Good afternoon. I am Yoon An-sik, CFO of Hanwha Solutions. Thank you for joining the call today. I will brief you on the business performance, financials, and outlook by segment of Hanwha Solutions for the period of third quarter 2023. First, Q3 performance. Please refer to page 8 of the presentation. The consolidated sales of Q3 2023 declined by 14% Q- on- Q to KRW 2,925.8 billion. This is due to decrease in key product sales volume of renewable energy and chemical divisions. The consolidated operating profit declined by 49% Q- on- Q at KRW 98.3 billion, due to decreased operating profit from renewable energy division. Pre-tax profit and net profit recorded KRW 33.6 billion and KRW 20.6 billion, respectively. Please refer to the bottom of page 8 for performance by segment. Next, on financials.
Please turn to page 9 of the presentation. As of the end of Q3 2023, the total assets increased by KRW 1,134.7 billion from the end of previous year to KRW 24,966.4 billion. Cash and cash equivalents increased by KRW 209 billion from the end of the last year to KRW 3,008.7 billion. Total liabilities increased by KRW 1,493.1 billion from the end of previous year to KRW 15,427.9 billion, and the debt increased by KRW 2,626.4 billion to KRW 9,834.6 billion.
Net debt increased by KRW 2,417.4 billion from the end of last year to KRW 6,825.9 billion. The total liability to equity ratio increased by 21% points from the end of previous year to 162%, and the net debt to equity ratio grew by 27% point from the end of previous year to 72%. Next, performance by segment. Renewable energy. Due to timing difference when the solar module and wafer price is reflected into the P&L, the raw material of relatively higher price was used, thereby lowering the operating profit by 75% to KRW 34.7 billion.
While the global solar energy demand continues to expand, the supply in some markets, including Europe, exceeds the demand, thus lowering the price of solar products. The company, however, is expected to enjoy higher operating income in Q4, as the impact of relatively higher priced raw materials is expected to be relieved along with the sales volume increase. The sales from the power plant project grew in Q3, with the sales realized from the solar power plant project development in the United States. But the planned power plant project sales in other regions, including U.S., was delayed to Q4. We expect about KRW 1 trillion in sales to be realized from the power plant project, and overall annual sales of the segment is expected to be around KRW 2 trillion, which is in line with the existing forecast. Next, chemical division.
Q3 operating profit of Chemical Division increased by 14% Q- on- Q to KRW 55.9 billion, due to improving spread of some products with lower cost raw material. In Q4, the operating profit is expected to decline due to the regular turnaround. Next, Advanced Materials. As key customers entered into the summer vacation period, the sales and the operating profit declined by 20% Q- on- Q to KRW 16.1 billion. Though the impact from the summer vacation is expected to disappear in Q4, the operating income is expected to continue to decline as the price of key raw materials is expected to increase. Next, on equity method gains.
The overall equity method gains for Q3 turned around thanks to the base effect of the Hanwha TotalEnergies, turned around and significantly increased in the equity method gains from Hanwha Impact due to the better refining margin. In Q4, as the product spread of major equity method companies is expected to narrow, the equity method gain is expected to decline. This concludes the earnings preview. Thank you.
Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.
[Foreign language]. The first question will be provided by Dong-Jin Kang from Hyundai Motor Securities. Please go ahead with your question.
Hi, 안녕하세요, 현대차 증권 강동진입니다. 질문 기회 주셔서 감사합니다. 간단하게 좀, 뭐, 태양광 사업과 관련돼서 좀 질문을 드리겠는데, 지금 보면은 3분기에 태양광 사업, 모듈 사업 매출액이 상당히 좀 많이 안, 안 나왔고, 그와 관련돼서 이제 판매량이 좀 감소했다고 말씀하셨는데, 대략적으로 이제 판가와 물량이나 이런 것들을 저희가 어느 정도로 생각하면 될지 좀 궁금하고, 그리고 이게 4분기에는 대략 어느 쪽으로, 어떤 식으로 좀 변화될지가 좀 궁금하고요. 그리고 이제 원재료 쪽에 들어가는 이제 모듈하고 웨이퍼 쪽이 4분기에는 좀 낮은 것들이 반영이 된다라고 하면은 지금 3분기에 지금 마진율이 그냥 그 AMPC 저희가 받은 거 KRW 35 billion을 빼고 생각해보면, 이제 굉장히 낮은 수준의 영업이익률이었는데, 3분기에 이 사업에서 어느 정도 수익성을 기대할 수 있는지 좀 궁금하고, 그리고 이제 그 EPC와 발전 사업 매각 같은 경우도 4분기에 KRW 1 trillion 매출액이 나오면 어느 정도 수익성을 기대하는지 좀 궁금하고요. 마지막으로 전반적인 시장 상황입니다.
