Posco Holdings Inc (PKX) 2024 Q3 法說會逐字稿

Greetings. This is POSCO Holdings earnings release conference. Thank you, all, for participating. Today, we will hear a presentation from POSCO Holdings first, and then we will have a Q&A session with all the participants. (Operator Instructions) So now I would like to begin the third-quarter 2024 earnings release presentation.

問候。這是 POSCO Holdings 的財報發表會。謝謝大家的參與。今天，我們將首先聽取POSCO Holdings的演講，然後我們將與所有參與者進行問答環節。 （操作員說明）現在我想開始 2024 年第三季收益發布演示。

Greetings. I'm CSO of POSCO Holdings. My name is Jung Gi-Seop. We have closed third-quarter revenues and operating profits at levels very similar to the second quarter. However, fuel price fell slightly deeper than we anticipated. In rechargeable battery materials, key raw materials prices continue to decline, creating a challenging business environment.

問候。我是 POSCO Holdings 的 CSO。我叫鄭基燮。我們第三季的營收和營業利潤與第二季非常相似。然而，燃油價格的跌幅略高於我們的預期。在充電電池材料方面，關鍵原料價格持續下跌，創造了充滿挑戰的商業環境。

These challenges notwithstanding, we try to stretch profits as much as possible. Especially in steel, WTP products are high-end steel products that make up 32% of our sales, help to secure a level of profit margin that sustained POSCO's operating profit.

儘管面臨這些挑戰，我們仍盡力擴大利潤。特別是在鋼鐵方面，WTP產品是高端鋼鐵產品，占我們銷售額的32%，有助於確保維持POSCO營業利潤的利潤率水準。

In battery materials, lithium hydroxide prices falling below $10,000 per ton. Rapid price decline is exacerbated by the reverse lag created by the time difference between when they are bought and sold. This creates added challenge and disadvantage.

電池材料方面，氫氧化鋰價格跌破1萬美元/噸。買入和賣出之間的時間差造成的反向滯後加劇了價格的快速下跌。這帶來了額外的挑戰和劣勢。

In addition, our brine and ore lithium production plants lined up to complete construction. Any time a plant comes online, they entail initial investment and operation costs that add to the overall burden of expenditures. However, some have recently been commissioned.

此外，我們的滷水和礦鋰生產工廠也已完成建造。每當工廠上線時，都會產生初始投資和營運成本，增加整體支出負擔。然而，有些最近已經投入使用。

The fact that these new plans have been completed and initial pilot operation have gone into effect without a hitch, gives us reason to be proud that our lithium production technology and facilities have arrived production-ready at commercial scale.

這些新計劃已經完成，初步試點已順利實施，這讓我們有理由感到自豪，我們的鋰生產技術和設施已達到商業規模生產。

Before I give you -- give the floor to the head of IR for a more detailed presentation on our earnings, I'd like to take a brief moment to communicate the strategic alliance struck between POSCO Group and JSW Group, which was released yesterday.

在請 IR 負責人更詳細地介紹我們的收益之前，我想花一點時間介紹一下昨天發布的 POSCO 集團和 JSW 集團之間達成的戰略聯盟。

In your deck, it pertains to slides 5 and 8. With JSW Group in India, POSCO Group has signed an MOU to cooperate not only in building an integrated steel mill in India, but also to extend that collaboration into rechargeable battery materials and renewable energy sectors.

在您的幻燈片中，它屬於幻燈片5 和8。能源領域部門。

In steel, we're delving into the details of building an integrated mill in India with at least a 5-million-ton capacity. The new upstream plant will have 50/50 investment from POSCO and JSW Group, with plans to focus on premium automotive steel products. We have been proposed two potential plant sites that we are currently examining.

在鋼鐵方面，我們正在研究在印度建造一座產能至少 500 萬噸的綜合鋼廠的細節。新的上游工廠將由 POSCO 和 JSW 集團各佔 50/50 的投資，計劃專注於高端汽車用鋼產品。我們已經提出了兩個潛在的廠址，目前正在審查。

In addition to the JV in steel, we're also discussing collaboration in rechargeable battery materials and renewable energy. While still early in our discussions, we're studying ways to collaborate on LFP-type EV battery materials, in which cost-efficient manufacturing is an essential condition.

除了鋼鐵合資企業之外，我們還在討論充電電池材料和再生能源的合作。雖然我們的討論還處於早期階段，但我們正在研究在 LFP 型電動車電池材料方面進行合作的方法，其中成本效益高的製造是一個基本條件。

This business partnership with JSW Group and our entry into upstream business in India have three strategic implications for POSCO Group. First, it is our response to the formation of steel market blocks around the world. Given the geopolitical risks and protectionist trade tendencies, the global steel industry supply chains are grouping into blocks. Hence, we must address this shift through localization in key markets.

與 JSW 集團的業務合作以及我們進入印度上游業務對 POSCO 集團具有三個戰略意義。首先，這是我們對全球鋼鐵市場板塊形成的回應。受地緣政治風險和貿易保護主義傾向影響，全球鋼鐵業供應鏈正在分化。因此，我們必須透過關鍵市場的在地化來應對這一轉變。

By entering the upstream business in India, we plan to move away from previous business strategies that focused on seeking growth centered on downstream process. Instead, we wish to get to the growth market early and to build presence through upstream business.

透過進入印度上游業務，我們計劃擺脫以往以下游流程為中心尋求成長的業務策略。相反，我們希望儘早進入成長市場，並透過上游業務建立影響力。

On page 7, we provide a brief overview on the Indian steel market. India is one of the fastest steel demand-growing economies in the world. Per capita of steel consumption in India is 90 kilograms, which is a mere 40% of the global average.

在第 7 頁，我們提供了印度鋼鐵市場的簡要概述。印度是世界上鋼鐵需求成長最快的經濟體之一。印度人均鋼材消費量為90公斤，僅為全球平均的40%。

Moreover, it is a market that is growing with strong push from the Indian government's promotion policies. On the other hand, the market share of the top five Indian steelmakers is over 60%, signaling an oligopoly. Because the government protects its national mills, profit is relatively strong, too. Finally, abundance of iron ore reserves promise ample supply of inexpensive raw materials.

而且，這是一個在印度政府促進政策的強力推動下不斷成長的市場。另一方面，印度排名前五的鋼鐵企業的市佔率超過60%，形成寡占。由於政府保護其國有工廠，利潤也相對較高。最後，豐富的鐵礦石儲量保證了廉價原料的充足供應。

In 2009, POSCO set up POSCO Maharashtra or PMH, a downstream plant. We've defined our position in the market as a key automotive steel sheet supplier. As of 2023, our market share in automotive coated steel was 28%, taking joint number-one market position. Currently, more than 50% of our products are supplied to the auto industry.

2009年，POSCO設立了下游工廠POSCO Maharashtra（PMH）。我們已將自己的市場定位確定為主要的汽車鋼板供應商。截至2023年，我們在汽車塗裝鋼市佔率為28%，市佔率並列第一。目前，我們50%以上的產品供應給汽車產業。

Because we've already acquired a good number of clients that use premium steel products, we hope that a new upstream facility in India will generate immediate synergy with existing networks and assets in the country. And this is the way we want to be able to build a larger market for our products.

由於我們已經獲得了大量使用優質鋼鐵產品的客戶，因此我們希望印度的新上游工廠能夠與該國現有的網路和資產立即產生協同效應。這就是我們希望能夠為我們的產品建立更大市場的方式。

The second implication is partnership with a formidable local partner. On page [8] of your handout, there's a brief description. JSW Group is ranked number-one steelmaker in India by production volume. A joint venture with such a strong partner helps to mitigate local risk.

