Hanwha Systems Q1 Sales Reach 429.6 Billion KRW, Up 17.15% Year-on-Year
Sales Exceed Consensus... Operating Profit Declines Due to New Business Investments
[Asia Economy Reporter Kim Jin-ho] Hanwha Systems announced on the 28th that it recorded consolidated financial statements for the first quarter of 2022 with sales of 429.6 billion KRW, operating profit of 15.2 billion KRW, and net profit of 10.6 billion KRW.
Sales increased by 62.9 billion KRW (17.15%) compared to the same period last year, achieving the highest first-quarter performance ever. Operating profit and net profit declined compared to the previous year. This was due to investments in new businesses based on mid- to long-term future growth strategies, including low earth orbit satellite communications, UAM, blockchain technology-based digital platform businesses, discovering and investing in innovative startups, and special wage increases in the ICT sector.
Hanwha Systems' defense sector led stable sales growth through large-scale projects such as the TICN (Tactical Information Communication Network) third phase mass production project, Cheolmae-II (Cheongung-II) multifunction radar (MFR) performance improvement project, IFF (Identification Friend or Foe) Mode 5 performance upgrade, and multifunction radar development for long-range surface-to-air missile (L-SAM).
Major projects reflected in sales in the ICT sector include application and infrastructure operation services, next-generation enterprise resource planning (ERP) system construction, development of the Multinational Military Information Management System-Common (MIMS-C) and multi-source video fusion system, next-generation insurance company system construction, and the establishment of a 'smart work system' adapted to the COVID-19 contactless environment.
Hanwha Systems stated, "We are focusing on monetizing new businesses amid solid growth in our core operations."
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Earlier this year, Hanwha Systems achieved a major success by exporting the 'Cheongung-II' multifunction radar worth approximately 1.3 trillion KRW to the United Arab Emirates (UAE). The company is also developing large-scale projects such as the Korean next-generation destroyer (KDDX) multifunction radar and combat management system (CMS), as well as the active electronically scanned array radar (AESA), a core component of the KF-21, thereby strengthening its market dominance as an advanced defense company.
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