Kim Dong-kwan's 'Foresight' That Overcame COVID-19

Shift to Premium Solar Products

Hanwha Solutions' Q1 Operating Profit Soars

Increased by 61.7% from Last Year to 159 Billion KRW

[Asia Economy Reporter Park Soyeon] In 2018, when Kim Dong-kwan, then Executive Director leading the overseas sales division at Hanwha Q CELLS (currently Head of Strategy Division at Hanwha Solutions), lost sleep over how to outpace China's pursuit in the solar market.

The outlook was that within a few years, the profitability of the solar panel business would significantly deteriorate due to China's low-price offensive. Although the market sensed a shift toward high-efficiency products, the top management hesitated about the timing of this transition.

Vice President Kim, confident in the shift to a premium product lineup through overseas sales, stepped forward to persuade the hesitant executives. Despite some concerns that it was premature, he led the transition in 2019 from low-efficiency multi (polycrystalline) products to high-efficiency mono (monocrystalline) products by about 90%. In 2020, the transition to mono products was completed 100%.

The results were successful. Despite the worst obstacle of the COVID-19 pandemic, Hanwha Solutions' Q1 operating profit reached 159 billion KRW, a 61.71% increase compared to the same period last year. Compared to the previous quarter, operating profit surged by 430%.

Of the total 159 billion KRW operating profit, 63%, or 100.9 billion KRW, was generated from the solar business division. The solar division's operating profit increased by 50% compared to the same period last year. This was a market success stemming from the quick foresight of Kim, the third-generation member of the Hanwha family.

This is also the first time since Q2 2016 (111 billion KRW) that quarterly operating profit exceeded 100 billion KRW. A Hanwha Solutions official explained, "The strong performance in the solar division is due to the production line transition that began in Q2 last year and was effectively completed by the end of last year, as well as increased sales in the high-priced premium market of the United States."

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