Posco Holdings Inc (PKX) 2025 Q2 法說會逐字稿

Hello, everyone. We'd like to begin the POSCO Holdings earnings call presentation. Thank you all for coming. Today, we will have a presentation from POSCO Holdings first, and then we will have a Q&A session with all those in attendance. (Operator Instructions)

大家好。我們想開始 POSCO Holdings 收益電話會議演示。謝謝大家的光臨。今天，我們將首先聽取浦項製鐵控股公司的演講，然後與所有出席者進行問答環節。（操作員指示）

So let us now begin the earnings call for the 2025 second quarter.

現在讓我們開始 2025 年第二季的財報電話會議。

Hello, everyone. I Head of Finance and IR at POSCO Holdings. My name is Kim Seung-Jun. As you have already seen, I would first begin -- I like to first begin by thanking all of you for taking time out of your busy schedule to attend this earnings conference call. As you know, the past second quarter was marked by the intensifying global tariff war that began early this year.

大家好。我是 POSCO Holdings 的財務與投資者關係主管。我的名字是金承俊。正如你們已經看到的，首先我要感謝大家在百忙之中抽空參加這次收益電話會議。大家知道，今年年初開始的全球關稅戰在剛過去的第二季愈演愈烈。

It was a time that saw incremental uncertainties more so than ever before. Regardless of the hardship and challenges, POSCO Holdings did its best to generate sustained growth. As a result, our consolidated revenue hit KRW17.6 trillion. Operating profit was KRW610 billion. By key business area, we observed a notable improvement in steel.

這是一個比以往任何時候都更加不確定的時期。無論面臨何種困難和挑戰，浦項製鐵控股都竭盡全力實現持續成長。結果，我們的綜合收入達到了17.6兆韓元。營業利潤為6100億韓元。從主要業務領域來看，我們發現鋼鐵業務有了顯著改善。

In both local and overseas steel businesses, quarter-on-quarter sales volume grew to push up revenues with lower prices of iron ore and coking coal, mill margin improved, helping to grow our OP.

在本地和海外鋼鐵業務中，由於鐵礦石和焦煤價格下跌，季度環比銷售量增長，推高了收入，鋼廠利潤率提高，有助於提高我們的營業利潤。

Most notable is POSCO's second quarter OP margin rate of 5.7% taking the fourth quarter of 2024 as the low point, we've been recording growth for two consecutive quarters. Moderate improvements in the domestic market is cited as the reason for no margin growth, but I believe there's more. We have added efficiency to our facilities to improve cost structure. Also, energy and raw materials ratios have been cut. We've introduced AI, so this is the outcome of multiple efforts that have come together.

最值得注意的是浦項製鐵第二季的營業利潤率為5.7%，以2024年第四季為最低點，我們已經連續兩季成長。國內市場的溫和改善被認為是利潤率沒有成長的原因，但我認為還有更多原因。我們提高了設施的效率以改善成本結構。此外，能源和原料的比例也已降低。我們引入了人工智慧，這是多方努力的成果。

In steel, despite the equivocations in the global tariff policies, I dare to be cautiously optimistic that we will sustain these profit levels into the third quarter. Improving efficiency is a project that is ongoing offshore as well. We've designated POSCO Zhangjiagang Stainless Steel PZSS, a stainless-steel production subsidiary in China. Detailed negotiations are underway for the sale as we speak. Established in 1997, PZSS has consistently performed.

在鋼鐵領域，儘管全球關稅政策模稜兩可，但我仍敢於謹慎樂觀地認為，我們將在第三季維持這些利潤水準。提高效率也是海上正在進行的專案。我們指定浦項製鐵張家港不銹鋼PZSS為中國不銹鋼生產子公司。目前，有關出售的詳細談判正在進行中。PZSS 成立於 1997 年，業績一直穩定。

However, due to oversupply from Chinese competition and local Chinese government policies, to limit stainless steel production volume, we have been registering sizable deficits since 2022. Once the negotiations and legal procedures are completed, the PZSS subsidiary, which continues to remain in red ink, will be removed from our consolidated account.

然而，由於中國競爭導致供應過剩，以及中國地方政府政策限制不銹鋼產量，自 2022 年以來，我們一直出現相當大的缺口。一旦談判和法律程序完成，繼續處於虧損狀態的 PZSS 子公司將從我們的合併帳戶中刪除。

Rechargeable battery materials operating companies completed two new plants at the end of last year. They are both in ramp-up stages. Due to initial operation cost increases and falling lithium prices, the size of the deficit in the second quarter will grow. However, we don't believe the current losses will increase any further. We're on track to take steady steps toward customer certification, commercial production and product sales. So again, we're on track.

充電電池材料營運公司於去年底建成了兩家新工廠。它們都處於加速階段。由於前期營運成本增加、鋰價下跌，第二季的虧損規模將會擴大。不過，我們認為目前的損失不會再進一步增加。我們正朝著客戶認證、商業化生產和產品銷售的方向穩步邁進。所以，我們又回到了正軌。

Additionally, for -- in this market, this is an opportune time for the lithium business. Yesterday at POSCO Argentina, there was an LOI signed with a Canadian company for joint investment and the size is $620 billion. So we will be taking mining rights in a mine juxtaposed to our Argentina mine. And because of this close proximity, should this be successful from an operational perspective, I think we will be able to generate a lot of synergy. And there's a lot of upward market incentives that we'll be able to take advantage of.

此外，對於這個市場來說，這是鋰業務的絕佳時機。昨天在POSCO阿根廷公司，與一家加拿大公司簽署了一份共同投資意向書，投資規模為6,200億美元。因此，我們將獲得與阿根廷礦場並列的礦場的採礦權。而且由於距離很近，如果從營運角度來看這項措施取得成功，我認為我們將能夠產生很大的協同效應。我們可以利用許多向上的市場激勵措施。

So from now on, I'd like to ask our IR office leader to report the details of our earnings report.

因此從現在開始，我想請我們的 IR 辦公室負責人報告我們的收益報告的詳細資訊。

I'd like to now go over the earnings for Q2. So the consolidated revenue was KRW17.556 trillion and the OP margin was KRW0.607 trillion. And so after bottoming out, we have been gaining consecutive quarters of growth. The EBITDA was KRW1.6 trillion, and the first half cumulative CapEx recorded KRW3.1 trillion. And net debt due to investment and working capital management and cash injection from portfolio management decreased a little bit QoQ.

我現在想回顧一下第二季的收益。因此，合併收入為17.556兆韓元，營業利潤為0.607兆韓元。因此，在觸底之後，我們連續幾個季度實現成長。EBITDA為1.6兆韓元，上半年累計資本支出為3.1兆韓元。投資及營運資本管理所產生的淨債務以及投資組合管理的現金注入較上季略有減少。

By segment, steel operating margin recorded 3.6% of increase to record KRW610 billion and was just mentioned, the margin for POSCO rose from 3.9% to 5.7% and overseas steel also improved.

從分部門來看，鋼鐵營業利潤率成長3.6%，達到6,100億韓元，剛才提到，浦項製鐵的利潤率從3.9%上升到5.7%，海外鋼鐵業務也有所改善。

In the rechargeable battery materials, the lithium price fall and the last years ramp-up of the two lithium factories that had been newly built last year led to a larger deficit. In the infrastructure, POSCO Internal showed robust performance but nonetheless, POSCO E&C POSCO overseas project incurred additional cost and so there was bit of a marginal decrease.

