Hanwha Solutions (009830) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated sales rose 13% quarter-on-quarter to KRW 2,679.3 billion, driven by a recovery in renewable energy module sales.

• Operating loss narrowed to KRW -107.8 billion, with net income at KRW -329.8 billion, reflecting improved renewable energy performance.

• Revenue for 2Q24 increased 13% sequentially to ₩26,793 billion, driven by higher module sales and improved pricing in key segments.

• The company operates across basic materials, processing materials, renewable energy, and other segments, with a global presence and a diversified portfolio including chemicals, solar, automotive, and real estate businesses.

• Recent strategic moves include new subsidiary establishments, mergers, and business segment spin-offs to enhance specialization and efficiency.

Financial highlights

• Pretax profit was KRW -311 billion; net income was negative KRW -329.8 billion for Q2 2024.

• 2Q24 revenue: ₩26,793 billion (+13% QoQ, -20.4% YoY); operating loss: -₩1,078 billion (vs. -₩2,144 billion in 1Q24).

• 2024 H1 consolidated revenue was ₩5,058 billion, down from ₩13,198 billion in FY2023.

• Liabilities rose to KRW 17,383.2 billion, and net debt increased to KRW 9,974.1 billion.

• Liabilities to equity ratio climbed to 185%, and net debt to equity ratio to 106%.

Outlook and guidance

• Module sales expected to continue growing, with further reduction in operating loss anticipated in Q3.

• Annual sales guidance for 2024 maintained at 9GW.

• The company is expanding investments in renewable energy, data centers, and premium real estate, with a focus on RE100 and green hydrogen.

• Ongoing cost optimization and product portfolio upgrades are expected to support future profitability.

• ASP stabilization expected, with no further sharp price declines anticipated for the rest of the year.