Hanwha Systems Reports Record High Sales of 1.6429 Trillion KRW Last Year

[Asia Economy Reporter Jeong Hyunjin] Hanwha Systems announced on the 19th that its consolidated sales last year reached a record high of 1.6429 trillion KRW, a 6.3% increase compared to the previous year. Last year's operating profit was 92.9 billion KRW, up 8.3% year-on-year, and net profit was 93.6 billion KRW, a 28.4% increase. Both operating profit and net profit were also all-time highs.

Hanwha Systems explained that it achieved strong performance by consecutively winning large-scale defense projects. The defense division of Hanwha Systems recorded approximately 1.4 trillion KRW in orders through large-scale contracts such as the Korean Destroyer eXperimental (KDDX) combat management system (CMS) and multifunction radar (MFR) development projects, the Korean Joint Tactical Data Link System (JTDLS) full-scale system development, air defense command and control system (ADC2A) mass production, and outsourced maintenance for Cheonma. Accordingly, Hanwha Systems exceeded 1 trillion KRW in orders for five consecutive years, achieving its highest sales.

The ICT division maintained its performance at the previous year's level through winning a 100 billion KRW scale 'Insurance Core Phase 2' project, building the AI-based automatic car repair cost estimation system 'AOS Alpha,' the full-scale launch of defense SI projects, and developing untact 'Smart Work' services to secure work flexibility. Hanwha Systems stated that it plans to increase sales through new orders in AI, big data, and blockchain services going forward.

Last year's fourth-quarter sales recorded 657.9 billion KRW, with operating profit of 19 billion KRW and net profit of 39.6 billion KRW. Sales increased year-on-year due to the full-scale development of TICN (Tactical Information Communication Network) Phase 3 mass production and Identification Friend or Foe (IFF) Mode 5 performance upgrades, while operating profit slightly decreased due to active investments in new businesses. Efforts to improve cost structure, reduced external expenses due to COVID-19, and increased R&D expenses led to a rise in R&D tax credits, resulting in increased net profit.

Hanwha Systems stated, "This year, we plan to accelerate strategic projects such as core development projects including Close-In Weapon System (CIWS-II) and Mobile Radar Command Center (MCRC), large-scale mass production projects like TICN Phase 4 and next-generation military satellites, and civilian projects such as micro-satellite SAR and intelligent thermal imaging engine modules, leading innovation in a high-profit business structure based on R&D capabilities."

To secure future growth engines, Hanwha Systems has selected Urban Air Mobility (UAM) and Electronically Steered Antenna (ESA) satellite communication antenna businesses as new ventures, focusing investment and capabilities on them. Additionally, Hanwha Systems is intensifying its investment in space business. In June last year, it acquired the business and assets of UK-based phased array antenna technology leader Phasor Solutions to establish Hanwha Phasor, and in December of the same year, it decided on a new investment of 30 million USD (approximately 33 billion KRW) in the US company Kymeta. It continues to pursue satellite payload business in the existing earth observation sector and is expanding into satellite communication service business.

Kim Yeon-cheol, CEO of Hanwha Systems, said, "Hanwha Systems aims to become the 'Global Number One' UAM company in the future mobility sector and will do its best to lead the new space market driven by the private sector and secure future new markets."

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