在充電電池材料方面，受鋰價下跌以及去年新建的兩家鋰工廠產能增加的影響，缺口進一步擴大。在基礎設施方面，POSCO Internal表現強勁，但由於POSCO E&C、POSCO海外專案產生了額外成本，因此略有下降。

Page 5. POSCO has been implementing restructuring of the non-core assets under-performing projects and so we will be able to generate KRW1 trillion worth of cash flow. And so in the first half, KRW350 billion was attained.

第 5 頁。POSCO正在對非核心資產表現不佳的項目進行重組，因此我們將能夠產生價值1兆韓元的現金流。因此，上半年實現了3500億韓元的銷售額。

And in the second half, we're going to generate additional KRW1 trillion. So let's look into each of the subsidiaries. First of all, POSCO. POSCO's OP margin ratio recovered 5.7%. And so it's -- and then if you look at the selling price for the quarter, about KRW1,000 per ton fell.

下半年，我們將額外創造1兆韓元的收入。讓我們來研究一下每個子公司。首先是浦項製鐵。POSCO營業利益率回升至5.7%。所以——如果你看一下本季的銷售價格，每噸下降了約 1,000 韓元。

But then if you look at the reason, first of all, the domestic price recovered a little bit. But due to the stronger won, the export price fell, which led to the overall selling price downfall. But the raw material cost also fell so the mill margin eventually improved and the LNG unit price also fell and so the fuel cost decreased. And so the POSCO's cost-cutting efforts are paying off.

但如果你看原因的話，首先，國內價格回升了一點。但由於韓元走強，出口價格下跌，導致整體售價下降。但原料成本也下降了，因此工廠利潤率最終有所提高，液化天然氣單價也下降了，因此燃料成本也下降了。由此可見，浦項製鐵削減成本的努力正在發揮成效。

Overseas steel also increased QoQ. If you look at Indonesia's PT.KB and Vietnam's PY VINA, the sales channels have been diversified and the local purchasing has also increased, leading to the cost control measures. However, the PZSS also operated profit loss of KRW33 billion. And so the deficit QoQ has also increased.

海外鋼材需求也較上季增加。看看印尼的PT.KB和越南的PY VINA，銷售管道已經多樣化，當地採購也有所增加，從而採取了成本控制措施。然而，PZSS的營業利潤也損失了330億韓元。因此，赤字環比也有所增加。

Next page, POSCO's structural cost innovation projects are continuously ongoing, as you know, very well. After promoting proactive restructuring, for example, closing down of low-efficiency facilities like Steelmaking Line 1 and Wire Rod Line 1, POSCO is seeking optimal material balance to improve efficiency by developing cost-cutting technology to decrease the process load. And so we are also collaborating with our suppliers and discovering new low-grade materials and minerals to enhance its use ratio to cut cost.

下一頁，POSCO 的結構成本創新專案正在持續進行，如您所知。浦項製鐵在推進主動重組，例如關閉煉鋼1號線、線材1號線等低效率設備後，正在透過開發降低成本的技術來降低製程負荷，尋求最佳的物料平衡，從而提高效率。因此，我們也與供應商合作，發現新的低品位材料和礦物，以提高其利用率，從而降低成本。

Also, Pohang and Gwangyang steel factories are adopting AI and robotics and thereby succeeding in accelerating the transition to intelligent factory. And so we succeeded in fully automating the molten steel pretreatment process. We have been cutting process time and raising yield.

此外，浦項和光陽鋼鐵廠正在採用人工智慧和機器人技術，從而成功加速向智慧工廠的轉型。由此，我們成功實現了鋼水預處理工序的全面自動化。我們一直在縮短加工時間並提高產量。

And also, we have applied technology enabling the auto control of optimal target speed. And so we have been able to minimize production delay and achieve increased production of more than 10 tons per tons. And so all of these efforts are leading to overall competitiveness and the profitability going forward. And so POSCO remains committed to these initiatives.

並且，我們也應用了能夠自動控制最佳目標速度的技術。因此，我們能夠最大限度地減少生產延遲，並實現每噸產量增加10噸以上。所有這些努力都將提高整體競爭力和未來的獲利能力。因此，浦項製鐵將繼續致力於這些措施。

Next page is about R&D. So we have been developing high-value-added steel products. As you know, POSCO has been very committed to these initiatives. And in 2013, the high manganese steel for cryogenic use was first developed, and it went through registration to various organizations. And last year, it was applied in the Gwangyang LNG terminal. And in April this year, we exported the technology for the first time.

下一頁是關於研發的。因此我們一直在開發高附加價值的鋼鐵產品。如您所知，浦項製鐵一直致力於這些措施。並於2013年首次研發出低溫用高錳鋼，並透過各機構註冊。並於去年在光陽LNG終端機應用。今年4月，我們首次實現了該技術的出口。

And so we are gaining our leadership in the market. Although small, this kind of high-value-added products going forward are going to grow further. And so we will be meeting the needs of the market and the customers and promote purpose-led new product development and diversify our product portfolio.

因此，我們正在贏得市場領導地位。雖然規模不大，但這類高附加價值產品未來還會進一步成長。因此，我們將滿足市場和客戶的需求，促進有目的的新產品開發，並使我們的產品組合多樣化。

Now, on to the HyREX technology. So this is a long-term strategy that we are promoting since January last year. It was designated as National Strategic Technology as we had already mentioned. Then we opened HyREX Development Center inside our factory.

現在，我們來談談 HyREX 技術。這是我們自去年一月以來一直在推行的長期策略。正如我們已經提到的，它被指定為國家戰略技術。然後我們在工廠內開設了 HyREX 開發中心。

In June this year, the POSCO passed MOTIE's pre-feasibility study for the HyREX demonstration in project, And so we have been successfully able to lay the grounds for commercially ionization technology development. And so this demonstration project is going to cost around KRW814.6 billion during the duration of the project from 2026 and 2030 and the government is funding KRW308.8 billion. And so with that I will be able to have the commercialization and technology phase by phase.

今年6月，浦項製鐵通過了MOTIE對HyREX示範計畫的預可行性研究，成功地為商業化電離技術開發奠定了基礎。因此，該示範計畫在 2026 年至 2030 年期間將耗資約 8,146 億韓元，其中政府將資助 3,088 億韓元。這樣我就能逐步實現商業化和技術化。

So let's now go to the RBM. Next is POSCO Future M. Because the volume of f High-Ni CAM sales dipped against the previous quarter, plant utilization rate has fallen. At the same time, the Gwangyang precursor plant began operation in the second quarter, incurring initial ramp-up costs, adversely impacting our profits. In anode active materials or AAM, while volume of natural graphite AAM sales increased against the previous quarter, artificial graphite AAM has recorded an inventory impairment loss.

現在讓我們轉到 RBM。接下來是POSCO Future M。由於高鎳CAM銷量較上一季下降，導致工廠利用率下降。同時，光陽前驅體工廠於第二季度開始運營，產生了初期增產成本，對我們的利潤產生了不利影響。在陽極活性材料或 AAM 中，雖然天然石墨 AAM 的銷售量較上一季增加，但人造石墨 AAM 卻錄得了存貨減損損失。

Page 10 -- page 12, sorry. In business activities in the RBM business, rechargeable battery materials. First of all, from 2016, we have been developing DLE technology, and we wish to embark on a demonstration project. As you're aware, DLE process is an important technology to extract and process lithium. So we've already gone through a pilot project where we've tested our technology.

第 10 頁--第 12 頁，抱歉。在經營活動中涉及RBM事業、充電電池材料等。首先，從2016年開始，我們一直在開發DLE技術，並希望進行示範計畫。如您所知，DLE 製程是提取和加工鋰的重要技術。我們已經完成了一個試點項目，測試了我們的技術。

So in the state of Utah, we planted a demo plant on a site owned by Anson Resources, that owns the mining rights to a brine lithium mine. And with whom we have signed an MOU here, we will test the possibility of commercializing our DLE technology.

