Cost Innovation Task Force Under CEO Delivers Results... Hanon Systems Returns to Profitability After Six Quarters

Operating Profit Reaches KRW 95.3 Billion in Q3, Up 48% from Previous Quarter
CEO Lee Suil Leads Cost Structure Improvement Project

Hanon Systems, an automotive thermal energy management solutions company under Korea & Company Group, has successfully returned to profitability after six quarters, marking the fruition of its company-wide efforts to strengthen financial soundness.

According to industry sources on November 5, Hanon Systems posted sales of 2.7057 trillion won, operating profit of 95.3 billion won, and net profit of 55.3 billion won in the third quarter, turning a profit for the first time in six quarters since the first quarter of last year. Compared to the previous quarter, operating profit improved by 48.2%. The company attributed the improved performance to efficient cost management, favorable exchange rates, and strengthened cooperation with clients.

Lee Suil, CEO, is giving a presentation at the Hanon Systems Proactive Concert held last June. Hanon Systems

Since early July, Hanon Systems has established a cost innovation task force directly under CEO Lee Suil, launching an intensive project to improve cost and expense structures. Rather than a temporary consultative body, this serves as a company-wide control tower dedicated to cost innovation. The business is divided into four product groups, with each group's strategic planning head serving as leader, and purchasing, research and development (R&D), production technology, quality, and regional business divisions collaborating. The company is working to enhance efficiency, secure cost competitiveness, and improve profitability across all areas.

In particular, Hanon Systems addressed inefficiencies that remained due to incomplete integration during the merger of Halla Climate Control, Ford Visteon, and Magna. By standardizing operations, the company established a global integrated management system, achieving economies of scale and maximizing operational efficiency.

Hanon Systems is also pursuing a rights offering worth 900 billion won. Of the funds raised, 800 billion won will be used for debt repayment and 50 billion won will be invested in facilities. The strategy is to improve the financial structure by reducing interest expenses and to strengthen the foundation for sustainable growth through investments in new production facilities.

A Hanon Systems representative stated, "Cost structure improvements, including debt reduction and restructuring, are in full swing," and predicted, "The effects of restructuring and organizational efficiency will become fully apparent starting in 2027."

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