Hanwha Solutions (009830)

**Business Overview** Hanwha Solutions is an energy and materials solutions company operating primarily through its Chemical, Qcells (renewable energy), and Insight divisions. The Chemical division produces and sells various basic chemical products such as polyethylene (PE), polyvinyl chloride (PVC), caustic soda, and EVA, holding the top market share in Korea for LDPE (including EVA). The Qcells division provides total energy solutions, extending beyond solar cell and module production to include power plant design, construction, operation, electricity sales, and energy storage systems (ESS), ranking first in the U.S. residential and commercial solar markets in 2021. The Insight division is pursuing urban development, complex development, premium lifestyle businesses, data center development, and renewable energy solutions businesses. For 2025, the renewable energy division is projected to account for 51.3% of revenue, and the raw materials (basic materials) division for 34.7%. **Core Competencies** Hanwha Solutions possesses excellent technological capabilities, enhancing solar module performance and efficiency standards through its proprietary Q.ANTUM technology and continuously pursuing R&D for next-generation solar cells. In the Chemical division, the company secures superior cost competitiveness through its vertically integrated Vinyl Chain production facilities and strengthens market competitiveness by establishing complete vertical integration from polysilicon to solar power generation projects. Furthermore, it has secured a leading position in the U.S. residential and commercial solar markets and is strengthening its ESG management by focusing on technology development for eco-friendly green hydrogen and circular economy systems. **Performance Analysis** Hanwha Solutions' revenue showed a declining trend from KRW 13.6539 trillion in 2022 to KRW 12.3940 trillion in 2024, but rebounded in 2025 to KRW 13.3331 trillion, an increase of approximately 7.6% year-over-year. In terms of profitability, the company recorded a surplus in 2022 with an operating income of KRW 966.2 billion and a net income of KRW 366.0 billion. However, it turned to a deficit from 2023, with losses expanding to an operating loss of KRW 364.8 billion and a net loss of KRW 615.3 billion in 2025. Nevertheless, in Q1 2026, the company successfully turned to a profit, recording revenue of KRW 3.8820 trillion and an operating income of KRW 92.6 billion, representing a 205.5% increase in operating income year-over-year. **Financial Soundness** Hanwha Solutions' financial soundness has shown a deteriorating trend since 2022. The debt-to-equity ratio has continuously increased from 140.8% in 2022 to 196.32% in 2025, maintaining a high level. Return on Equity (ROE) turned negative from 3.7% in 2022 to -0.95% in 2023, and further to -5.5% in 2025, indicating poor capital efficiency. As of the end of March 2026, net borrowings stood at KRW 13.5692 trillion, with a net debt-to-equity ratio of 113%, indicating a heavy financial structure. **Outlook** Hanwha Solutions' future outlook depends on the growth of its renewable energy division and the improvement in profitability of its Chemical division. The solar division is expected to achieve robust growth in the U.S. market, driven by a favorable policy environment, including the continued Advanced Manufacturing Production Tax Credit (AMPC) under the U.S. Inflation Reduction Act (IRA), strengthened import regulations on Chinese products, and the completion of the Cartersville plant, as well as increasing electricity demand from AI data centers. The Chemical division is restructuring its business portfolio through the divestment of unprofitable businesses and rationalization of production lines, and plans to continue its profit-oriented strategy, building on its successful turnaround to profitability in Q1 2026.