The possibility for Hanwha to achieve a turnaround to profit-making after four years of fighting a hard battle in photovoltaic business has increased. Hanwha recorded its first profit since entry to photovoltaic business. This accomplishment was largely a result of Hanwha Q Cells’ great performance. However, performance of Hanwha SolarOne, which has been poor since the company’s takeover, can act as a variable, according to an analysis.

According to the industry on the 12th, Hanwha is anticipating an annual surplus after four years since commencement of photovoltaic business in 2010. Up until the third quarter last year, Hanwha recorded accumulated sales and an operating profit of KRW 1.3851 trillion and KRW 25.3 billion respectively from photovoltaic business. Hanwha recorded accumulated surplus continuously for three quarters for the first time since its entry to photovoltaic business. Hanwha began photovoltaic business by taking over China’s Solar Fun and changing the company name to Hanwha SolarOne in 2010. In that year, Hanwha SolarOne recorded an operating profit of approximately KRW 200 billion. However, it was taken over by Hanwha only in the third quarter.

Hanwha is forecast to keep the annual surplus in photovoltaic business by recording an operating profit or loss by a small margin in the fourth quarter last year. This is because Hanwha Q Cells, which has been leading photovoltaic business improvement, is displaying a strong performance. Hanwha Q Cells recorded an operating profit of KRW 41.6 billion up to the third quarter. With the image of high efficiency and high quality established, this company is continuously keeping a large share in the advanced markets, especially Japan and Europe. Hanwha Q Cells is also forecast to improve operating profit rate as it started downstream business like photovoltaic power plant construction and operation in the emerging markets, such as the U.K.

Hanwha SolarOne’s continuously slow performance is a problem. Up to the third quarter, Hanwha SolarOne recorded an operating loss of approximately KRW 16 billion. Although the company had succeeded in a turnaround to profit-making by recording an operating profit of KRW 3.8 billion in the first quarter of last year, it again recorded deficit in the second and the third quarters. The industry forecasts that the situation where Hanwha Q Cells records a quarterly average operating profit and Hanwha SolarOne taking a bite out of it would again be revived in the fourth quarter.

Hanwha turned into deficit in photovoltaic business by recording an operating loss of KRW 190 billion in 2011. The following year, the scale of the deficit increased to KRW 250 billion. In 2013, in which Hanwha Q Cell’s performance was reflected, it had to settle for reducing the operating loss to KRW 104 billion.

“Hanwha’s turnaround in photovoltaic business ultimately depends on how much Hanwha Q Cells would be able to make up for the losses recorded by Hanwha SolarOne,” said a Hanwha insider. “As the scale of Hanwha SolarOne’s operating losses is decreasing, we are observing the situation carefully.”