第二個意義是與強大的當地合作夥伴建立夥伴關係。在講義的第 [8] 頁上有一個簡短的描述。以產量計算，JSW 集團是印度排名第一的鋼鐵製造商。與如此強大的合作夥伴建立合資企業有助於降低當地風險。

Therefore, we believe our partner will help us to make our entry into the market faster and more efficient. So entering into an overseas market in a more efficient way helps us to generate more profit wherever we end up.

因此，我們相信我們的合作夥伴將幫助我們更快、更有效率地進入市場。因此，以更有效的方式進入海外市場有助於我們無論最終在哪裡都能創造更多利潤。

The third implication is, in battery materials and renewable energy, we have strategic alignment in these areas for collaboration. JSW is known as a steelmaker. However, they've recently acquired shares of MG Motor India and built a recycling business, too. These actions signal aggressive investment into EVs.

第三個意義是，在電池材料和再生能源方面，我們在這些領域有策略一致性的合作。 JSW 被稱為鋼鐵製造商。然而，他們最近收購了 MG Motor India 的股份，並建立了回收業務。這些行動標誌著對電動車的積極投資。

Through JSW energy, the renewable energy business is expanding, too. From these perspectives, we find a great level of strategic alignment with POSCO Group's eco-friendly rechargeable battery materials business.

透過 JSW energy，再生能源業務也不斷擴大。從這些角度來看，我們發現與 POSCO 集團的環保充電電池材料業務具有高度的策略一致性。

Given the growing importance of manufacturing cost competence in the battery materials sector, India is rising in prominence, especially given its growing projections of EVs, and therefore, all the more important to have a local partner in doing this business.

鑑於電池材料產業製造成本能力的重要性日益增加，印度的重要性日益凸顯，特別是考慮到其對電動車的預測不斷增長，因此，在開展這項業務時擁有當地合作夥伴就顯得尤為重要。

To our investors and shareholders, I want to stress that due to a sluggish market, cost recovery continues to be delayed in both steel and the battery materials businesses. We're committed to continuing sound profit management and to seek growth trajectories in key businesses.

對於我們的投資者和股東，我想強調，由於市場低迷，鋼鐵和電池材料業務的成本回收繼續被推遲。我們致力於持續健全的利潤管理並尋求關鍵業務的成長軌跡。

This is how we promise to do our best to surmount the current crises. While we expand in these business areas, we're also committed to simultaneous restructuring of non-essential businesses and non-performing assets. Through these efforts, our long-term goal is to enhance capital efficiency.

這就是我們承諾盡最大努力克服當前危機的方式。在我們拓展這些業務領域的同時，我們也致力於同步重組非必要業務和不良資產。透過這些努力，我們的長期目標是提高資本效率。

Now I'd like to hand the floor to the head of IR, who will deliver our third-quarter earnings.

現在我想請 IR 負責人發言，他將公佈我們的第三季財報。

Well, I'd like to discuss those consolidated results for the third quarter. Please go to page 4 of the presentation deck.

好吧，我想討論一下第三季的綜合業績。請參閱簡報的第 4 頁。

Overall, the third quarter ended at a similar level to the second quarter. We recorded KRW18,321 billion for the sales; and operating income, KRW743 billion. We made a lot of [excursion], a lot of efforts. But because of rather sluggish performance in the steel and rechargeable batteries, and the initial cost of subsidiaries being reflected, that turned out to be that effect.

整體而言，第三季的水平與第二季相似。銷售額達183,210億韓元；營業收入7,430億韓元。我們做了很多[遠足]，付出了很多努力。但由於鋼鐵和充電電池的業績較為低迷，加上子公司的初始成本得到反映，結果就是這樣的影響。

And for the third quarter, we have sales and operating income for the third quarter at KRW18,321 billion and KRW743 billion. And that's EBITDA of KRW1,075 billion (sic - see slide 4, "KRW1,705 billion") in the third quarter. And we have -- now going into the sectoral outcome, please go to the steel side.

第三季度，我們的銷售額和營業收入分別為 183,210 億韓元和 7,430 億韓元。第三季的 EBITDA 為 10,750 億韓元（原文如此，請參見投影片 4，「17,050 億韓元」）。我們現在要討論部門結果，請轉到鋼鐵方面。

On the operating profit, that was KRW466 billion. And that's down by KRW331 billion from the previous quarter. POSCO posted an improvement of KRW20 billion, recording KRW438 billion. But because of the deterioration in the profitability of Chinese subsidiaries, including Zhangjiagang, we have seen the sluggish steel demand in China resulting to the results.

營業利潤為4660億韓元。比上一季減少了 3,310 億韓元。 POSCO公佈業績成長200億韓元，達4,380億韓元。但由於包括張家港在內的中國子公司獲利能力惡化，我們看到了中國鋼鐵需求低迷所帶來的結果。

Infrastructure segment posted operating profit of KRW449 billion to up KRW20 billion. And profit improved at POSCO International due to high power generation profits. For the Future M, because of the lower anode active materials sales volume and losses in the cathode material, the profit shrank. And the POSCO Pilbara lithium solution began to reflect its initial cost of production entities, including ramp-up of the POSCO Pilbara lithium solution and the completion of the POSCO Argentina.

基礎建設部門營業利潤達 4,490 億韓元，增至 200 億韓元。由於發電利潤較高，POSCO International 的利潤有所改善。 Future M方面，由於負極活性材料銷量下降以及正極材料虧損，利潤縮水。而POSCO Pilbara鋰解決方案開始反映其生產實體的初始成本，包括POSCO Pilbara鋰解決方案的爬坡和POSCO阿根廷的完工。

Next, I'd like to share with you the major activities in the third quarter. Mr. Jeong just spoke about the strategy alliance between POSCO and the JWS Group in India and our successful entry into the Indian market. Please go to page 9 for the completion of the POSCO Argentina's brine lithium phase one plant construction.

下面我來跟大家介紹一下第三季的主要工作。剛才鄭先生談到了POSCO與JWS集團在印度的策略聯盟以及我們成功進入印度市場的情況。 POSCO阿根廷鹵水鋰第一期工廠建設完成情形請參閱第9頁。

For the POSCO Argentina brine lithium phase one, this is an upstream and downstream process with a capacity of 25,000 tons of lithium hydroxide. It has been completed recently. Completion ceremony was held in Argentina. And the initial production of 200 tons of lithium hydroxide was successfully completed. We are currently going on a ramp-up process. And from November, we'll start the product certification process for the POSCO Future M and battery companies.

對於POSCO阿根廷鹵水鋰第一期來說，這是一條上下游製程，產能為2.5萬噸氫氧化鋰。最近已完成。竣工儀式在阿根廷舉行。並順利完成200噸氫氧化鋰初期生產。我們目前正在進行加速過程。從 11 月開始，我們將啟動 POSCO Future M 和電池公司的產品認證流程。

Next on the upstream process of the POSCO Argentina phase two, with a capacity of 25,000 tons, this will be completed in the third quarter of next year. And if the downstream process in Gwangyang is completed around that time, I think this will happen by the end of next year, and we'll have a system of 50,000 tons of salt lake-based and lithium brine-based lithium hydroxide production.

接下來是POSCO阿根廷二期的上游工藝，產能為2.5萬噸，將於明年第三季完工。如果光陽的下游製程在那段時間左右完成，我認為這將在明年年底發生，我們將擁有一個5萬噸鹽湖基和鹵水基氫氧化鋰生產系統。

The POSCO Pilbara lithium solution one plant in Gwangyang is ahead of its production ramp-up schedule by about one quarter. And it's expected to be completed by the end of this year. In the third quarter, the cumulative production will be 1,965 tons, and we are stabilizing the production. So we're inching closer to the stage of stable mass production. This is internal evaluation.

