Hanwha (000880) investor relations material

Executive summary

• Consolidated sales rose 49% year-over-year to KRW 28.6T, with strong growth in both non-financial and financial subsidiaries.

• Operating profit surged 81% year-over-year to KRW 2.4T, driven by robust insurance, investment, and subsidiary synergies.

• Net income increased 577% year-over-year to KRW 1.8T, reflecting improved profitability across core businesses.

• Revenue for the first half of 2026 was KRW 50.1 trillion, with operating profit at KRW 3.7 trillion and net profit at KRW 2.6 trillion, showing growth over the previous year.

• The group operates across explosives, chemicals, shipbuilding, construction, leisure, photovoltaics, finance, and other sectors, with diversified revenue streams.

Financial highlights

• Separate revenue declined 11% year-over-year to KRW 1.0T, with operating profit down 13% to KRW 113B.

• Consolidated non-financial sales up 44% year-over-year, financial sales up 56%.

• Total assets reached KRW 306.5 trillion, with liabilities at KRW 251.6 trillion and equity at KRW 54.9 trillion as of June 2026.

• Gross profit for H1 2026 was KRW 6.8 trillion, and EBITDA margin improved year-over-year.

• Earnings per share (EPS) for ordinary shares was KRW 6,392 for the half-year.

Outlook and guidance

• E&C revenue expected to remain subdued due to project completions, but order backlog remains strong at KRW 9.6T.

• Global division anticipates stable explosives sales and trading growth from higher petrochemical prices.

• Non-financial subsidiaries forecast continued defense and shipbuilding growth; financial subsidiaries expect ongoing insurance and investment strength.

• The group is focused on strengthening its core businesses, expanding global operations, and investing in new growth areas such as renewable energy and advanced materials.

• Ongoing restructuring in the chemical segment and continued investment in R&D and digital transformation are expected to support long-term growth.