이제 뭐 저희가 보니까 이제 시장에서 많이 금리 인상으로 인한 여러 가지 이제 신재생 에너지 투자에 대한 안 좋은 센티먼트들을 반영하고 계시는 것 같은데, 뭐 이제 퍼스트, 그 넥스테라나 이런 쪽들 같은 경우에는 보면은 유틸리티 쪽은 여전히, 모듈 가격 하락이나 이제 배터리 가격 하락으로 인해서 원가가 내려가면서 진행이 되고 있는 것 같은데, 저희가 이제 판매하고 있는 여러 가지 모듈들의 이제 엔드 유저 쪽의 시장 상황은 어떠한지 좀 같이 시장 상황을 공유해 주시면 감사하겠습니다. 이상입니다.
Thank you for the opportunity. I have general questions about the renewable energy. First, during the presentation, you mentioned that during the Q3 period, the module performance was relatively low and therefore the shipment declined. So how can we interpret this performance in terms of the ASP and the total shipment? And if you could share with us the Q4 prediction of the module performance. The second question is that during the presentation, you also mentioned that the lower price of module and wafer will beginning to be used from Q4. Outside of the AMPC impact of KRW 35 billion, what will be the expected performance for that, or the expected impact of that in Q3?
Third question is, that with the EPC and, the power, generation project, then you expect about KRW 1 trillion in sales in Q4. And how does that translate into the profit? And the next question is about the general market, condition and the prospect. According to the market analyst, is that a high interest rate might not work in the favor of having additional investment into this area. And while the utility market, the module and the battery price declines, and that works in the favor of the utility overall. But when it comes to the module, it might not be the case. So can you share with us your overall outlook for the market?
네, 먼저 첫 번째 질문에 대해서 답변드리겠습니다. 이번 저희 삼 분기 신재생 에너지 부문의 매출이 이 분기 대비해서 감소했는데요. 두 가지 원인입니다. 일단 판매량 같은 경우에는, 예전에 말씀드린 대로 전분기 대비해서 약 10% 정도 내외로 감소했고, 이 부분은 시황에 기인한다기보다는 일반적인 변동폭 범위로 생각하시면 될 것 같습니다.
So let me first respond to the first question about the third quarter performance. As you have mentioned that the sales for the third quarter declined from the previous quarter, and we believe that there could be two reasons behind it. First, the shipment declined by about 10% Q and Q, and that is not necessarily because of the market, but it is just a general trend.
그리고 나머지 부분은 판가 하락인데요. 아시다시피 최근에 전 밸류 체인에 걸쳐서, 제품들의 가격이 떨어지고 있습니다. 하지만 저희는 이제 판가와 원가가 동시에 하락한 그림이었고, 이번 삼 분기는 일시적으로 원가의 하락폭이 판가의 하락폭보다 좀 더 컸습니다. 적었습니다. 그러니까 판가의 하락폭이 원가의 하락폭보다 좀 컸기 때문에 저희가 전분기 대비해서 일시적으로 스프레드가 축소된 영향이 있었습니다.
And the other reason could be the ASP. So we have been witnessing the decline in the price of key products throughout the whole value chain. And for our company, so we have witnessed a decline in the ASP as well as a decline in the COGS. In Q3, that we have witnessed a wider degree of decline in ASP instead of that from the COGS, and that has contributed to the temporary narrowing of the spread.
이 부분은, 지난 분기에도 설명드렸듯이, 국가 원재료가 투입되는 그 판가 반영보다 이제 국가 원재료가 투입되는 그 기간의 차이로 인해서 저희가 일시적으로 나타난 현상이기 때문에, 저희 사 분기에는, 스프레드는 반대 방향으로 저희한테 긍정적인 부분으로 작용할 것으로 생각하셔도 좋겠습니다.
