Hanon : Releases First Quarter 2024 Results

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.<_o3a_p>

<_o3a_p>

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.<_o3a_p>

<_o3a_p>

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.<_o3a_p>

<_o3a_p>

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%.<_o3a_p>

<_o3a_p>

"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."<_o3a_p>

List