Good afternoon. I am Shin Yong-In, CFO of Hanwha Solutions. First, I'd like to thank all the participants to the call. I will go over the P&L and the general financials of Hanwha Solutions for the period of the second quarter of 2022. First, on P&L. Please refer to page eight of the presentation. The consolidated sales of the Q2 2022 increased by 14% QoQ to KRW 3,389.1 billion. This is largely due to higher sales volume and the ASP in renewable energy and a quarterly increase in revenue in chemicals, advanced materials, and the Hanwha Galleria as well. As higher ASP turned around the renewable energy division, the operating profit increased by 76% QoQ to KRW 277.7 billion. Please refer to the bottom of page eight for performance by division. Next, on financials.
Please turn to page nine. As of the end of the second quarter of 2022, the total assets increased by KRW 2,476.8 billion from the end of the previous year to KRW 22,484 billion. Cash and cash equivalents increased by KRW 262 billion from the previous year-end to KRW 2,016 billion. The total debt increased by KRW 1,558 billion from the previous year-end to KRW 13,364 billion. The total borrowings increased by KRW 845 billion from the previous year-end to KRW 6,719.8 billion. The net debt increased by KRW 582 billion from the previous year-end to KRW 4,602 billion.
The total liabilities to equity ratio increased by 3 percentage points from the year-end to 147%. The net debt to equity ratio increased by 1 percentage point to 50%. Next, performance by segment. Renewable energy. Q2 sales of the renewable energy division recorded KRW 35.2 billion and turned around. As the fast rise in the price of fossil fuel drove electricity price higher, it created a conducive environment for stronger module price. Coupled with overall strong demand, the sales increased. In Q3, boosted by the strong global installation demand, the module price is expected to show strong upward tendency, allowing for additional profit improvements. Next, on chemicals. The prolongation of higher materials costs, including the oil price due to the war in Ukraine, and the seasonality of some key products rendered the spread to narrow.
The Q2 operating profit for chemicals decreased by 11% QoQ to KRW 228 billion. As the strong materials price is expected to continue in Q3, the sluggish economy will dampen the demand to further narrow the spread and smaller operating profit. Next, advanced materials. Due to strong production and the sales of automotive and the solar customers, the Q2 RP of advanced materials increased by 453% to KRW 16.6 billion. For Q3, however, the operating margin will decline as major customers will go on summer vacations. On Galleria. Despite sales recovery during the second quarter with the relaxing social distancing measures, the property tax payment impacted operating profit to decline by 60% to KRW 3.6 billion.
While the seasonality is expected to affect the sales negatively in Q3, the base effect of property tax in the previous quarter will drive the Q3 operating profit. Equity method income. Equity method income in Q3 recorded KRW 55.2 billion, thanks to stronger performance of key equity method companies due to better spread of key products and favorable exchange rate. In Q3, the slow economy will weaken the market of key products, reducing the equity method income. This concludes the earnings presentation. Thank you for listening.
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 star and number one. For cancellation, please press star two, that is star and two on your phone. The first question will be presented by Hyun-Yul Jo from Samsung Securities. Please go ahead with your question.
[Foreign langugage]
There are two questions, but because of the poor connections that I tried to connect, cover as much as possible, but there could be some missing. The first question or there are two questions about the renewable energy, and it seems that the performance is actually much better than the expectations. The question is that was there any increase in the volume, and any price related changes that is out of the bounds of expectation? The second question is that it has been recently reported that the solar energy related legislation in the United States is in a more favorable position to be passed.
If it turned out that the bill is to be passed within the timeframe that is supposed to, then what kind of impact do you expect to see for Hanwha Solutions?
먼저 저희의 이분기 실적이 그 태양광 신재생 에너지 부문의 매출이 전분기 대비 34% 증가했고, 여기에 가격의 영향 말고 물량의 영향도 있는지 질문을 해주셨고요. 저희는 네, 둘 다 영향이 있습니다. 가격도 저희의 판가도 상승을 했고, 물량도 전분기 대비해서는 좀 의미 있게 증가를 했습니다. 기존에 저희가 연간으로 가이던스를 드리는 거는 8.2기가와트 정도의 외부 판매 가이던스를 드린 바 있는데요. 이번 분기에 이를 8.5기가와트로 소폭 상향하고자 합니다. 그리고 이 중에서 일분기의 판매량이 8.5기가와트 기준으로 하면 분기당 약 2.1기가에서 2.5기가 정도 사이가 되는데, 요거보다는 좀 많이 못 미치는 수치였습니다, 일분기는. 왜냐하면 비수기라던가 뭐 이런 영향이 좀 있었고요. 아무래도 이분기는 저희가 기존에도 계속 판매량 회복에 대해서 좀 시그널을 드렸고, 실제로 저희가 활발한 영업활동을 통해서 물량이 2기가 이상 판매된 것으로 보시면 되겠습니다.