As was mentioned earlier, this is due to the temporary impact of the timing differences of the price reflected into the price of the relatively high price raw materials reflected into the P&L. So we expect that from the Q4, the spread will turn in our favor.
[Foreign language].
So for the Q4 outlook, we expect the shipment to grow by 20% Q- on- Q, and also spread will turn in our favor. And especially there will be a very strong demand for the U.S. module, and we expect the UFLPA will take effect from that period. So we believe that we will be able to defend the ASP quite successfully, and the COGS will be stabilized. So we will move away from the temporary narrowing of the spread in Q3, the operating profit in Q4 will recover.
[Foreign language].
I believe that I answered your first two questions. Regarding the annual guideline or the guidance for the total shipment, the earlier figure that we have shared with you will be the early to mid 8 GW. I would like to correct the figure to the early 8 GW. The reason for the modification is that as we are coming closer to the end of the year, then all the plans or the forecasts are beginning to be realized.
[Foreign language].
Let me respond to the third question about the EPC and the sales of the power generation project.
[Foreign language].
[Foreign language]. So the guidance figure for the Q4 sales is KRW 1 trillion, and that will especially come from the U.S.'s ESS-only project sales. If you would remember, the same period last year, we've had a quite favorable result from the sales of the ESS-only project in the U.S. market.
[Foreign language].
[Foreign language]. So looking into the current environment, especially in such markets as Europe, because of the inflation and the high interest rate and the stabilization of the utility price, some projects are being delayed, but that is not the case in the U.S. market. So we have proven with our actual performance that the demand is quite strong with the development and EPC project, and we were able to complete one sales of a project in the third quarter.
[Foreign language].
So in Q3, because of some of the delay in the product sales, that we were not able to record, the sales or the performance, that is short of the guidance figure. But in Q4, things will turn around. So from the EPC, and the power, generation project only, that we can have, the sales worth KRW 1 trillion, and, the operating margin, OPM, will be, in a bit, one digit.
[Foreign language].
About the fourth question, and the market prospect. Let's first look into the installation. In terms of actual installation, we have witnessed a strong demand or the increase versus last year, so it has been very promising so far.
[Foreign language].
As for the last year, the actual installation was around 220 GW globally. But this year the number is expected to grow to somewhere between 300-400 GW.
[Foreign language].
[Foreign language]. Especially in case of the European market, because of the added stress on the energy security and the interest on the renewable energy, the initial forecast of the market size of 50 GW has been modified to 60 GW.
[Foreign language].
[Foreign language]. In case of China, we expect the installation volume will be around 200 GW. In case of the U.S. as well, the market size will grow to 30 GW.
[Foreign language].
[Foreign language]. So as was mentioned that we have witnessed a very solid global demand, but you might wonder how you can interpret the falling price throughout the whole value chain.
[Foreign language].
[Foreign language]. So I believe that for my interpretation of what is happening in terms of the falling price throughout the whole value chain, is that the past practice of the stronger price that has been driven from the tug of war between the supply and demand for the products that is in the whole value chain are starting to be stabilized. But we need to take a look at the region by region or country by country. So first off, the European region, as there is no trade barriers such as tariffs, so especially around utilities, the prices are starting to be stabilized.
[Foreign language].
[Foreign language]. But in case of the U.S. market, the ASP is declining, but it is maintained in the premium range. So we have witnessed some downward trend, but there is a very strong force that goes against it.
[Foreign language].
[Foreign language]. So starting from installed in the U.S. is operational. So as for the year 2024, we expect the U.S. market share or the company share of the order dependence on the U.S. market will further increase. So barring any stronger or the increase in the COGS, we believe that the spread will work in our favor.
[Foreign language].
[Foreign language]. In case of the European market, so we are responding quite actively to the utilities market and increasing our value or the share to the residential and the commercial market.
[Foreign language].
[Foreign language]. For the European market, so we want to further stabilize our profitability, and we are focusing on transitioning from the provider of the simple module into the distributed service provider that we first introduced in 2020.
[Foreign language].
[Foreign language]. On a long-term basis, for the European market, we will continue to sell our assets and the products as well as expanding our business area into the sales of electricity and VPP. When you look into the new residential installation of the solar panels and about 80%-90% of the cases come along with that ESS installation. So that is a massive growth from the previous tendency. So, and also that works in the favor of our aspiration of reinventing ourselves as a distributed power generation service provider.
