Daedong Gear to Pursue Paid-in and Bonus Issues for Electric Vehicle and Robotics Parts Business

Accelerating Business Transformation from Internal Combustion Engine Vehicles to Electric Vehicles and Advanced Robot Components

Daedong Gear announced on April 23 that it will simultaneously carry out a paid-in capital increase and a bonus issue to accelerate its business transformation focused on future vehicles and robotics, while also aiming to enhance shareholder value.

This paid-in capital increase will be conducted through a rights offering followed by a general public offering of forfeited shares. The company is targeting to raise approximately 80 billion won. In addition, a bonus issue equivalent to 30% of common shares will be carried out concurrently. The record date for the rights offering is June 12, and for the bonus issue it is August 4. The new shares are scheduled to be listed on August 11 for the rights offering and August 24 for the bonus issue. The funds raised will be used to: ▲ expand production facilities for future vehicles ▲ stabilize the operational foundation ▲ secure a base for the robotics business.

Daedong Gear has grown based on its accumulated technical expertise in precision drive components, such as agricultural machinery transmissions and automotive gears. Recently, in line with the expansion of electrified vehicles such as electric and hybrid cars, the company is focusing on developing core drivetrain components for future vehicles as a new growth engine. From January 2024 to the present, Daedong Gear has secured orders worth approximately 1.7 trillion won for electric and hybrid vehicle components, laying the foundation for mid- to long-term growth.

The company plans to allocate 50 billion won of the funds secured through this paid-in capital increase to facility investment related to future vehicles. Some of the orders scheduled for delivery in 2024 and 2025 will be reflected in this year's sales through the first phase of facility investment, while this round of investment is intended to further expand production capacity.

This investment will be implemented sequentially starting in the second half of 2026. The new facilities are expected to begin full-scale operation in 2027, with their contribution to sales gradually becoming visible from the first half of that year.

Daedong Gear also plans to accelerate its transformation into a robotics company by rapidly developing core advanced robot components such as speed reducers and actuators, leveraging its existing speed reducer and precision machining technologies. Daedong Gear CEO Seo Jonghwan stated, "This capital increase marks the starting point for a structural shift, moving the center of our business toward electric vehicles and robotics. We will not only connect our electric vehicle order book to sales and profits, but also embark on expansion into the core robot components sector."

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