The first question is that on the QoQ basis, the sales increased by 34%. Is that attributable to the price or the volume? I would answer that the two factors affected the stronger performance all at the same time. ASP of course helped, but there was a meaningful increase in the sales volume. We have given you as a guidance for the external sales of the renewable energy to be 8.2 GW, but we'd like to revise this figure for this quarter slightly to 8.5 GW. If we divide that evenly into quarters, then we would expect to see somewhere between 2.2 GW-2.5 GW sales.
I have disclosed to you earlier that for the first quarter, we were not able to meet that quota. That is because of the seasonality and other issues. For the second quarter in the previous call, I have signaled that there is a signs of recovery. True to that, for the second quarter, we were able to record about 2 GW of sales.
그리고 그 시장에서 보시는 가격 대비해서 저희의 ASP 상승에 대한 부분이 좀 괴리가 있다고 생각하시는 부분이 있었고, 그래서 어느 지역에 주로 어느 지역의 믹스로 인해서 그런 부분이 발생했는지 질문을 주셨는데요. 시장 가격은 사실 굉장히 지역별로 다양하게 나타나고 있습니다. 하지만 객관적으로 리서치 데이터들을 통해서 보시는 가격은 조금 중국 내수 가격에 좀 근접한 가격들이 많이 회자가 되는 것으로 저희도 알고 있습니다. 하지만 저희의 판매 지역은 아시다시피 미국과 유럽을 중심으로 나가고 있고, 중국 내수 가격, 중국 내수에는 거의 판매를 하고 있지 않기 때문에 전체적으로 저희의 판매 믹스가 좀 다른 부분에 대해서 저희의 그 가중평균된 판가는 시장 가격 대비해서 좀 높게 또 상승 추세를 탔다고 보시면 되겠습니다.
There were questions about some of the seeming disparity or the gap of the company's ASP versus the market ASP. That could be explained with the different concentration of the sales area of the company. As you are aware, that ASP vary by region, by country. If you refer to the data published by the research agencies, then it is mostly centered around the domestic Chinese product. As you're well aware, then our customers are mostly located in the United States and the European countries. It has some disparity or some gaps in terms of the ASP versus the domestic price of the Chinese market. Considering our sales mix and the geographical mix, the ASP of the company is slightly different than the market average.
The next question is, the U.S. energy bill that is more likely to be passed and what kind of impact it will have on the company overall. We are still waiting for the final bill to be passed. We have shared with you on multiple occasions that we are developing our major long-term expansion plans and also some of the additional growth strategy. For various scenarios that we are actually reviewing our response strategy. We will have to wait and see what the final big bill will look like. I believe that we will have plans and strategies in place to respond to any upcoming scenarios.
The next question will be presented by Dong-Jin Kang from Hyundai Motor Securities. Please go ahead with your question.
First of all, congratulations to turning around in the renewable energies after a long slow quarters. I have three questions around that topic. The first is that according to your IR presentation, you have predicted the ASP for the third quarter to remain in a very strong upward trend. It also is predicted that the price of wafer and the polysilicon is expected to be higher than the previous quarter. Despite the fact that you expect the profitability to be further expanded, do you forecast that the other raw material cost and the logistics cost will turn to your favor? The second question is that out of the total outward volume of 8+ GW, then can you share with us the regional breakdown as to where does this volume go?
The third question is that it is expected that the ASP increase will be much faster in the European region. What is your forecast for your main markets of Europe and the U.S.?
For the third quarter, we expect the strong profit will be continued. Let me explain the background behind that. As you are aware, the electricity price are on the rise, and that is creating a conducive environment to drive the demand for the solar panel. As you're aware that we have had some hard times or difficult times because of the cost pressure, and we might be able to overcome this pressure with a higher ASP because of this conducive environment. As the electricity price will expect it to remain high, so our forecast for the second half will remain positive.