[Foreign language].
One more thing is that as all of our new production facilities in the United States are operational, so we'd like to update you with the new capacity figure.
[Foreign language].
[Foreign language]. So the earlier figure that we have given you in terms of the capacity was 10 GW for cell and 12.4 GW for module. With the opening of the U.S. facilities, that we were able to add 3.4 GW from the U.S. and from the Korean facilities that we are beginning to manufacture TOPCon. And that come with the added efficiency and also from our manufacturing facilities in other regions that we have actually improved the manufacturing process, thus increased efficiency. So with that said, the revised figure will be for cell, that will be 12 GW and for module 17.8 GW.
The following question will be presented by Parsley Ong from JP Morgan. Please go ahead with your question.
Hi, this is Parsley. Thank you for the chance to ask question. Firstly, I just want to clarify, you mentioned that your capacity plan will be TOPCon. So does that mean as of end 2023, you will have 4.9 GW of TOPCon capacity out of your total capacity of 17.8 GW? Or if not, then what is your TOPCon percentage mix now, and then by 2026 or 2027, what will it be? And if I calculate your, based on your shipment numbers in third quarter, I think your module ASP declined by about 25% quarter-on-quarter on average. Which region did you see a more severe ASP decline in and, or maybe residential versus utility, where are you seeing the largest declines?
Do you see potential for your ASP to be flat in fourth quarter? Because the wafer costs have been going down, so in that case, you might see a margin recovery. Lastly, on your shipments, you mentioned 2023 shipment is 8 GW, but now your module capacity is 17.8. And I noticed that based on your AMPC volumes, you only produced 0.9 GW in the U.S. in the first three quarters of this year I think, versus your old U.S. capacity or existing U.S. capacity of 1.7 GW. So, going into 2024, given your higher capacity numbers, could you share with us what kind of shipments you're expecting? And if there is underutilization of your module or cell facilities in any region, what is causing that? And also, if you could split your module shipments for 2024 into U.S. versus entire company, that'll be appreciated. Thank you.
[Foreign language].
... 다음 질문으로 드리고 싶은 것은, 2023년도에 모듈의 capa가 8 GW, 판매량이 이제 guidance로는 8 GW인데 지금 이제 너무 capa가 모듈이 17.8 GW로 증가를 하였습니다. 그래서 AMPC 등을 보았을 때, 지금 이제 최초의 삼분기 동안 미국에서는 1.7 GW의 capa가 있었음에도 불구하고 0.9 GW 정도만 생산을 해왔던 것 같습니다. 2023년도에는 이제 capa가 늘어날 것으로 예상하고 있는데, 실제의 그 출하량은 어떻게 될 것인지 같이 그 숫자를 공유해 주시면 좋겠습니다. 혹시라도 특정 지역에서 이런 설비가 사용이 다 되지 않는 underutilization이 발생을 하는 곳이 있다면 그 이유가 무엇인지도 같이 말씀해 주시면 좋겠고요. 2024년도에 그 모듈 출하량 중에서 미국하고, 그리고 회사 전체 나머지 부분에 그 구분이 어떻게 되는지 말씀 부탁드립니다.
먼저 첫 번째 한국 공장 같은 경우에는 TOPCon 생산을 이제 본격적으로 개시를 했습니다. 지금 저희가 마케팅을 하고 있는 상황이고요. 한국 공장 케파가 기존에 알려드린 거는 아마 4.9 GW가 아니라 4.5 GW일 텐데, 지금 아까 말씀드렸던 TOPCon으로 인한 효율 개선 때문에 공장 케파가 6.1 GW까지 증가했습니다. 그래서 연말 17.8 GW 중에 이제 한국 공장이 6.1 GW인데, 이 중에 현재 기준으로 TOPCon은 약 1.4-1.5 GW 정도의 케파를 보유하고 있고요. 저희가 아직 초기이기 때문에 이 케파는 점차 증가할 수 있고, 저희가 마케팅 해보는 피드백에 따라서 2026년, 2027년 향후에 전체에서 TOPCon은 어느 정도 비중으로 가져갈지가 결정이 될 것 같습니다. 아직은 분기 중이기 때문에 제가 이런 부분은 아마 연말에 Q4 연간 결산을 하면서 좀 정리해서 말씀드릴 수 있을 것 같습니다.
