Hanwha Solutions Reports Operating Profit of 738.3 Billion KRW Last Year, Up 24.3%...Chemical Division Hits Record High

Solar Power Business Turns to Deficit... "Impact of Increased Raw Material and Logistics Costs"

[Asia Economy Reporter Moon Chaeseok] Hanwha Solutions announced on the 17th that its consolidated operating profit for last year was tentatively estimated at 738.3 billion KRW, an increase of 24.26% compared to the previous year. Sales increased by 16.64% to 10.7252 trillion KRW. Net profit rose by 107.56% to 626.2 billion KRW.

The chemical business led the strong performance by recording its highest-ever results.

Sales in the chemical division increased by 61.3% year-on-year to 5.364 trillion KRW, and operating profit rose by 174.6% to 1.0468 trillion KRW. Both sales and operating profit reached record highs. The company explained, "This was due to the global economic recovery, which boosted sales of key products such as PVC (polyvinyl chloride) and caustic soda, and the continued effect of low-cost raw material input due to weak oil prices."

The solar energy business, Q CELLS division, showed a decline. Sales in the Q CELLS division decreased by 3.6% to 3.5685 trillion KRW, and operating loss was recorded at 328.5 billion KRW, turning to a deficit. This was due to a sharp rise in prices of major raw materials such as wafers, silver, and glass, along with a significant increase in logistics costs caused by rising maritime freight rates.

The advanced materials division showed favorable results due to increased production in the automotive industry. Sales increased by 24.9% year-on-year to 938.9 billion KRW, and operating profit turned positive at 9.7 billion KRW.

The Galleria division saw sales increase by 13.7% to 514.7 billion KRW and operating profit rose about tenfold to 28.9 billion KRW, driven by a recovery in consumer sentiment and increased sales of high-end overseas brands and home appliances compared to the previous year.

Operating profit in the fourth quarter was 84.3 billion KRW, up 28.88% from the same period last year. Sales and net loss for the same quarter were 2.9631 trillion KRW and 175.1 billion KRW, respectively. A Hanwha Solutions official said, "This year, the chemical business is expected to continue strong performance due to increased demand for key products. Although the solar energy business faces ongoing external risks such as global supply chain instability, profitability is expected to improve as cost burdens decrease due to large-scale expansions by polysilicon manufacturers."

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