[Foreign language]
For the raw material cost, during the second quarter, the price of the raw material dropped slightly, but it has rebounded. For other materials, it remained on the rise. We actually recognize the cost on the average. If there is any change or the volatility, so we are in the better position because some of the inventory that we have purchased at a lower price could be reflected. Overall, the raw material cost will remain strong. In the third quarter, this wafer and the polysilicon price will continue to rise. Also the EVA sheet and the glasses, and especially glasses, are manufactured and/or purchased from China. In China domestically, the module price remains rather strong. There is the price resistance.
There is a possibility that the price of other materials might be weakened, but we are actually favored by the stronger ASP or a higher ASP that is boosted by the higher electricity price, and that will further drive the spread.
[Foreign language]
To sum up, the price for the materials will remain high and will do so for foreseeable future. We do not expect to see some major fluctuation. The high price will be maintained, and we are not forecasting also any sudden rise in the price.
[Foreign language]
About the second question, the regional breakdown of 8+ GW. To give you the regional breakdown, the U.S. and the European market accounts for 50%-60% of our overall sales. Of course, there could be slight up and down on a quarterly basis. This portion of these two markets remain very high and they have a very strong strategic importance for us. We will continue to focus on these markets to have a higher market share.
[Foreign language]
Overall market forecast including the U.S. and European market. The global installation demand was forecasted at 200 GW. That was the bottom line, but it is the current trend that this forecast is being revised upwards. In line with that, we are looking at the global installation demand to increase to 230 GW. That is a huge increase from the previous year, where it was somewhere between 180 GW-190 GW. For the European market, we expect the 30 GW will be met. Because the continued war on Ukraine is driving the electricity price higher, and there is a renewed awareness on the importance of energy security and the sense of urgency around that.
For the photovoltaics company, we are in a better position to secure the demand for the mid to long term basis. The market is more accepting the higher ASP than before. In Q3 as the summer holidays are in full earnest in major markets, we are not witnessing any major increase in ASP, but it is maintained at a very high range. The situation in the United States is pretty much the same, but the supply is in a tighter position. There is the policy implications as well. The WRO that was further escalated into UFLPA actually imposed some restrictions into the volume that are being entered into the U.S. market. Because of a very strong demand, we expect ASP to remain in a favorable position.
Because of the shortage in supply, the overall installation might decline than our original expectations. Overall, the European and the U.S. market will demonstrate a very strong demand, and that has contributed to our stronger performance for this quarter.
The next question will be presented by Parsley Rui Hua Ong from JPMorgan. Please go ahead with your question.
Hi, thank you for the chance to ask questions, and congratulations on the strong results. I have a couple of questions. First question is on the solar division. If I look at 2023 or 2025, could you share with us your expected sales mix by geography? Would U.S. and Europe still be 50%-60% or could it be higher? What kind of volume growth are you expecting in the mid to long term? What is your margin outlook? Do you expect it to be sustainable at mid-single-digit margin? The second question is on your REC Silicon assets. I think you acquired a stake back in the past and there is an 18,000 tons per annum polysilicon asset there.
Under what conditions do you expect the plant to start up? If so, what earnings contribution do you expect? The third question is on your hydrogen business. I think in the past you were expecting some first sales to be booked in second half. Is that still the case? If that happens, will it be booked under—which division will it be booked under? Will it be booked under renewables division? Thank you.
[Foreign language]
Getting closer to the passing of the bill, then if and when we see more favorable condition in the U.S. market, we will definitely focus on further increasing the sales in the U.S. market. Even though I cannot disclose any definite figures, we are going in the direction to increase the volume. One correction, the German volume was 4 GW plus alpha, but it is expected to be 7 GW for this year. For midterm volume, I have shared with you that we are actually reviewing the facility expansion and when the review process is completed and when we have some tangible figure to share, then we will do so. In the meantime, we are in the process of transitioning the wafers into the larger size.
Also we are introducing this NextGen technology. That will be completed somewhere in. That is something that is currently underway. When that is completed, then we will definitely see the stronger performance. In terms of the nominal capacity, the figure that we are using as baseline is 12.4 GW. That is the figure as of the end of 2021. In terms of the production and the sales that we are slightly behind that. I have shared with you the sales outlook for the modules is 8.5 GW for this year. Without any capacity expansion that are currently planned, process improvement will be able to support that increase.
