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[Alpha Biz=(Chicago) Reporter Paul Lee] Hanwha Solution and SKC performed significantly worse than the same period last year due to the market deterioration. Hanwha Solution was coupled with falling prices of solar energy facilities amid worsening market conditions in the chemical sector, and SKC is trying to improve its constitution but continued to suffer losses for four consecutive quarters.
Hanwha Solution announced on the 31st that it had sales of 2.9258 trillion won and operating profit of 98.3 billion won. Sales and operating profit fell 9.7% and 70.8%, respectively, year-on-year. By business sector, Hanwha Q CELLS' renewable energy division recorded sales of KRW 1.2799 trillion and operating profit of KRW 34.7 billion, significantly lowering its profit margin.
The 35 billion won subsidy (tax deduction) provided to produce solar cells and modules through the US Inflation Reduction Act (IRA) was also included in the performance. Excluding additional profits from IRA, operating profit is estimated at 63.3 billion won.
The renewable energy sector, led by Hanwha Q CELLS, posted sales of 1.2799 trillion won and operating profit of 34.7 billion won. Sales fell 3.9% year-on-year and operating profit fell 82.4% year-on-year. Hanwha Solution said, "The margin ratio has worsened due to a bigger drop in sales prices than a drop in costs amid a drop in sales due to slowing demand in Europe."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
