Hanwha Solutions Q1 Operating Profit 254.6 Billion KRW... 52% Increase YoY (Update)

[Asia Economy Reporter Choi Dae-yeol] Hanwha Solutions announced on the 11th that its operating profit in the first quarter reached 254.6 billion KRW, a 52% increase compared to the same period last year.

Sales rose 7% to 2.4043 trillion KRW during the same period. Net profit soared over 500% to 385.2 billion KRW. The company explained, "The strong performance of the petrochemical business and asset securitization of Galleria Gwanggyo Branch (sale and leaseback of real estate) led to the highest quarterly figures ever recorded."

By business segment, the Chemical division posted sales of 1.2484 trillion KRW, a 50% increase year-on-year, and operating profit surged 301% to 254.8 billion KRW. This was due to the continued effect of low-cost raw material input and increased demand for building materials, sanitary products, and packaging materials domestically and internationally, which drove up prices of polyvinyl chloride (PVC) and polyolefin (PO) products. The Q CELLS division returned to a loss with an operating loss of 14.9 billion KRW, affected by seasonal off-season shipment declines and rising logistics and raw material costs.

The Advanced Materials division turned profitable with an operating profit of 7.2 billion KRW. The global increase in smartphone sales improved the performance of the electronic materials business, and the recovery in parts demand was driven by increased production from major automakers. The company stated, "The Chemical division is expected to maintain stable earnings in the second quarter. Although cost pressures continue in the solar energy division, sales of solar modules are increasing in major advanced markets, and power plant asset sales are underway, which will improve performance."

Meanwhile, the company held a board meeting on the same day and decided to establish a new ESG Committee. It will be composed of four outside directors (Choi Man-gyu, Park Ji-hyung, Seo Jeong-ho, Lee Han-joo), with Professor Park Ji-hyung from Seoul National University's Department of Economics serving as chairman. Alongside the ESG Committee, a newly established ESG Secretariat will support the committee's decision-making as an operational body. As the highest decision-making body for overall ESG management, it will not only formulate mid- to long-term policies but also regularly monitor whether the company's management activities harm environmental protection or social responsibility.

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