Hanwha Solutions, Despite Record Renewable Energy Sales, Cannot Overcome 'Supply Glut'

Sales Reach 12 Trillion KRW, Operating Loss of 300.2 Billion KRW Last Year
Turned to Deficit Compared to Previous Year... Profitability Declines Due to Price Weakness
"Plans to Execute Around 2 Trillion KRW in Facility Investment This Year"

Hanwha Solutions posted an operating loss of approximately 300 billion KRW in 2024, turning to a deficit compared to the previous year. Despite achieving record sales in the largest renewable energy sector, an operating loss occurred due to failure to secure price competitiveness amid the impact of 'oversupply.'

Hanwha Solutions announced on the 6th that it recorded consolidated sales of 12.394 trillion KRW and an operating loss of 300.2 billion KRW for 2024. The renewable energy sector posted sales of 5.7658 trillion KRW and an operating loss of 257.5 billion KRW. Compared to the operating profit of 539.8 billion KRW in the renewable energy sector the previous year, profits sharply declined. The cause is analyzed to be the failure to overcome price weakness due to oversupply in the module and other businesses.

Hanwha Solutions plans to support sales this year as well through the sale of development assets and engineering, procurement, and construction (EPC) projects, following last year. Yoon Ansik, Chief Financial Officer (CFO) of Hanwha Solutions, stated, "The sale of development assets and EPC business will continue steady sales growth, aiming for annual sales of 4 trillion KRW in 2025 and quarterly sales of 500 billion KRW in the first quarter."

In the chemical sector, sales reached 4.8172 trillion KRW with an operating loss of 121.3 billion KRW. Concerns over the global economic downturn led to continued price weakness of major products, and a combination of rising maritime freight rates and electricity price increases had an impact. The advanced materials sector recorded sales of 1.0376 trillion KRW and an operating profit of 23.5 billion KRW. Sales of lightweight composite materials increased due to rising demand for finished vehicles, but the price weakness of solar materials and initial fixed costs of the new U.S. plant were reflected.

Hanwha Solutions reported that capital expenditures (CAPEX) last year amounted to approximately 3.1 trillion KRW. This year, it plans to spend about 1.6 trillion KRW in the renewable energy sector and about 400 billion KRW in the chemical and other sectors, totaling around 2 trillion KRW.