位於光陽的 POSCO Pilbara 鋰解決方案一工廠比其產量提升計劃提前了約四分之一。預計今年底完成。第三季累計產量1965噸，正在穩定生產。所以我們正在慢慢接近穩定量產的階段。這是內部評價。

And at the same time, the product validation is nearly completion. And we are pleased to announce that we recently signed a contract to supply 20,000 tons of lithium hydroxide for EVs in 2025. And this will be signed sometime in December of this year.

同時，產品驗證已接近完成。我們很高興地宣布，我們最近簽署了一份合同，將於 2025 年為電動車供應 20,000 噸氫氧化鋰。

For the POSCO Future M and battery companies, we are currently going on with the certification procedure. And we believe the additional supply contracts will be added in the first half of next year. By the end of this year, as you know very well, we have a capacity of 21,500 tons, a second plant to be completed. We're working very hard to complete the completion. And currently, we're going underground commissioning, and this is supposed to be completed by December this year.

對於 POSCO Future M 和電池公司，我們目前正在進行認證程序。我們相信額外的供應合約將在明年上半年增加。眾所周知，到今年年底，我們的產能將達到 21,500 噸，第二座工廠即將竣工。我們正在非常努力地完成工作。目前，我們正在進行地下調試，預計今年12月完成。

So with the hard rock and the brine completed, we believe that we will have a production base of 68,000 tons and 89,500 tons by the end of next year. More recently, we have seen the leading prices coming down below 10,000 levels. And by the end of this year and next year, we will have investments for the new plants. And the product certification will take a year or so.

所以隨著硬岩和鹵水的完成，我們相信到明年底我們將擁有6.8萬噸和8.95萬噸的生產基地。最近，我們看到主導價格跌破 10,000 水平。到今年年底和明年，我們將對新工廠進行投資。而產品認證則需要一年左右的時間。

And we are not going to be able to enhance the utilization, the rate, very rapidly. So we have some fixed costs coming in. So it will take time for us to come to the normalized margin level. So we're trying to accumulate the mass production (inaudible) and also trying to make sure that we bring efficiency in the production. So we're expecting our best efforts to come up with the best results.

我們將無法非常迅速地提高利用率和速率。因此，我們有一些固定成本。因此，我們正在努力累積大規模生產（聽不清楚），並努力確保提高生產效率。因此，我們期待盡最大努力取得最好的結果。

We're also trying to advance the normalization of lithium production. And we're also working to secure key mineral assets at the time of declining prices. And as was reported by the media, you'll see that, indeed, Chile, the Altoandinos lithium project is going on.

我們也在努力推進鋰生產的正常化。我們也致力於在價格下跌時確保關鍵礦產資產的安全。正如媒體報導的那樣，您會看到，智利的 Altoandinos 鋰項目確實正在進行中。

We were included in the short list in August, and negotiations are currently underway. We believe that by the end of first quarter, the final candidate will be selected. And also, for the Maricunga salt, the brine-based lithium project, we are participating in the bidding process.

我們在八月被列入候選名單，目前談判正在進行中。我們相信，到第一季末，將選出最終候選人。此外，對於 Maricunga 鹽（鹵水鋰計畫），我們正在參與招標過程。

And in addition, we also have like the hard rock-based lithium. This is also what the company is considering, mainly in Australia and the United States. Secondly, I want to mention that POSCO International has made equity investment in black rock mining, and this is going to be 60,000 tons of battery-grade flake graphite.

此外，我們還有硬岩鋰。這也是該公司正在考慮的，主要是在澳洲和美國。其次，我想提一下，浦項製鐵國際公司已經對黑岩礦進行了股權投資，這將是6萬噸電池級鱗片石墨。

Next page, this is about the progress of restructuring program. The company has added five more restructuring targets on top of what we announced in July. So there will be 155 -- a total of 55 low-margin businesses and 70 core assets.

下一頁，這是關於重組計劃的進展。在我們 7 月宣布的基礎上，該公司又增加了五個重組目標。因此，將會有 155 項——總共 55 項低利潤業務和 70 項核心資產。

We have 21 businesses and assets. We have completed restructuring. This led to a bring-up of KRW625.4 billion in cash. And this is as end of September. You'll be very curious what we have sold off. So some of them include heavy oil plant in Papua New Guinea and the regional steel processing center in China.

我們擁有 21 項業務和資產。我們已經完成了重組。這導致籌集了 6,254 億韓元的現金。這是九月底的情況。您一定會很好奇我們賣了什麼。其中包括巴布亞紐幾內亞的重油廠和中國的區域鋼鐵加工中心。

So these are some of the low-margin production centers that we have owned in the overseas countries. So these are low margin, and these are not part of the core future businesses that we have in mind. So we sold them.

這些是我們在海外國家擁有的一些低利潤的生產中心。所以這些都是低利潤的，而且這些並不是我們所設想的未來核心業務的一部分。所以我們賣掉了它們。

And for the non-core assets, I also want to mention the KB Financial Group, where it's sold up and especially, where we have like simple minor equity stakes. And we also have Haengdang-dong multi-purpose commercial building, which is a non-core real estate asset that we held. So we sold these assets to secure more cash.

對於非核心資產，我還想提一下 KB 金融集團，它被賣掉了，尤其是我們擁有簡單的小額股權。我們還有行堂洞多功能商業大樓，這是我們持有的非核心房地產資產。因此，我們出售了這些資產以獲取更多現金。

And on these points, this relates to improving the efficiency of our asset management at the group level. And as I've announced before, by the end of 2026, we'll be able to arrive at the target that we have sought. So we'll be able to cover KRW26 trillion in cash, and this will be used for future investments. And we'll make sure that there is like a stringent control of these -- management of these assets.

而這幾點，就關係到我們集團層級資產管理效率的提升。正如我之前所宣布的，到 2026 年底，我們將能夠實現我們所尋求的目標。因此，我們將能夠支付26兆韓元的現金，這將用於未來的投資。我們將確保對這些資產進行嚴格的控制和管理。

Next, I'd like to talk about the company results. Please go to page 11. The first up is POSCO. The POSCO crude sales and production in the second quarter turned out to be normalized. It has been reduced a bit, and it has returned to the normal levels. And that comes after the Pohang No. 4 blast furnace completion. This increased by 1.3 million tons from the previous quarter of 9.23 to 4 million tons.

接下來我想談談公司的表現。請參閱第11頁。第二季POSCO原油銷售及生產恢復正常。已經減少了一些，又回到了正常水平。這是在浦項四號高爐竣工之後發生的。這比上一季的9.23增加了130萬噸，達到400萬噸。

And correspondingly, our revenue has grown to KRW9.479 trillion, although the profit improved due to the effect of lower fixed cost due to the increase in the production volume. So we have seen some improvements.

相應地，我們的收入增長至9.479兆韓元，儘管由於產量增加導致固定成本下降，利潤有所改善。所以我們看到了一些改進。

And also, you can see the raw material prices has also dropped. But the sales price, this has reduced by KRW43,000 per ton. So this is a larger decrease, and therefore, the net margin is reduced slightly. And despite the difficulties, we believe that we have seen the sales improve slightly from the third quarter.

而且，你可以看到原物料價格也下降了。但銷售價格方面，每噸減少了43,000韓元。所以這是一個較大的下降，因此，淨利潤率略有下降。儘管有困難，我們相信我們的銷售額較第三季略有改善。

For the fourth quarter, you see that the unit price is expected to decline further quarter on quarter. And production sales volumes are expected to increase slightly compared to the third quarter. So in terms of the manufacturing cost, the fourth quarter turns out to be more positive than the third quarter. But we see that the (inaudible) downturn in China continues, and there are no concrete signs of recovery. So the sales environment is expected to continue to be challenging.