As was reported by the media, we will add 1.4 GW to the U.S. module facility. The facility has 1.7 GW in its existing capacity, and we will add 1.4 GW sometime next year. This is something that we are planning in the next couple of years. The capacity expansion and improvement in the processes and also the commercialization of the NextGen technology. We are still trying to figure out the best way to commercialize or to complete the technology. Also there are some uncertainties surrounding the policies or the regulatory environment. We are trying to figure out the best possible strategy as to where do we focus on, and what and by how much.
When we have something more tangible, then we will share that plan with you. Also with regard to the margin outlook, so we are shooting for the mid to high single digit OPM. But as you are probably aware that we are making a huge initial investment, so the forward investments are making the margin outlook a bit weaker up front, but as time passes, we will definitely see a higher margin. If I may share some ambitious goal, then we are shooting for the double digit. For us to further improve the profitability, it all depends on the next gen module and also the generation business. The module price, the recovery of the spread is our utmost important task. If we maintain the mid to high single digit OPM, and then that will help us to recover from the prolonged deficit.
For the hydrogen business, there is no update with regard to electrolysis. For the advanced material, the high-pressure tank, the investment is currently underway for the facility in the U.S. We expect the facility to be completed. The construction of it will be completed sometime this year. With the contract with the Sunbridge Sunlight Energy, and the Shell, we will expect to see some meaningful performance starting from next year. Sunbridge Energy, correction. About the REC Silicon, it is a listed company, so we are sharing any updates in a disclosure, but we are targeting 2023. The reoperation, reopening of the facility is currently under discussion, so I might not be able to disclose any further details.
REC Silicon, we are recognizing that under the equity method, and unfortunately loss for the time being. The facility has been suspended, the operation of it has been suspended for some time. We would need to make sure that everything is in order, including the technology and the capability, before we start reopening. We are trying to reopen the facility as soon as possible.
The next question will be presented by Sunghyun Hwang from Eugene Investment & Securities. Please go ahead with your question.
Two questions. Based upon your sales guidance, and it is forecasted, or it can be estimated that in the third and fourth quarter, there will be 10%-15% growth. Am I right in expecting that? What will be the impact of the supply chain issues or the logistics cost for the second quarter? With the increase in the volume of the shipment, what kind of impact does it have on unit cost?
분기별로 봤을 때는 1분기가 가장 낮았던 출하량을 기록했다고 보시면 되고요. 2기가가 안 됐다고 말씀드렸으니까, 2기가 좀 많이 안 됐습니다. 그래서 그게 좀 특이한 분기였고, 나머지 분기들은 거의 이제 2기가를 상회하는 수준에서 연간 그 가이던스를 맞추는 방향으로 흘러갈 것 같습니다. 분기별 fluctuation은 저희가 보통은 5% 정도, 5%에서 맥스 10% 정도 내외니까요. 한 200메가와트 정도 플러스마이너스 최대 가능하고, 좀 특이한 분기에는 이렇게 지금 아까 말씀드렸던 1분기라던가 아니면 예전에 뭐 4분기에 수요가 갑자기 몰린다던가 뭐 이런 경우에는 최대 20%까지도 출하량 변동이 QoQ로 있었습니다. 하지만 2, 3, 4분기는 전반적으로 좀 뒤쪽으로 갈수록 조금 증가하는 것으로 잡아놨는데, 그 차이가 1분기와 1분기 대비 2분기 뭐 이런 차이보다는 근소하기 때문에 그 정도 감으로 사용감을 해주시면 될 것 같습니다.
As I said earlier, the first quarter, the shipment was the lowest. It was below 2 GW, but it was far below 2 GW. For the remainder of the quarters, it will record and it has recorded over 2 GW. With that combined, it will be able to meet the guidance. The fluctuation per quarter, we expect that to be somewhere around 5%-10%. It will be somewhere around 200 million GW, MW, 200 million W. In the first quarter, that was extraordinary situation on a quarterly, QoQ basis. On some occasions, in the previous fourth quarter, there was some huge increase in the demand and that has led to the 20% increase of QoQ.
