Hanwha Systems Achieves KRW 1.546 Trillion in Sales Last Year Driven by Large Orders

Operating Profit of 85.8 Billion KRW, Up 15% Year-on-Year; Sales Also Up 16% Year-on-Year

[Asia Economy Reporter Ki-min Lee] Hanwha Systems announced on the 10th that it achieved consolidated sales of 1.546 trillion KRW and operating profit of 85.8 billion KRW last year. This represents an increase of 16% and 15%, respectively, compared to sales and operating profit in 2018.

Based on separate financial statements, the defense sector recorded annual sales of 1.0705 trillion KRW and operating profit of 45.4 billion KRW last year. Additionally, the ICT sector posted annual sales of 449 billion KRW and operating profit of 40.3 billion KRW.

In particular, excluding 14.4 billion KRW in trade asset amortization (PPA) due to corporate integration between divisions, operating profit exceeded 100 billion KRW. This is about one year after the merger of Hanwha Systems and Hanwha S&C in August 2018.

Hanwha Systems evaluated this as a result of achieving the highest-ever order performance in the defense sector last year, along with securing defense SI (system integration) projects based on synergy competitiveness between the two sectors after the merger.

Especially, the defense sector achieved its largest order record of 2.2 trillion KRW, supported by orders such as the 500 billion KRW-scale ‘Aviation Friend-or-Foe Identification Equipment (IFF) MODE5’ and the approximately 470 billion KRW ‘Tactical Information Communication Network (TICN) 3rd batch mass production’. This marks more than a 100% increase in orders compared to the 1 trillion KRW record in 2016, after four years.

Hanwha Systems plans to select and focus on nurturing future core technologies such as ‘AI’, ‘unmanned systems’, ‘cybersecurity’, and ‘avionics’ in preparation for future battlefields. It also plans to actively advance the development of personal air vehicles (PAV).

In the ICT sector, the company aims to expand business capabilities with goals of being ‘No.1 in domestic defense and financial SI sectors’ and an ‘AI standard solution provider’. Furthermore, the ICT sector plans to lead digital transformation (DT) within the group by increasing business demand centered on AI and smart factories.

Kim Yeon-cheol, CEO of Hanwha Systems, said, “Last year was a year of various attempts and achievements to secure competitiveness in the era of the 4th Industrial Revolution,” adding, “This year, based on this foundation, we will actively pursue large-scale project orders, expand entry into the global civilian market, and intensively invest in future technologies to take the lead in new markets.”

This content was produced with the assistance of AI translation services.