Hanwha Solutions, 3Q 178.4 Billion KRW... 23.5% Decrease YoY

Strong Sales of Chemical Products and Price Increases Boost Earnings
Poor Improvement in Solar Power Sector Performance Pulls Down Operating Profit

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions recorded weaker performance than last year due to sluggishness in its solar power division. However, the chemical division saw a significant increase in earnings thanks to strong sales of key chemical products such as PVC and caustic soda.

Hanwha Solutions announced on the 28th that its consolidated operating profit for the third quarter of this year was 178.4 billion KRW, down 23.5% compared to the same period last year. During the same period, sales increased by 6.3% to 2.5803 trillion KRW, and net profit rose by 2% to 193.5 billion KRW. Compared to the same period last year, sales grew by 6.3% and net profit by 2%. Operating profit was 178.4 billion KRW, down 23.5% year-on-year, due to delayed performance improvement in the Q CELLS division.

By business segment, the chemical division posted sales of 1.311 trillion KRW, up 48.5% from the same period last year, and operating profit increased by 68% to 266.8 billion KRW. The improved performance was driven by strong international prices of core products such as PVC (polyvinyl chloride) and caustic soda. PVC prices surged to a record high of 1,750 USD per ton recently, due to rising coal prices in China and production disruptions at local plants caused by hurricanes in the US. Caustic soda prices also soared to 850 USD, more than a 400% increase since the beginning of the year, as Chinese manufacturers reduced production amid power shortages. Caustic soda is an industrial material used in aluminum smelting, and Hanwha Solutions produces 840,000 tons annually, holding the number one market share domestically.

The Q CELLS division saw sales decline by 7.2% to 827.3 billion KRW compared to the same period last year, and operating loss turned to 95.7 billion KRW. This was due to disruptions in product exports via shipping caused by the US-origin logistics crisis, as well as the negative impact on profitability from rising raw material prices such as polysilicon and wafers.

The Galleria division recorded sales of 120.5 billion KRW, up 10.2% year-on-year, and operating profit surged 423% to 6.8 billion KRW. This was attributed to improved consumer sentiment, which increased demand for high-end brand products and premium home appliances, boosting sales performance at the Apgujeong luxury mall in Seoul. The advanced materials division posted sales and operating profit of 226.5 billion KRW and 2.3 billion KRW, respectively.

Shin Yong-in, Vice President and Chief Financial Officer (CFO) of Hanwha Solutions, said, "The chemical division is expected to maintain strong profitability in the fourth quarter as PVC and caustic soda prices remain firm. Although the Q CELLS division faces challenges from high raw material prices, we anticipate performance improvement if external conditions such as the logistics crisis improve."

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