因此，在猶他州，我們在安森資源公司（Anson Resources）擁有的場地上建立了一個示範工廠，該公司擁有鹽水鋰礦的採礦權。我們已與他們簽署了一份諒解備忘錄，我們將測試將我們的 DLE 技術商業化的可能性。

Secondly, a 45,000-tonne capacity precursor plant was completed in June by POSCO Future M. We're internally building out an intermediary plant here. So from raw materials to semi-finished products and all the way to cathode active materials, we'll be able to internally build out this process. And three of our RBM business entities raised paid capital. So KRW1.1 trillion for POSCO Future M TPLS KRW400 billion and KRW32 billion by the parent company of POSCO HY Clean Metal.

其次，浦項未來M公司於6月建造了一座產能為45,000噸的前體工廠。我們正在內部建造一座中間工廠。因此，從原料到半成品，一直到陰極活性材料，我們都能夠在內部建構這個過程。我們的三個 RBM 業務實體籌集了實繳資本。因此，POSCO Future M TPLS 出資 1.1 兆韓元，POSCO HY Clean Metal 的母公司出資 4,000 億韓元，出資 320 億韓元。

And in July, we also entered into a major agreement with a Japanese battery maker for AAM materials. Next is POSCO International's increased recovery ratio at the Myanmar gas field and because we also have to consider seasonal factors, we need to be able to look at the last -- the same period last year, there was about a 20% decline. And there is strong profits in the materials business, but in power generation, because of the lower unit prices, we have suffered some losses here.

今年 7 月，我們也與一家日本電池製造商達成了 AAM 材料重要協議。接下來是浦項國際在緬甸天然氣田的採收率提高，因為我們還必須考慮季節因素，所以我們需要能夠看到去年同期的產量下降了約 20%。材料業務的利潤很高，但在發電業務中，由於單價較低，我們遭受了一些損失。

Page 14, POSCO E&C. The Malaysia power plant and Poland's incinerator, these projects comprise some of our overseas projects that have incurred additional costs, turning the books into red ink. The government complex development project in Seocho District and the LNG terminal project in Thailand are new projects that we have won that brings order amount in the first half of the year to KRW1.2 trillion.

第 14 頁，POSCO E&C。馬來西亞發電廠、波蘭焚化爐，這些海外計畫都產生了額外的成本，導致帳面出現赤字。瑞草區政府綜合大樓開發項目、泰國LNG接收站項目等新項目，使上半年訂單金額達1.2兆韓元。

So this concludes our brief earnings report for POSCO Holdings, and now I'd like to move into the Q&A. Thank you for your attention.

以上就是我們對浦項製鐵控股的簡短收益報告，現在我想進入問答環節。感謝您的關注。

(Operator Instructions) Park Hyun-Wook, Hyundai Motors Securities.

（操作員指示）樸鉉旭，現代汽車證券。

My name is Park Hyun-Wook. So I have about three questions. The first question is regarding the steel market. So in the second half, you're going to have less production in China and also there's going to be less export. And there is the antidumping tariffs being imposed in cold-rolled steel.

我叫樸鉉旭。我有三個問題。第一個問題是關於鋼鐵市場的。因此，下半年中國的產量將會減少，出口也會減少。並且對冷軋鋼徵收反傾銷關稅。

So I think that's going to impact our company. So how does POSCO view the second-half market? And there's shipbuilding and automotive industry. So how are your price negotiations going about with these different industries, players?

所以我認為這會對我們的公司產生影響。那麼浦項製鐵如何看待下半年市場呢？還有造船業和汽車業。那麼您與這些不同產業、不同參與者的價格協商進度如何？

In the overseas, you have the Indian investments in the joint venture. And you did mention that you're going to complete the investment by 2031. Can you give us an update on the current status? And there's the -- after the Liberty Steel Whyalla acquisition, are you also interested in the Australian business as well? And do you have like a percentage target that you have in mind?

在海外，印度在合資企業中進行了投資。您確實提到過，您將在 2031 年之前完成投資。能向我們介紹一下目前的情況嗎？還有——在收購 Liberty Steel Whyalla 之後，您是否也對澳洲業務感興趣？您心中有一個百分比目標嗎？

Recently, the lithium price was from about KRW5,000 and KRW8,000 to went up to about KRW10,000. And we believe that there is also going to be of a rebound from the price of lithium hydroxide. So how do you see this market developing?

最近鋰的價格從5000韓元、8000韓元左右漲到了10000韓元左右。我們相信氫氧化鋰的價格也會出現反彈。那麼您如何看待這個市場的發展呢？

Thank you very much for your question. So regarding your first question, I think the Head of the Marketing can answer and the second can be responded by the relevant department and the third by the energy. So first of all, regarding the China decrease in production, it's been in the news for quite a while, but it has not really seen fruitioness yet. But in July we have seen some news reports that in the second half, there is going to be some decrease in production in China. And so the Chinese domestic production and domestic demand has increased.

非常感謝您的提問。因此，關於您的第一個問題，我認為市場主管可以回答，第二個問題可以由相關部門回應，第三個問題可以由能源部門回應。首先，關於中國減產的消息已經出現一段時間了，但至今尚未真正有成果。但7月我們看到一些新聞報導說，下半年中國產量將會下降。因此，中國國內生產和國內需求都增加了。

And so that's going to reach us in about two months. And we believe that that's going to have a positive impact on POSCO as profit in the second half. And so we believe them to be a positive impact.

大約兩個月後我們就能收到。我們相信這將對浦項製鐵下半年的利潤產生正面影響。因此我們相信它們會產生正面的影響。

So for the hot-rolled sheet, we will go from deficit to a profit, and this is an opportunity for us. Since the preliminary ruling were provided. We are looking for final rulings by the end of the year. So for this to be accounted for in our books, it will take until the end of the year. In automotive and shipbuilding user industry negotiations, you asked a question about that.

所以對於熱軋板來說，我們會由虧損轉為獲利，這對我們來說是一個機會。自初步裁決作出之日起。我們希望在今年年底前做出最終裁決。因此，要在我們的帳簿上記入這一數字，需要到今年年底。在汽車和船舶用戶行業談判中，您提出了有關此問題。

In both businesses or industries compared to other industries, they are at an advantage. We were quite concerned about the tariff negotiations, but that negotiation has gone very well as well. So I'm optimistic in the automotive business because of the raw materials of cost fluctuations that we do need to enter into negotiations. But there are fluctuations, it's going up and down. So I believe the second half will not be too different from the first half in terms of what we negotiate.

無論在企業或產業相對於其他產業來說，都佔有優勢。我們對關稅談判非常擔心，但談判也進展得很順利。因此，我對汽車業務持樂觀態度，因為原材料的成本波動讓我們確實需要進行談判。但也有波動，有漲有跌。所以我相信下半年的談判內容和上半年不會有太大的不同。

In shipbuilding, the impact of AD tariffs have to be considered. So with that consideration, we believe the price needs to be adjusted slightly upward. That's our position. And because the raw materials prices have dropped, they are asking that we keep the prices where they are. The change will not be huge.

在造船業，必須考慮反傾銷關稅的影響。因此，考慮到這一點，我們認為價格需要略微上調。這就是我們的立場。由於原物料價格下降，他們要求我們維持現有價格。變化不會很大。

So I'd like to now go on to the second question regarding the investment. So first of all, the Indian JV, so first of all, there is working-level discussions taking place currently. And we have been looking to the site and the size of the JV. And so we are in the process of fine-tuning the details.

