Thank you for joining Q4 2024 earnings call. I'm Sumi Lee, COO of OCI Holdings Company. I will briefly go over the presentation materials uploaded on the company website. I will start from page five, which covers year 2024 annual business performance. In 2024, OCI Holdings recorded a consolidated revenue of KRW 3,577 billion and an operating profit of KRW 102 billion , resulting in an operating profit margin of 2.8%. Compared with last year, sales revenue increased by approximately 35%, while operating profit declined by 81%. The primary driver of revenue increase was the consolidation of OCI Company into consolidated financials as of January 2024, following its spin-off on May 1, 2023. Main reasons of the operating income decline were OCI TerraSus' polysilicon sales decline in the second half due to U.S. solar market uncertainty and DCRE's accounting loss due to overall cost increase and land devaluation loss.
For your understanding, OCI TerraSus is a new company name of OCI MSB, solar-grade polysilicon company in Malaysia. DCRE, the subsidiary doing urban development business, reported further losses expanding in Q4, contributing to the decline in operating profit. DCRE alone recorded an accounting operating loss of approximately KRW 140 billion. As you can see at the chart of annual performance of OCI Holdings' main business, 2024 was a difficult year. Each business segment struggled amid challenging external conditions. Next, page six shows Q4 2024 consolidated income statement. In Q4, sales revenue was approximately KRW 854 billion, while operating loss amounted to KRW 108 billion. Continuing from the previous quarter, weak market conditions, uncertainties surrounding the U.S. presidential election, and solar energy policy have persisted.
Shutdown maintenance of OCI TerraSus led to increased unit cost, along with inventory valuation loss and DCRE's inventory valuation loss recognition, also contributed to the sharp total loss. Page seven covers the consolidated financial position as of the end of Q4. Compared with the previous quarter, total assets increased due to CapEx investment and accounts receivable from new DCRE property sales. Liabilities also increased, driven by a rise in accounts payable related to operating activities. These business activities led to year-end cash balance decline, resulting in higher net debt ratio. However, the leverage ratio remains at a very stable level of 67%, ensuring a solid financial structure. Next, I will explain the performance of key subsidiaries. Page eight covers the performance of OCI TerraSus, the Malaysian plant. In Q4, OCI TerraSus' sales revenue increased by 45% compared with the previous quarter, while operating income turned a loss.
The sales revenue increase was due to the shipment of previously delayed orders, which had been postponed in negotiation with customers amid market uncertainties in the second half of the year. However, the shutdown maintenance led to lower operating rates, resulting in higher unit cost and inventory valuation loss, which contributed to the operating loss. Currently, maintenance has been completed, and the plant is under normal operation. With increased production, normalized manufacturing costs, and improved sales volume are expected in Q1. For the 2024 business outlook, once the Trump administration's revision to the IRA, solar policy, and the final decision on AD/ CVD tariffs on Southeast Asian solar products are confirmed, market uncertainties will be somewhat alleviated. Then, demand for non-China products is expected to normalize, followed by a recovery in the OCI TerraSus sales volume. Page nine covers the performance of OCI Enterprises.
Mission Solar Energy, which operates the solar module business, continues to report a loss due to weak residential module sales and falling prices. In December, there was a temporary increase in demand for U.S.-made modules due to concerns over additional tariffs following the onset of the Trump administration. However, overall market conditions remained sluggish throughout Q4. Additionally, as the financial impact of OCI Energy's project sales carried over, Q4 sales revenue declined and OCI Enterprises turned a loss. Looking ahead, a project sale originally planned for Q4 is now expected to be completed in Q1, and the company is preparing for the sale of over 360 megawatt-hour projects in 2025. OCI Enterprises continues to secure solar and ESS projects in Texas and surrounding power markets.
However, considering high market inventory levels and interest rates, the residential solar market is expected to focus on inventory clearance in the first half of the year. Next is the performance of OCI SE's cogeneration power plant on page 10. In Q4, compared with Q3, declines in SMP and REC sales volume and price led to lower sales revenue and operating income. Additionally, maintenance-related repair costs were incurred, leading to higher overall cost and a greater decline in operating income. For the outlook in Q1 and beyond, SMP is expected to rise slightly in Q1 due to seasonal factors and new system supply sales volume being added. However, the full-year performance is expected to be similar to the previous year, assuming raw materials costs remain at similar levels. OCI SE will continue to monitor raw materials price and exchange rate trends to enhance its profitability.