對於第四季度，您會看到單價預計將環比進一步下降。預計產銷量將較第三季小幅成長。因此，就製造成本而言，第四季比第三季更為積極。但我們看到中國的（聽不清楚）經濟低迷仍在繼續，並且沒有具體的復甦跡象。因此，銷售環境預計將繼續充滿挑戰。

The company has -- compared to other competing companies, we have high proportion of long-term contracts with higher-value products. And thus, we expect profits in the fourth quarter to be in line with the third quarter. But we are making every effort to secure profits in case the decline in selling prices continue.

與其他競爭公司相比，該公司擁有較高比例的高價值產品長期合約。因此，我們預計第四季的利潤將與第三季持平。但我們正在盡一切努力確保利潤，以防售價繼續下跌。

Please go to page 12. In the overseas steel business, we look at Indonesian mills, the upstream and also these short-pressure mills in India and Mexico. They're improving their profitability by increasing the proportion of high-margin steel plates. In particular, for the POSCO Maharashtra, the Indian downstream subsidiary, is making structural progress in diversifying sales mixed towards a high-end alternative steel.

請看第12頁。他們透過增加高利潤鋼板的比例來提高獲利能力。特別是，對於印度下游子公司浦項製鐵馬哈拉施特拉邦來說，在向高端替代鋼材銷售多元化方面正在取得結構性進展。

And the proportional alternative steel sales is reaching 52%. So in terms of the mix, we're looking at structural improvement. However, I want to mention that if you look at the Zhehang and the Chinese subsidiaries, you're looking at lower selling prices caused by deteriorating market conditions. And therefore, the overall profit from the alternative steel decreased quarter on quarter.

替代鋼銷量比例達52%。因此，就組合而言，我們正在考慮結構性改進。不過，我想提一下，如果你看看浙航和中國子公司，你會發現市場狀況惡化導致售價下降。因此，替代鋼的整體利潤環比下降。

Next is on the POSCO International. Sales and operating profit increased by 1.2%, respectively, from the previous quarter. We have seen in the energy sector operating profit decreased due to a decrease in the cost recovery ratio of the gas fields. But result lead to a profit in the same level as the previous quarter.

接下來是浦項製鐵國際公司。銷售額和營業利潤較上一季分別成長 1.2%。我們看到能源部門的營業利潤由於氣田成本回收率的下降而下降。但結果導致利潤與上一季持平。

On the POSCO E&C, we look at the ongoing crisis in the construction market. So we're prioritizing on securing financial stability, including cash flow-oriented management. We want to maintain this profitable level in the third quarter in line with the group restructuring plan. We sold non-core assets, and that led to more than KRW100 billion in cash and improving profit by KRW32.9 billion.

就 POSCO E&C 而言，我們關注的是建築市場持續存在的危機。因此，我們優先考慮確保財務穩定，包括以現金流量為導向的管理。我們希望根據集團重組計劃在第三季度保持這一盈利水平。我們出售非核心資產，獲得了超過1000億韓元的現金，並提高了329億韓元的利潤。

Let's go to POSCO Future M now. Sales increased slightly from the previous quarter. But if you look at the sluggish businesses in the energy side, we see that the operating profit fell to 64%. In the cash flow, the active material sales volume increased on quarter-on-quarter basis. And this is due to strong sales in the high-nickel products. But because of the inventory evaluation losses, operating profits went to a loss.

現在就讓我們去POSCO Future M。銷售額較上一季略有成長。但如果你看看能源方面的低迷業務，我們會發現營業利潤下降到了64%。現金流方面，活性物質銷量較上季成長。這是由於高鎳產品的強勁銷售。但由於存貨評估損失，營業利潤出現虧損。

And the anode active materials, due to sluggish sales of the natural graphite, have seen the overall decline in the profitability. For the Pohang No. 4 blast furnace, because it has been -- because of the changes incurred there, we see that things have been turned to the normalized level.

而負極活性材料則受天然石墨銷售低迷影響，獲利能力整體下滑。對於浦項四號高爐來說，因為它已經發生了變化，我們看到事情已經轉向正常化的水平。

I think this concludes the brief overview of our third-quarter earnings. Now we'd like to proceed to Q&A session. Thank you.

我認為我們第三季收益的簡要概述到此結束。現在我們想進入問答環節。謝謝。

(Operator Instructions) Park, Hyundai Motor Security.

（操作員指示）公園，現代汽車安全。

This is [Park Hyunwu]. Thank you for this opportunity to ask you a question. I have about three questions. The first is regarding the market, steel market, that is.

這是【樸賢宇】。感謝您給我這個機會向您提問。我有大約三個問題。首先是關於市場，即鋼鐵市場。

In automobiles and shipbuilding, what kind of price negotiations are ongoing and how is it going? And there have been some announcements regarding EVs, and there are mixed signals. From POSCO Holdings' perspective, looking at the stimulus package that's been released in China, how does that relate to our own steel market? How do you view that?

在汽車和造船領域，正在進行什麼樣的價格談判，進展如何？關於電動車已經發布了一些公告，但訊號不一。從POSCO Holdings的角度來看，中國推出的經濟刺激方案與我們自己的鋼鐵市場有何關係？您對此有何看法？

The second question is regarding non-essential assets and underperforming businesses. These are one-time expenditures that are usually consolidated at the end of the year. And I totally understand why you would want to do that. Is this something we should be expecting this year as well? So on certain one-time expenditures, will we see all of this being consolidated towards the end of the year?

第二個問題是關於非必要資產和表現不佳的業務。這些是一次性支出，通常在年底合併。我完全理解你為什麼要這麼做。今年我們也該期待這種情況嗎？那麼，對於某些一次性支出，我們會看到所有這些在年底前得到整合嗎？

And third is something that was mentioned by the CSO. So the fact that POSCO is investing in India, I think that's practical and reasonable. However, I do have some questions. You did mention an integrated mill. Is this blast furnace-based, or is this based on hydrogen steelmaking?

第三是 CSO 提到的事。所以POSCO在印度投資這一事實，我認為這是實際且合理的。不過，我確實有一些問題。您確實提到了綜合工廠。這是基於高爐，還是基於氫煉鋼？

And I also have a question about the size. It's probably going to be one blast furnace, but it's probably not going to end there. So does it have expandability? And the location of Odisha, there's quite a distance between Odisha and Maharashtra. So if you produce in Odisha and other sheets are produced in PMH, there's quite a distance and transportation that's required. So how will you calibrate what gets produced where?

我還有一個關於尺寸的問題。它可能會是一座高爐，但可能不會就此結束。那麼它具有可擴展性嗎？而奧裡薩邦的位置，奧裡薩邦和馬哈拉施特拉邦之間有相當遠的距離。因此，如果您在奧裡薩邦生產，而其他板材在 PMH 生產，則需要相當長的距離和運輸。那麼，您將如何校準在哪裡生產的產品？

And about 20 years ago, I believe that you had contemplated building an integrated mill in Odisha, but failed. And I believe there was a lot of opposition from the community, and that was part of the reason why you failed. What is different this time?

大約 20 年前，我相信您曾考慮在奧裡薩邦建立一家綜合工廠，但失敗了。我相信社群中有很多反對意見，這也是你失敗的部分原因。這次有什麼不同？

And I believe it was in 2022, with Adani, there was an MOU signed to invest $5 billion into some eco-friendly facility. Now that you have held hands with JSW, what happens with Adani? Has that been canceled, or are you doing both in parallel?

我相信是在 2022 年，與阿達尼簽署了一份諒解備忘錄，投資 50 億美元建造一些環保設施。既然你已經與 JSW 牽手了，那麼與 Adani 會發生什麼事？這已經被取消了，還是你們同時在進行這兩項工作？

And if this is an investment into a blast furnace, I believe POSCO has already announced as carbon-neutral strategy. If it's blast furnace-based, then how does this fare into your carbon neutrality roadmap? That's all of my questions.