現在我想繼續回答有關投資的第二個問題。首先，印度合資企業，首先，目前正在進行工作層面的討論。我們一直在考慮合資企業的地點和規模。因此，我們正處於對細節進行微調的過程中。

So we did target for 2031, and that's still valid. But when it comes to the environmental feasibility study and also the site, there may be some variables going forward. But for now, everything is going as planned.

所以我們確實設定了 2031 年的目標，這個目標仍然有效。但在環境可行性研究和選址方面，未來可能會出現一些變數。但目前，一切都按計劃進行。

And then regarding the Rovati Steel, Whyalla steelmaker being acquired by POSCO. Well, regarding this possibility of an acquisition, the Whyalla has various different opportunities that we are looking into. And so we are internally reviewing the possibility. The steel mill itself is about 1.2 million tonnes. And so there might be not that much of a synergy that's possible, but there are mining opportunities, which we find quite positive. It has its own mine. And also there is lots of renewable energy possibilities in the mid- to long term.

然後關於 Rovati Steel，懷阿拉鋼鐵製造商被 POSCO 收購。嗯，關於這次收購的可能性，懷阿拉有各種不同的機會供我們研究。因此，我們正在內部審查這種可能性。該鋼廠本身產能約為120萬噸。因此，可能不存在那麼多的協同效應，但仍存在挖掘機會，我們認為這是非常積極的。它有自己的礦山。而且從中長期來看，再生能源的可能性很高。

So low-carbon sources like DRI and HBI could be impacted positively. And so we are looking quite positively into the possibility of this kind of acquisition. And you also asked for the midterm production, so about 5.1 million tonnes is the target, but 2031 is the completion date for the Indian JV. So India will be about 5 million and Indonesia with the PT.KP will be finalized by that time. And in the US, we have the electric furnace. And so if you look at the overall production plan, it would be something like about 10 million tonnes.

因此，DRI 和 HBI 等低碳能源可能會受到正面影響。因此，我們非常積極地考慮這種收購的可能性。您也詢問了中期產量，因此目標約為 510 萬噸，但 2031 年是印度合資企業的完工日期。因此，到那時，印度的人口將達到約 500 萬，而印尼的 PT.KP 也將最終確定。在美國，我們有電爐。因此，如果你看一下整體生產計劃，它大約是 1000 萬噸。

So as of 2035, it will be around 15.7 million tonnes and then there will be a bit of a decrease if we take into account the equity shares. So now the third question, so you asked -- well, you asked the question about the lithium. The EV market is growing, especially in China and the LFP-led growth is quite notice. And the LFP is rebounding, we believe. And also the Chinese government is imposing quite strong sanctions and across the entire value chain, you see the -- not just the refinery, but also the other parts are also rebounding as well.

因此，到 2035 年，這一數字將達到 1,570 萬噸左右，如果考慮到股權，這一數字還會略有下降。現在是第三個問題，所以你問了——嗯，你問的是有關鋰的問題。電動車市場正在成長，尤其是在中國，磷酸鐵鋰電池帶動的成長相當引人注目。我們相信，法國職業聯賽正在反彈。而中國政府正在實施相當嚴厲的製裁，在整個價值鏈中，你會看到──不只是煉油廠，其他部分也都在反彈。

So we believe that the price is not going to fall below $8. And so usually the Chinese LFP will rebound first and then the LH will follow. And so we believe the LH will eventually rebound as well. And so maybe I don't think it's going to go below the $8 mark. But this year, we believe that it's going to be the latter part of the $9 mark.

因此我們相信價格不會跌破 8 美元。因此，通常中國 LFP 會率先反彈，然後 LH 也會跟進。因此我們相信 LH 最終也會反彈。因此我認為價格可能不會低於 8 美元。但今年，我們相信它將跌至 9 美元的後半段。

Recently, with the low price, eight entities announced the lithium prices. So basically, if you look at their opinion in 2026, we believe that maybe it will be more than $10. And so I don't believe that the rebound is going to be abrupt, but there is going to be a phase and increase in the lithium prices.

近期，在價格低迷的背景下，8家實體公佈了鋰價。所以基本上，如果你看看他們對 2026 年的看法，我們認為也許它會超過 10 美元。因此，我認為反彈不會突然發生，但鋰價會有一個階段性的上漲。

Kim Yoon Sang, iM Securities.

Kim Yoon Sang，iM證券。

My name is Kim Yoon Sang from iM Securities. I will ask three questions as well. First of all, our main export destinations US and European market projections and sales projections. In the United States, because we have 15% tariffs, but 50% on steel.

我叫 Kim Yoon Sang，來自 iM Securities。我也會問三個問題。首先，我們主要的出口目的地美國和歐洲的市場預測和銷售預測。在美國，因為我們有15%的關稅，但鋼鐵的關稅是50%。

Since then, we've been losing a lot of volume and demand. But there is a growing market in the United States. So what are your plans about how to take advantage of the market situation?

自那時起，我們的數量和需求就大幅減少。但美國市場正在不斷成長。那麼，您對於如何利用市場狀況有什麼計畫？

And in that same vein, about 27 million tonnes of steel will be replaced, and this is going to play against the European market. So what do you think about the European and the US markets and how they will impact each other? So with these sales strategies in the two regions, in the first half, sales volume remained in the early 8 million range. But in the second half, we're hoping for a little bit of a recovery. So how do you see those numbers developing in the second half is the other part of that question.

同樣，約有 2700 萬噸鋼鐵將被取代，這將對歐洲市場產生不利影響。那麼您如何看待歐洲和美國市場以及它們將如何相互影響？因此，透過這兩個地區的銷售策略，上半年的銷售仍維持在800萬輛左右。但在下半年，我們希望情況能有所復甦。那麼，您如何看待下半年這些數字的發展是這個問題的另一部分。

And HR antidumping tariffs and preliminary rulings, I wonder if this is going to impact your policies going forward. And where are your destinations? I'm sure that there are certain industries that you're serving in the US market, for example. But because these using industries are going to suffer a little bit, what are your price policies going to be?

還有HR反傾銷關稅和初步裁定，我想知道這是否會影響您未來的政策。您的目的地是哪裡？例如，我確信你們在美國市場上服務某些行業。但由於這些使用產業會受到一點影響，你們的價格政策會是什麼？

Marketing Strategy Office Chief. This is a very comprehensive series of questions. First, the 50% steel tariff from the United States, will that remain? I think that was the first part of your question. Many believe that this is going to be hard to sustain.

行銷策略辦公室主任。這是一系列非常全面的問題。第一，美國對華徵收50%的鋼鐵關稅，這個關稅還會維持嗎？我想這是你問題的第一部分。許多人認為這種情況很難維持。

But the Trump administration has expressed that strong commitment. So perhaps this year and until the first part of next year, yes, 50% will hold. That's what we're expecting. And US-bound revenue, it's only about 2% of our total volume. So it remains within the 2% of our volume.

但川普政府已經表達了堅定的承諾。因此，也許從今年到明年年初，50% 的比例將會維持下去。這正是我們所期待的。而美國市場的收入僅占我們總收入的 2% 左右。因此它仍然在我們產量的 2% 以內。

Even if we continue to sell to the United States, we will -- and even paying tariffs, we will be able to make a small profit. But will we have to now consider other regions? I think that volume is going to be very minimal, maybe 10,000 to 20,000 tonnes. And so should the tariffs fall, we'll maybe be able to sell a little bit more, but the impact is not likely to be huge.

