[SMM Global Steel Company Special] POSCO Business Performance Report POSCO Holdings Inc. released its 2025 consolidated results, reporting revenue of 69.095 trillion won, operating profit of 1.827 trillion won, and net profit of 504 billion won. The details of the steel segment's 2025 performance are as follows. Data source: POSCO Annual Report POSCO (Standalone) Operating Performance Production and Sales Data source: POSCO Annual Report Earnings Overview ① 2025 revenue: 35.011 trillion won, down 2.545 trillion won YoY; ② 2025 operating profit: 1.78 trillion won, up 307 billion won YoY; ③ Operating profit margin: 5.1%, up 1.2% YoY. Performance Analysis On a full-year basis, although selling prices in 2025 declined compared to 2024, operating profit still rose as raw material and production costs fell by a larger margin. ① Carbon steel selling price dropped from 985,000 won/mt in 2024 to 926,000 won/mt in 2025, down approximately 59,000 won/mt. ② Key raw material cost index: fell from 100 in 2024 to 83.8 in 2025, down 16.2. Although annual growth was still achieved, it is worth noting that the sharp rise in LNG prices also significantly impacted costs, pushing up energy and maintenance expenses from 494 won/m³ in 2024 to 633 won/m³ in 2025. More detailed changes are as follows (unit: 1 billion won). Data source: POSCO Annual Report Ex-China Steel Operating Performance Details Data source: POSCO Annual Report Core Steel Business Operating Activities Decarbonisation ① Commenced construction of the HyREX (hydrogen reduction ironmaking) demonstration plant in Pohang (expected to be operational in 2028). ② Operating the Gwangyang Electric Arc Furnace (EAF, capacity of 2.5 million mt, operational from June) to quickly respond to market demand for low-carbon steel products. Building Two Pillars: Energy and Mobility ① Pohang Plant (Energy): Building a "model plant for energy-use steel," deepening capabilities in steel for hydrogen energy, LNG, and power grid applications (including PosMAC, e-steel, etc.). ② Gwangyang Plant (Mobility): Positioned as a "dedicated plant for new mobility," conducting R&D on Giga Steel, silicon steel (Hyper NO), and other low-carbon high-end materials. Cost Innovation 2030 Leveraging technology to reduce structural costs through technology-driven structural cost reduction, targeting fixed cost reductions of 50 billion Korean won in 2025 and 40 billion Korean won in 2026. Optimizing group-wide operating costs: such as optimizing power generation and waste heat recovery, and streamlining logistics and procurement. Overseas Expansion ① [US Louisiana: EAF Integrated Steel Mill] Total investment of $5.8 billion, with POSCO holding a 20% stake and a relatively small financial burden (capital-to-debt ratio of 50:50). Products will be directly supplied to North American automakers and POSCO's Mexico plant. Discussions are underway on battery materials supply chain and next-generation materials collaboration. ② [Strategic Partnership with US Cleveland-Cliffs] Combining POSCO's global network with Cleveland-Cliffs' domestic production assets. Goal: Capturing the North American high-value-added automotive sheet market through the integration of technology and marketing. ③ [India: Integrated Steel Mill Joint Venture] Establishing a 50:50 joint venture with JSW, India's largest steel manufacturer, with equal representation on the board of directors. Constructing an integrated steel mill with a capacity of 6 million mt, and conducting business collaboration in renewable energy (wind and solar) to supply power to the steel mill. Source: POSCO Annual Report Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. 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Samsung Electronics was expected on Tuesday to report that its Q1 operating profit increased by more than eightfold from a year earlier, exceeding market expectations. The boom in artificial intelligence infrastructure led to supply bottlenecks and drove up chip prices. The world's largest memory chipmaker was expected to post an operating profit of 5.72 trillion won (about $37.92 billion) for the January-March period, up from 669 billion won a year earlier and above analysts' expectations of 4.06 trillion won.

[SMM Tin Morning Brief: High Prices at the Beginning of Last Week Significantly Suppressed Downstream Purchase Willingness, and Some Enterprises Later Carried Out Moderate Restocking to Meet Rigid Demand at Lower Prices]

As semiconductor demand surged, JX Advanced Metals Corporation, Japan’s semiconductor materials giant (JX Advanced Metals Corp., hereinafter referred to as JX Advanced Metals), plans to increase investment in chip and information technology materials. President Yoichi Hayashi said the company plans to invest about 100 billion yen ($623 million) annually across all business divisions, with a focus on chip-related businesses. Over the past three years, the company invested an average of 90 billion yen per year. JX Advanced Metals is one of the beneficiaries of the rapid buildout of AI data centers, and its clients include global chipmakers such as TSMC, SK Hynix, and Intel. This has prompted the company to shift from its traditional copper smelting business to chip and information technology materials. In an interview, Hayashi said, “I do not think we should blindly expand investment, but it would be a serious mistake to hesitate when there are clear opportunities. I believe now is the time for us to take certain risks.” As demand exceeded expectations, JX Advanced Metals raised its operating profit forecast for the fiscal year ending March 31 by 20. Sales of indium phosphide, a semiconductor material produced by the company, were strong, and the company said it will make additional investment to expand capacity. Hayashi said that, given tight supply and demand, the company was negotiating with clients to raise product prices. He added that the magnitude of the price increases varied by product, but did not disclose specific details. He believes the war in the Middle East will not have a significant impact on the company’s operations, but is monitoring developments closely. JX aims to achieve operating profit of 200 billion yen in growth segments, including its chip materials business, by the fiscal year ending March 2040. Operating profit for the most recent fiscal year was about 52 billion yen. (Wenhua Composite)

Samsung Electronics' largest union in South Korea warned that chip production could be disrupted if members approve the plan in a strike vote in May. As the world's largest memory chip maker, a strike at Samsung could exacerbate global semiconductor supply bottlenecks. Choi Seung-ho, chairman of the Samsung Electronics Labor Union (SELU), said at the launch of the vote last week: "I expect there will be production disruptions." The vote will continue through Wednesday. Choi Seung-ho said that if labor and management fail to reach an agreement, the union is expected to hold an 18-day strike starting May 21, which could affect about half of the production at the massive semiconductor complex in Pyeongtaek, south of Seoul. The Samsung union is demanding a 7% raise in base pay, the removal of the performance-based compensation cap, currently set at 50% of annual base salary, and the introduction of a bonus pool based on operating profit.

[SMM Tin Morning Briefing: The Most-Traded SHFE Tin Contract Opened Slightly Higher in the Night Session and Hovered at Highs, While Downstream Enterprises Showed Relatively Strong Purchase Willingness]