Hanon Systems Posts 95.3 Billion Won Operating Profit in Q3, Returns to Profitability After Six Quarters

Revenue Reaches 2.7057 Trillion Won, Up 8.2% Year-on-Year

Hanon Systems announced on October 29 that it returned to profitability in the third quarter, posting an operating profit of 95.3 billion won after six consecutive quarters of losses. Revenue reached 2.7057 trillion won, marking an 8.2% increase compared to the same period last year, while net profit stood at 55.3 billion won.

Although revenue decreased by 5.3% compared to the previous quarter, operating profit improved significantly by 48.2%, and net profit surged by 466.4%, demonstrating a recovery in profitability. Hanon Systems cited efficient cost management, favorable exchange rate effects, and strengthened cooperation with client companies as key drivers of this performance improvement.

The share of sales from the electrification division was recorded at 28%. Despite challenges such as the elimination of electric vehicle subsidies in the United States and ramp-up periods following new model launches, the company expects to maintain the 28% level annually. While uncertainty in the automotive market persists, Hanon Systems anticipates that ongoing efforts to improve costs and implement sales strategies will lead to continuous mid- to long-term performance improvement.

Last month, Hanon Systems resolved to carry out a rights offering worth 900 billion won, aiming to complete it within the year. The company plans to continue enhancing profitability by focusing on strengthening financial soundness and improving business operation efficiency.

Lee Sooil, Vice Chairman of Hanon Systems, stated, "We are seeing tangible results in profitability, such as a return to net profit and a recovery in operating margin, but uncertainties in the global market remain. We will continue to pursue key strategies, including strengthening advanced technology and R&D capabilities, as well as reducing costs through supply chain optimization."