ongoing; no provision recognized
Standalone operating cash flow -KRW 1,754mn; consol. +KRW 1,526mn
R&D spend KRW 1,661mn (20.38% of sales); next-gen cathodes (LMNO, LMRO) under development