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 and improved pricing in key segments.

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

• Net loss for the quarter was -₩3,110 billion, a significant improvement from -₩4,479 billion in 2Q23.

• IRA implementation contributed ₩1,468 billion to operating profit in 2Q24.

• Total assets increased to KRW 26,792.3 billion, while cash and cash equivalents declined to KRW 1,984.8 billion.

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).

• EBITDA for 2Q24: ₩1,822 billion (+50.6% YoY); EBITDA margin: 6.8%.

• 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.

• Sales from power generation asset development and EPC for Q3 projected at around KRW 800 billion.

• Annual sales guidance for 2024 maintained at 9GW.

• Renewable energy: U.S. and Europe expected to see growth with IRA guidelines and stable rates; global solar demand remains robust at 70–80+ GW.

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