W-SCOPE got a genuine top-line rebound in the three months to April, but not yet a clean turnaround story. First-quarter sales rose 83.2% from a year earlier to ¥1.386 billion, while the operating loss narrowed to ¥364 million from ¥1.494 billion. Separator revenue improved to ¥589 million and ion-exchange membrane sales reached ¥797 million, helped by steadier consumer shipments, stable existing membrane orders and some pull-forward deliveries.
Below operating profit, however, the red ink stayed stubborn. Net loss attributable to owners was ¥2.033 billion because non-operating items included a ¥1.682 billion equity-method investment loss tied mainly to affiliate W-SCOPE CHUNGJU PLANT, or WCP. That figure included a ¥932 million valuation loss on WCP-issued convertible bonds. Interest expense was ¥72 million, partly offset by a ¥62 million foreign-exchange gain and ¥24 million of subsidy income.
Management says EV-related separator sales are edging up, but Europe remains sluggish, North American customer battery output is still weak, and first-quarter energy-storage shipments were delayed. It still expects ESS supply to pick up later in the year and left full-year guidance unchanged at ¥6 billion in sales, a ¥2.4 billion operating loss and a ¥4.4 billion net loss.
The read-through for EV-supply-chain watchers is straightforward: operating performance is improving, but not yet quickly enough to change the loss story. W-SCOPE also said continued operating losses remain a condition to watch, although management judged there was no material uncertainty after considering cash on hand, projected cash flows and financing plans.