Posco Holdings Inc (PKX) 2025 Q1 法說會逐字稿

Good afternoon. Thank you for joining us for the Holdings earnings call.

午安.感謝您參加我們的控股收益電話會議。

Today we will have a presentation by Posco Holdings followed by a Q&A session with our participants. (Operator Instructions). Now let us begin Posco Holdings earnings presentation for the first quarter of 2025.

今天我們將聽取浦項製鐵控股公司的演講，然後與我們的參與者進行問答。（操作員指令）。現在讓我們開始浦項製鐵控股 2025 年第一季的收益報告。

Greetings everyone. I am head of the finance and iron division at Park Holdings. My name is Seong Jin Kim. I'd like to extend my appreciation to all investors who are attending this meeting for taking time out of your busy schedule.

大家好。我是 Park Holdings 財務和鐵業部門的主管。我的名字是 Seong Jin Kim。我要向所有在百忙中抽空出席本次會議的投資人表示感謝。

As we're all aware, including investors, the first quarter witnessed the global tariff war materialized, which has intensified economic uncertainty. Despite this headwind, Posco Holdings achieved improvement against the previous quarter. In Q1, consolidated revenue hit KRW17.4 trillion and operating profit KRW570 billion.

包括投資者在內，我們都知道，第一季全球關稅戰正式爆發，加劇了經濟的不確定性。儘管面臨這些不利因素，浦項製鐵控股的業績仍較上一季有所改善。第一季度，綜合營收達到17.4兆韓元，營業利潤達5,700億韓元。

Looking at the general overview by key businesses, despite lingering volatility in export volume and FX rates, the domestic steel market is showing moderate signs of stability. In addition, iron ore and coking coal prices have also become more stable. Posco Future M is selling more cam and am, while Posco International's gas field business continues to perform well.

從重點企業整體情況來看，儘管出口量、匯率等持續波動，但國內鋼材市場呈現溫和企穩態勢。此外，鐵礦石、焦煤價格也趨於穩定。Posco Future M 的凸輪軸和 AM 銷量有所增加，而 Posco International 的天然氣田業務繼續表現良好。

While these Q1 results are insufficient to jump to the conclusion that we have made a turn toward clear recovery, we do, however, have signals that allow positive assessments little by little. Therefore, barring unexpected exigencies out of the out of left field, we are carefully optimistic that things cannot get any worse from here.

雖然這些第一季的結果不足以得出我們已經走向明顯復甦的結論，但我們確實有一些訊號可以讓我們逐漸做出積極的評估。因此，除非出現意想不到的緊急情況，我們謹慎樂觀地認為情況不會變得更糟。

Next, I turn to a topic that I'm sure many have read in the media. I'd like to address our MOU signed with Hyundai Motor Group.

接下來，我想談談一個我相信很多人在媒體上讀過的話題。我想談談我們與現代汽車集團簽署的諒解備忘錄。

As was illustrated in the Pasco Holdings corporate value enhancement program released in December 2024, we have to find a strategy to invest in the overseas upstream steelmaking process, and we have been taking a close and hard look at the high growth market of India and high profit market in North America.

正如2024年12月發布的Pasco Holdings企業價值提升計畫中所述，我們必須找到投資海外上游煉鋼工序的策略，並且我們一直在密切關注印度這一高成長市場和北美這一高利潤市場。

As an outcome of that plan, in October last year, we signed a comprehensive MOU with JSW Group in India to seek collaboration in steel, energy materials, and renewable energy businesses.

作為該計畫的成果，去年10月，我們與印度JSW集團簽署了一份全面的諒解備忘錄，尋求在鋼鐵、能源材料和再生能源業務方面的合作。

This time with Hyundai Motor Group or HMG with the goal to address the global trade environment and to enhance our competence in the future mobility materials business, we intend to strengthen our collaboration to jointly invest in to build a steelmaking plant in the US and to jointly develop next generation veterary materials. This alliance can be regarded as a strategic choice made to actively address the rapidly changing environment.

這次與現代汽車集團（HMG）合作，旨在應對全球貿易環境，增強我們在未來移動材料業務中的競爭力，我們打算加強合作，共同投資在美國建設煉鋼廠，並共同開發下一代獸醫材料。此次結盟可以說是積極因應快速變化的環境而做出的策略選擇。

In steel, in compliance with the USMCA melted and poured origin rule, we plan to offer reliable supply of steel products melted and poured in the US to our auto panel manufacturing plant in Cosco, Mexico. Additionally, we will expand volume supply to our US OEMs, to whom our volume was limited due to the export quota.

在鋼鐵方面，根據USMCA熔煉和澆鑄原產地規則，我們計劃向位於墨西哥中遠的汽車面板製造廠提供可靠的美國熔煉和澆鑄鋼鐵產品供應。此外，我們將擴大對美國原始設備製造商的批量供應，由於出口配額限制，我們對這些製造商的供應受到限制。

In addition, by focusing the EV battery materials technology that both companies possess, we hope to be able to advance to an elevated level of Korea's next generation battery development once the EV market chasm draws to a close.

此外，透過集中兩家公司所擁有的電動車電池材料技術，我們希望能夠在電動車市場鴻溝縮小後推動韓國下一代電池開發的更高水平。

Currently we're in discussions with HMG regarding the size of equity investment into a US steel mill as well as more specifics on how we will see cooperation. Once we have more details confirmed, we'll make sure to share those with you. I'd like now to invite the head of our IR department to deliver the first quarter results.

目前，我們正在與HMG討論對美國鋼廠的股權投資規模以及合作的具體細節。一旦我們確認了更多細節，我們一定會與您分享。現在我想邀請我們的投資者關係部門負責人來報告第一季的業績。

Please refer to page 4 of the presentation materials. On a consolidated basis, RQ1 revenue and operating profit came in at KRW17.4 trillion and KRW568 billion respectively due to a market downturn in the previous quarter and structural adjustments, operating profits dropped to lowest KRW95 billion but has since rebounded across all business segments to KRW568 billion wonu reaching the same level as the previous year. EBITA reached KRW1.6 trillion and our consolidated CapEx for the quarter amounted to KRW1.5 trillion now by business segments in the. The operating profit improved from 2.3% to 3% QOQ. What's particularly notable is that Posco's op margin recovered to 3.9%. Overseas steel business also showed improvement thanks to strong performance in our engine operations and reduced losses at our China's [Zhangjiagang] plant. As for the energy materials, thanks to Posco Futur M's turnaround to profit, overall operating losses were reduced by half Q-o-Q.

請參閱示範資料第4頁。綜合來看，第一季營收和營業利潤分別為17.4兆韓元和5680億韓元，受上一季市場低迷和結構調整的影響，營業利潤一度跌至最低的950億韓元，但之後各業務部門均有所回升，達到5680億韓元，與去年同期持平。EBITA 達到 1.6 兆韓元，本季按業務部門劃分的綜合資本支出達到 1.5 兆韓元。營業利潤季增 2.3% 至 3%。尤其值得注意的是，浦項製鐵的營業利益率回升至3.9%。由於發動機業務的強勁表現以及中國張家港工廠虧損的減少，海外鋼鐵業務也呈現改善。能源材料方面，受惠於浦項未來M扭虧為盈，整體營運虧損較上季減少一半。

But due to ramp up of newly built plants and investment losses continued. As for the infrastructure segment, overall performance remained quite solid.

但由於新建工廠產能增加和投資虧損持續存在。至於基礎建設領域，整體表現依然相當穩健。

Now looking at page 5, you will find a summary of the MOU on mutual cooperation with Hyundai Motor Group. Our CFO in his remarks earlier mentioned about the strategic rationale behind what we're seeking to pursue. In essence, it includes cooperation in entering the US upstream electric furnace operations and in the battery sector we'll work together on investments in key materials, supply chain establishment, and joint technology development. Let me elaborate further on page 6.