That is an extremely extraordinary situation, and we do not expect that kind of major fluctuation to happen in the remainder of this quarter. Of course, we have forecasted the quarterly volume to increase quarter by quarter until the end of this year. 그리고 운송비 같은 경우에는 이 분기에 소폭 내려오는 모습을 보였습니다. 따라서 운송비가 차지하는 비중도 기존 대비해서는 조금 내려오는 모양새를 보였고요. 또 특히 한국 같은 경우에는 6월에 화물연대 파업이 있었기 때문에 국내에서 선적되는 물량도, 물론 저희 판매량은 QoQ로 늘었지만, 선적 측면에서 봤을 때는 조금 내려오는 영향도 있었습니다. 향후에 물량은 아까 말씀을 드렸고, 물론 당연히 물량이 올라가면 해당되는 판관비, 운송비에 대한 판관비도 증가하게 될 텐데요. 지금 전체적으로 해상운임에 대한 부분은
그 상반기보다는 하반기가 조금 더 안정화되는 부분으로 많이들 전망을 하고 계신 것 같고요. 물론 이제 뭐 그 코로나 이전으로 뭐 급격하게 하락을 하거나 이렇게 보고 있는 것 같지는 않지만, 전반적으로 이제 약보합 전환을 전망하고 있는 것 같습니다. 그래서 저희도 이제 추가적인 급격한 상승에 대해서는 전망하고 있지 않고, 같은 이제 맥락에서 전체적으로 전망하고 있다고 보시면 되겠습니다. In terms of the freight or the logistics cost, in the second quarter, it went down slightly. In case of Korea, in June, we had a trucker strike. So on a QoQ basis, even though the sales has increased, the overall shipment volume has decreased. When the volume increases, of course, associated cost as SG&A will increase as well.
International shipping fee or the surcharge was expected to be further stabilized in the second quarter, but it will not return to what it was before COVID. It is the general consensus that the price will remain in the slight downward trend, and we are not forecasting the freight cost to increase. 네, 그리고 두 번째 질문에서 그 영업외 저희 손익에 대해 브레이크다운을 요청하셨는데요. 저희 그 실적발표 자료 15페이지에 보시면은 금융손익이 이제 이 분기에 약 KRW 43 billion, 그다음에 기타손익이 플러스 KRW 45 billion, 그다음에 지분법이 이번에 손익이 개선이 돼가지고 KRW 15.2 billion 반영이 됐습니다. 그거 외에는 이제 특별한 사항은 없습니다. Additionally, you requested a breakdown of the non-operating income. That is, please refer to page 15 for the details.
If I may share some of the key highlights is that on the second quarter the financial income or loss was recorded to be KRW -43 billion and other income is recorded at KRW 45 billion. The equity method income or loss was recorded at KRW 55.2 billion. There is nothing out of ordinary.
다음으로 질문해 주실 분은 한화투자증권의 전우재님입니다. The next question will be presented by Woo-Jae Jeon from Hanwha Investment & Securities. Please go ahead with your question.
안녕하세요. 한화투자증권 전우재입니다. 태양광 발전소에 대해서 질문을 드리고 싶은데요. 첫 번째는 저희가 2020년부터 태양광 발전소 건설 사업을 진행했었고, 이게 올해부터는 한 2~3조 원 규모의 매출로 나와야 하는 걸로 기억을 하고 있는데, 올해랑 내년도 매출 가이던스 있으면 공유 부탁드리겠고요. 이어서 두 번째는 이 중 일부는 판매를 안 하고 발전소를 직접 운영해서 전기를 파는 쪽으로 계획을 바꾸고 있는 것으로 알고 있는데, 이게 전기를 파는 쪽이 더 큰 이득이어서인지가 궁금합니다. 그리고 세 번째 마지막으로는 혹시 2분기에 발전소를 운영해서 전기를 팔아서 번 이익이 신재생 부분 이익에 포함이 됐는지 궁금하고, 이게 하반기나 내년에는 어느 정도 매출 이익으로 반영될 수 있는지 알려주시면 감사하겠습니다. 감사합니다.
Three questions about the solar power generation. According to the previous announcement or the statement that you have started the construction from 2020, and you're supposed to start recording the sales from this year, and that is expected at somewhere between KRW 2 trillion-KRW 3 trillion. I'd like to ask for the sales guidance for this and next year. You have also stated that you have revised the original plan to operate some of the facilities yourself. What is the reason behind it? Because you can expect a higher profit by direct operation. The third question is that in the Q2, was there any profit recorded from the operation of the power generation facility? Was that recognized under the renewable?