如果這是對高爐的投資，我相信浦項製鐵已經宣布了碳中和策略。如果它是基於高爐的，那麼這對您的碳中和路線圖有何影響？這就是我的所有問題。

So you asked three key questions. The first is regarding the steel market. And we will have Mr. [Hong Yoon-sik], the Head of Marketing Strategy Office. And on the second question, I'd like to ask Mr. Lee Ju-Tae, Chief of Corporate Strategy. And on the question regarding the investment in India, we will ask Mr. [Chan Sung Mae], Chief of Steel Business.

所以你問了三個關鍵問題。首先是關於鋼鐵市場。我們將邀請行銷策略辦公室主任[Hong Yoon-sik]先生。關於第二個問題，我想請教企業策略主管李柱泰先生。關於在印度投資的問題，我們將詢問鋼鐵業務主管[Chan Sung Mae]先生。

My name is [Hong Yoon-sik]. The second half of this year, we had mixed signals about either a rebound or a prolonged recession. And it was very much dependent on the stimulus package that was released in China.

我的名字是[洪允植]。今年下半年，我們收到了有關反彈或長期衰退的複雜訊號。這在很大程度上取決於中國推出的經濟刺激計劃。

Since the announcement of the stimulus package, we did see a huge rebound in the Chinese domestic steel prices. But because there were lingering questions about how much impact this was going to have, the prices began to fall again.

自刺激計劃公佈以來，我們確實看到中國國內鋼材價格大幅反彈。但由於人們對這將產生多大影響一直存在疑問，價格開始再次下跌。

In shipbuilding and automobile industries, you asked about the impact in those industries. We have half-year contracts with the OEMs. And so when we have these half-year contracts, of course, the third quarter and fourth quarter run on the same prices. But in the beginning of next year, we may see some prices negotiated upward and downward.

在造船和汽車行業，您詢問了對這些行業的影響。我們與原始設備製造商簽訂了半年合約。因此，當我們簽訂這些半年合約時，第三季和第四季的價格當然是相同的。但在明年初，我們可能會看到一些價格談判上調或下調。

Currently, in shipbuilding, we have not negotiated the full price for the fourth quarter, so that is upcoming. And we are trying to up our price with some of the shipbuilding companies, but we are up against some resistance.

目前，在造船方面，我們還沒有商定第四季的全價，所以即將到來。我們正在嘗試與一些造船公司提高價格，但遇到了一些阻力。

Since the Chinese stimulus package, what are some projections that we are making? I think that was part of your question. As mentioned before, since the stimulus package, yes, we did see a huge rebound in prices.

自從中國經濟刺激計畫出台以來，我們做出了哪些預測？我認為這是你問題的一部分。正如之前提到的，自從刺激計劃出台以來，我們確實看到了價格的大幅反彈。

And rather than thinking that demand was going to follow suit, we did think that the prices had already reflected future stimulus packages. And so at some point, the price went above $100 per ton. But I think, thereafter, the price began to reflect some disappointment. And so it began to fall again.

我們並沒有認為需求會隨之而來，而是認為價格已經反映了未來的刺激方案。因此在某個時候，價格超過每噸 100 美元。但我認為，此後價格開始反映出一些失望。於是它又開始下跌。

But I don't think it's going to fall too low. A lot of the steelmakers in China are already in red ink, and the Chinese government is likely to announce another stimulus package in December. And so we believe it's going to hit another rebound pretty soon.

但我不認為它會跌得太低。中國許多鋼鐵製造商已經陷入困境，中國政府可能會在 12 月宣布另一項刺激計劃。因此我們相信它很快就會再次反彈。

Second question on non-essential assets that is regarding restructuring. And I think the question was, will all of these costs be consolidated in one quarter towards the end of the year?

第二個問題是關於非必要資產的重組。我認為問題是，所有這些成本是否會在年底前合併到一個季度內？

In the second quarter, during our earnings release, we did release about 120 restructuring projects and our plans to restructure these assets or businesses. But now, after some time has transpired, in the third quarter in particular, the restructuring that was scheduled is on schedule and proceeding as planned, so some of the divestments as well as sales.

在第二季的財報發布期間，我們確實發布了約 120 個重組項目以及重組這些資產或業務的計劃。但現在，經過一段時間後，特別是在第三季度，原定的重組正在按計劃進行，因此一些撤資和銷售也在按計劃進行。

In some of these cases, we can generate a profit. In other cases, we may suffer some losses. And that is exactly what happened. But profits outweighed the losses, and that's why we turned a general profit.

在其中一些情況下，我們可以產生利潤。在其他情況下，我們可能會遭受一些損失。這正是所發生的事情。但利潤大於損失，這就是我們整體獲利的原因。

In the past, when we sold off our non-performing assets, yes, we did generate a lot of losses. And so I think a lot of people remember those numbers. And I want to remind you that during this restructuring, we are going to suffer some losses.

過去，當我們出售不良資產時，是的，我們確實產生了許多損失。所以我認為很多人都記得這些數字。我想提醒大家，在這次重組過程中，我們將會遭受一些損失。

But according to what we've seen so far and what we plan in the future, there will be more profits than losses. But again, there will be some impairments, but I think they will be overweighed by the profits. And so the impact is not going to be hugely negative.

但根據我們目前所看到的以及未來的計劃，利潤將大於損失。但同樣，也會有一些減值，但我認為它們會被利潤所抵消。因此，影響不會是巨大的負面影響。

I'd like to respond to the third question regarding hydrogen-based steelmaking and blast furnace, which part will be implemented in India. The hydrogen-based steelmaking is not yet commercial scale. So of course, we are going to install blast furnace and a shaft method. And this will have to go through discussions with our partner.

我想回答第三個問題，關於氫基煉鋼和高爐，哪一部分將在印度實施。氫基煉鋼尚未達到商業規模。因此，我們當然要安裝高爐和豎井法。這必須與我們的合作夥伴進行討論。

In the first stage, we will do 5 million tons. And what we contemplate, at the moment, is the first plant site is about 1600 acres. And so, yes, there is expandability to phase two. In addition to that site, we could be looking at other sites, too, and that is under consideration.

第一階段我們要做500萬噸。目前我們考慮的是第一個廠址約1600英畝。所以，是的，第二階段是可以擴展的。除了該網站之外，我們也可能會考慮其他網站，這正在考慮之中。

The location of Odisha, there's quite a bit of distance between Odisha and PMH. In Odisha, there are many rolling mills from where we get our supplies. So the upstream process, if we place that in Odisha, we will have no shortage of supplies from the local mills. And so keeping our production site here in Odisha, we have plans to go all the way from upstream to downstream.

奧裡薩邦的位置，奧裡薩邦和PMH之間有相當一段距離。在奧裡薩邦，有許多軋鋼廠，我們從那裡獲取物資。因此，上游流程，如果我們將其放在奧裡薩邦，我們將不會缺少當地工廠的供應。因此，我們將生產基地保留在奧裡薩邦，並計劃從上游一直延伸到下游。

Yes, about 20 years ago, we failed to acquire the land on which we would be able to build the integrated mill. It was not just the acquisition of land, but also mining rights that became the issue at the time. But at this time, yes, we are working with a local partner, so they will take care of the mining rights.

是的，大約 20 年前，我們未能獲得能夠建造綜合工廠的土地。當時不僅是土地徵用問題，採礦權問題也成為問題。但目前，是的，我們正在與當地合作夥伴合作，因此他們會照顧採礦權。

The MOU with Adani Group, that MOU was signed at the end of 2022. I think it was in the beginning of 2023 that Adani was languishing in the Hindenburg report. And so we could not carry on that partnership. And that's why JSW and Adani will not go in parallel.