現在請看第5頁，您將看到與現代汽車集團相互合作諒解備忘錄的摘要。我們的財務長在先前的演講中提到了我們所追求的戰略理由。實質上包括合作進入美國上游電爐業務，以及在電池領域，在關鍵材料投資、供應鏈建設、聯合技術開發等方面開展合作。讓我在第 6 頁進一步闡述。

Posco currently operates not only in Korea but also in China, Vietnam, and Indonesia, our upstream steel production basis, while running sales subsidiaries, downstream processing lines, and processing centers around the world to sell made in Korea products globally.

目前，浦項製鐵不僅在韓國開展業務，還在中國、越南和印尼等上游鋼鐵生產基地開展業務，同時在世界各地設有銷售子公司、下游加工線和加工中心，向全球銷售韓國製造的產品。

As global steel markets increasingly continue to regionalize and form blocks, we have selected India, US, Indonesia as three priority regions for upstream expansion. In India, together with AWA, we're working to establish a specialized automotive steel sheet specialized company with an estimated capability capacity of about 5 million tons, and we're proceeding with final site selection initial planning step by step. The latest announcement regarding offshore cooperation is driven by two needs.

隨著全球鋼鐵市場區域化、集團化趨勢不斷加強，我們選定印度、美國、印尼作為上游擴張的三個重點地區。在印度，我們正與AWA合作建立一家專門的汽車鋼板專業公司，預計產能約為500萬噸，我們正在逐步進行最終選址和初步規劃。最新發布的海上合作公告是基於兩方面需求。

First is to expand our presence in the US automotive sale market, our long term objective, and second is to. To the US MCA, which will take effect in July 2027, it's mid to short term need. US MCA is a revised multilateral trade agreement that replaced NAFTA among three North American countries to qualify for tariff-free automobiles. There are 3 conditions, one of which is the regional content requirement. Here, the molten iron of the seal must be produced within North America for steel to be recognized as North American.

首先是擴大我們在美國汽車銷售市場的影響力，這是我們的長期目標，其次是。對於將於2027年7月生效的美國MCA來說，這是中短期需求。美國汽車協定是經修訂的多邊貿易協定，取代了北美三國之間的北美自由貿易協定，以獲得免關稅汽車資格。有3個條件，其中之一是區域內容要求。在這裡，印章上的鐵水必須是在北美生產的，鋼材才被認定為北美產。

Posco currently uses cold rolled steel sourced from molten iron produced at [Arakongyang] Works in Korea with which Posco Mexico produces coated automotive steel sheets and starting from July 2027 from Mexico and its operations, it's essential to use cold rolled steel made from molten ore iron produced within North America. So this new partnership is therefore a critical decision that aligns with our long term strategic ambition in the automotive steel sheet market, also addressing the urgent mid-term need to respond to USMCA.

浦項製鐵目前使用的冷軋鋼來自韓國阿拉孔洋工廠生產的熔融鐵，浦項製鐵墨西哥公司使用該工廠生產塗層汽車鋼板，從2027年7月起，在墨西哥及其運作中，必須使用由北美境內生產的熔融鐵礦石製成的冷軋鋼。因此，建立這項新的合作關係是一項至關重要的決定，它符合我們在汽車鋼板市場的長期策略目標，同時也解決了應對 USMCA 的緊迫中期需求。

Now page 7, progress on our rebalancing efforts through the restructuring of underperforming projects and non-core assets in Q1 of 2025, we try to generate cash, so we divested a total of 6 assets in the first quarter, raising KRW286.6 billion. And since last year, the cumulative cash generated reached KRW949.1 billion won with 51 projects completed. So in Q1 we sold off loss making operations like Piano chemical as well as the power demand management business of Posco DX.

現在第 7 頁，透過重組表現不佳的項目和非核心資產，我們在 2025 年第一季取得了再平衡工作的進展，我們試圖產生現金，因此我們在第一季度共剝離了 6 項資產，籌集了 2866 億韓元。自去年以來，已完成 51 個項目，累計產生現金達 9,491 億韓元。因此，在第一季度，我們出售了 Piano 化學等虧損業務以及 Posco DX 的電力需求管理業務。

So these rebalancing measures are not only just about securing additional cash but are also expected to help eliminate potential sources of loss going forward.

因此，這些再平衡措施不僅是為了確保額外的現金，還有望幫助消除未來潛在的損失來源。

Moving on to the next page. The plan for this year. This year we have established a CapEx plan of KRW8.8 trillion, slightly down from the previous year. We plan to continue investing in core businesses while adjusting the pace. We have allocated 43% to steel, 34% to energy materials, and 17% to the infrastructure.

轉到下一頁。今年的計劃。今年我們制定了8.8兆韓元的資本支出計劃，比前一年略有下降。我們計劃在調整步伐的同時繼續投資核心業務。我們將43%分配給鋼鐵，34%分配給能源材料，17%分配給基礎建設。

As for the steel segment, there is the construction of the new EAC in Kwangyang, overseas growth and replacement of aging facilities to improve operational efficiency. We have budgeted for these initiatives, and as for the energy materials, it's KEC spending in 2024 was fortunately one. But major production facilities including Argentina were completed at the end of last year and this year, despite ongoing construction of second bring plants in Argentina and materials plant, burden will be slightly lower to KRW3 trillion. As for the infrastructure, we planned the project in Australia, stage 4 of Myanmar gas field, and construction of a second terminal. Now performance by a key area.

鋼鐵部門正在光陽建造新的 EAC，進行海外擴張並更換老化設施，以提高營運效率。我們已經為這些措施編制了預算，至於能源材料，幸運的是，2024 年的 KEC 支出是其中之一。但阿根廷等主要生產設施已於去年底竣工，今年儘管阿根廷第二工廠和材料工廠仍在建設中，但負擔將略微降低至3兆韓元。基礎建設方面，我們規劃了澳洲計畫、緬甸氣田四期、第二終端建設等。現在由一個關鍵區域表現。

Page 9, Posco rude steel output in Q1, mainly due to the impact of overall maintenance works, declined by 5.5% QoQ. But while selling prices slightly increased and raw materials costs remain stable, and we have been making cost saving efforts enterprise-wide, and all of these efforts led to an improvement in op margin which rose to 3.9%.

第9頁，第一季浦項粗鋼產量主要受到整體檢修工程的影響，較上季下降5.5%。但是，雖然銷售價格略有上漲，原材料成本保持穩定，並且我們一直在整個企業範圍內努力節約成本，所有這些努力都導致營業利潤率上升至 3.9%。

And the volumes were reduced not because of demand cut. So in Q2 we believe there's going to be a recovery in terms of sales and so forth. And recently in the domestic retail market there was a reduction in unfair. Traded imported products which had previously caused significant disruption in the market, but we're seeing a gradual normalization of the market prices in certain categories such as steel sheets, which are some positive developments.

產量減少並不是因為需求減少。因此，我們相信第二季的銷售等各方面將會復甦。而近期國內零售市場不公現象減少。進口產品的交易先前曾對市場造成嚴重干擾，但我們看到某些類別的市場價格正在逐步恢復正常，例如鋼板，這是一些積極的發展。

Now let's move to page 10. Profits from overseas steel operations are partially recovered. First, our Indian subsidiary has steadily expanded sales of high margin products like automotive steel sheet by seeing improved profit. And second, China's Zhangjiagang due to a rise in regional stainless steel selling prices, has reduced its losses. But subsidiaries in Southeast Asia continue to underperform.

現在我們翻到第 10 頁。海外鋼鐵業務利潤部分恢復。一是印度子公司汽車鋼板等高利潤產品的銷售量穩定擴大，利潤有所提升。其次，中國張家港因地區不鏽鋼銷售價格上漲，虧損減少。但東南亞的子公司表現持續不佳。

Next, Posco Future M, with increased sales volume of cathode materials and higher prices for basic materials, operating profits improved, resulting in a turnaround in the first quarter. In particular, the sales volume of high nickel cathode materials, our main product, rose by 64% QoQ.

其次，浦項未來M由於正極材料銷量增加，加上基礎材料價格上漲，營業利潤改善，第一季轉虧為盈。其中，主打產品高鎳正極材料銷量較上月成長64%。

And as for the sales of natural graphite-based add-on materials, mostly driven by the demand from customers seeking non-China origin added materials, the sales increased by 33% QoQ.

