Hanon Systems achieved consolidated sales of 2.56 trillion won in Q2 2024, marking the highest quarterly revenue in its history. This represents an approximate 5.4% increase compared to the previous year’s revenue.
The operating profit for Q2 was 71.6 billion won, an increase of 9.6% compared to the previous quarter, with operating profits rising for the third consecutive quarter. However, the operating profit decreased by 50% compared to the same period last year due to temporary factors, primarily the base effect from last year’s strong performance and a slowdown in global electric vehicle sales.
For the first half of the year, the revenue amounted to 4.9645 trillion won, approaching the semi-annual target of 5 trillion won. Despite a reduction in production globally due to the electric vehicle transition, the projected annual revenue for 2024 is expected to be around 10 trillion won, indicating growth compared to the previous year.
In response to changing strategies from its clients, Hanon Systems plans to diversify its portfolio not only for electric vehicles but also for hybrid and internal combustion engine vehicles, leveraging its competitive advantages. It expects that expanding the volume of its traditionally strong internal combustion engine products, as well as implementing electric core components in hybrid vehicle thermal management systems, will have a positive impact on profitability.
Co-CEO Nagasubramani Ramachandran stated, “We aim to rapidly respond to strategic direction changes from our clients, enhancing our technological capabilities in thermal management solutions applicable to all electrified vehicle types, including internal combustion, hybrid, and electric vehicles, to improve our performance in the second half.”
Contact: Lee Sang-jin, daedusj@autodiary.kr