Hanwha Solutions Reports 216.6 Billion KRW Operating Loss in 1Q Due to "Decline in Solar Module Sales"

Hanwha Solutions announced on the 25th that it recorded an operating loss of 216.6 billion KRW on a consolidated basis for the first quarter. Sales amounted to 2.3929 trillion KRW, down 22.8% compared to the same period last year.

The renewable energy sector posted sales of 778.5 billion KRW and an operating loss of 187.1 billion KRW. Sales declined and profitability weakened due to a decrease in solar module sales and price drops caused by oversupply in major markets such as the United States.

The chemical sector recorded sales of 1.2223 trillion KRW and an operating loss of 18.9 billion KRW. Although demand was sluggish amid concerns over a global economic slowdown, the quarterly deficit narrowed compared to the previous quarter (79.3 billion KRW) as margins improved for some products including polyethylene (PE).

The advanced materials sector posted sales of 249.6 billion KRW and an operating profit of 10.6 billion KRW. Sales of EVA sheets and back sheets declined due to adjustments in operating rates by solar module manufacturers, and operating profit decreased as international prices of key raw materials rose.

Yoon Ansik, Vice President and Chief Financial Officer (CFO) of Hanwha Solutions, stated, "In the second quarter, which is less affected by seasonal off-season factors, module sales are expected to recover, significantly reducing the deficit in the renewable energy sector." He added, "Sales of approximately 450 billion KRW are anticipated from the sale of development assets and the EPC business."