至於天然石墨基添加材料的銷售，主要由客戶尋求非中國原產添加材料的需求所推動，銷售額環比增長了 33%。

Page 12, at the end of last year, Argentina Plant 1 completed its construction. Ramp up is underway and it's implementing client certification process. On the other hand, the plant 4, in light of the delayed recovery in lithium prices and continued market sluggishness, the completion has been postponed to the first quarter of 2026.

第12頁，去年年底，阿根廷一廠完工。目前正在推動並實施客戶認證流程。另一方面，鑑於鋰價復甦延遲以及市場持續低迷，4號工廠的竣工時間已推遲至2026年第一季。

So the lithiumcom Solution domestic downstream subsidiary project has also been rescheduled to the first quarter of 2026 accordingly. As for the Posco Pilarra lithium Solution Plant 1, which completed full construction in November last year, it began full-scale shipments of contracted volume starting in the Q2.

因此LitiumComSolution國內下游子公司專案也相應調整至2026年第一季。去年11月全面完工的浦項Pilarra鋰溶液工廠1號，從第二季開始全面出貨合約量。

And as for the plant 2, which was completed at the end of last year, we aim for a client certification in Q3. That we will focus on testing and ramp up.

至於去年年底竣工的 2 號工廠，我們的目標是在第三季獲得客戶認證。我們將專注於測試和提升。

Next is Posco International. Due to increased electricity sales during the winter and solid domestic sales from Myanmar gas fields, operating profit and energy increased, in particular in the LNG power generation business, there was a completion of major maintenance works that led to recovery in sales.

接下來是浦項國際。由於冬季電力銷售增加以及緬甸氣田國內銷售穩健，營業利潤和能源增加，特別是液化天然氣發電業務，主要維護工程完成，導致銷售額回升。

Now let's move on to Posco ENC. As several major large projects were completed at the end of last year, first quarter revenue decreased. However, as completion related profits were accounted for, operating profit in both the plant and the infrastructure segments increased slightly.

現在讓我們來談談 Posco ENC。由於去年年底幾個重大大型項目完工，第一季收入有所下降。然而，由於計入了竣工相關利潤，工廠和基礎設施部門的營業利潤均略有增加。

Lastly, let me update you on our recent ESG related developments. Our group, as a company with operations all around the world, is striving to establish principles and systems for global standard human rights management, not just in Korea but around our business sites around the world. In Q1, the Chairman and the CEOs of ISO affiliate jointly proclaimed the Posco Group Human Rights commitment. And we would like to report that we have established a human rights management framework aligned with the UNGC standards, including trends in the global legislative landscape and human rights due diligence and grievances redress mechanisms. Now this ends the presentation. We'll move on to the Q&A session.

最後，讓我向您介紹我們最近的 ESG 相關發展。我們集團作為一家在世界各地開展業務的公司，不僅在韓國，而且在世界各地的業務網點都致力於建立全球標準人權管理原則和體系。第一季度，ISO 附屬公司的董事長和執行長共同宣布了浦項集團的人權承諾。我們想報告的是，我們已經建立了符合聯合國全球契約標準的人權管理框架，其中包括全球立法格局的趨勢以及人權盡職調查和申訴補救機制。演講到此結束。我們將繼續進入問答環節。

We will begin the Q&A.

我們將開始問答環節。

(Operator Instructions)

（操作員指示）

Yuanta Securities, Mr. Lee

元大證券 李先生

Hello, my name is Lee. I'm from Yuanta Securities. Low performing businesses and restructuring of those businesses are ongoing. The PECSS office in China, I think deficits have been continuing for some time. I think it's been 12 consecutive terms that it has gone into red ink or PESS. Do you have any plans to improve its performance? Or has it just fallen into the pit of low performing businesses and perhaps is it being considered for liquidation?

你好，我叫李。我是元大證券的。業績不佳的業務及其重組仍在進行中。對於中國 PECSS 辦公室而言，我認為赤字已經持續了一段時間了。我認為它已經連續 12 個任期陷入赤字或 PESS。您有什麼計劃來提高其效能嗎？或者它只是陷入了業績不佳的業務陷阱，也許正在考慮清算？

Second question is about energy materials. Of course, the size of the deficit has been reduced, but still there's an operating deficit of about KRW100 billion.

第二個問題是關於能源材料。當然，赤字規模已經減少，但仍有約1000億韓元的營業赤字。

So I understand that some of these plants are in ramp up stage initial stage of operation, so some of this loss is inevitable. But again, KRW100 billion of deficits is quite large and is this a repeating pattern if this continues for about 4 quarters, it could add up to about KRW400 billion of deficits. Of course the energy industry is difficult to predict.

因此，我了解到其中一些工廠正處於啟動階段和營運初期，因此部分損失是不可避免的。但同樣，1,000億韓元的赤字相當大，如果這種情況持續約4個季度，那麼赤字可能會累積達到約4,000億韓元。當然，能源產業很難預測。

However, what are some of the projected revenues as well as operating profits that you forecast for the upcoming quarters, and I know it's difficult to look out to 2026, but last year during the Value Day event you proposed some revenues and EBITDA numbers. So at this point based on the numbers released last year. In energy materials, what are some of the new projections? What are some adjustments downward? Adjustments that you can make at the moment.

但是，您預測未來幾季的營收和營業利潤是多少？我知道展望 2026 年比較困難，但去年在 Value Day 活動期間，您提出了一些收入和 EBITDA 數字。因此，根據去年發布的數據來看。在能源材料方面，有哪些新的預測？向下調整有哪些？您現在可以進行的調整。

My last question. There was an earnings report at 2 o'clock. And I think Chairman Seong has hinted at the possibility of raising more capital. And so looking at Posco Future M, is there any possibility of raising more capital? Or do you not have any such plans in the works?

我的最後一個問題。兩點鐘有一份收益報告。我認為 Seong 主席已經暗示了籌集更多資金的可能性。那麼，看看 Posco Future M，是否有可能籌集更多資金？還是您目前還沒有製定這樣的計劃？

The first question Will be answered by the the management department and the second question I will address that.

第一個問題將由管理部門回答，第二個問題我將自己解決。

So on PECSS and if there are any plans to improve performance, I think that was the gist of the question. In China for several years there has been an overcapacity of stainless steel and so we have very little recourse but to look at restructuring. Same is true for PZSS.

因此，關於 PECSS，以及是否有任何提高效能的計劃，我認為這就是問題的要點。在中國，不銹鋼產能多年來一直過剩，因此我們別無選擇，只能考慮重組。PZSS 也是如此。

We've made diverse efforts to improve its performance. And at headquarters in the first half of last year. Because we looked at many offices that may have to fall into low performing assets subject to liquidation, this obviously fell into that list, but we have to look at the Chinese market situation as well as our own corporate strategy and the stainless steel market. And so we have some restructuring efforts going on, but we do need to read the situation.

我們做出了多方面的努力來提高其性能。去年上半年在總部也開設了分店。因為我們考察了許多可能不得不落入清算的低績效資產的辦公室，這顯然屬於該名單，但我們必須考慮中國市場的情況以及我們自己的公司策略和不銹鋼市場。因此，我們正在進行一些重組工作，但我們確實需要了解情況。

Within the year we believe that we would be looking at a few more variables to make a more definitive conclusion on this. The second question I would like to address. Energy materials companies include HY Clean Metal and PPES These are in their initial stage of operation, some are still being constructed.

我們相信，今年我們將研究更多變量，以便對此做出更明確的結論。我想談第二個問題。能源材料公司包括HY Clean Metal和PPES，這些公司目前處於營運初期，有些仍在建設中。

So we are in ramp up stage and some of them are supplying to customers for those plants in ramp up until we reach a level of stabilization, there is going to be fixed cost that will be generated and for those who are filling customer orders, we have to provide a discount because they have not yet received quality certification. So it's going to be difficult to turn to a profit this year.

