Increase in Solar Module Sales Volume and Prices
Base Effect of Regular Maintenance in Chemical Division Compared to Previous Quarter
By business segment, the renewable energy division posted sales of 1.4464 trillion won and an operating profit of 156.2 billion won. In addition to strong performance in the U.S. residential energy business, both module sales volume and selling prices increased, resulting in higher operating profit compared to the previous quarter (136.2 billion won).
A Hanwha Solutions representative stated, "Following the passage of the U.S. 'One Big Beautiful Bill (OBBBA),' market uncertainty remains high. Once detailed administrative orders are established, the market direction will become clearer, so it is difficult to provide official profit guidance for residential products in the third quarter or the second half of the year."
Regarding the competitive advantages of Hanwha Solutions' products over competitors, a company representative said, "The brand value of Hanwha Qcells modules is already established in the U.S., and our overwhelming market share when selling in conjunction with other financial services is our strength."
The chemical division recorded sales of 1.239 trillion won and an operating loss of 46.8 billion won. Due to oversupply of major products, some selling prices declined, but the quarterly loss narrowed compared to the previous quarter (91.2 billion won) due to the base effect of regular maintenance.
The advanced materials division posted sales of 307.9 billion won and an operating profit of 9.8 billion won. Increased production by domestic and overseas lightweight composite material customers led to higher demand, resulting in a return to profitability.
Meanwhile, Hanwha Solutions revised its module sales volume guidance to 7.5 gigawatts (GW), down 1.5 GW from the 9 GW presented in the first quarter. A Hanwha Solutions representative explained, "There are three main reasons: first, the delay in operation of the Cartersville plant in Georgia, U.S., due to weak construction market conditions; second, reduced module productivity due to cell quality issues in Korea and Malaysia; and third, delays in several projects in the U.S. These factors led to the adjustment of the sales volume guidance."
In the upcoming third quarter, the U.S. Advanced Manufacturing Production Credit (AMPC) is expected to amount to 120 billion won. A Hanwha Solutions representative stated, "Due to cell quality issues in Malaysia and Korea, module productivity in the U.S. has declined. As a result, the AMPC is expected to decrease by about 60 billion won, and the renewable energy division is projected to post an operating loss of just over 100 billion won in the third quarter."
Finally, the company stated, "From the second half of the year, costs may rise due to U.S. tariff issues and the establishment of a supply chain focused on non-Chinese sources. There are also factors driving a short-term surge in market demand following the passage of OBBBA. If the certification process for Foreign Entity of Concern (FEOC) becomes more stringent, demand may shift to our company, which is relatively free from such regulations." The company added, "We are assessing whether these impacts will be partially or significantly reflected in selling prices."
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