Do you expect the sales to be recorded or the increase in the second half of this year or 2023?
저희가 이제 발전 사업 쪽에서 지금까지 두 번 정도 손익을 인식을 했고, 마지막이 작년 이분기였습니다. 올해는 초반에는 이제 가이던스를 드렸다가 아까 말씀하셨듯이 저희가 이제 전체 매각보다는 일부 매각을 하거나 일부 지분을 매각을 하거나 해서, 아니면 이제 아예 보유를 하면서 운영을 하는 레코드를 좀 가져가기 위해서 올해는 제가 매출 가이던스를 별도로 드리고 있지 않은 상황이고요. 그 부분은 이제 그대로 유지를 하도록 하겠습니다. 물론 이제 저희의 프로젝트별로 굉장히 많은 프로젝트들이 있고, 중간에 이제 전략이 조금 변경돼서 올해 뭐 매각을 할 수도 있겠지만, 그런 부분들은 지금은 예측하기가 좀 어렵기 때문에 저희가 변경이 돼서 실제로 나타나게 된다면 그때 공유를 드리도록 하겠습니다. 올해는 그렇게 계획을 잡고 있고요.
물론 말씀하신 대로 이십년에 시작을 했기 때문에 올해가 삼년차, 내년 사년차가 되게 되고, 중간중간에 포트폴리오들이 착실히 쌓아 가고 있습니다. 지금 저희가 파이프라인은 총 한 13기가 정도 규모 내외로 가지고 있고요. 사업을 여러 단계로 진행을 하고 있습니다. 아마 올해보다는 내년에는 조금 더 시간이 지나가기 때문에 내년에는 올해보다는 매각의 형태든 아니면 일부 지분의 매각 형태든 조금 더 feasible한 데이터로 말씀을 드릴 수 있을 것으로 생각을 하고 있습니다. 여기까지 먼저 통역 드리고 말씀드리겠습니다.
For the power generation, the last time that we have shared anything was the second quarter of 2021. That was the guidance that we have given to you. Ever since that, we have shifted our strategic direction. Instead of selling out all the facilities, we are currently debating between different options of the partial sales or the equity sales, or as you have mentioned, might operate on our own. Because of those uncertainties, I did not disclose any sales guidance for this year, and I will remain doing so. We do have a quite large number of projects, but it is too premature to share with you any definite prediction as to what and where and when will be sold this year.
When anything becomes feasible, then we will share immediately. As you have rightly mentioned, we have started project from the year 2020, so this year marks the year three and next year four. We are in the process of building various portfolio. In terms of the total pipeline, it is somewhere around the 13 GW. Next year I believe that I will be able to share something more tangible, if and when we will be able to sell the facility in what form, in what types of transaction we are entering into. Hopefully, we can share more detailed information with you starting next year.
이렇게 전략을 변경한 가장 중요한 시장 여건의 변화는 아무래도 전력 가격 상승입니다. 아시다시피 발전소라는 거는 결국엔 전력을 생산해서 판매를 해야 되는 자산인데, 이 판매 가격이 지금 전반적으로 PPA가 굉장히 많이 올랐습니다, 유럽 지역 같은 경우도. 그래서 저희의 프로젝트의 향후 이익에 대한 추정이 달라질 수 있기 때문에, 운영하는 방안도 적극적으로 검토하게 된 부분이 있고요. 그리고 기존에는 저희가 사업 초반이었기 때문에 아무래도 캐시의 conversion을 좀 사이클을 좀 빨리 가져가려는 그런 측면에서 매각을 우선으로 검토를 했다면, 앞으로는 방금 말씀드려준 사업 여건의 변화 때문에 저희가 전반적으로 프로젝트들이 장기적으로 봤을 때 수익성을 향상시킬 수 있는 그런 방향으로 같이 전략적으로 검토를 한 결과라고 보시면 되겠습니다. The biggest driver for the shift in our strategic direction is the price of electricity, because the power generation is the business that generates electricity and selling out.
