Hanwha Co., Ltd. Reports 37.9% Increase in Q2 Operating Profit Despite COVID-19 Impact

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Corporation announced on the 13th that its consolidated operating profit for the second quarter of this year reached 501.3 billion KRW, a 37.9% increase compared to the same period last year. During the same period, sales decreased by 14% to 11.0041 trillion KRW, while net profit increased by 82.5% to 350.7 billion KRW.

The operating profit exceeded market expectations by more than 50%, driven by improved performance in its own business as well as major subsidiaries such as Hanwha Solutions and Hanwha Life Insurance. Net profit also rose by 82.5% (158.5 billion KRW).

In Hanwha Corporation’s own business, operating profit increased by 21.6% thanks to normalization in the defense sector. Hanwha Solutions saw increases in both operating profit and net profit compared to the previous year due to improved profitability in the chemical division following a decline in raw material prices. Hanwha Life Insurance also demonstrated solid performance, supported by improved profitability from a lower loss ratio and the reversal of variable annuity reserves due to stock market gains.

Although some uncertainties remain due to the ongoing impact of COVID-19 in the second half of the year, performance is expected to improve year-on-year thanks to strong own business operations, gradual demand recovery in Hanwha Solutions’ solar power division, improved loss ratios at Hanwha Life Insurance, and increased sales in Hanwha Aerospace’s defense sector. Additionally, Hanwha Corporation plans to secure mid- to long-term growth engines by expanding its own businesses related to the 4th Industrial Revolution and the Green New Deal, as well as through new business ventures by its affiliates.

Meanwhile, Hanwha Corporation announced that it will acquire the collaborative robot business* from Hanwha Precision Machinery to ensure sustainable growth and future value. Going forward, Hanwha Corporation’s machinery division plans to leverage robotics technology from the collaborative robot business to enhance the logistics center, secondary battery, and display-related equipment it currently supplies, thereby creating synergies.