Hanon Systems (018880.KS), the global automotive thermal management solutions company under Hankook & Company Group, surpassed 10 trillion won in annual revenue for the first time last year.
Hanon Systems reported consolidated revenue of 10.8837 trillion won ($7.9 billion) and operating profit of 271.8 billion won for 2024, the company said in a regulatory filing Monday. Revenue grew 8.9% year-on-year while operating profit surged 184.5%.
The company attributed the results to the success of restructuring and operational efficiency improvements pursued since joining Hankook & Company Group in early 2024.
The cost of goods sold ratio fell below 90% for two consecutive quarters in the third and fourth quarters of last year, indicating stabilization of the profit structure. On the financial front, net interest expenses decreased by 28.8 billion won from the previous year, and the interest cost burden is expected to ease further through a capital increase.
Hanon Systems set business targets for this year of 11 trillion won in revenue, operating profit exceeding 450 billion won, and an operating margin above 4%. The company plans to strengthen competitiveness by building a thermal management technology portfolio covering all vehicle types—internal combustion engine (ICE), hybrid electric vehicles (HEV), battery electric vehicles (BEV), and extended-range electric vehicles (EREV)—amid the current EV chasm (temporary demand slowdown).
"Amid global uncertainty, we continue our management normalization efforts based on synergies with Hankook & Company Group," Vice Chairman and CEO Lee Soo-il said. "We will accelerate qualitative growth by strengthening R&D capabilities based on our accumulated thermal management technology and pursuing new businesses for future growth."