Hanon Systems Achieves Record Highest Quarterly Sales in 2Q... Net Profit Turns to Loss

Hanon Systems, a global automotive thermal energy management solution provider, achieved its highest-ever quarterly performance on a consolidated basis in the second quarter of this year. However, net profit turned to a loss compared to the same period last year due to a slowdown in global electric vehicle sales.

On the 8th, Hanon Systems announced that its consolidated sales for this year reached 2.56 trillion KRW, a 5.4% increase compared to the same month last year.

During the same period, operating profit was recorded at 71.6 billion KRW, down 50% from the previous year, and net loss was 31.2 billion KRW. A Hanon Systems official explained, "The main reasons are the base effect caused by temporarily high previous electric performance and the slowdown in global electric vehicle sales."

Meanwhile, first-half sales amounted to 4.9645 trillion KRW, bringing the company close to entering the 5 trillion KRW range for half-year sales. Despite a decrease in production due to the global electric vehicle chasm, Hanon Systems expects annual sales this year to grow to around 10 trillion KRW compared to the previous year.

Hanon Systems plans to enhance its competitiveness by diversifying the portfolio of not only EVs but also hybrid and internal combustion engine vehicle products in response to changes in customers’ future strategies. Nagasubramoni Ramachandran, co-CEO of Hanon Systems, said, "We will improve second-half performance by quickly responding to changes in customer strategic directions with thermal management solution technology capable of supporting all electrified vehicle types, including internal combustion, hybrid, and electric vehicles."