Regarding your first question about the TOPCon, is that you're right, that we have started manufacturing or utilizing the TOPCon in the Korean facilities, and it is very early, so we are still in the marketing phase. So for the existing Korean capacity was 4.5 GW instead of 4.9 GW. But with the transition into TOPCon or the addition of the TOPCon, with the improved efficiency, the number has been changed from 4.5 GW to 6.2 GW. And just to give you the breakdown, out of the total capacity of 17.8 GW, it will be safe to say that about 1.4-1.5 GW is from TOPCon.
It is very early stage, and we plan to gradually increase the share of TOPCon. Based upon the response that we are getting and we will be getting from our marketing initiatives, then we will know for sure as to what will be the share of TOPCon for the year or the period of 2026 and 2027. I would rather not share any details or the work in progress with you as we are still in mid of quarter. I will be able to share with you with more details in our next earnings call when we give you the annual briefing.
두 번째, 이제 삼분기에 어느 지역 아니면 어느 섹터에서 가격의 하락이 좀 두드러지게 나타났는지를 궁금해하셨는데요. 일단 지역으로는 아까 서두에 말씀드렸듯이 유럽 지역이 조금 더 두드러진 하락세를 보이고 있는 상황입니다. 아시다시피 저희는 유럽과 미국을 합쳐서 거의 60%, 70% 가까이 이제 판매 지역 믹스가 되어 있기 때문에 그 두 지역이 가장 중요한데, 유럽이 미국보다는 좀 더 큰 하락폭을 보였고요. 섹터별로는 사실 이제 단기적으로는 QOQ로 봤을 때는 레지덴셜 쪽이 조금 더 하락폭이 있었습니다. 오히려 유틸리티 같은 경우에는 저희 판가 기준으로 했을 때, 이게 과거에 계약을 하고 저희가 딜리버리 타이밍이 뭐 3개월, 6개월, 길게는 1년까지도 뒤에 딜리버리가 되기 때문에, 시장의 가격과 저희의 판가의 믹스는 다를 수 있습니다. 그런 측면에서 저희 판가의 유틸리티는 좀 방어가 되는 분위기로 가고 있는 것 같고요.
그래서 이제 아까 말씀드린 그런 영향이 삼분기보다는 사분기에 조금 더 있을 것 같고, 또 사분기 이후에 이제 내년까지도 그런 이제 좀 변동성이 있을 생각을 해볼 수 있을 것 같습니다. 이 부분은 사실 시장의 흐름이 저희의 회사의 흐름과 반드시 일치한다고 볼 수는 없을 것 같아요, 특히 하락폭이라든가 이런 부분들은. 하지만 대략적인 방향은 사실 섹터에 상관없이 조금씩 하락세에 있는 거고, 저희 입장에서 중요하게 보는 거는 이제 원가와의 스프레드인데, 원가도 같이 하락을 했기 때문에 단순 ASP 하락에 대해서는 향후에 굳이 부정적으로 우려를 가질 필요는 없다. 이렇게 보고 있습니다.
Regarding your second question, of any region or any sector that has experienced more wider or more pronounced ASP decline in the third quarter. So as I have briefly mentioned earlier, so we have witnessed the wider range of decline in ASP in the European market. As you might know, that Europe and the U.S. combined, that accounts for 60%-70% of the shipment. So these two regions are very important, and we have witnessed some ASP decline in Europe. In terms of which sector has experienced wider decline in the ASP, if I may share the QOQ basis, that we have seen the wider decline in the residential sector.
In terms of utility, our ASP is determined based upon the contract where the delivery might take place with the 3, 6 months or the 1 year time left. So there will be some of the lagging effects. So the current market condition might not necessarily be in line with the company's ASP. So that is the reason why I share with you that the company will be more affected by this declining price in the Q4 instead of a Q3 and maybe next year. Once again, the trend of the market might not necessarily be in line with what the company is experiencing at the moment, but the general direction is something that we are witnessing on the same, that the price ASP is declining.
But it does not necessarily mean that things are going against our favor, because we have also witnessed the decline in the COGS. What is more important is the spread between the ASP and the COGS.