即使我們繼續向美國銷售，我們也會——即使支付關稅，我們也能賺取少量利潤。但我們現在必須考慮其他地區嗎？我認為數量會非常少，大約 10,000 到 20,000 噸。因此，如果關稅下降，我們也許可以多賣一點，但影響可能不會很大。

And -- but there are customers, local customers who take steel from us to sell to the United States, and they are going to be impacted the most representative among them being the automotive industry, but they've had a pretty favorable tariff imposed. So I think that's a win situation. There are also other secondary steel product manufacturers that are also going to suffer. So once the price increases, yes, exports will become difficult.

但是，有些客戶，特別是本地客戶，從我們這裡購買鋼材並銷往美國，他們將受到影響，其中最具代表性的是汽車行業，但他們受到了相當優惠的關稅。所以我認為這是一個雙贏的局面。其他二級鋼鐵產品製造商也將受到影響。所以一旦價格上漲，出口就會變得困難。

But when other products have difficulty entering our market, we'll be able to take advantage of the local market to raise our prices too. So rather than partitioning demand through distribution for those who have higher demand, I think we need to be able to come up with a price strategy that is going to be sustainable and competitive. So we don't have a complete plan on that yet.

但當其他產品難以進入我們的市場時，我們也可以利用當地市場來提高價格。因此，我認為我們需要製定一個可持續且有競爭力的價格策略，而不是透過分銷來劃分需求，以滿足那些需求更高的人的需求。所以我們還沒有完整的計劃。

But as the AD rulings continue to finalize, once they become finalized, I think we'll be able to give you a more definitive policy. What we can tell you at the moment is we need to be able to come up with a price policy that keeps our using industries competitive.

但隨著反傾銷裁決的不斷最終確定，一旦最終確定，我想我們將能夠為您提供更明確的政策。我們目前可以告訴您的是，我們需要製定一項價格政策，以保持我們使用產業的競爭力。

In the EU market, it's a similar situation. So those that will not be able to go to the US market, yes, I think they will flow into the European market, but the quota will be pretty rigid. So that is why I don't think the volume increase is going to be huge into the EU. But of course, we have limits to how much we can export to the US. And because of these factors, price will be suppressed.

在歐盟市場，情況也類似。因此，那些無法進入美國市場的產品，是的，我認為它們會流入歐洲市場，但配額將非常嚴格。所以我認為歐盟的銷售不會大幅成長。但當然，我們對美國的出口量是有限制的。而由於這些因素，價格就會受到抑制。

But we'll be able to keep our prices pretty competitive in other regions such as in Southeast Asia. About 2 million to 2.5 million tonnes is subject to -- is the volume we're selling to other regions. And when CBAM goes into full force, we will be operating our EAF. So I believe we will be able to keep our current levels of production and sales, maybe even increase it by a little bit. I hope that answered your question.

但我們能夠在東南亞等其他地區保持相當有競爭力的價格。大約有 200 萬至 250 萬噸取決於——這是我們向其他地區銷售的數量。當 CBAM 全面投入使用時，我們將營運我們的 EAF。所以我相信我們能夠維持目前的生產和銷售水平，甚至可能略有提高。我希望這回答了你的問題。

We'll take the next question now.

我們現在來回答下一個問題。

[Yin Yong], DBS Securities.

[殷勇]，星展證券。

So I would like to ask a question about the PZSS sell-off. So first of all, so I heard in the news that you'll be selling it to a Chinese company. So what are some of the conditionalities and also the price of the sale? And also as a result, is there going to be some kind of an operating margin that's going to be recorded as a result of the sell-off of this PZSS? And if so, what's going to be the amount that's going to impact the operating profit margin?

所以我想問一個關於 PZSS 拋售的問題。首先，我從新聞中聽說您將把它賣給中國公司。那麼，銷售條件和價格是多少呢？因此，出售 PZSS 是否會產生某種營業利益率？如果是的話，那麼影響營業利潤率的金額是多少？

The second question is what products are recording a deficit and so I think that despite the market circumstances, I think the POSCO is doing relatively well, but what are the steel products that are not doing so well and recording a loss?

第二個問題是，哪些產品出現了虧損，所以我認為，儘管市場狀況如此，但我認為 POSCO 的表現相對較好，但哪些鋼鐵產品的表現不太好，出現了虧損？

The third question is there are some news regarding the increase of the capacity in Korea so what are your plans? So the second EAS in Gwangyang. So when it's going to be commercialized? What are the future plans and what's going to be the period for the ramp-up? And also, you have the Gwangyang EAS in 2026, I know that the number 8 and CGL is going to be promoted also in Gwangyang, can you also give us an update on those projects?

第三個問題是，有一些關於韓國產能增加的消息，那麼您的計畫是什麼？第二屆東亞峰會在光陽舉行。那什麼時候會實現商業化？未來的計劃是什麼？增長期是什麼時候？另外，你們將在 2026 年推出光陽 EAS，我知道 8 號和 CGL 也將在光陽推廣，你能否向我們介紹這些項目的最新進展？

So first of all, let me talk a bit about the PZSS. So first of all, currently, there's some progress, and we are now in the process of making the discussion of the final issues regarding the, acquisition company. So I won't be able to give you the details about the actual numbers. Please look forward to understand that.

首先，讓我談談 PZSS。首先，目前我們已經取得了一些進展，我們正在討論有關收購公司的最終問題。所以我無法向您提供有關實際數字的詳細資訊。請期待了解這一點。

And the second question was about the divestments that we are making due to the deficit. So there were some dividends coming from the PZSS, and there's also the cash flow from the divestment. And so I think we'll be able to cover the loss that's going to be incurred. So I think that's about what I can say at this point in time.

第二個問題是關於我們因赤字而進行的撤資。因此，有一些股息來自 PZSS，還有來自撤資的現金流。因此我認為我們能夠彌補即將發生的損失。我想這就是我現在能說的。

And for the PZSS goes smoothly, then in the first half, we will see the final results from the sell-off but we do have that the government approval, and we do have to register the consolidation. So it's going to take a few months, next six months for that to actually be finalized. So of course, depending on how that plays out, the time frame can actually be shortened.

如果 PZSS 進展順利，那麼在上半年，我們將看到拋售的最終結果，但我們確實獲得了政府的批准，而且我們確實必須登記合併。因此，這將需要幾個月，甚至六個月的時間才能真正完成。因此，當然，根據情況如何，時間框架實際上可以縮短。

So regarding the question about the PZSS, yes, we are negotiating with the JV partner and also the negotiating partner. So when things are finalized, I think we'll be able to provide the details to you at that point.

關於 PZSS 的問題，是的，我們正在與合資夥伴和談判夥伴進行談判。因此，當事情最終確定後，我想我們就能向您提供詳細資訊。

I'm from -- the Head of Marketing Strategy. So what steel products are at a deficit was your question. So in the second quarter, I would say nearly none. During the first half, we had some of the products that were losing out. So we had shut down some of the facilities.

我是－行銷策略主管。所以你的問題是哪些鋼鐵產品短缺。因此，我認為第二季幾乎沒有。上半年，我們的一些產品出現了虧損。所以我們關閉了部分設施。

And so a lot of the deficits turned to the black. And so there are hardly any products, especially in the steel plates that are recording a deficit. So for now, there are hardly any steel products that are recording a deficit.

因此，許多赤字就變成了盈餘。因此幾乎沒有任何產品，尤其是出現短缺的鋼板。所以目前來看，幾乎沒有任何鋼鐵產品出現短缺。

I'm going to be talking about the EAF at Gwangyang. And so everything is going as planned. It's about 41% currently. And so we will be starting operations in 2026. So we'll be able to meet the demand and create new demand by that time.