因此，我們正處於產能提升階段，其中一些工廠正在向客戶供貨，直到我們達到穩定水平，這將產生固定成本，而對於那些正在履行客戶訂單的工廠，我們必須提供折扣，因為他們尚未獲得品質認證。因此，今年獲利將會很困難。

That's what I can say for sure. But sequentially we will be getting customer certification and so starting in the latter part of next year we will begin to see some black numbers in our operating profits. By 2027, most of the companies will have or plants will have reached a stable operation, and that's when we will see all of our ink turn to black. So I cannot give you any more specifics on that at this point. Please understand.

我可以肯定地說這一點。但接下來我們將獲得客戶認證，因此從明年下半年開始，我們將開始看到營業利潤中出現一些黑色數字。到2027年，大多數公司或工廠將達到穩定運營，那時我們將看到所有墨水都變成黑色。因此，目前我無法向您提供更多有關該問題的具體細節。請您理解。

And on raising more capital, paid in capital. Posco Future M, we did provide some funding in about KRW500 billion.And about KRW600 billion in terms of hybrid securities. And so this is a lot more CapEx than we had originally anticipated, that's for sure.

並籌集更多資本，實收資本。Posco Future M，我們確實提供了約 5,000 億韓元的資金，以及約 6,000 億韓元的混合證券。因此，這比我們最初預期的資本支出要多得多，這是肯定的。

There is some time lag between when the investment is made and when our sales can hit our books. So yes, there is a lot more need than previously anticipated to assist this business that we are looking into using other borrowing instruments.

從投資到銷售額達到帳面價值之間存在一定的時間差。所以是的，對這項業務的援助需求比之前預期的要大得多，因此我們正在考慮使用其他借貸工具。

But S&P ratings have turned a little bit negative, but our regular assessment from Moody's is Already available, so whether we need to look into more borrowing or not, we are assessing that.

但標準普爾的評級已經變得有點負面，而穆迪的定期評估已經可用，因此無論我們是否需要考慮更多藉款，我們都在評估這一點。

Future M's financial status as well as the financing situation and raising more paid in capital. All of these things are variables that we are looking at and based on our conclusion, we will be making a decision shortly.

未來M的財務狀況以及融資情況和籌集更多實收資本。所有這些都是我們正在考慮的變量，根據我們的結論，我們將很快做出決定。

Mr. Mark from Securities.

證券公司的馬克先生。

Thank you very much for giving me the opportunity to ask the question. I have two questions, so I would like to ask a question about the production cost that was announced by the Steel industry, so about 50 million tons of estimate that has been revealed. So I would like to know if that could be feasible and when can we expect the production to be stabilized and how do you see the future.

非常感謝您給我機會提出這個問題。我有兩個問題，所以我想問一個關於鋼鐵業公佈的生產成本的問題，所以已經透露了大約 5000 萬噸的估計值。所以我想知道這是否可行，我們什麼時候可以預期生產能夠穩定下來，以及您如何看待未來。

And do you believe that the production expansion could be possible for the future? And the second is about the integrated mill investment going on in India. So what is the progress on that? And also you've made investments in the secondary battery materials and you're also investing in the steel milking as well. So I would like to know if these two initiatives are taking place in tandem or in parallel.

您是否相信未來有可能擴大生產？第二個是關於印度正在進行的綜合工廠投資。那麼目前進展如何？你們也對二次電池材料進行了投資，也對鋼鐵擠壓進行了投資。所以我想知道這兩項措施是同時進行還是並行。

So the first question, I think that Mr. Hong Munsie from the Posco Marketing strategic Office can answer, and I will answer the second question. Yes, I am the head of the marketing strategy office at Posco.

所以第一個問題，我想浦項製鐵行銷策略辦公室的洪文西先生可以回答，我來回答第二個問題。是的，我是浦項製鐵行銷策略辦公室的負責人。

So there was an announcement of the output cut by, and I think the volume is about 1 million tons, which is minimal in terms of impact on the market and at the beginning of March there was the Chinese Congress party meeting and there was an estimate that the 50 million tons of production cut could be feasible, so the output cut. Perspective it seems highly likely for the time being that because of the trade war as well as the Chinese government's production cut feasibility might not be also possible because of the Chinese government's GDP growth and so forth.

因此，宣布減產，我認為產量約為 100 萬噸，這對市場的影響微乎其微，3 月初中國召開了黨的十九大，會議估計減產 5000 萬噸是可行的，因此減產了。從目前的角度來看，由於貿易戰以及中國政府的減產可行性可能也不可能，因為中國政府的 GDP 成長等因素。

And there is an increasing number of private companies in the sector coming from China, so there is an influence coming from the Chinese government. So whether we'll be able to achieve the 50 million tons of production cut or not, I cannot be sure of that, but we can say that it is highly likely. So if the cut is made, then of course it's going to have an impact on the raw material prices, and the prices of raw materials may go down. Stabilize, but if you look at the current steel prices, as for the price it is coupled with the raw materials prices, and if you look at the structure of our company, there is the automotive and electronics companies that are our clients, so you can see that we sign contracts, price contracts based on semester or based on quarter.

而且，該產業中來自中國的私人企業數量正在增加，因此受到中國政府的影響。所以，我們能否實現減產5000萬噸的目標，我還不能肯定，但是可以說，實現這個目標的可能性是很大的。所以如果減產的話，當然會對原物料價格產生影響，原物料價格可能會下降。穩定下來，但如果你看看現在的鋼鐵價格，就價格而言，它是與原材料價格相結合的，如果你看看我們公司的結構，我們的客戶是汽車和電子公司，所以你可以看到我們簽訂合同，基於學期或基於季度的價格合同。

So we believe that the spread could go up to give us more profits going forward. So if there are additional cuts in production or output. Then the over export volume coming from China could go down and we could have a positive impact on Posco.

因此我們相信利差可能會上升，為我們帶來更多利潤。因此，如果進一步削減生產或產量。那麼來自中國的出口量過剩就會下降，我們就會對浦項製鐵產生正面的影響。

Thank you.

謝謝。

Now the answer to the second question.

現在回答第二個問題。

As presented, the integrated meal investment, the total investment is $8 billion. And in Korean one is about KRW11 trillion won.

據介紹，綜合餐飲投資項目總投資額為80億美元。以韓元計算，一股約11兆韓元。

If you look at the cap or investment structure, so in that project, the capital is 50% and the borrowing is 50%. And as for the capital of 50%, we go in 50% of that 50%. So our fund is only about one-fourth The total investment. So if that is the case, that will be KRW2.5 trillion out of KRW11 trillion, and it will be implemented over the next five years. So the annual CapEx or investment will be about KRW0.5 trillion.

如果你看一下上限或投資結構，那麼在該專案中，資本為 50%，借款為 50%。至於50%的資本，我們投入了其中的50%。所以我們的基金只佔總投資的四分之一左右。如果是這樣，那麼這將是11兆韓元中的2.5兆韓元，並且將在未來五年內實施。因此，每年的資本支出或投資將約為0.5兆韓元。

So who is implementing the investment? It would be Posco, and as for Poco, the annual bi is at least KRW4 trillion . So as for postcode, out of the KRW4 trillion of cash generation ability, investing about KRW550 billion per year is no problem.

那麼誰在實施這項投資？那就是浦項製鐵 (Posco)，至於 Poco，每年的營收至少有 4 兆韓元。那麼對於郵遞區號來說，在4兆韓元的現金產生能力中，每年投資約5,500億韓元是沒有問題的。

And as for the second battery materials investments, the initiatives are ongoing and on a consolidated basis our cash reserve is about KRW16 trillion. So when it comes to the secondary battery materials, making investments in the sector would be not challenging.

至於二次電池材料的投資，這些舉措仍在持續進行中，綜合來看，我們的現金儲備約為 16 兆韓元。因此，就二次電池材料而言，在該領域進行投資並不困難。

Kim Yoon Sang of IM Securities

IM證券的Kim Yoon Sang

My name is Kim Yoon Sang. I have 3 questions. So Tariff barriers on reduced quotas as well as clarification. All of these create more intensified trade barriers. And so this hits not only headquarters but also overseas plants.

