Hengsheng Group Announces Paid-in Capital Increase Targeting Major Shareholder's Son... Signal for Domestic New Business Launch

Hengsheng Group, a KOSDAQ-listed company, announced on the 29th that it will proceed with a paid-in capital increase totaling 5 billion KRW, led by Director Hui Hongyuan, the son of the major shareholder and CEO. The company also plans to establish a domestic subsidiary and pursue new business ventures.

On the 24th, Hengsheng Group disclosed the paid-in capital increase worth 5 billion KRW. Of this amount, 3.57 billion KRW will be invested by Director Hui Hongyuan, the son of the company’s major shareholder and CEO Hui Mankit, with the payment date set for June 3rd.

The purpose of this capital increase is to secure operating funds for future new business initiatives and to strengthen the influence and control of the major shareholder’s successor. Director Hui Hongyuan graduated from Brunel University in the UK with a degree in Business Administration and has contributed to the company’s operations by overseeing management and trade affairs at Hengsheng Group since 2012. It is expected that Director Hui Hongyuan’s role in company decision-making and business progress will grow significantly.

Simultaneously with Director Hui Hongyuan’s capital increase, new business ventures will be pursued through a newly established domestic corporation. This corporation plans to research, develop, and sell premium cosmetics and health foods in collaboration with renowned domestic research institutions.

The company intends to target the Chinese market primarily by cooperating with well-known global e-commerce platforms such as Alibaba, JD.com, and Douyin. A task force team has been formed for the new business, and discussions on joint ventures with partners are in the final stages. The newly established domestic corporation is expected to generate sales starting in the second half of this year. The company aims for this business to contribute a meaningful portion of consolidated sales within the next three years.

Director Hui Hongyuan stated, “This capital increase signals the beginning of changes at Hengsheng Group. With new roles and responsibilities assigned, I will approach company management with greater accountability and plan to share more updates with domestic shareholders through the advancement of our Korean business.”

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