與阿達尼集團的諒解備忘錄，該諒解備忘錄於 2022 年底簽署。因此我們無法繼續這種夥伴關係。這就是 JSW 和 Adani 不會並行的原因。

In India, carbon net zero goal is by 2070; Ours is by 2050. So in India, we intend to follow local rules. For example, if we invest in a blast furnace. There are many technologies that are under development, such as hydrogen mix technology, as well as CCS.

印度的碳淨零目標是到2070年；我們的目標是到 2050 年。例如，如果我們投資一座高爐。有許多技術正在開發中，例如氫氣混合技術以及CCS。

And so there are many advanced technologies that are being developed by POSCO Group right now that will all be put to the test and applied there. That's how we will try to get to carbon net zero in India.

因此，POSCO集團目前正在開發的許多先進技術都將在那裡進行測試和應用。這就是我們努力在印度實現碳淨零的方法。

Thank you. I hope that answered your question. We'll go to the next question.

謝謝。我希望這回答了你的問題。我們將討論下一個問題。

Kim, iM Securities.

金，iM 證券。

Good afternoon, ladies and gentlemen. This is Kim Yoon-sang. I have three questions, three very short questions. My first question pertains to India. On India, what is the demand situation -- demand and supply situation, what is POSCO's view?

女士們、先生們，午安。這是金潤相。我有三個問題，三個非常短的問題。我的第一個問題與印度有關。關於印度，需求情況－供需情況如何，POSCO對此有何看法？

If you look at the demand growth, I think it could be quite positive. But if you look at the supply side, I think there's a rapid increase in the supply as well. So if you look at India, it may not be quite like the Chinese market. How do you address the concerns of the Indian market, given the market and demand situation?

如果你看看需求成長，我認為這可能是相當正面的。但如果你看供應方面，我認為供應也在快速增加。所以如果你看看印度，它可能不太像中國市場。鑑於市場和需求情況，您如何解決印度市場的擔憂？

Secondly, if you look at the overseas penetration, you have given us good experiences about Indian experience. What about the United States? China, it was -- Southeast Asia, that there is a lot of overflow of Chinese products. So give us an update on what you're doing in this region as well.

其次，如果你看海外滲透率，你給了我們關於印度經驗的很好的經驗。美國呢？中國，就是──東南亞，中國產品大量溢出。請向我們介紹一下您在該地區所做的工作的最新情況。

And for the AD steel plates for the Hyundai, and there's been some investigation for the anti-dumping for the low-cost Chinese steel products. What is your position on these Chinese products, and how do you intend to respond to that situation?

而現代汽車的AD鋼板，也出現了對中國低成本鋼材的反傾銷調查。您對這些中國產品的立場是什麼？

(technical difficulty) talk about the demand and supply situations, if you look at this demand, I think it's about 150 million. And by 2030, the government intends to make it to 300 million tons or 200 million tons from our forecast, depending on where you see it.

（技術難度）講一下供需狀況，如果你看這個需求的話，我覺得大概是1.5億左右。到 2030 年，政府打算將其達到我們預測的 3 億噸或 2 億噸，這取決於你的看法。

And also, I'd like to say that if you look at the demand itself, if you compare China and India, I don't think there's a substantial increase in the Indian side. There's like a 6% or 7% increase every year. If you look at the past experiences in 2000 or right before 2000, if you look at demand increase in China, there was an increase of 20% to 30% every year.

另外，我想說，如果你看需求本身，如果你比較中國和印度，我認為印度方面並沒有大幅成長。每年約有6%或7%的增長。如果你看看過去2000年或2000年之前的經驗，如果你看看中國的需求成長，每年都會成長20%到30%。

So if you look at the situation -- and of course, there could be concerns about the oversupply. But even if there is an oversupply situation -- partially there could be oversupply. But POSCO believes that given the portfolio of our products, we focus on the high-end products, so I don't think there will be much of a problem there.

因此，如果你看看情況——當然，可能會擔心供應過剩。但即使出現供應過剩的情況——部分也可能出現供應過剩。但浦項製鐵認為，考慮到我們的產品組合，我們專注於高端產品，所以我認為那裡不會有太大問題。

And for the steel demand, if you look at increases in steel demand, you see slight decrease in the Chinese side as well. But in India, there's an increase by 10 million to 15 million tons every year. And if you look at the demand and supply, I still believe that there is a lot more demand than supply.

對於鋼鐵需求，如果你看一下鋼鐵需求的成長，你會發現中國方面也稍微下降。但在印度，每年增加1000萬噸至1500萬噸。如果你看看需求和供給，我仍然相信需求遠大於供給。

And the second point about the US and Southeast Asia, the upstream strategy for the United States. 2026 or 2027 will be the year that we have been considering the upstream process. For the electric furnace, we are continuing to make efforts. That's what I can tell you for now on the United States side.

第二點關於美國和東南亞，美國的上游戰略。 2026年或2027年將是我們一直在考慮上游製程的一年。對於電爐，我們正在不斷努力。美國方面我現在可以告訴你的就是這些。

On the third point, for the steel plate AD (technical difficulty) the Southeast Asia for the upstream, the AD products. [PY V] in Vietnam is going on pretty well. And I think we're considering further expansion in the future for Indonesia, 3 million tons, we believe that we need to actively consider expanding in the future Indonesia as well.

第三點，對於鋼板AD（技術難度）東南亞為上游，AD產品。 [PY V] 在越南進展順利。我認為我們正在考慮在未來進一步擴大在印尼的產能，300萬噸，我們認為我們也需要積極考慮在未來擴大在印尼的產能。

In Indonesia, I don't think we have anything quite concrete right now. We don't have any concrete plan going on for Indonesia right now. On the third point, (inaudible) is still played to ADs. On how we will respond for that, POSCO, Mr. (inaudible) is going to respond.

在印度尼西亞，我認為我們現在還沒有任何具體的東西。我們目前沒有針對印尼的任何具體計劃。關於第三點，（聽不清楚）仍然播放給AD。關於我們將如何應對這一問題，POSCO 先生（聽不清楚）將做出回應。

On steel plate AD filing and what are our responses? I'll give you the answer on that. On steel plates and the anti-dumping filing, there are inquiries that have been sent out by the Korean government to industries that deal in the same products. And so we will be responding to those inquiries. Our deadline is by mid-November, and I think we may be able to get an extension on that. So we will respond to those inquiries.

關於鋼板廣告立案，我們有何因應措施？我會給你答案。關於鋼板和反傾銷立案，韓國政府已向經營相同產品的產業發出詢問。因此，我們將回應這些詢問。我們的截止日期是 11 月中旬，我認為我們也許可以延期。因此，我們將回覆這些詢問。

And of course, there's a lot of cheap Chinese products that are flooding our markets. Of course, AD filing is a right protected by international law as a means to address unfair trade practices. So key steelmaking economies, in an effort to protect their domestic steelmakers, often use AD rules as trade remedies.

當然，有很多廉價的中國產品湧入我們的市場。當然，反傾銷申請是一項受國際法保護的權利，是解決不公平貿易行為的手段。因此，為了保護國內鋼鐵製造商，主要鋼鐵生產經濟體經常使用反傾銷規則作為貿易救濟措施。

Recently, Chinese and Japanese hot rolled steel sheets are under investigation or subject to AD rulings in the EU, Turkey, and Vietnam. And Canada, Mexico, Indonesia, Taiwan, Thailand, Australia, and UK, AD rulings are being practiced on HR steel sheets.

近期，中國和日本熱軋鋼板在歐盟、土耳其、越南等國家受到調查或反傾銷裁決。加拿大、墨西哥、印尼、台灣、泰國、澳洲和英國正在對熱軋鋼板實施反傾銷裁決。

So despite strong protectionist measures undertaken by steel producing economies, the Korean steel industry is exposed to senseless -- to imports in an essentially open market, devoid of any protectionist mechanism.

