Hanwha Systems reported consolidated revenue of 3.6642 trillion won and operating profit of 123.6 billion won for last year. Revenue increased 30.7% year on year, exceeding 3 trillion won for the first time since the company’s founding, while operating profit declined 43.7%.

The sales gain was supported by defense exports, including shipments of the Cheongung-II multifunction radar (MFR) to the United Arab Emirates and Saudi Arabia. The company also supplied a fire control system for Poland’s K2 tanks and carried out mass production of next-generation military radios for the Tactical Information and Communications Network (TICN TMMR).

Hanwha Systems said profit was pressured by costs linked to normalising operations at Philly Shipyard in the United States, which it acquired jointly with Hanwha Ocean two years ago, as well as amortisation under purchase price allocation (PPA). Investment spending for facilities at the new Gumi business site completed last year and the Jeju Space Center also affected earnings.

For the fourth quarter, operating profit came to 9.4 billion won, down 67.6% from a year earlier. Fourth-quarter revenue was 1.3981 trillion won, and the company posted a net loss of 23.9 billion won.