我將要談論光陽的 EAF。一切都按計劃進行。目前約為41%。我們將於 2026 年開始營運。因此到那時我們將能夠滿足需求並創造新的需求。

Electrical sheet plants, those have been completed. So we are ramping up. And the Gwangyang number 8 CGL plant, we are still surveying this, but have made no concrete decisions. So there are various scenarios that we are investigating. We will look at the aging situation. So we have delayed our decisions at this point.

電工板材廠，已經完工。因此我們正在加大力度。而光陽8號CGL工廠，我們還在考察，還沒有做出具體的決定。我們正在調查各種情況。我們將關注老化情況。因此我們暫時推遲了決定。

Eugene, Eugene Securities.

尤金，尤金證券。

So lithium certification progress, I'd like to know how that's going on with each customer and the battery volume, if you could share any of the confirmed volumes by each company.

因此，鋰認證進展如何，我想知道每個客戶的進度以及電池容量，您是否可以分享每個公司確認的容量。

And secondly, E&C has had some safety incidents. So how will these damages -- when will these damages be accounted for? Will that be in the third quarter? And what would be the size of that impact?

其次，E&C發生過一些安全事故。那麼這些損失將如何──何時才能得到賠償？那會在第三季嗎？那麼影響有多大？

I'd like to answer the first question. So PPLS in Gwangyang has completed certification by three customers and sale has begun. That's a plant one. Second plant is going into certification, and the first stage of that certification is almost complete.

我想回答第一個問題。因此，光陽的PPLS已完成三家客戶的認證並開始銷售。那是一株植物。第二家工廠正在進行認證，認證的第一階段已接近完成。

In Argentina, plant is in ramp-up and the other is under construction. The one that's in a ramp-up stage, we have not gone to full plant operation yet. So once we have significant volume that we can produce, that's when we will go into certification stage. So at the Argentina plant, we are not at commercial grade. In Gwangyang for three customers, we are on a smooth sale with customer certifications by three companies.

在阿根廷，一家工廠正在擴建，另一家工廠正在興建中。目前該工廠正處於產能提升階段，尚未全面投入營運。因此，一旦我們能夠生產出足夠的產品，我們就會進入認證階段。因此，在阿根廷工廠，我們的產品還未達到商業級水準。在光陽，我們為三家客戶取得了三家公司的客戶認證，銷售十分順利。

I'd like to answer that second question. I'm in charge of Finance. I believe you are referring to the E&C safety incident that happened at the Shin-Ahn-San line that happened on the 11th of April. And we are the lead contractor on this construction project. This happened in Construction Zone 2.

我想回答第二個問題。我負責財務。我認為您指的是4月11日發生在新安山線的E&C安全事件。我們是此建設工程的主承包商。此事發生在2號施工區。

And this has caused an extension of time on the construction schedule because there is a safety investigative commission that is conducting the investigation. So we will not know the full impact of this incident until all of that investigation is completed.

由於安全調查委員會正在進行調查，這導致施工進度延長。因此，在所有調查完成之前，我們無法知道這事件的全部影響。

Once they have the investigative report, we'll be able to assess better what that impact is. But as you mentioned, yes, the investigative report will probably be completed in the third quarter, and that will probably not impact the third quarter. I believe it will impact our fourth quarter. First, we really want to focus on the recovery and restoration as well as to process the complaints. And so we will have to wait and see exactly how much the damage is and how much can be covered by our insurance.

一旦他們拿到調查報告，我們就能更好地評估其影響。但正如您所說，調查報告可能會在第三季完成，這可能不會影響第三季。我相信這將影響我們的第四季。首先，我們確實希望集中精力進行恢復和重建以及處理投訴。因此，我們必須拭目以待，看看損失究竟有多大，以及我們的保險可以負擔多少。

[Choi Moon Sun], [The Securities].

[崔文善]，[證券]。

So I'm participating after a long period. So there are many concerns by the investors, but it seems that the steel industry is rebounding. So I would like to congratulate you on that regard. So right now, there are some projections regarding the cutdown in the production in the market. And the Chinese government has set a plan.

所以我是經過很長一段時間後才參加的。因此投資者有很多擔憂，但鋼鐵業似乎正在反彈。因此我想就此向你表示祝賀。因此，目前，市場上有一些關於產量減少的預測。中國政府也制定了計畫。

It's going to be the first year of its implementation. And so as -- and there are some expectations that China is not going to actually decrease the production, but actually to downsize the amount of steel mills it has in the market. So what do you think?

今年是該政策實施的第一年。因此，有人預期中國實際上不會減少產量，但實際上會減少市場上的鋼廠數量。那您覺得怎麼樣呢？

And I think maybe my question is going forward a little bit to first too fast, but POSCO, if it's going to earn a profit from lithium also would depend on how much cash cost you'd have and how much is going to go down. So what's the kind of price level you have in mind for the POSCO Argentina to be become profitable for you to be able to say that POSCO Argentina is going to be more competitive? So what's that kind of adequate price level that you have in mind?

我認為我的問題可能有點太快了，但是 POSCO 是否能從鋰中獲利還取決於你有多少現金成本以及會下降多少。那麼，您認為 POSCO 阿根廷公司在什麼樣的價格水平下才能獲利，您才能說 POSCO 阿根廷公司將更具競爭力？那麼您心目中合適的價格水準是什麼樣的呢？

I'm Head of the Marketing Strategy. So first of all, deal with your first question. So is it going to be the cut in production so there's been various news reports since last year. And as I had mentioned before, whether it be restructuring, whether it be cut in production, there are lots of projections and positive expectations.

我是行銷策略主管。因此首先，處理你的第一個問題。那麼是否會減產呢？自去年以來，已經出現了各種新聞報導。正如我之前提到的，無論是重組，還是減產，都有很多預測和積極的預期。

For example, President Xi had overly talked about the overcapacity in the market. And the Chinese steel association had actually made a proposal to the government regarding the cutting down of the production. So in whatever way, we believe that the production capacity is going to decrease in China. So there are high hopes for that kind of initiative in China. But in China, there are more and more private steel makers.

例如，習近平主席過度談論市場產能過剩問題。中國鋼鐵協會實際上已經向政府提出了減產的建議。所以，無論如何，我們相信中國的產能將會下降。因此，我們對中國採取此類措施寄予厚望。但在中國，私營鋼鐵企業越來越多。

And so before, if the government says something, things are going to happen, but that's not really the case anymore. And so there are higher hopes for downsizing of the production, but when it's going to be and how it's going to play out is not yet known. And so we just have -- we're just going to continue to monitor the market.

以前，只要政府說了什麼，就會有相應的行動，但現在情況已經不同了。因此，人們對減產抱有更高的期望，但何時減產、最終如何實施尚不得而知。所以我們只能繼續關注市場動態。

Let me now answer the question about the Argentina. Since October, Argentina -- POSCO Argentina has been ramping up. And the salar are different, Korean salars are different. And even within Argentina, the Hombre Muerto and the other salars are different as well. And so ramping up usually takes about a whole year according to our estimates.

現在我來回答一下關於阿根廷的問題。自去年10月以來，阿根廷—浦項製鐵阿根廷公司（POSCO Argentina）一直在增產。而且，這些鹽沼和韓國的鹽沼都不一樣。即使在阿根廷國內，「亡靈」鹽沼和其他鹽沼也各不相同。因此，根據我們的估計，提升通常需要大約一年的時間。

So we believe that we're going to be able to complete the ramp-up. And so by September and October, I think the ramping up process will be finalized. And by the time, we'll be able to come up with exact cash costs. But for now, the things are rather uncertain, so I won't be able to give you a definitive number. But if it goes beyond $9, then it's going to be more beneficial to produce more.