As you are aware, the PPA has increased quite significantly, and especially in the European market. We are considering many different options to maximize the future profits. That is the reason why we are even considering operating on our own. In the beginning, of course, it's very early phase of the project. We were concerned or the more conscious of the cash conversion option. That is why we considered the overall sales of the facility. The market situation has changed. We are looking at a more strategic nature, long-term basis to maximize the profitability. 이익으로 들어온 부분에 대한 거나 하반기에 이제 방향은 지금은 공개적으로 들 수 있을 만한 수준은 아닌 것으로, 상황은 아닌 것으로 보입니다. 이 부분도 추후에 관련된 의미 있는 일이 기여될 때 설명드리도록 하겠습니다.
For anything that has been recognized as a profit in the second quarter. I do not have any meaningful figure to share with you. When it does then I will do so.
시간 관계상 마지막으로 한 분만 더 질문을 받도록 하겠습니다.
Because of the time, I'd like to take one final question.
마지막으로 질문해 주실 분은 하나증권의 윤재성님입니다. The last question will be presented by Jae-Sung Yoon from Hana Securities. Please go ahead with your question.
네, 말씀 잘 들었습니다. 하나증권 윤재성입니다. 두 가지 간단하게 질문 좀 드리겠습니다. 신재생에너지 사업부에서 QoQ로 판가 상승 효과가 어느 정도 되는지 궁금하고요. 이게 말씀하시기가 좀 어렵다면 지금 중국과 미국, 유럽 간의 가격 차이는 어느 정도가 되는지 그렇게라도 좀 힌트를 주시면 감사할 것 같고요. 그리고 두 번째는 최근에 폴리실리콘 가격 상승 업체에 대한 중국에서 뉴스도 나오고 있는 것 같은데, 증설이 많음에도 불구하고 최근에 폴리실리콘 가격이 센 이유와 향후 전망에 대해서 좀 의견 부탁드립니다.
Two questions on the renewable energy. Can you share the QoQ ASP increase? How do you translate the impact? If it's not something that you cannot disclose, then can you enlighten us on the ASP in the Chinese domestic market versus that of the U.S. and Europe? It has been recently announced that there will be the facility expansion in China for polysilicon. Despite that, the price of polysilicon remains very high. Can you tell us the reason why?
네, 저희가 판가 상승에 대해서는 사실 퍼센티지로 얘기를 한다고 해도, 지역별 가격이 다르기 때문에 아마 조금 더 감을 잡기 어려우실 수도 있을 것 같고요. 일단 저희가 지난 분기에 약 1,100억 정도의 적자에서 지금 350억 정도의 흑자가 됐는데, 된 데는 아까 말씀드렸듯이 판매량이 분기당 이기가 조금 넘는다고 평균적으로 말씀을 드렸고, 그러면 보통 단위가 와트당 달러니까요. 그런 단순한 계산으로 추정을 했을 때는 환율 효과 이런 거 감안했을 땐 최소 스프레드가 한 3센트 이상은 증가를 해야, 확대가 되어야 저희가 이렇게 분기별로 요 정도의 규모의 실적 개선이 가능한 것으로 단순하게 생각했을 때는 그런 식으로 볼 수 있을 것 같고요. 지금은 사실 ASP라던가 이런 부분들에 대해서 굉장히 조심스럽습니다. 업체들도 대부분 다 약간 컨피덴셜하게 가져가는 부분이 있기 때문에. 그래서 이 정도의 흐름은 우리가 있는 데이터를 가지고도 좀 단순하게 볼 수 있는 부분이라서 이 정도로 설명을 드리도록 하겠습니다.
If I were to give you the percentage of ASP, then it might further confuse you. What I can tell you is that we have recorded KRW 110 billion in loss, but we have turned around and recorded KRW 35 billion in profit. I have shared with you on a quarterly basis, we are selling about 2 GW. If we consider that watt per dollar, then the FX rate.
Of course, worked in our favor and for us to have meaningful benefit from the strategy has to be further than the $0.03 . With those performance on a quarterly basis that we expect to see some further improvement in the performance. The ASP is remained highly confidential by the leading players, and therefore, I am also quite hesitant and very cautious to share this ASP data with you. The polysilicon and the wafer as well do remain in very high price range for an extended period of time. For the buyers like us then, we were under the price pressure for an extended period of time. The facility expansion was able to contain the further price increase. That is something that we were able to witness from the end of the first quarter until the beginning of June.
That concludes our earnings call for the second quarter of 2022. Thank you very much for joining us.