그래서 사분기에 이제 스프레드 개선의 배경이 판가는 슬랙하고 웨이퍼 가격은 이제 떨어지는 것인지를 이제 궁금해 하셨는데요. 일단, ASP가 하락을 하더라도 2Q 대비해서 삼분기에 하락한 폭보다는 훨씬 미미한 수준일 것 같고요. 사실 이제 ASP 자체가 하락의 방향성을 잡을지는 좀 아직까지 말씀드리기가 정확히 말씀드리기는 좀 어렵습니다. 다만, 아까 말씀드렸듯이 원가 또한 같이 하락하고 있기 때문에, 만약에 둘에 다 동시에 동반 하락을 한다 하더라도 ASP의 하락폭이, 원가 하락폭보다는 적을 것으로 생각이 됩니다.
And also asked that the expected improvement in the spread in Q4 is because of the falling wafer when the ASP might remain as flat. To respond to this point is that ASP might go down in the next quarter, but in terms of the magnitude, that ASP decline from Q2 to Q3 has will be even more than what we will expect to see in terms of the ASP trend from Q3 and Q4. So if and when ASP falls in Q4, it will not be as much as what we have experienced in this quarter. And we are not yet sure if ASP will continue to decline, but if and when that is the case, then we are also witnessing the COGS decline as well.
So what is even more important is the speed or the magnitude of the ASP going down. If it falls faster than the COGS, then it might have a different impact.
그리고 이제 셀과 모듈의 Capa의 차이에 대해서 말씀 주셨는데요. 일단은, AMPC, 그동안 들어왔던 금액에 근거해서 저희의 미국 공장, 기존 공장이 가동률이, 가동 수량이 1.9 기가로 추산을 하셨는데, 사실 AMPC가 상반기에는 과거 재고분에 대해서는 해당이 되지 않기 때문에, Capa 자체는 생산 자체는 풀로 돌렸다고 보시는 게 맞고요. 그리고 이제 지금도 사실 이제 2023년 말 기준으로 저희가 Capa를 업데이트 해드렸는데, 그 이전 버전에서도 셀 Capa가 모듈보다 좀 작은 상황이긴 합니다. 앞으로 이제 미국 공장 가동을 더 하면서 다른 쪽에 이제 가동률 조정 가능성에 대해서 질문을 주셨고, 아마 다양한 방안을 검토할 것으로 생각이 듭니다. 원래부터 사실 미국 공장 증설을 발표하던 시점부터, 이 셀과 모듈의 Capa 차이는 예정되어 있었기 때문에, 저희가 어떻게 가동하는 것이 가장, 좋은 방안인지 고민을 해서 검토를 할 예정입니다.
Regarding your next question, the differences between the cell and module capacity. So you use the AMPC figure to come up with the production volume of 0.9 GW for the U.S. facility. But one caveat that I'd like to share with you is that AMPC does not necessarily include the past inventory for the first half. So because of that reason, I can say that our U.S. facility, even before the addition of these new lines, was at the full capacity or the full utilization. And you also mentioned that the cell volume was lower than the module, and that has been the case consistently, even when we announced our plan to actually increase the U.S. capacity.
Regarding the adjustment of this utilization in other parts of the world that we are looking into, many different options so that we make a best use of this added line, and we might implement a differential approach.
All the cells we have, the maximum nominal production will be 12 giga. But as you know, there is also a maintenance period, and we are continuously doing process improvements, transition to TOPCon, etc., so probably the 12 giga should be understood as the effective Capa level. What is certain is that this year is shipment in the early 8 giga, compared to this, next year our sales volume increase is expected, I can say that part.... You asked about the regional proportions. To maximize the benefits of AMPC as much as possible, we plan to operate the US factory to the maximum as soon as it is ready to operate. The US market situation I mentioned earlier is also a bit more attractive than other regions.
그래서 지금 미국 공장이 나중에 이제 8.4 GW가 된다고 하면은 2024년 말에, 그러면 저희가 셀이 이제 12 GW니까, 가장 보수적이고 단순한 계산으로 봐도 이제 70% 정도가 됩니다. 그래서 미국 비중이 저희가 예전에 미국 투자 발표 말씀드렸을 때처럼 2025년에 70%를 타겟하고 있는데, 자연스럽게 미국 비중이 이 정도 수준까지 증가할 것으로 예상이 되고, 나머지 지역은 이제 저희가 늘 강조하는 유럽, 한국, 일본 등지에 판매가 될 것이고, 거기서는 당시에 이제 시황 상황에 따라서, 시장 상황에 따라서 유동적으로 로케이션 할 예정입니다.
