Hanwha Solutions Reports Operating Profit of 594.2 Billion KRW Last Year, Up 29.4% YoY

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions significantly improved its profitability in the first year since the launch of its integrated corporation despite COVID-19. The merger synergy is being fully realized as the growth of renewable energy businesses such as solar power continues, based on stable profits from petrochemical products.

Hanwha Solutions announced that its consolidated sales last year were 9.195 trillion KRW, down 2.8% from the previous year, while operating profit increased by 29.4% to 594.2 billion KRW. Net profit turned positive, recording 301.7 billion KRW.

By business segment, the Q CELLS division posted sales of 3.7023 trillion KRW, up 4.1%, and operating profit of 190.4 billion KRW, up 5.2%. Sales increased thanks to higher solar module sales and expansion of power generation projects mainly in key markets such as the U.S. and Europe.

Since the second half of last year, the Q CELLS division has continuously increased strategic investments to expand new businesses, including strengthening research and development (R&D) for next-generation solar cells (tandem cells) and mergers and acquisitions (M&A) of software (SW) companies for IT-based distributed power businesses. In the fourth quarter, it recorded a slight loss (-2.4 billion KRW) due to rising costs of key raw materials (wafers, silver, glass, etc.), logistics expenses, and one-time expenses.

The Chemicals division achieved sales of 3.3265 trillion KRW, down 4.4% year-on-year, and operating profit of 381.2 billion KRW, up 47.5%. This was due to the continued effect of low-cost raw material input amid weak international oil prices and rising prices of major products such as PVC (polyvinyl chloride) and PO (polyolefin).

The Advanced Materials division recorded sales of 751.9 billion KRW, down 7% year-on-year, and an operating loss reduced by 22.2 billion KRW to 7.6 billion KRW. Although sales declined due to reduced production by global automakers amid COVID-19, losses were significantly reduced through cost-cutting.

At the corporate briefing, key executives from the Q CELLS division, including CEO Kim Hee-chul, attended to explain the mid- to long-term solar business strategy and vision. They plan to expand the business scope from the existing model focused on cell and module production and sales to system and distributed power solution businesses, as well as renewable energy power plant development and sales.

CEO Kim Hee-chul said, "In response to the energy industry’s major transformation to tackle climate change, we will become a total energy solutions company through proactive and aggressive investments."

Meanwhile, in the fourth quarter of last year, Hanwha Solutions recorded sales of 2.5618 trillion KRW, up 5.2% year-on-year, driven by increased solar module shipments, and operating profit of 65.4 billion KRW, up 39.1% due to rising prices of petrochemical products.

Hanwha Solutions stated, "Stable profits in the Chemicals division are expected to continue. The Q CELLS division will strengthen its position as a global renewable energy company by focusing on mid- to long-term large-scale power project development and expanding AI-based power sales businesses rather than short-term performance."

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