1. What Happened? Hydrolittium’s Disappointing 2025 Half-Year Results

Hydrolittium’s 2025 half-year results revealed a significant downturn, with revenue at ₩500 million, operating loss at ₩3 billion, and a net loss of ₩28.3 billion. The poor performance is attributed to struggling construction operations and impairment losses, indicating that the benefits of the lithium transition are yet to materialize.

2. Why Did This Happen? Financial Vulnerability Exposed During Business Transition

While the acquisition of Lithium Plus and construction of the Saemangeum plant represent long-term potential, they’ve placed a significant strain on Hydrolittium’s finances. Combined with the default on convertible bonds, unpaid interest, and creditor seizures, the company’s financial health has deteriorated significantly. The increasing debt and negative operating cash flow raise concerns about Hydrolittium’s ability to continue as a going concern.

3. What Should Investors Do? Proceed with Extreme Caution – Not a Recommended Investment

Despite the growth potential of the lithium market and the potential benefits of South Korea’s localization policies, investing in Hydrolittium is currently considered high risk. Until there’s tangible improvement in the company’s financial structure, resolution of the convertible bond issue, and positive operating cash flow, investment should be avoided.

4. Investor Action Plan: Monitor Closely and Seek Expert Advice

  • Closely monitor Hydrolittium’s financial situation and business progress, paying close attention to news and official disclosures.
  • Before making any investment decisions, consult with a financial advisor and develop a thorough risk management plan.