我的名字是金允尚。我有 3 個問題。因此，關稅壁壘與配額減少以及澄清有關。所有這些都造成了更嚴重的貿易壁壘。因此，這不僅影響總部，也影響海外工廠。

So because of these intensified trade barriers, it leads to impacts on the sales volume and also impact sales plans. I'd like to know how it's impacting yours.

因此，由於這些貿易壁壘的加劇，導致銷售量受到影響，銷售計畫也受到影響。我想知道它對你有何影響。

And because of the adverse impact, we have to have some responsive measures. Of course the possibility seems a little bit low, but because the quota has been eliminated, there is some impact to the steel business. So what are your countermeasures against these?

而且由於不利的影響，我們必須採取一些應對措施。當然這種可能性看起來有點低，但因為配額已經取消，對鋼鐵業還是有一定影響的。那麼針對這些問題您有什麼因應措施呢？

And next is on hot rolled products and so we have AD complaints have been filed, and if this were to impact Japan as well, how is Japan likely to react to this?

接下來是關於熱軋產品，我們已經提起了反傾銷投訴，如果這也影響到日本，日本可能會如何反應？

And finally, there's been some adjustment in lithium price. I'd like to know what your projections are on the lithium price going forward.

最後，鋰價也做了一些調整。我想知道您對未來鋰價的預測是什麼。

First question will be answered by Mr. Hongyi and next by the International Trade Office, Mr. Honghunyung.

第一個問題由洪毅先生回答，下一個問題由國際貿易辦公室洪勳勇先生回答。

And finally from [EJ Young] from Energy Materials Business Management.

最後是來自能源材料業務管理公司的 [EJ Young]。

My name is [Hongyuni], and I'd like to address the trade barriers. How are our affiliated companies and overseas locations impacted?

我叫[Hongyuni]，我想談貿易壁壘。我們的附屬公司和海外分公司受到什麼影響？

We have many overseas. In various locations, but by region, the impact varies. Let's take Vietnam as an example. So even before the Trump administration imposed tariffs, there was already a 25% tariff, and there are a lot of exports to the US, but there are no additional tariffs that were imposed on steel products.

我們有很多海外的。在不同的地方，但根據地區，影響有所不同。我們以越南為例。所以即使在川普政府徵收關稅之前，就已經有25%的關稅了，而且有很多產品出口到美國，但沒有對鋼鐵產品徵收額外的關稅。

But US bound Vietnamese made coated steel products. The countervailing taxes are between 40% to 140%, so it's very high. So Posco Vietnam's cold rolled products. Domestic sales could be impacted by this move. But US bound cold world products from Vietnam. I think will only be positively impacted by this. And the same goes to Thailand. We have a coating plant in Thailand. And they have US bound exports that are subject to the same level of tariffs. So the coating plant in Thailand also is likely to be positively impacted by this move, and Mexico is the most largely impacted and originally we anticipated high impact.

但銷往美國的越南製造的塗層鋼產品。反補貼稅在40%到140%之間，非常高。因此，浦項越南的冷軋產品。此舉可能會影響國內銷售。但美國卻從越南向冷鏈世界出口產品。我認為這只會產生正面的影響。泰國的情況也一樣。我們在泰國有一家塗料工廠。他們對美國的出口也徵收相同水準的關稅。因此，泰國的塗料廠也可能受到此舉的正面影響，而墨西哥受到的影響最大，我們最初預期影響會很大。

But when we analyze some of the final decisions that were made, because of the USMCA mandate. For home electronics still if it is built in North America Then there are some provisions. That act in favor of some of the products that we make for the region. With the quota eliminated, are we going to be able to sell more to the United States while the quota may have been removed.

但當我們分析由於 USMCA 授權而做出的一些最終決定時。對於家用電子產品，如果是在北美製造，則有一些規定。此舉有利於我們為該地區生產的一些產品。隨著配額的取消，我們是否能夠在配額取消的同時向美國銷售更多產品？

Steel that is imported into the United States, not only from Korea but from all other countries are closely monitored, so we anticipate more sanctions, more restrictions, and so I think our sales volume is going to be very similar to what we sold last year.

進口到美國的鋼鐵，不僅來自韓國，而且來自所有其他國家的鋼鐵都受到嚴密監控，因此我們預計會有更多的製裁和限制，所以我認為我們的銷售量將與去年的銷售量非常相似。

I'm the head of ITO. I'd like to answer the second question. In global steel market. We are seeing various movements such as the EU safeguards as well as the UK safeguards that are being reassessed. Canada is also imposing new safeguards, and they are collecting opinions.

我是 ITO 的負責人。我想回答第二個問題。在全球鋼鐵市場。我們看到各種動向，例如歐盟保障措施以及英國保障措施正在重新評估。加拿大也正在實施新的保障措施，他們正在收集意見。

Turkey and some of the ASEAN nations are also making separate movements in order to look into some anti-dumping issues. So in order to address all of these, I think protectionist measures are going to continue for some time.

土耳其和一些東協國家也正在採取單獨行動，調查一些反傾銷問題。因此，為了解決所有這些問題，我認為保護主義措施將持續一段時間。

So the anti-dumping regulations against Japan by the Korean government, as well as other protectionist measures that we are seeing in the market right now, we are going to have to look at some of the traded volumes as well as prices and to be able to devise diverse countermeasures, exactly what kinds of countermeasures to take, we cannot give you any conclusions at the moment.

因此，對於韓國政府針對日本的反傾銷法規以及我們目前在市場上看到的其他保護主義措施，我們必須考慮一些交易量和價格，以便能夠制定各種對策，究竟採取什麼樣的對策，我們現在無法給出任何結論。

I am in charge of Energy materials investment office. You asked about the lithium price.

我負責能源材料投資辦公室。您詢問了鋰的價格。

Because of demand rise with EV market recovery, we are projecting a gradual price increase, but because of the tariff policies that are coming out of the United States, that has added uncertainty and therefore it's become more difficult to predict. There are 6 agencies that predicted prices.

由於電動車市場復甦導致需求上升，我們預計價格將逐步上漲，但由於美國推出的關稅政策，這增加了不確定性，因此變得更加難以預測。有6家機構對價格進行了預測。

Going forward after 2025, all of those six agencies expect the price to rise, and on average by 2028, the price will reach about $20,000.

展望2025年以後，這六家機構都預期價格將會上漲，到2028年平均價格將達到約2萬美元。

Next question from Hyundai Motor Securities.

下一個問題來自現代汽車證券。

Thank you for giving me the opportunity to ask the question. I have a few questions for you. First regarding the Gwangyang electric arc furnace that will be completed this year. So in terms of sourcing, what will be the percentage between domestic and overseas, and I believe that it will be very difficult to source the scraps. And as for the Toyota, it acquired radius recently. So when it comes to Posco. Are you going to acquire any steel scrap companies going forward? And as for the products that are produced from EAC, what is the quality of that produced by EAS compared to the blast furnace?

感謝您給我機會提出這個問題。我有幾個問題想問你。首先是關於今年即將竣工的光陽電弧爐。那麼在採購方面，國內和海外的比例是多少，我認為採購廢棄物將非常困難。至於豐田，它最近收購了 Radius。那麼當涉及浦項製鐵時。您未來會收購任何廢鋼公司嗎？那麼對於 EAC 生產的產品，與高爐相比，EAS 生產的產品品質如何？

If you could elaborate further on that. And the second question is regarding marketing conditions. So in the latter half of this year, how do you anticipate the steel market when it comes to automobiles and ship building? How do you expect the supply prices to be?

如果您能進一步詳細說明這一點。第二個問題是關於行銷條件。那麼今年下半年，您對汽車、船艦等鋼材市場走勢如何預測？您預計供應價格會如何？

And regarding the Chinese steel plates, 80 tariffs have been imposed, but can we anticipate any price increase or increase demand sales?

對於中國鋼板，已經徵收了80%的關稅，但我們能否預期價格會上漲或需求增加呢？

Do you see some impact or effects coming from those initiatives? And the third is regarding postcode ENC. So regarding postcode ENC, there was an accident Gwangyang.

您是否看到這些舉措會產生一些影響或效果？第三個是關於郵遞區號 ENC。因此，關於郵遞區號 ENC，光陽發生了一起事故。

So Is there a cost that should be accounted for a one-off in the second semester, second half?