Page 11 covers the performance of DCRE, the urban development project. As shown in the graph, Q4 operating loss was approximately KRW 140 billion, marking a further decline from Q3. The loss was primarily due to the recognition of costs related to the construction of urban infrastructure, land devaluation loss, and overall construction cost increase. However, after removing approximately KRW 86 billion in unrealized gains related to DCRE in consolidating adjustment, the adjusted operating loss stands at approximately KRW 54 billion. Meanwhile, all units of Complex 6, which preceded Q3, have been fully contracted. As a result, revenue and profit recognition has started based on construction progress. By the end of Q1, construction will be completed for all three complexes that were preceded in 2021.
The move-in of Complex 1 was completed in Q1 of last year, and the remaining Complex 3 and 4 are also set for move-in in Q1 of this year. In Q1, approximately 1,450 units in Complex 7 are set for pre-sales, with additional pre-sales of Complex 8 planned for the second half of the year. In 2025, cash flow is expected to improve through the receipt of down payments, final installments, and land sales. This will help repay part of the debt and enhance financial stability. DCRE will focus on accelerating project completion by 2029, making it a key priority this year. Last is the OCI Company's performance on page 12. For detailed OCI's performance data, please refer to the OCI Company's IR materials. Sales revenue declined by approximately 12%, while operating profit increased by 15%.
The global economic downturn contributes to adverse impact, but one-time gains in the basic chemicals segment contributed to the increase in the operating profit. In this year, OCI plans to strengthen its portfolio in semiconductor materials and other specialty chemicals through continued investment. Now, let's move on to page 14, solar business outlook and key management updates. Last year was a challenging year for the entire solar value chain, primarily due to oversupply and policy uncertainties. Additionally, the expiration of the US tariff exemption and circumvention of Southeast Asian solar products in June 2024 led to excessive imports in the first half of the year in the U.S. Furthermore, the initiation of AD/ CVD investigations on Southeast Asian solar products in June further reduced demand for non-China polysilicon. On a positive note, the U.S. solar installation forecast for this year stands at 50 gigawatts, expecting stable growth of over 10% worldwide.
As you can see in the graph, Southeast Asian imports began to decline sharply in the second half of last year. Thus, the accumulated inventory is expected to be depleted soon. In response to tariffs and regulations, some Southeast Asian facilities have already suspended operations, while cell and module production is ramping up in the U.S., India, Turkey, and Indonesia. For polysilicon demand and OCI TerraSus' position, as shown in the table below, disregarding existing inventory, the U.S. solar installation demand still requires significant module imports, even after accounting for domestic production. OCI TerraSus' polysilicon production capacity is equivalent to approximately 12 gigawatts of module output, making it well-positioned to meet U.S. demand. Once new facility operations in other regions ramping up and issues related to U.S. solar market policies and tariffs are somewhat resolved, demand for non-China polysilicon is expected to normalize.
Now, I will explain OCI Holdings' U.S. solar business strategy on page 15. As seen in recent news, the Trump administration's strong trade sanctions on Chinese products are driving a preference for non-China polysilicon and wafers in the solar industry. At the same time, with the announcement of a larger-scale AI investment plan, a massive increase in power supply has become a critical requirement. Given the current cost of power generation, solar is the most competitive among all energy sources. As a result, the share of solar generation is expected to grow significantly in the coming years. OCI Holdings' subsidiaries are currently in discussions with the global solar companies to establish joint ventures to build the U.S. solar value chain. The first initiative is the establishment of a JV for cell production in the U.S., and more details will be shared once agreements with partners are finalized.
Let's move to page 16, explaining about OCI TerraSus' acquisition of a semiconductor-grade polysilicon business. OCI TerraSus has decided to invest in the semiconductor-grade polysilicon project. This joint venture will be established between OCI TerraSus and Japan's Tokuyama Corporation. With the technical support from Tokuyama and OCI Company, OCI TerraSus plans to enter the semiconductor-grade polysilicon business, aiming to enhance process efficiency, reduce costs, and strengthen both its revenue composition and profitability structure. Final update is about shareholders' return on page 17. For fiscal year 2024, the dividend per share is proposed at KRW 2,200, with a total dividend payout of KRW 41 billion. The DPS has decreased compared with the previous year, considering 2024 CapEx plans and cash flow management. In 2024, OCI Holdings executed a KRW 70 billion share buyback to enhance shareholders' return and respond to falling share price amid market downturn.
Of this, KRW 60 billion worth of treasury shares will be retired, including KRW 20 billion scheduled for cancellation soon. Additionally, the remaining KRW 10 billion worth of shares currently being repurchased will also be fully retired upon completion. Moving forward, OCI Holdings will continue to prioritize shareholder returns, considering total shareholder return that includes both dividends and share buybacks. This concludes the Q4 earnings presentation. For further inquiries, please contact the IR teams of OCI Holdings Company. Thank you for joining us.