Halla to Buy Back and Cancel Treasury Shares Worth 30 Billion KRW... "Up to 40% of Annual Net Profit to Be Distributed as Dividends"

[Asia Economy Reporter Kim Hyemin] Hanla Co., Ltd. announced on the 13th that it will implement a strong shareholder return policy through the repurchase and cancellation of treasury shares worth 30 billion KRW, supported by its improving performance.

To this end, Hanla plans to cancel 1,061,341 treasury shares currently held (worth 5 billion KRW) while repurchasing and then canceling approximately 820,000 convertible preferred shares (worth 25 billion KRW). Additionally, it announced a shareholder value enhancement policy to use up to 40% of net income based on separate financial statements annually for cash dividends and treasury share repurchase and cancellation.

This decision is based on the judgment that the company’s financial capacity has increased and its performance has entered a virtuous cycle phase, creating conditions to simultaneously secure growth resources and implement shareholder return policies.

Since 2019, Hanla has shown improving performance in orders, sales, and profits. As of the first half of this year, its order backlog reached a record high of 3.9 trillion KRW. Residential complexes sold in the metropolitan area this year, following last year, have all been sold out early, demonstrating achievements in the housing sector as well. Accordingly, securities firms raised Hanla’s target stock price to 7,000 KRW earlier this year, and in June, Korea Ratings and NICE Credit Rating upgraded the company’s corporate bond credit rating to 'BBB+ (Stable)'.

Along with the shareholder return policy, Hanla is actively expanding its business areas by discovering new businesses. Last year, it decided to invest 3 billion KRW in Airrain, the only domestic mass producer of gas separation membranes, entering the green new deal market. Last month, it invested 5 billion KRW through a fund in Campsfield Korea, the leading domestic OEM/ODM company for household detergents.

CEO Lee Seok-min said, "We will actively implement shareholder return policies to solidify market trust," adding, "We will accelerate growth and strengthen our fundamentals."

This content was produced with the assistance of AI translation services.