Record High Performance in Renewable Energy
Hanwha Solutions achieved record-high sales and operating profit in the renewable energy sector last year. While continuing mid- to long-term growth investments such as the completion of the integrated solar power production complex in North America, the company also resumed cash dividends to enhance shareholder value.
Hanwha Solutions announced on the 22nd that it recorded consolidated sales of KRW 13.2887 trillion and operating profit of KRW 604.5 billion last year. Sales increased by 1.2% compared to the previous year, while operating profit decreased by 34.6%.
By business segment, the renewable energy sector posted sales of KRW 6.6159 trillion and operating profit of KRW 568.2 billion. Both sales and operating profit increased by 18.8% and 62.3%, respectively, compared to the same period last year, setting new all-time records. This was due to an increase of over KRW 1 trillion in sales from asset sales and EPC (Engineering, Procurement, and Construction) mainly in the US and Europe.
The chemical sector recorded sales of KRW 5.0974 trillion, down 13.7% from the same period last year, and operating profit of KRW 59.5 billion, down 89.9%. The prolonged global petrochemical supply-demand imbalance reduced margins on core products, and regular maintenance in the fourth quarter also affected profitability.
The advanced materials sector posted sales of KRW 988.9 billion, down 14.2% year-on-year, while operating profit increased by 82.2% to KRW 64.3 billion. Profit growth was driven by stable sales volume of parts materials due to increased demand from automakers, along with lower raw material prices and efforts to improve production efficiency.
Hanwha Solutions’ fourth-quarter sales last year rose 2.3% year-on-year to KRW 3.8697 trillion, while operating profit fell 75.8% to KRW 40.7 billion. The renewable energy sector achieved a record quarterly sales of KRW 2.3409 trillion in Q4, while the chemical sector posted a quarterly operating loss of KRW 79.3 billion for the first time in a year since Q4 2022.
On the same day, Hanwha Solutions announced plans to pursue cash dividends this year and next to balance growth investments for mid- to long-term corporate value enhancement with short-term shareholder returns. The company will pay cash dividends, which had not been implemented due to focus on new growth investments such as expanding the US plant, after approval at the regular shareholders’ meeting for the first time in four years. Cash dividends of KRW 300 per common share and KRW 350 per preferred share will be paid, totaling KRW 51.7 billion.
Yoon An-sik, Vice President and Chief Financial Officer (CFO), said, "Sales of modules are expected to decline in the first quarter due to seasonal off-season effects," but added, "We are targeting annual sales of KRW 2.5 trillion from asset sales and EPC this year." He also noted, "Once the Cartersville plant in the US is fully operational within the year, local production and sales will increase, providing a new opportunity for growth."
Meanwhile, Hanwha Solutions held a board meeting and recommended Professor Lee Ah-young of the Department of Business Administration and Accounting at Kangwon National University as a new outside director candidate. Additionally, Satoshi Shima, former Chief of Staff at SoftBank Japan; Professor Park Ji-hyung of the Department of Economics at Seoul National University; and Lawyer Seo Jeong-ho of Wiz Law Firm were recommended as outside director (reappointment) candidates. Vice Chairman Kim Dong-kwan and CEO Nam Yi-hyun were recommended as inside director (reappointment) candidates. This year’s regular shareholders’ meeting will be held on the 26th of next month.
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