Hanwha Solutions (009830.KS) reported an operating loss of 353.3 billion won for 2024, widening from the previous year, the company said Wednesday.
Revenue rose 7.7% year-on-year to 13.35 trillion won. While the renewable energy division drove top-line improvement, deepening losses in the chemical segment kept the company in the red.
The renewable energy division posted revenue of 6.86 trillion won and an operating loss of 85.2 billion won. Despite a decline in solar module sales due to customs clearance delays, the division achieved record-high revenue on the back of expanded U.S. residential energy business, narrowing its deficit.
The chemical division recorded revenue of 4.62 trillion won and an operating loss of 249.1 billion won. Prolonged oversupply in the global petrochemical market pushed down international prices of key products, while declining sales volumes further eroded profitability.
The advanced materials division generated revenue of 1.11 trillion won and operating profit of 6.2 billion won. Full-scale operation of a new U.S. solar materials plant helped the division surpass 1 trillion won in revenue for the second consecutive year. However, operating profit fell approximately 73% year-on-year due to rising costs from fixed-cost burdens.
Hanwha Solutions expects to improve profitability this year based on its solar full value chain at its Cartersville, Georgia plant, which begins full operation this year. Starting with normal module plant operations in the first quarter, the company will launch cell plant operations in the third quarter and begin full-scale sales of vertically integrated products after completing reliability tests in the fourth quarter. The company also anticipates solid growth in average selling prices (ASP) this year amid strong U.S. import restrictions on foreign products and China's elimination of value-added tax rebates.
The company plans to spend approximately 1.2 trillion won on capital expenditure this year, allocating 1 trillion won to renewable energy and 200 billion won to chemicals and other segments. "Solar facility investments were completed last year, so capex is gradually declining," a Hanwha Solutions official said.
"With normal operations and increased sales at our U.S. module plant expected in the first quarter, along with anticipated price increases, the renewable energy division will return to profit," CFO Jung Won-young said. "The chemical division's losses will narrow due to base effects from scheduled maintenance."