那麼，第二學期、下半學期是否有需要一次性核算的費用？

Regarding the first question, it will be answered by Posco's head of raw materials one office.

關於第一個問題，將由浦項製鐵原料一室負責人進行解答。

And the second will be by Mr. Kyung-Jin Chung, and the third will be by Mr. [Wu Yongdai], who is the head of the infrastructure Business Management Office.

第二位發言人是鄭京鎮先生，第三位發言人是基礎建設業務管理辦公室主任吳永代先生。

I am in charge of the raw materials, the EF, as you said, will be completed by the end of this year, but according to our internal plan, it will be completed by sometime May next year. And as for the steel scrap when it comes to domestic sourcing and investment, we're going to safely secure it and HBI is an alternative, so we consider investing and acquiring or purchasing HPI.

我負責原料，EF，正如你所說，將在今年年底完成，但根據我們的內部計劃，它將在明年5月的某個時候完成。至於廢鋼，當涉及國內採購和投資時，我們將安全地確保它，而 HBI 是一種替代品，因此我們考慮投資和收購或購買 HPI。

So when it comes to the domestic and overseas sourcing percentage, I cannot clearly say what is the percentage, but we are very much focused on flexible sourcing, but we mostly focused on domestic sourcing and going forward when it comes to the high quality scrap sourcing strategy, we will collect as much as possible scrap coming from our clients and then also sign a strategic partnership with our suppliers and in order to meet the increasing demand in Korea, we are going to invest in the collection hub so that we can still high quality scraps as much as possible.

因此，當涉及國內和海外採購百分比時，我無法清楚地說出百分比是多少，但我們非常注重靈活採購，但我們主要專注於國內採購，當談到高品質廢料採購策略時，我們將盡可能多地收集來自客戶的廢料，然後與我們的供應商簽署戰略合作夥伴關係，為了滿足韓國日益增長的需求，我們將投資收集中心，以便我們仍然可以盡可能多地滿足韓國日益增長的需求，我們將獲得高品質的廢棄物。

And we will also invest in the facilities to transform a low quality to high quality scraps. You also asked the question about our plans going overseas. Of course, if there if there is a need, we're going to fully consider that and we will explore some investment opportunities if opportunities arise.

我們還將投資設施，將低品質廢料轉化為高品質廢料。您也詢問了我們的海外計劃。當然，如果有需要，我們會充分考慮，如果有機會，我們也會探索一些投資機會。

And when it comes to the quality, so --

說到質量，--

Hello, I'm in charge of technology strategy. So in Gwangyang in 2026, in the first half, we're going to complete EAF to produce low carbon products. So when we use the scraps as raw materials compared to the BS production, there are lots of impurities.

你好，我是負責技術策略的。因此，在2026年上半年，我們將在光陽完成電弧爐的建設，以生產低碳產品。因此，當我們使用廢料作為原料時，與 BS 生產相比，存在著許多雜質。

Such as nitrogen and so forth, but EAS, we are in the current process of developing technologies that will minimize the impurities. And as for the automotive facility sheets in first, we actually produce the internal interior sheets and according to the level of maturity and advancement of the technology, we plan to also employ the reinforced sheets going forward.

例如氮氣等等，但對於 EAS，我們目前正在開發能夠最大限度減少雜質的技術。至於汽車設施板材，首先，我們實際上生產內部內裝板材，根據技術的成熟度和先進程度，我們計劃在未來也採用增強板材。

Now I am in charge of the fiscal marketing strategy office. You asked the question about the market outlook for the second half.

現負責財務行銷策略辦公室。你問到的是下半年市場前景的問題。

Simply put, if you look at the automotive sector in Korea, we're seeing the impact of the tariff war, and yet it manages to respond to those initiatives and there are some positive signals or developments that are taking place.

簡而言之，如果你看看韓國的汽車產業，我們會發現關稅戰的影響，但它還是設法對這些舉措做出了反應，並且出現了一些正面的訊號或發展。

But as for the construction sector, it's been sluggish since last year, and as for the home appliances, it's very much related with the construction sector as well. So when it comes to the home appliances sector, we believe that the market will be not as good in the latter half. But in terms of prices.

但從建築業來說，從去年開始就比較低迷，家電業也跟建築業有關係。所以對於家電板塊來說，我們認為下半年的市場行情不會那麼好。但就價格而言。

As for the heavy plate AD filing last year, there was the tentative tariff or provisional tariff that was applied, and the Ministry of Finance and Economy confirmed on the provisional tariffs today.

去年的厚板反傾銷申報，當時適用的是暫定關稅或臨時關稅，財政經濟部今天也對臨時關稅進行了確認。

So this helps to minimize the inflow of products that are subject to unfair trade practices. So compared to last year when it comes to the retail market prices, it has gone up quite a bit, and we can expect some additional hike going forward.

這有助於最大限度地減少受到不公平貿易行為影響的產品的流入。因此，與去年相比，零售市場價格已經上漲了不少，我們預計未來還會進一步上漲。

And when it comes to stainless steel products, There was a result regarding the made in Vietnam products and we saw more than 18% additional tariffs compared to the preliminary rulings, so we believe that this will be very helpful in blocking the influx of products subject to unfair trade practices, and this is going to have a positive impact on the prices as well.

對於不銹鋼產品，針對越南製造的產品，我們已經有了結果，與初步裁定相比，附加關稅增加了18%以上，因此我們相信，這將有助於阻止受到不公平貿易行為影響的產品湧入，這也將對價格產生積極影響。

Yes, I am in charge of the infrastructure business management, so you asked the question about the accident in Gwangyang. So it was the 9.209 zone of the [Xinan online].

是的，我是負責基礎建設業務管理的，所以你問的是光陽事故的問題。所以這是[西南線上].

So it was regarding when it comes to the demolition cost, of course it should be accounted for on the books, but as for the 5-209 zone, the operation has been suspended fully, so it's very difficult to calculate the cost so we can say that it will not be accounted for in the second quarter and what is fortunate is that we have an insurance for that construction site. So when it comes to the demolition as well as the restoration work, we'll be able to be covered to a certain level, to a high level by the insurance.

所以說到拆除成本，當然應該在賬面上核算，但對於 5-209 區，其運營已完全暫停，因此很難計算成本，所以我們可以說它不會在第二季度被核算，幸運的是，我們為該建築工地投了保。因此，當涉及拆除和修復工作時，我們將能夠獲得一定程度的保險保障。

Aisha Pai from Noora Securities,

來自 Noora 證券的 Aisha Pai，

Hi, my question is regarding the recent announcement of Posco trying to issue a $1 bond. This one that announced a few ago.

您好，我的問題是關於浦項製鐵最近宣布試圖發行 1 美元債券的消息。這是幾年前宣布的。

I'm trying to see if there's any update on that. And my second question is regarding the recent announced Hyundai, JB, and what impact is expected onto the leverage from.

我正在嘗試查看是否有任何更新。我的第二個問題是關於最近宣布的現代 JB，以及預計會對槓桿產生什麼影響。

(spoken in foreign language)

（用外語說）

And the first question will be answered by the head of finance office, and the second question by [Mr. Ian] Steel Business Management office.

第一個問題將由財務辦公室負責人回答，第二個問題將由鋼鐵業務管理辦公室負責人（Ian 先生）回答。

So dollar denominated issue bond issuance progress on that, let me address that. So we had this in the plan, but on April 1 with the announcement of the US clarification, the financial market fluctuated wildly, so not just us, but also in other companies, all bond issuances have been put on hold.

因此，關於以美元計價的債券發行進展，讓我來談談這個問題。所以我們本來就有這個計劃，但是4月1日美國宣布澄清之後，金融市場劇烈波動，所以不只是我們，其他公司也全部暫停發債。

We are seeing some signs of the market stabilizing, so perhaps by today, maybe by Monday, we will be able to have a better assessment about what the market condition is for the issuance.

