Hanwha Solutions Cuts Rights Offering by 600 Billion Won to Ease Shareholder Burden

Self-Rescue Measures Including Asset Securitization

900 Billion Won Investment Maintained

Dividends and Share Buybacks Through 2030

No Further Rights Offerings Planned

Hanwha Solutions has decided to reduce the size of its rights offering by 600 billion won and implement self-rescue measures in parallel, aiming to lower the burden on shareholders while continuing to improve its financial structure and pursue growth investments.

Hanwha Solutions CI.

According to Hanwha Solutions on April 17, the board of directors approved a revised plan to decrease the rights offering from the initial 2.4 trillion won to 1.8 trillion won. The funds allocated for debt repayment will be reduced from 1.5 trillion won to 900 billion won, while the 900 billion won earmarked for future growth investments will be maintained.

The reduced amount of 600 billion won will be secured through self-rescue measures such as the securitization of investment assets and capital funding. On this basis, the company plans to continue its growth strategy focused on renewable energy and high value-added materials, alongside improving its financial structure.

As a result of this adjustment, the number of newly issued shares will decrease from 72 million to 56 million, and the ratio of the rights offering will be lowered from 41.3% to 32.1%. This is intended to mitigate the financial burden and concerns over equity dilution among existing shareholders. Hanwha, the largest shareholder, will participate in the oversubscription as previously planned.

Hanwha Solutions is also accelerating efforts to secure financial stability. The company intends to use funds raised from the rights offering and self-rescue measures to repay corporate bonds and commercial papers, aiming to keep the debt ratio below 150% as of 2026. In the long term, the goal is to lower the debt ratio to below 110% and maintain net borrowings at around 7 trillion won by 2030.

The company will also maintain its shareholder return policy. From 2026 to 2030, it will return 10% of its consolidated net profit through dividends or share buybacks and cancellations, guaranteeing a minimum dividend of 300 won per share.

In terms of growth investment, Hanwha Solutions will focus on both solar energy and power infrastructure materials. A total of 900 billion won will be invested to expand production based on next-generation technologies such as perovskite tandem and TOPCon, with plans to strengthen vertical integration centered on U.S. manufacturing bases. In response to increasing power demand driven by the spread of artificial intelligence (AI) and data centers, the company will also foster its high value-added materials business for wires and cables.

On April 21, Hanwha Solutions' management will hold a briefing session for analysts to explain the impact of the rights offering, self-rescue measures, and growth strategies. The company will further expand communication with institutional and individual investors, coinciding with its earnings announcement.

Nam Jungwoon, Head of the Chemical Division, and Park Seungdeok, Head of the Qcells Division, stated, "We acknowledge that communication with shareholders and the market has been insufficient," and added, "Through the adjustment of the offering size and robust self-rescue measures, we will protect shareholder value and strengthen our mid- to long-term competitiveness."

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