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Hanon Systems Releases First Quarter 2024 Results

SEOUL, Korea, May 9, 2024 – Hanon Systems (KS:018880), a leading global automotive thermal management supplier for electrified mobility, posted its largest first quarter ever with sales of KRW 2.405 trillion in Q1 2024. This is a 2.7% increase from the previous year, and operating profit increased 8.5% year-over-year to KRW 65.3 billion.

 

The profitability improvement program launched in the second half of last year resulted in a 0.9 percentage point reduction in freight costs to 2.5%. The organizational streamlining is expected to be completed in the first half of the year, with 80% of the target achieved.

 

While electrification revenue in the first quarter remained similar to the prior year at approximately 24% of total revenue, the proportion of electrification revenue for the full year 2024 is expected to improve as several customers begin mass production of new electric vehicles.

 

On May 3, Hanon Systems announced that its largest shareholder, Hahn & Co. Auto Holdings Co., Ltd., signed a memorandum of understanding (MOU) to sell 133,450,000 shares, representing 25% of the Company's common stock, to its second-largest shareholder, Hankook Tire & Technology (“Hankook Tire”), and decided to issue new shares to Hankook Tire, representing 12.2% of the Company's total outstanding shares. Upon completion of the above two transactions, Hankook Tire's shareholding in the Company will be 50.53%.

 

“Hankook Tire has been our second-largest shareholder for a decade, and we have a strong understanding of each other's businesses, which will enable us to leverage global synergies,” said Nurdal Kücükkaya and Subu Nagasubramony, co-CEOs of Hanon Systems. "Hanon Systems will continue to strengthen our global market position by enhancing our technological capabilities in the electric vehicle market, including hybrids."