我們看到了一些市場穩定的跡象，所以也許到今天，也許到週一，我們將能夠對發行的市場狀況有更好的評估。

So on the MOU signed with HMG and how that's going to serve as a leverage for our group. This is an MOU that was signed between Posco Group and Hyundai Motor Group.

因此，與 HMG 簽署的諒解備忘錄將如何成為我們集團的槓桿。這是浦項集團與現代汽車集團簽署的諒解備忘錄。

So Hyundai Motor Group. Is a partner that we have a relationship that is as old as 5 decades. Among many of the strategies that we've had up until recently, our strategy for the United States has been in flux. We had considering many options, so among those many options, looking at some of the demands that Hyundai Motor Group had in the United States, they made an announcement first about their investment plans and by Asking for Pasco's participation, we believe we can serve a mutually beneficial role here. Of course there are some risks that could follow.

現代汽車集團也是如此。我們的合作夥伴已有 50 年歷史。在我們迄今實施的眾多策略中，針對美國的策略一直在不斷變化。我們考慮過很多選擇，在這些選擇中，考慮到現代汽車集團在美國提出的一些要求，他們首先宣布了他們的投資計劃，並通過要求帕斯科的參與，我們相信我們可以在這裡發揮互惠互利的作用。當然，也存在一些可能隨之而來的風險。

So the two largest steelmakers in Korea are Investing jointly in the United States, so there could be some investment risk there and from Posco Group's perspective.

因此，韓國兩大鋼鐵製造商正在美國聯合投資，因此從浦項集團的角度來看，那裡可能會存在一些投資風險。

I think the CFO at Hyundai Motor Group also explained this a few minutes ago, but it proved to be a market where we can generate some competitiveness and it is a market where material flow is insured, and there are some links that we can build with our downstream processes as well. So investing in the United States and jointly with Hyundai Motor Group, we believe there are many more positive impacts than negative ones.

我認為現代汽車集團的財務長幾分鐘前也解釋過這一點，但事實證明，這是一個我們可以產生一些競爭力的市場，也是一個物料流得到保障的市場，我們也可以與下游流程建立一些聯繫。因此，我們相信，在美國投資以及與現代汽車集團聯合投資，其正面影響將遠大於負面影響。

Not only in steel but also in rechargeable battery materials as well as the potential to extend our cooperation into other parts of the United States as well. So dollar denominated bond issuance, I'd like to add a few more comments. So once again, other companies attempts to issue bonds have been put on hold as well.

我們不僅在鋼鐵領域，還在可充電電池材料領域合作，並且有可能將我們的合作擴展到美國其他地區。因此，關於美元計價債券的發行，我想補充幾點評論。因此，其他公司發行債券的嘗試也再次被擱置。

So we have to look at the financial situation as well as some of the other companies and how they are moving on these bond issuances as well as the spread. Those are the variables we'll look at before we assess bond issue next week.

因此，我們必須關注其他一些公司的財務狀況，以及它們如何發行債券以及利差。這些是我們在下週評估債券發行之前要考慮的變數。

At Hyundai Motor Group, I think they had a question about financial leverage. Building a plant in the United States, Hyundai Motor Group will be the major shareholder, the equity holder. So we will not be determining our shares in that plant, but according to Hyundai Steel. That and equity ratio will be fifty-fifty. This is what Hyundai Steel announced.

在現代汽車集團，我認為他們對財務槓桿有疑問。在美國建廠，現代汽車集團將成為大股東、股權持有者。因此，我們不會確定我們在工廠的股份，而是根據現代鋼鐵公司來確定。股權比例將是五五開。現代製鐵宣布了這一消息。

Posco Group will be a minor shareholder. And I think our shares will be assessed by our Equity, we will not be defining our equity before the investment, so I hope this helps to better explain how it will be structured. We'll take the next question.

浦項集團將成為小股東。我認為我們的股份將由我們的股權來評估，我們不會在投資之前定義我們的股權，所以我希望這有助於更好地解釋它的結構。我們將回答下一個問題。

Next question will be by [Ansu] from DB Securities.

下一個問題來自 DB Securities 的 [Ansu]。

Hello, I am Anneu from TB Security. I have 2 questions. About the Chinese steelmakers. Not only in China but also abroad. They're investing in the coking coal as well as iron ore projects. It is quite active. So as for Korea, in order to, what would be your strategy in terms of the competitiveness strategy and also the pricing strategies, and I believe the raw material prices are likely to go down. So that is why China's strategy.

您好，我是 TB Security 的 Anneu。我有兩個問題。關於中國鋼鐵製造商。不只在中國，也在國外。他們正在投資焦煤和鐵礦石項目。它相當活躍。那麼對於韓國來說，您在競爭策略和定價策略方面的策略是什麼？我認為原物料價格可能會下降。這就是中國的戰略。

Could not be threatening for us. Is that your take, or I would like to know your strategy or your perspective. And second is regarding the next generation secondary materials, the progress on the precursor development. So I'd like to know about how you're going to secure competitiveness in pricing or the capacity and updates on testing as well as clients.

對我們來說不會構成威脅。這是您的看法嗎？或者我想知道您的策略或觀點。第二是關於下一代二次材料，前驅體開發的進展。所以我想知道您將如何確保價格或產能的競爭力以及測試和客戶方面的更新。

Regarding the first question, it will be by [Kuaiyuan], the head of the Materials one office, and then the second will be by [Mr. Yihonggwan] from the Energy Materials Investment Office.

第一個問題將由材料一室主任[Kuaiyuan]來回答，第二個問題將由能源材料投資辦公室的[Yihonggwan先生]來回答。

Together with the Chinese steelmakers, has the plan to invest in raw materials projects, and we are indeed implementing this type of strategy. And as for the iron ore, we are sourcing it by making a 50% investment and as for the coking coal, the level is about 20% because of the ESG issues. So we are considering all of these and making investments in this field. When it comes to iron ore, we believe that investments have been fully made, and when it comes to the coking coal. We believe that there are more returns that we can achieve on our investments, so we're going to continue to monitor the ESG developments.

我們和中國鋼鐵企業有合作投資原料專案的計劃，我們也確實在實施這種策略。對於鐵礦石，我們投資 50% 進行採購；對於焦煤，由於 ESG 問題，我們的投資水準約為 20%。所以我們正在考慮所有這些，並在這個領域進行投資。對於鐵礦石，我們認為投資已經充分到位；對於焦煤，我們認為投資也已經充分到位。我們相信我們的投資可以獲得更多的回報，因此我們將繼續關注 ESG 的發展。

And Identify mines that will be of interest to us and make active investments and also do natural hedging with regards to price fluctuations.

並確定我們感興趣的礦山，進行積極投資，並針對價格波動進行自然對沖。

Yes, I'm the head of the energy materials investments regarding the lithium sulfate development.

是的，我是負責硫酸鋰開發的能源材料投資主管。

So of course there are companies that we have invested in our future institute and we are making we are researching the intermediate goods coming from a lithium plants to make low priced lithium sulfate and the results have become have realized these days. So we are now going for a more larger scale that is we are considering implementing a demo plan and regarding the JKSS, so recently there's been a solid precursor that was produced from here. We thought it was quite promising. So together with OEM companies and battery companies we're conducting a test and for the details, please understand that we cannot disclose the details now.

當然，我們已經在未來的研究所投資了一些公司，我們正在研究來自鋰工廠的中間產品，以生產低價的硫酸鋰，而這些天我們已經取得了成果。因此，我們現在要進行更大規模的嘗試，也就是考慮實施一項演示計劃，關於 JKSS，最近這裡出現了一個可靠的前兆。我們認為它很有前景。因此，我們正在與 OEM 公司和電池公司一起進行測試，至於細節，請您理解我們現在無法透露細節。

Thank you.

謝謝。

Next question, please.

請回答下一個問題。

Eugene Securities. Lee Eugen.

尤金證券。李尤金。

There was a one time impairment loss in the first quarter. Can we assume that no other impairments will be assessed, and you mentioned leadership in the auto sector. We Believe HBIS was mentioned. If you have any projections on the auto industry profits. Please share them with us and based on automotive steel sheets, what is the tonnage? And what is the timeline on hitting these profits as well as volumes? And I'd like to know if we are experiencing a deficit in steel plates.