And about the next year's shipment. So by the end of this year, we will have the cell capacity of 12 GW. And on the assumption that we did not, we do not actually purchase anything from outside in terms of the sale, then we will have the full 12 GW capacity for sale. But of course, there are some practical considerations and limitations. The plan to turn around and also the ongoing improvement of our process. The transition into TOPCon will prevent us from utilizing the full 12 GW of the cell capacity. So please look at it as a nominal capacity. So I share with you the actual shipment, the guidance figure for the module shipment was nearly 8 GW.
But considering this increase in capacity, the figure for next year will definitely increase from on that one. And also to maximize the benefit from the AMPC that we will have the full utilization of the U.S. facility as much as possible. And that is also driven by the fact that the U.S. market, the market condition is more attractive than that of other markets. So, by the end of 2024, the U.S. market capacity or the production capacity will be at about 8.4 GW, and our total cell capacity as of end of this year is 12 GW. So if you just apply very simplistic and a conservative approach, that accounts for over 70% of that.
When we announced our plan to invest in the U.S. to expand the manufacturing facility, we said that we will target about 70% of our shipment will go into the U.S. market by the end of 2025. I believe that we are going into that direction. For the distribution into the other regions such as the Europe, Korea, and Japan, then we will look into the how the market fares and respond to the situation flexibly.
The following question will be presented by Jae-Sung Yoon from Hana Securities. Please go ahead with your question.
네, 질문 기회 감사합니다. 하나증권 유재성입니다. 두 가지 질문이 있고요. 일단 첫 번째는 일회성 관련된 이익들이, 이익이나 손실이 있는지 궁금합니다. 예를 들어서 태양광 비즈니스에서 평가가 많이 하락했는데, 관련해서 재고 손실 금액이 혹시나 발생했는지 궁금하고, 그리고 케미칼이나 지분법 회사에서는 재고 관련 손실이 환입된 부분들이 있는지 말씀 부탁드리고요. 그리고 두 번째는 화학 사업, 내년도 회사에서는 어떻게 전망하고 계시는지 전반적으로 말씀 좀 부탁드립니다.
So I have two questions. First is about one-time expense or loss. For example, from the renewable business, because of the change in the ASP. Was there any inventory impairment and/or from the chemical and equity method gains or loss, was there any inventory impairment that has been re-included? And second is about the general forecast of the company's chemical business for next year.
아, 네. 케미칼 관련해서 내년도 사업 전망 간략하게 말씀드리겠습니다. 아직까지는 경기 회복에 대한 불확실성 그리고 지정학적 리스크 등이 존재하기 때문에 케미칼의 전반적인 시황 회복 시점이 언제가 될지는 조금 더 지켜봐야 될 것으로 보입니다. 다만, 현재 각 제품의 스프레드나 가격이 이미 좀 낮은 수준이기 때문에 추가적인 하락폭은 제한적일 것으로 예상을 하고 있고, 경기 회복에 따른 수요가 반등을 하게 되면은 실적 개선을 내년도에 좀 기대는 해볼 수 있을 것으로 보입니다.
Let me respond to your second question first. Our outlook was forecast for the chemical business for the year 2024. So, it is still unclear when the economy will turn around, will be better, and we still have quite threatening geopolitical challenges. So, when things will be better, we will have to wait and see. And what I can share with you is that the price of the major products and the spread is already at a very low range. So we do not necessarily expect there will be the further room for decline in the price or the spread. But we are hopeful that there could be an upside potential if things turn around politically.
삼분기 같은 경우는 지금 저희가 파악하고 있는 재고 관련 일회성 비용은 현재 없다고 말씀드릴 수 있겠습니다.
To respond to your first question, as far as we know, there is no one-off expenses related to our inventory.
네, 시간이 다 돼서, 이것으로 오늘 저희 한화솔루션 2023년 3분기 실적 발표 기업 설명회를 마치도록 하겠습니다. 다음번에는 더 좋은 실적을 들고 찾아뵙도록 하겠습니다. 감사합니다.
With that, I'd like to conclude the earnings call for the Q3 of 2023. I promise that we will come back with you with better performance on the next call. Thank you and goodbye!