因此我們相信我們能夠完成這項提升。因此，到九月和十月，我認為提升過程將會完成。到那時，我們就能計算出準確的現金成本。但目前情況還不確定，所以我無法給你一個確切的數字。但如果價格超過 9 美元，那麼生產更多就會更有利。

[Lee], NH Investment Securities.

[李]，NH投資證券。

I'm from NH Securities. My question will be simple. It's about steel. The volume down for Canada and Mexico. I wonder if you can share that volume.

我是 NH 證券的。我的問題很簡單。這是關於鋼鐵的。加拿大和墨西哥的音量下降。我想知道您是否可以分享該卷。

Secondly, PPLS, the utilization rate comes out to about 40% based on second quarter numbers. And you mentioned that the first plant is fully ramped up. But once the second plant is online, this utilization rate will go up. So what do you predict will be the time line for when both plants will be up and running? If this goes on schedule, are you going to be able to climb out of your deficits?

其次，根據第二季的數據，PPLS 的使用率約為 40%。您提到第一家工廠已經全面投產。但一旦第二家工廠投入運營，利用率就會上升。那麼您預測這兩家工廠何時能夠投入營運呢？如果一切照計畫進行，你們能擺脫赤字嗎？

So the second question is pertaining to which plant? Are you talking about PPLS?

那麼第二個問題又與哪一種植物有關呢？您說的是 PPLS 嗎？

Yes. That is regarding PPLS.

是的。這是關於 PPLS 的。

I'd like to address PPLS. So Plant 1 has been certified. The second plant is scheduled to complete certification by October after it's fully ramped up. But looking at the current prices, full operation of the plant is only going to generate losses. So unless we're able to win more orders, we have no intention to keep the plant at full operation rates. So we will be more flexible in how much of the plant we operate.

我想談談 PPLS。因此，工廠 1 已獲得認證。第二家工廠預計在全面達產後於 10 月完成認證。但從目前的價格來看，工廠的全面運作只會產生虧損。因此，除非我們能夠贏得更多訂單，否則我們不打算讓工廠保持滿載運轉。因此，我們在營運工廠規模方面將更加靈活。

Marketing Strategy, Chief. I can't tell you exact numbers by country, and these numbers vary year-to-year. But we do sell about 2 million tons to North America each year, except in US and Canada. That number is very small to Mexico. Because we have our own subsidiary there and for processing centers that apply to the automotive companies, we do sell about 1 million tons to Mexico.

行銷策略主管。我無法告訴你每個國家的具體數字，而且這些數字每年都在變化。但除美國和加拿大外，我們每年確實向北美銷售約 200 萬噸。對於墨西哥來說，這個數字非常小。因為我們在那裡有自己的子公司和適用於汽車公司的加工中心，所以我們確實向墨西哥銷售了大約 100 萬噸。

[Choi Hyun Yong], KB Securities.

[崔鉉勇]，KB證券。

Hello. I'm from KB Securities. I have two questions. The first question is regarding the CapEx investment plan. So is your early year plan unchanged?

你好。我是 KB 證券公司的。我有兩個問題。第一個問題是關於資本支出投資計畫。那麼，您年初的計畫沒有改變嗎？

You have talked about the Argentine plants going through the M&A. And so I'm asking because your CapEx investment is projected to grow from our perspective. And so the -- is there a possibility that the SCF may record a loss? And if the current price is sustained in the upstream is there a possibility of you increasing your capital?

您談到了阿根廷工廠正在進行併購。我之所以問這個問題，是因為從我們的角度來看，您的資本支出預計會成長。那麼——SCF 有可能出現虧損嗎？如果當前價格維持在上游，您是否有可能增加資本？

So regarding the CapEx investment plan, in the early part of the year, we planned for KRW8.8 trillion. And for now, the plan has not changed. For the Argentina M&A and the investment into Hyundai Steel they are reflected in our plan already. And for now, we don't see this -- we don't think there's going to be a big change from the plan that we had made in the early year. And the possibility of the SCF deficit. The EBITDA is not going to cover that so I'm not sure how I should explain this.

因此，關於資本支出投資計劃，今年年初我們計劃投資 8.8 兆韓元。目前，該計劃尚未改變。對於阿根廷的併購和對現代鋼鐵的投資已經反映在我們的計劃中。就目前而言，我們還沒有看到這種情況——我們認為這與我們年初制定的計劃不會有太大變化。以及出現 SCF 赤字的可能性。EBITDA 不會涵蓋這一點，所以我不知道該如何解釋這一點。

Maybe I should answer the second question. So recently, the POSCO Future M and the PPLS, and this paid-in capital raise was about KRW6 trillion. So by raising this capital, we wanted to make sure that this was the last one. We didn't want to have to go through another paid-in capital raising event. As long as the distribution cost and price holds for the next two years, additional paid-in capital will not be happening.

也許我應該回答第二個問題。最近，POSCO Future M 和 PPLS 的實收資本籌集額約為 6 兆韓元。因此，透過籌集這筆資金，我們希望確保這是最後一次。我們不想再經歷一次實繳資本籌募活動。只要未來兩年分銷成本和價格不變，就不會發生額外的實收資本。

And what was included from the recent capital raising event was POSCO Argentina. If Argentina needs funding, because Argentina has some borrowing capacity, we will be able to take some loans locally. But because we discussed some potential acquisition of salt lakes, once that happens, POSCO Argentina will be the entity acquiring those additional assets. So because they were not part of this part of the capital raising invent, they could potentially do so in the future.

而最近的融資活動中就包括了 POSCO Argentina。如果阿根廷需要資金，由於阿根廷有一定的借貸能力，我們可以在當地貸款。但因為我們討論了一些潛在的鹽湖收購，一旦發生這種情況，POSCO Argentina 將成為收購這些額外資產的實體。因此，由於他們不屬於此次融資計劃的一部分，因此他們將來可能會這樣做。

So regarding the first question, I would just like to say, well, there was a question about the possibility of a deficit of this year's FCS. So are you talking about the EBITDA deficit? Then if that's the case, the investment is a little bit over the EBITDA, but we are making divestments and so we'll be able to cover the gap. And so we won't be able to say -- well, you can't really say that we'll be able to -- we'll be increasing the borrowing because of the enlarged gap.

因此，關於第一個問題，我只想說，有一個問題是關於今年 FCS 是否可能出現赤字。那您說的是 EBITDA 赤字嗎？如果情況確實如此，投資會略高於 EBITDA，但我們正在進行資產剝離，因此我們將能夠彌補這一差距。因此，我們不能說——好吧，你真的不能說我們能夠——我們將因為差距擴大而增加借款。

[Lee], [Kiwoom Securities].

[李]，[Kiwoom Securities]。

I'm from [Kiwoom] Securities. I have one question. So NSC acquired USS, it took about 1.5 years. And the cost of price tag was about KRW20 trillion. What is your assessment of this acquisition?

我來自[Kiwoom]證券公司。我有一個問題。因此 NSC 收購 USS 大約花了 1.5 年的時間。標價成本約20兆韓元。您如何評價此次收購？

Since the acquisition, from a long-term perspective, how do you assess the impact it may have on POSCO? What are your predictions? I know this is a very broad question, but what are your assessments?

收購完成後，從長遠來看，您如何評估其對浦項製鐵可能產生的影響？您的預測是什麼？我知道這是一個非常廣泛的問題，但您的評估是什麼？

Steel business management later here, whether it's the Japanese steel company or POSCO, we have similar global investment strategies. High-growth market or high profit market. Among the advanced countries, US is the only high-growth market. And the United States is trying to bring back the renaissance of manufacturing into the country.