第一季出現了一次性減損損失。我們是否可以假設不會評估其他損害，並且您提到了汽車行業的領導力。我們認為其中提到了河鋼。如果您對汽車行業的利潤有任何預測。請分享一下，以汽車鋼板為例，噸位是多少？實現這些利潤和銷售的時間表是怎麼樣的？我想知道我們是否遇到了鋼板短缺的問題。

First question, I will address that. Second question will be answered by --. Let me address the first question first. In the first quarter, yes, we had a one-time impairment loss assessed. These impairment losses. Usually occur. In the process of restructuring when we sell off assets and close down plants.

第一個問題，我將回答這個問題。第二個問題將由--.我先回答第一個問題。是的，在第一季度，我們評估了一次性減損損失。這些減損損失。通常都會發生。在重組過程中，我們出售資產並關閉工廠。

And there is a disparity between the book price and the selling price. And secondly, when the market turns downward, the value of the business also declines. So there is an impairment loss there as well. So in the first quarter we continued with our restructuring and of course there were some losses last year. Because market. really sourred and we continued to restructure. There were some priorities that we could have defined, but nonprofit. And non-essential assets were first on our list. And so because of the market downturn as well as the liquidation of our assets that were underperforming, there were larger impairment losses as last year.

而且書價和售價之間也存在著差距。其次，當市場下滑時，企業的價值也會下降。因此，那裡也存在減損損失。因此，在第一季度，我們繼續進行重組，當然去年也有一些損失。因為市場確實惡化了，我們繼續重組。我們可以確定一些優先事項，但這不是盈利性的。非必要資產位列我們的首要位置。因此，由於市場低迷以及我們表現不佳的資產的清算，減損損失比去年更大。

This year we will continue with the restructuring, but in terms of size and intensity it will be smaller than last year.

今年我們還會繼續進行結構調整，但規模和力道會比去年小。

And also this year, Do we anticipate the market will sour as much as last year? We don't think so. I think it's not going to be as bad as last year, and so. Based on that projection, the impairment losses will not be as big as last year. HBI joint venture in China. We are looking to hit KRW420 billion in terms of revenues, and we believe we'll achieve that.

那麼今年，我們預期市場會像去年一樣糟糕嗎？我們不這麼認為。我認為情況不會像去年那麼糟糕，等等。根據這項預測，減損損失將不會像去年那麼大。HBI在中國的合資企業。我們希望實現 4,200 億韓元的收入，我們相信我們能夠實現這一目標。

To hit that revenue we are planning 170,000 tons, but our operating profit is still going to be in the red and the automotives sheets, how much tonnage are we targeting? For wire rods and stainless steel, setting those aside, we are looking at about 8.5 million.

為了達到這項收入，我們計劃生產 17 萬噸，但我們的營業利潤仍將出現赤字，而汽車業務的產量目標是多少噸？對於線材和不銹鋼，撇開這些不談，我們預計約為 850 萬。

In India. Before we set up the plants in the US and India, we're not going to be adding more capacity, so our sales will be based on between 8 million to 9 million tons.

在印度。在我們在美國和印度建立工廠之前，我們不會增加產能，因此我們的銷售量將保持在800萬至900萬噸之間。

The third question was whether our steel plates are suffering from a deficit. Of course, each steel grade is a little bit different, but at the end of last year we did have a lot of deficit bearing plates. But because of the AD filings, many have transitioned into black ink.

第三個問題，我們的鋼板是不是缺口很大。當然，每個鋼材等級都有點不同，但去年年底我們確實有很多缺口軸承鋼板。但由於AD申報，許多公司已轉為黑墨。

The Indian Steel works. I think the question was about the construction schedule. Our JV partner. Is working to confirm the plant's site in Odisha.

印度鋼鐵廠。我認為問題是關於施工進度的。我們的合資夥伴。正在努力確認該工廠在奧裡薩邦的選址。

Once we select the site, then we will be able to add more detail to this plan. Once the site is determined, we also have to do an environmental impact assessment and go through other procedures as well. But if we can stay on plan, I think we'll be completing the plant by 2031.

一旦我們選定了地點，我們就能為該計劃添加更多細節。一旦確定了地點，我們還要做環境影響評估，並履行其他手續。但如果我們能夠按照計劃進行，我認為我們將在 2031 年之前完成該工廠的建設。

Tay Shi from HSBC.

匯豐銀行的 Tay Shi。

Hello, I am Tay Shi from HSBC. I have two questions. I think that it was addressed in your previous answers. So when it comes to the AI feeling for the heavy plates, I would like to know what are the ongoing negotiations, and I would like to know if there's been any financial evaluation or evaluation losses that occurred.

您好，我是匯豐銀行的 Tay Shi。我有兩個問題。我認為您之前的回答已經提到了這一點。因此，當談到AI對重板的感覺時，我想知道正在進行的談判是什麼，我想知道是否發生過任何財務評估或評估損失。

And with regards to lithium sourcing, I would like to know if you have acquired any additional assets. The first will be answered by Mr. Hong, marketing strategy office.

關於鋰採購，我想知道您是否獲得了任何額外資產。第一個問題由行銷策略辦公室的洪先生回答。

So regarding the answer to the first question. After the AD filing of the Chinese heavy plates, the retail prices are constantly going up.

關於第一個問題的答案。中國厚板反傾銷立案後，零售價格不斷上漲。

And I think that I cannot disclose all the detailed negotiations taking place in terms of price by client, but with the three shipbuilders, we have completed our negotiations for the second quarter, and I cannot share with you the detailed numbers, but the price negotiations have taken place reasonably in line with the current trends.

我認為我無法透露與客戶進行的所有價格方面的具體談判情況，但我們已經與三家造船廠完成了第二季度的談判，我無法與大家分享詳細的數字，但價格談判已經按照當前的趨勢合理進行。

And I will answer the question first, so it will be by the head of the energy materials investments. It was about sourcing lithium assets or securing lithium related assets. So as said, in order to increase our cost competitiveness, we are leveraging these low market conditions in order to acquire prime assets not only for blind but also in terms of mind. And we are also engaged with some specific deals, but they are in the process of private deal process and also competition bidding, so we cannot disclose any further on these initiatives do understand and Energy with raw materials office head is going to answer a question about the second so the metal prices are going down, the nickel as well, and going down to $9. So when it comes to the valuation asset valuation losses, it's inevitable, and this is the same situation for all the secondary battery materials.

我將首先回答這個問題，因此它將由能源材料投資主管來回答。這是關於採購鋰資產或保護鋰相關資產。正如所說，為了提高我們的成本競爭力，我們正在利用這些低迷的市場條件來獲取優質資產，不僅在盲目方面，而且在思想方面。我們也參與了一些具體的交易，但它們正處於私人交易過程和競爭性投標的過程中，因此我們無法進一步透露有關這些舉措的任何資訊。請瞭解，能源部原料辦公室負責人將回答有關第二個問題，即金屬價格正在下跌，鎳價也下跌至 9 美元。所以說到估值資產估值損失是不可避免的，所有的二次電池材料都是同樣的情況。

And when it comes to the losses level. There is one plant under construction in Argentina and one plant is undergoing ramp up, and one in Gwangyang is under ramp up and another one is under study. So when it comes to losses, it will be determined by the fixed cost.

而當談到損失程度時。阿根廷有一座工廠在建，一座工廠正在增產，光陽有一座工廠正在增產，還有一座工廠正在研究中。所以說到損失，就由固定成本來決定。

I would like to close the first quarter of 2025 earnings report call for Posco Holdings. Through this call, I hope people gain better insight into how we intend to drive our business forward. Once again, I'd like to thank everyone for your participation. Again, I'd like to close the first quarter of 2025 earnings report call.

我想結束浦項製鐵控股 2025 年第一季財報電話會議。透過這次電話會議，我希望人們能夠更了解我們打算如何推動業務發展。再次感謝大家的參與。再次，我想結束 2025 年第一季財報電話會議。

Thank you.

謝謝。

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

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助本次活動的公司提供