因此，儘管鋼鐵生產經濟體採取了強有力的保護主義措施，韓國鋼鐵工業仍然毫無意義地承受著來自基本開放市場、缺乏任何保護主義機制的進口。

Unfair trade practices are flooding the domestic market, and so POSCO has to take some action as well. Therefore, we intend to strengthen our monitoring activity against steel imports and to address unfair trade practices. We are actively reviewing diverse means of remedy, including AD filing.

不公平貿易行為充斥國內市場，浦項製鐵也必須採取一些行動。因此，我們打算加強對鋼鐵進口的監管活動，並解決不公平貿易行為。我們正在積極審查各種補救措施，包括反傾銷申請。

Thank you. Next question, please.

謝謝。請下一個問題。

Eugene Lee, Eugene Securities.

尤金李，尤金證券。

Hello, can you hear me? I would also like to ask about three questions. First is about the steel market and steel price that -- where recovery is delayed. I feel there are some investments that are being planned, but the cost seems a little bit high. What are your plans here?

你好，你聽得到我說話嗎？我還想問三個問題。首先是關於鋼鐵市場和鋼鐵價格——復甦被推遲。我感覺有一些投資正在計劃中，但是成本好像有點高。你在這裡有什麼計劃？

And regarding CapEx for your Indian project, can you make some comparisons? And regarding PMH, I think you are planning about 40 million tons. What is the feedstock that has been secured for this production volume? I'd like your analysis on that.

關於您印度專案的資本支出，您能做一些比較嗎？至於PMH，我認為你們計畫的產量約為4000萬噸。該產量所保證的原料是什麼？我想聽聽你對此的分析。

So silicon solution is my next question. I wonder if you've acquired some good number of clients, customers.

所以矽解決方案是我的下一個問題。我想知道你是否已經獲得了一定數量的客戶。

On the CapEx, we will ask Mr. Kim Seung-jun in charge of finance and IR. On PMH and feedstock, we will ask Mr. [Chan Sung-lee]. And the third question on silicon solution production plans, that question will be answered by the Head of Nickel and Next Generation Business Team, Mr. [Li Jeyoung].

關於資本支出，我們將請金承俊先生負責財務和IR。關於PMH和原料，我們會問[Chan Sung-lee]先生。第三個問題是關於矽解決方案生產計劃，該問題將由鎳和下一代業務團隊負責人[Li Jeyoung]先生回答。

So first on how to secure the funding in India. The investor is POSCO. So POSCO is going to make the investment. And our plant capacity is 5 million tons. So it's going to be about 8 billion. But this is a joint investment with a partner, a 50/50 investment.

首先是如何在印度獲得資金。投資者是POSCO。所以POSCO將會進行投資。我們的工廠產能為500萬噸。所以大約是80億。但這是與合作夥伴的共同投資，50/50 的投資。

So we will be investing maybe about KRW5 trillion. Each year, about [4.5] EBITDA should be generated. And this is going to happen over a period of four to five years, not happening all in one year. So within that EBITDA, I think it's something we can definitely manage and accommodate.

所以我們可能會投資約 5 兆韓元。每年應產生約 [4.5] 的 EBITDA。這將在四到五年內發生，而不是在一年內全部發生。因此，在 EBITDA 中，我認為這是我們絕對可以管理和適應的。

In lithium, POSCO Holdings will be making the investment here. This is also not 100% investment from POSCO Holdings. We will have local partners. And so there will be some calibration of how much will be expended.

在鋰方面，浦項製鐵控股將在這裡進行投資。這也不是POSCO Holdings 100%的投資。我們將有當地的合作夥伴。因此，將會對支出金額進行一些校準。

If we look at cash reserves, we have about [4.5] in cash reserves. And the convertible bonds that have recently been cashed, that generated about KRW3 trillion as well. So we have sufficient funds. Looking at our financials, this CapEx is not a huge burden. PMH?

如果我們看一下現金儲備，我們的現金儲備約為 [4.5]。最近兌現的可轉換債券也產生了約3兆韓元的收益。所以我們有足夠的資金。從我們的財務狀況來看，這筆資本支出並不是一個巨大的負擔。 PMH？

So full hards and HR products that are supplied to PMH from POSCO, it's about 1 million tons per year. If we should make this investment, the hot rolled products will not be removed immediately. It will go through a phase reduction.

POSCO 向 PMH 供應的全部硬質材料和 HR 產品每年約為 100 萬噸。如果我們進行這項投資，熱軋產品不會立即被移除。它將經歷一個階段性的縮減。

So about 1 million tons of hot rolled products will, over time, be removed. And so we will have to find other markets. And downstream capacity is something that we would like to acquire additionally. And so that's how we intend to adjust our demand and supply.

因此，隨著時間的推移，大約100萬噸熱軋產品將被淘汰。因此我們必須尋找其他市場。下游產能是我們希望額外獲得的。這就是我們打算調整需求和供應的方式。

Let me address silicon solution. Our silicon solution plant will be commissioned next week. So prior to full-capacity production, we will have to go through product certification, of course, through domestic refineries as well as Company P in Japan, Company M in Europe, and other companies in the US.

讓我談談矽解決方案。我們的矽溶液工廠將於下週投入運作。所以在滿載生產之前，我們要先經過產品認證，當然是透過國內的煉油廠，還有日本的P公司、歐洲的M公司、美國的其他公司。

We are in negotiations with a number of companies. Our certification samples have been submitted to these companies. And we have also signed MOUs with a certain part of these clients for a certain volume offtake. And so samples have been submitted, and progress is being made so that we will be able to get certified as soon as possible.

我們正在與多家公司進行談判。我們的認證樣品已提交給這些公司。我們也與其中一部分客戶簽署了一定數量的諒解備忘錄。目前樣品已提交，目前正在取得進展，以便我們能夠盡快獲得認證。

Next question, please.

請下一個問題。

DBS, Lee Eun Young.

星展銀行，李恩英。

Thank you for this opportunity. I'd like to ask you a question about your investments in India. You said that it's a 50%-50% stake investment. And if you do a joint venture based on 50/50 equity, then this may lead to a number of issues, for example, shareholding rights.

感謝您給我這個機會。我想問您一個有關您在印度投資的問題。你說的是50%-50%的股權投資。而如果你按照50/50的股權來合資，那麼這可能會導致很多問題，例如股權問題。

And so there could be a possible conflict in the future. So we have concerns about that as well, because this is an Indian venture. So do you have anything like a call option, any special provisions, to protect the shareholders? Do you have anything reflected in the shareholders structure?

因此，未來可能會發生衝突。所以我們也對此感到擔憂，因為這是一家印度企業。那麼，你們是否有諸如看漲期權之類的特殊條款來保護股東？股東結構中有什麼反映嗎？

And JSW, as I understand, has sought 10 million tons of the capacity expansion on its own before it entered into a joint venture with POSCO. So JSW has its plan for the capacity expansion. And with this investment with POSCO, it looks like it has a strategy to arrive at a higher-end product as well. So I have concerns that they may abuse you in the future.

據我了解，JSW在與浦項製鐵合資之前，已經自行尋求1000萬噸的產能擴張。因此JSW有其產能擴張計畫。透過對 POSCO 的投資，看起來它也有一個開發更高端產品的策略。所以我擔心他們將來可能會虐待你。

If you think about the 5 million tons, what the production process is going to be, how you intend to produce them, you said that nothing concrete has been finalized yet. But this 5 million tons, is that targeting purely the Indian market? Is it you -- is my understanding correct that you are just targeting the Indian market with the 5 million tons of products?

