Hanwha Solutions is grappling with substantial financial setbacks as its core units, Hanwha Chemical and Hanwha Q CELLS, report significant operating losses. According to domestic media reports on August 28, Hanwha Chemical posted an operating loss of 36.1 billion won (approximately $27 million) in the first half of the year, while Hanwha Q CELLS recorded a much larger operating loss of 277.1 billion won ($208 million). These losses contributed to an overall operating loss of 322.2 billion won ($242 million) for Hanwha Solutions during the same period.
This marks a stark contrast to the first half of last year, when Hanwha Chemical and Hanwha Q CELLS reported operating profits of 83.5 billion won and 355.7 billion won, respectively. Hanwha Chemical has now recorded deficits for three consecutive quarters, largely due to shrinking margins and maintenance costs. Meanwhile, Hanwha Q CELLS continues to struggle against an oversupplied market, particularly from China, leading to declining module sales and prices.
Despite some optimism for improved performance in the third quarter, especially with rising module sales and potential benefits from tax credits in the U.S., Hanwha Q CELLS is still expected to remain in the red. The securities industry notes that while the solar market’s peak season and reduced competition from Chinese products might alleviate some losses, a return to profitability remains uncertain. Hanwha Solutions faces a challenging path ahead as it seeks to stabilize its core businesses.