後面我們講鋼鐵業務管理，不管是日本的鋼鐵企業還是浦項製鐵，我們都有類似的全球投資策略。高成長市場或高利潤市場。在已開發國家中，美國是唯一高成長的市場。美國正努力推動製造業的復興。

So there's a lot that is going to go on in the United States. So the decision of Japan to move into the US market because there were limitations on how much they would grow locally with local companies, I believe the infusion that Japan brings into this deal is going to help.

因此，美國將會發生很多事情。因此，日本決定進軍美國市場是因為美國本土公司在當地發展受到限制，我相信日本為這筆交易注入的資金將會有所幫助。

But the conditions of the deal that includes the golden stock and other term because so much cost has gone into this arrangement, I think we need to wait and see exactly how much profit they'll be able to generate.

但由於交易的條件包括黃金股票和其他條款，這項安排花費了太多成本，我認為我們需要拭目以待，看看他們究竟能產生多少利潤。

Because the US is a high-growth market, POSCO has been looking into the US market for a very long time. And from a long-term perspective because they will be adding more demand in premium products, given that our strength is in automotive steel sheets, we are looking into setting up a production plant locally in the United States as well.

由於美國是高成長市場，浦項製鐵很早就開始關注美國市場。從長遠來看，由於他們對高端產品的需求會增加，考慮到我們的優勢在於汽車鋼板，我們也在考慮在美國當地建立生產工廠。

So as mentioned earlier, in India or Indonesia, which we see as high growth markets, we will continue to look into additional investments, and I'm sure we're not alone. Other steelmakers are also looking to opportunities in these high-growth markets as well.

因此，正如前面提到的，在印度或印度尼西亞，我們將其視為高成長市場，我們將繼續尋求額外的投資，我相信我們並不孤單。其他鋼鐵製造商也在這些高成長市場中尋找機會。

Yi Hyunsoo, Yuanta Securities.

李賢秀，元大證券。

My name is Yi Hyunsoo from Yuanta Securities. I have about two questions. First of all, regarding steel. So I think that the question was made before me, but I didn't quite get the answer. So in first quarter and in the second quarter as well, it seems that the sale was about 8.1 million tons, which was a little bit less than my own projections. But I think the sales volume had gone down somewhat compared to the past. So in the first half, it was 8.1 million tons. So do you think in the second half, you'll see a higher volume?

我是元大證券的李鉉洙。我有兩個問題。首先，關於鋼鐵。所以我認為這個問題在我之前就被提出來了，但我沒有得到答案。因此，第一季和第二季的銷售量似乎都在 810 萬噸左右，比我自己的預測少一點。但我認為銷量與過去相比有所下降。因此上半年產量為810萬噸。那麼您認為下半年的交易量會更高嗎？

And connected to that question, if I remember correctly, in November, there was a fire in Finex No. 3 that was caught on fire. And so yes, the news reports have said that it's going to start running from about September, October. So I'm not sure the production capacity before the fire, but I knew that it was something like yearly 200 million, which is -- 2 million, excuse me. And so then in the second half, are we going to see a higher volume compared to the first half?

與這個問題相關，如果我沒記錯的話，11 月份，Finex 3 號發生了一場火災。是的，新聞報道說它將從大約九月或十月開始運行。因此，我不確定火災前的生產能力，但我知道每年大約是 2 億，也就是 200 萬，對不起。那麼，下半年的交易量是否會比上半年更高？

The second question is regarding the RBM. We had a valuation today. So usually in July, you have Value Day, but that time has come and passed. And there were some forward guidance that you provided last year. And so there were some numbers attached to revenue as well as EBITDA, but those numbers have changed significantly.

第二個問題是關於RBM的。我們今天進行了估價。通常在七月，我們會有價值日，但那個時候已經過去了。去年您提供了一些前瞻性指引。因此，有一些數字與收入和 EBITDA 相關，但這些數字已經發生了顯著變化。

So I don't know if you'll be able to meet these numbers. So in the second quarter, the deficits have increased. But you did say that you expect this to go down. So I like those projections. But once you start looking at all of these numbers and conditions, in the second half -- looking at the second half and maybe from an annualized perspective, when do you see this turning a profit?

所以我不知道你是否能夠達到這些數字。因此，第二季赤字有所增加。但你確實說過你預期這個數字會下降。所以我喜歡這些預測。但是一旦你開始查看下半年的所有這些數字和條件——從年度角度來看，你認為什麼時候才能獲利？

From the marketing strategy. So first of all, regarding the -- our sales volume, you asked about whether in the second half, the volume is going to be more than 8.1 million. So in the past, yes, we had a ramp-up of volume, but we have divested from certain production lines. And so we won't be able to reach our past maximum, but we do believe that our numbers for the second half is going to be higher than our first half.

從行銷策略上來說。首先，關於我們的銷售量，您問到下半年的銷售量是否會超過 810 萬輛。所以在過去，是的，我們的產量有所增加，但我們已經剝離了某些生產線。因此，我們無法達到過去的最高水平，但我們相信下半年的數字將會高於上半年。

And in November, yes, there was a fire and Finex No. 3 has stopped operation and now repairs have been done, and so that's going to be finalized about September. The capacity is not going to reach 2 million. It's going to be a little less than that number, but the production is definitely going to increase.

是的，11 月發生了一場火災，Finex 3 號核電廠停止運行，目前已完成修復，因此修復工作將在 9 月左右完成。產能不會達到200萬。雖然實際數量會比這個數字少一點，但產量肯定會增加。

And in the second half, especially in Q4, the Finex No. 3 will start producing and then we'll be able to see those numbers being accounted for. Additionally, you have the Finex No. 3 in operation, and then you're going to also have the runoff gas. And then that's going to also lead to more efficiency in cost cutting in the energy sector as well.

而在下半年，特別是第四季度，Finex No. 3 將開始生產，然後我們就能看到這些數字的計算結果。此外，您還有正在運行的 Finex No. 3，然後您還將有徑流氣體。這也將提高能源領域成本削減的效率。

I'll talk about -- let me talk about the RBM. You had the Value Day last July. And yes, we did say that the nickel revenue would be about KRW2.2 trillion and EBITDA KRW0.5 trillion. And so I think it's going to be about 5% of a decrease. The production volume is going to decrease.

我將談論——讓我談論一下 RBM。去年七月你們舉辦了價值日。是的，我們確實說過鎳收入約 2.2 兆韓元，EBITDA 約 0.5 兆韓元。所以我認為下降幅度將會是 5% 左右。產量將會減少。

We're going to maintain the 39,000. But when it comes to nickel, it's going to be about 45,000. And 25,000 is going to -- was canceled in Gwangyang -- in Pohang sorry. And so there was a bit of that decrease.

我們將維持39,000這個數字。但當談到鎳時，價格將達到 45,000 左右。而 25,000 人將前往 — — 光陽 — — 浦項，抱歉，已被取消。所以出現了一點下降。

In the case of nickel, next year, is going to be in the black. But in the case of lithium, the EBITDA margin is going to be that, but the OP depends on the nickel prices, as you know well. So depending on the lithium price, the EBITDA is going to fluctuate.

就鎳而言，明年將實現盈利。但就鋰而言，EBITDA 利潤率將是那個，但 OP 取決於鎳價，正如您所知。因此，EBITDA 將會根據鋰價而波動。

Do you have any more questions? If no more questions, I would like to conclude the earnings call. To all the investors who participated today, I thank you. I'd like to officially close the earnings call for second quarter of 2025. Thank you.

您還有其他問題嗎？如果沒有其他問題，我想結束財報電話會議。對於今天參加的所有投資者，我表示感謝。我想正式結束 2025 年第二季的財報電話會議。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。翻譯由贊助此活動的公司提供。