Hanwha Chemical announced the company chalked up sales of 2.16 trillion won in the first quarter of this year, an increase of 17.8 percent YoY, and 142.8 billion won in operating profit, a 457.8 YoY jump.
The company posted the highest-ever quarter sales and the highest operating profit since the first quarter of 2012.
The fabricated material segment including automotive interior materials, and the photovoltaic power and other segment saw sales surge to make up for declines in sales from the basic material segment, including the conventional mainstay petrochemical business. The basic material segment saw sales decline 4.18 percent to 884.2 billion won and operating profit rose 225.5 percent to 65.1 billion won.
The photovoltaic power and other segment saw sales jump 37.55 percent to 1.2545 trillion won, making the segment profitable. The fabricated material segment saw sales increase 6.79 percent to 254.7 billion won and operating profit surge 13.29 percent to 16.2 billion won.
The retail sales segment, including performances of Hanwha Gallery, saw sales increase 12.4 percent to 158.7 billion won, but operating profit dove 85.1 percent to 1.1 billion won.
Hanwha Chemical’s better-than-expected performance is owed to a rally of the photovoltaic power segment, the company said. Hanwha Chemical is churning out polysilicon, the material for photovoltaic cells. Hawha Q Cells specializes in photovoltaic cells, modules and power generation.
Executive Vice President Kim Dong-kwan of Hanwha Q Cells, the eldest son of Hanwha Group Chairman Kim Seung-youn, heads the Sales Office. Hanwha Q Cells made strides in the overseas business segment in the first quarter of the year. The company signed a deal to supply 21MW photovoltaic power modules to Saga-Ouchi Solar Power, a joint venture between Itochu and Kyudenco. The company also inked an agreement to supply 50MW photovoltaic power modules with Adani Group of India.
Hanwha Chemical CEO Kim Chang-beom’s strategies to restructure business product portfolios to value-added ones has paid off. The company has successfully strengthened its presence in the global market thanks to the development of such value-added products as chlorinated polyvinyl chloride (CPVC), which is more fire-resistant than the conventional polyvinyl chloride. Under the stewardship of CEO Kim, Hanwha Chemical established the “KAIST-Hanwha Chemical Future Research Institute” in collaboration with KAIST last November.
Hanwha Group is hitting the accelerator to nurture the photovoltaic power business as the group’s future growth engines.
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