如果你想一下500萬噸，生產過程是什麼樣的，你打算如何生產它們，你說具體還沒有最終確定。但這500萬噸，純粹是針對印度市場嗎？是你嗎－我的理解是否正確，你的500萬噸產品只是針對印度市場？

And I also have concerns about carbon neutrality. Carbon neutrality is not something to implement just for the POSCO India or POSCO Korea or the United States. It's just going to be all consolidated basis, and you have to look at the carbon emission level as a whole. I think that's what shareholders were looking for.

我也對碳中和感到擔憂。碳中和並不是只有浦項印度、浦項韓國或美國才能實施。這只是一個綜合的基礎，你必須從整體上看待碳排放水平。我認為這就是股東所尋求的。

So if you have this 50/50 venture, financial outcomes, EBITDA -- very important -- about you said to be thinking about the carbon emissions level, where would these emissions be calculated? Would it be at the joint venture or at the POSCO as a whole? So I'd like to ask you about the questions on -- ask you to explain that as well.

因此，如果您有這個 50/50 的企業，財務成果、EBITDA（非常重要），據說您正在考慮碳排放水平，那麼這些排放量將在哪裡計算？是在合資企業還是在整個浦項製鐵？所以我想問你有關的問題——也請你解釋一下。

And you're going to begin the lithium production, and the lithium prices has come down quite substantively. And if you think about the cost competitiveness, if you think about what you have in Argentina, you said that your competitiveness is very high.

你將開始鋰生產，鋰價格已經大幅下降。如果你想想成本競爭力，如果你想想你在阿根廷有什麼，你說你的競爭力非常高。

But if you think about depreciation -- amortization, depreciation cost, and the production cost, all considered, what would be the BP for the POSCO? You're at the initial stages of production. Of course, you can't reach the breakeven point.

但如果你考慮折舊——攤提、折舊成本和生產成本，所有這些都考慮在內，POSCO 的 BP 是多少？您正處於製作的初始階段。當然，你無法達到損益平衡點。

But let's say the utilization rate rises to 70%, 80% levels. What would be the production cost at which we can realize that breakeven point? If you think about the brines and also the hard rocks, what will be the cost structure? I'd like to ask you to explain on that as well.

但假設利用率上升到 70%、80% 的水平。我們可以實現損益平衡點的生產成本是多少？如果考慮鹽水和堅硬的岩石，成本結構會怎麼樣？我也想請你對此進行解釋。

When we make the 50% investment, we may -- you said that we may enter into some conflicting situations. But we have 50% equity, and we have a BOD that is structured with 50%-50% from both sides. I don't think we're going to enter into major conflicting relationship.

當我們進行50%的投資時，我們可能會—你說我們可能會陷入一些衝突的情況。但我們有50%的股權，我們的董事會是雙方各佔50%-50%的結構。我不認為我們會陷入嚴重衝突的關係。

We're trying to secure the site and come up with the [efforts]. And so it will take some time for us to achieve that at certain levels. There's a call option. In the future, we will certainly make considerations for that in the future.

我們正在努力保護網站並做出[努力]。因此，我們需要一些時間才能在一定程度上實現這一目標。有一個看漲期權。未來我們一定會考慮到這一點。

10 million tons, I think, to try to secure it on their own site is already done. So if you think about the Odisha site, there could be further expansion made, so that by 2030, this would be risen to 25 million levels. So what they are trying to negotiate with us is part of their 25 million they have in their plan.

我認為，1000萬噸，試圖在自己的場地上獲得它已經完成了。因此，如果你考慮奧裡薩邦的站點，可能會進一步擴展，到 2030 年，這一數字將上升到 2500 萬的水平。所以他們試圖與我們談判的是他們計劃中 2500 萬美元的一部分。

And the joint venture with POSCO is not an integrated steel mill. They want to come up with a high-end mill. So that is what's currently being discussed with the Indian partner. And India has 150 million tons in size -- in the market size. And the export ratio is relatively very small compared to India and all the Korean's market size. This will be purely an Indian market that we're targeting with this joint venture.

而且與浦項製鐵的合資企業並不是綜合鋼廠。他們想設計出一款高階磨機。這就是目前正在與印度合作夥伴討論的內容。印度的市場規模為 1.5 億噸。而且與印度和所有韓國的市場規模相比，出口比例相對很小。我們與這家合資企業的目標純粹是印度市場。

With the carbon neutrality, I think we need to be very realistic in our approaches. Of course, they need to be consolidated. We need to make public disclosures, but we need to be realistic in our approaches.

對於碳中和，我認為我們的方法需要非常現實。當然，它們需要被整合。我們需要公開揭露，但我們的方法也需要現實。

If we make the reduction efforts in India, I think the market will understand our position in looking at the realities of the market situation in India. On the lithium side, Mr. Lee, who is responsible for the lithium business, Lee Sung-Won is going to respond.

如果我們在印度做出減少努力，我認為市場會理解我們在考慮印度市場現實情況時的立場。在鋰方面，負責鋰業務的Lee Sung-Won先生將做出回應。

Yes, my name is Lee Sung-Won. On the BP, breakeven point, for the salt lake, the brine, I think lithium producers all over the world are suffering because the price of the lithium is less than 10,000. And so even if they do a salt lake-based, brine-based business, they're not making good profits.

是的，我叫李成元。在英國石油公司（BP）的損益平衡點上，對於鹽湖、鹵水，我認為全世界的鋰生產商都在遭受損失，因為鋰的價格還不到10,000。因此，即使他們從事以鹽湖、鹽水為基礎的業務，他們也沒有獲得豐厚的利潤。

We're still at the early stages, so I'm not really sure what to say as of now. But compared with other competitors, I think the salt lake quality is very high. The lithium content is very high. And therefore, we are not very concerned about that. But we have made quite a lot of investments, so there could be quite high amortization costs.

我們仍處於早期階段，所以我現在還不知道該說什麼。但與其他競爭對手相比，我認為鹽湖品質非常高。鋰含量非常高。因此，我們對此並不是很關心。但我們已經進行了大量投資，因此攤銷成本可能很高。

But as we enter into full mass production, we believe that -- I don't think there's going to be a significant difference between what we make and what other competitors do. So I think we can make a good profit with this salt lake-, brine-based business.

但當我們進入全面批量生產時，我們相信——我認為我們製造的產品與其他競爭對手的產品之間不會有顯著差異。所以我認為我們可以透過這個以鹽湖、鹽水為基礎的業務獲得豐厚的利潤。

And if you look at the cost difference between the hard rocks and the brines -- first, as we purchase salt lake, we make a massive investment for the hard rocks. (inaudible) lithium solutions, we make monthly investments because we import from Australia on a monthly basis. And therefore, there is like raw material cost, feedstock cost.

如果你看看硬岩和鹽水之間的成本差異——首先，當我們購買鹽湖時，我們對硬岩進行了大量投資。 （聽不清楚）鋰解決方案，我們每月進行投資，因為我們每月從澳洲進口。因此，就有原料成本、原料成本等。

If you think about the process, the processing, I think there's not going to be a great difference. But the difference comes from the feedstock, from the raw materials. And the hard rocks are more costly than the salt lake as of now. And compared to the brine, it's a lot more costly.

如果你考慮流程、處理過程，我認為不會有太大差別。但區別來自於原料，來自於原料。到目前為止，堅硬的岩石比鹽湖更昂貴。而且與鹵水相比，它的成本高很多。

Do we have any other questions?

我們還有其他問題嗎？

No one has requested to ask a question yet.

尚未有人要求提問。

So let me speak. I'd like to thank everyone who participated today. The third-quarter 2024 earnings release presentation ends now. Thank you very much for your participation.

那麼就讓我來說吧。我要感謝今天參加的所有人。 2024 年第三季財報發布現已結束。非常感謝您的參與。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreters was provided by the company sponsoring this event.

本筆錄中的英語陳述是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。