Surprising Performance with Oyster Hauling and Solar Power Push... 'New Hanwha' Green New Deal Blueprint

Hanwha Solutions Solar Division Hanwha Q CELLS US Solar Power Plant

Petrochemical Market Conditions Improve, Second Half Gains Momentum

World's Top Solar Power Sector Shows Gradual Recovery

Q3 Operating Profit Forecasted at 192.7 Billion KRW

50% Increase Compared to Previous Quarter

Deficit Reduction Following Recovery in Downstream Industries

[Asia Economy Reporters Park Soyeon, Hwang Yoonju] Hanwha Solutions is demonstrating robust global competitiveness despite the global economic downturn caused by the COVID-19 pandemic. With the petrochemical market conditions improving and the solar power business reaching world-class levels, the company is leading a sustainable future. Hanwha Solutions is proving the saying that opportunities come to prepared companies even in times of crisis like COVID-19.

◇ Hanwha Solutions Predicts Strong Q3 Performance Surpassing COVID-19 Challenges = According to the securities industry on the 19th, Hanwha Solutions' Q3 revenue and operating profit estimates (consensus) are 2.2327 trillion KRW and 192.7 billion KRW, respectively. This represents approximately a 14% increase in revenue and a 50% increase in operating profit compared to the previous quarter. Compared to Q3 of last year, revenue decreased by 8.5%, but operating profit increased by 26.3%.

There is also anticipation that the company will deliver 'surprise results' exceeding securities firms' estimates. This is mainly due to favorable market conditions for key petrochemical products such as low-density polyethylene (LDPE) and polyvinyl chloride (PVC). LG Chem, which announced its results earlier, also reported a record quarterly operating profit of 902.1 billion KRW in Q3, driven by strong petrochemical performance.

The solar power division, which contracted sharply immediately after the COVID-19 outbreak, has shown a gradual recovery in Q3, further raising expectations for the quarter's results. The securities industry estimates that Hanwha Solutions earned about 60 billion KRW in operating profit from the solar division in Q3. Another business segment, advanced materials, is expected to reduce its deficit as production in downstream industries such as automotive recovers.

Hanwha Solutions has maintained a profit trend this year, expanding profitability compared to the previous year despite the COVID-19 situation. It recorded operating profits of 167.1 billion KRW in Q1 and 128.5 billion KRW in Q2. While the solar division led performance in Q1, the petrochemical division has played a key role since Q2, when COVID-19 began spreading globally. The two major divisions complement each other, maintaining solid results.

Third Generation Kim Dong-kwan Strengthens Vision
Minor Organizational Restructuring to Lead New Growth Engines

◇ Hanwha Solutions, 'Global No.1' in Solar Power: "Opportunities Come to Prepared Companies" = Solar power has been a future core business area for Hanwha Group, which has grown through petrochemicals and defense industries. Expectations are rising due to strengthened global environmental policies and the structural demand growth for solar power.

Hanwha's performance in solar power is also outstanding. Hanwha Group holds the world's No.1 cumulative production in cells (solar cells) and modules (products made by assembling dozens of cells), which are core to the solar industry value chain. The industry expects growth rates of 51% and 23% in major solar markets such as the U.S. and the European Union (EU) in 2021, respectively. Hanwha Solutions is expected to greatly benefit from this market growth.

Hanwha Solutions has dominated the high value-added core market of the U.S. According to global energy consulting firm Wood Mackenzie, Hanwha Solutions held a 22% market share in the U.S. residential solar module market in the first half of this year, maintaining the No.1 position for eight consecutive quarters. It also ranked first in the U.S. commercial solar module market with a 21.5% share in the first half. The company holds the top market share in major European countries such as Germany and the UK, as well as in Japan. Recently, it has begun full-scale downstream business?covering solar power plant development, construction, and operation?in Spain. It plans to expand its total energy solutions business to European and North American markets.

◇ Third Generation 'Kim Dong-kwan' Envisions 'Green New Deal' = On the 12th, Hanwha Group Chairman Kim Seung-yeon stated in a speech commemorating the 68th anniversary of the company's founding, "We must actively participate in the Green New Deal as a leader in the global eco-friendly market economy." This is interpreted as support for the vision of eldest son Kim Dong-kwan, President of Hanwha Solutions, who has led eco-friendly energy businesses such as solar power.

Inside Hanwha Solutions, there is a strong consensus that a new organizational culture must be created. Kim's communication style is representative. He often dines with regular employees and encourages them to ask questions anytime, demonstrating horizontal leadership. He shares as much information as possible about business matters and listens to employees' opinions.

Since its launch, Hanwha Solutions has seen minor personnel changes. For example, staff responsible for patent affairs have moved to the strategy division, indicating that Kim is reorganizing the company in his own way. There is speculation about a minor organizational restructuring by the end of the year following Kim's promotion.

A business insider said, "It is still early for Kim to take the lead across the entire group, so he is expected to drive new growth engines through Hanwha Solutions. As industrial restructuring occurs in mobility and renewable energy sectors, Kim's influence is expected to expand further."

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