Seo Jungjin Returns to Shareholders’ Meeting After 11 Years: "No Impact From Wars"

All Seven Agenda Items Approved at Celltrion’s Shareholders’ Meeting on March 24

"Performance This Year Will Meet or Exceed Market Expectations"

"Shareholder Return Policy Shifts to Focus on Cash Dividends"

Seo Jungjin, Chairman of Celltrion, attended the regular annual general meeting of shareholders in person for the first time in about 11 years and presided as the chairman. He emphasized that the company’s performance has been minimally affected despite global uncertainties, and announced plans to shift the shareholder return policy towards a focus on cash dividends.

Seo Jungjin, Chairman of Celltrion, is speaking as the chairman at the 35th Celltrion Annual General Meeting held on the 25th at Songdo Convensia in Incheon. Celltrion

On March 24, Celltrion held its 35th Annual General Meeting of Shareholders at Songdo Convensia in Incheon, where seven agenda items, including approval of financial statements, amendments to the articles of incorporation, and the appointment of directors, were resolved. This general meeting was chaired directly by Chairman Seo.

Chairman Seo began by stating that external variables have had only a minimal impact. He said, "Although global uncertainties are high due to war and political factors, Celltrion’s export-oriented structure means the impact is negligible. In fact, the rise in exchange rates has created a favorable environment compared to our business plans." He continued, "There is no direct link to oil prices, with only a slight effect from electricity costs. Currently, the global situation has only a limited impact on the company’s performance." He also added, "Demand for pharmaceutical prescriptions is hardly affected by the economy, and there are no major factors causing sales volatility in key markets such as the United States, Europe, and Japan."

All agenda items tabled at the meeting were approved. The first agenda item, approval of the financial statements, passed with an approval rate of approximately 97.6%. Last year, Celltrion recorded consolidated sales of 4.1625 trillion won and operating profit of 1.1685 trillion won. The amendments to the articles of incorporation reflected changes in the Commercial Act and included the introduction of cumulative voting, restructuring of the board, establishing grounds for the use of treasury shares, and building a foundation for electronic general meetings of shareholders. Most of these were passed with approval rates above 90%.

The agenda for director appointments was also approved as originally proposed. All five internal and external directors received approval rates between 96% and 98%. The appointment of outside directors to serve as audit committee members, as well as the composition of the audit committee, were both approved with over 90% support. The approval for the director compensation limit was maintained at 15 billion won, passing with an approval rate of around 85%.

The agenda for the cancellation of treasury shares was also approved. Celltrion plans to cancel 4% out of its approximately 5% holdings of treasury shares, with the remaining 1% to be used for facility investments and other purposes. The base date for the cancellation is April 1. The company explained that about 62% approval had already been secured through electronic voting and proxies.

Along with this, the shift in direction of the shareholder return policy was also made official. Chairman Seo stated, "Until now, we have focused on buying back and canceling treasury shares, but this year, we will return one-third of after-tax profits to shareholders through cash dividends. The remainder will be used for investments and cash reserves, respectively."

Celltrion has so far focused on enhancing shareholder value primarily through the cancellation of treasury shares. Recently, the scale of treasury share cancellation was expanded, raising the total canceled shares to around 74% of all treasury holdings. However, this year, the company intends to increase the proportion of cash dividends to enhance the tangible benefits for shareholders.

Treasury share buybacks will continue in parallel. Chairman Seo explained, "Personally, I purchased treasury shares worth 50 billion won when I deemed the stock price undervalued, and at the holding company level, we also acquired shares worth 750 billion won. In the future, we will consider additional purchases if the company’s value is shaken or remains undervalued." He added, "If necessary, we are also considering an additional buyback of about 250 billion won."

The outlook for performance was also presented positively. He said, "First-quarter results will not be below market expectations. The second quarter will show further improvement, and on an annual basis, there will be quarterly jumps in performance." He further emphasized, "This year’s operating margin will improve compared to last year." On the stock price, he remarked, "I do not believe the current price is excessively overvalued relative to our performance. I will do my utmost to help shareholders feel less uncertain amid these times."

However, he pointed out that the competitive environment remains a variable. Chairman Seo said, "There is dumping competition mainly among Indian companies, and some firms are supplying products nearing expiration at low prices. Partly due to this, last year's sales were somewhat below our plan."

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