Hanwha System reported on the 29th that it has provisionally recorded a revenue of 768.2 billion won and an operating profit of 33.5 billion won for the second quarter of this year.
Revenue increased by 11.8% compared to the same period last year, while operating profit decreased by 60.4%. Net profit rose by 73.9% to 47 billion won.
Hanwha System explained that the revenue increase in the second quarter was due to the mass production and export performance increase in the institutional sector.
Major projects that contributed to the performance included the fourth mass production of the Tactical Information Communication System, a key communication system for the Korean military, and the second mass production of the next-generation military radio.
In exports, sales of the Cheongung-Ⅱ multifunction radar delivered to Saudi Arabia and the United Arab Emirates (UAE) were significantly reflected.
Hanwha System stated that the decline in operating profit was due to initial investment expenses at the Philippine shipyard. Previously, Hanwha Group acquired the Philippine shipyard for $100 million through Hanwha Ocean and Hanwha System last December.
Additionally, the impact of unrecorded costs prior to the transfer and the completion of the fourth project of the Tactical Information Communication System also affected the decline in operating profit.