Sonid to Sell Real Estate and Subsidiaries Simultaneously to Secure Liquidity and Improve Business Structure

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KOSDAQ-listed company Sonid (CEO Kevin Inseok Hwang) announced on May 9 that it plans to secure cash liquidity through a company-wide restructuring by simultaneously selling commercial real estate and non-core subsidiaries. Through these sales, the company aims to reduce its debt ratio to below 100% within the year and strengthen the foundation for the growth of its core businesses.

Sonid plans to select a professional real estate asset management firm to sell its real estate assets, which are valued at several tens of billions of KRW. The properties to be sold include Osiris Tower in Sinchon, Seoul; Sambu Richian Shopping Center in Yeongtong, Suwon; and a building in Unjung-dong, Seongnam. Each asset is currently being individually appraised based on its location and development potential.

In addition, Sonid is pushing for the sale of subsidiaries to streamline non-core businesses with high uncertainty. The company plans to select Alpenroute Asset Management as its advisor for these sales. The subsidiaries currently under negotiation include Sonid Retech, which operates in battery recycling; Claire Pixel, which operates in image sensors; and Sonid Development, which operates in real estate. The company also plans to sell its stake in other non-core affiliates, such as Technium, which operates in chemical R&D.

Previously, Sonid excluded non-core subsidiaries from its consolidated financial statements, thereby eliminating approximately KRW 11.2 billion in annual operating losses. The cash secured through the current asset sales will be used to repay high-interest loans early, reducing interest expenses and improving the overall financial structure.

Sonid reduced its consolidated debt ratio from 178.5% at the end of last year to 132.6% at the end of April this year, and aims to achieve a debt ratio below 100% within the year.

A Sonid representative stated, "This large-scale asset sale is a strategic decision to achieve three goals: strengthening liquidity, securing financial soundness, and focusing on our core business," adding, "We will do our utmost to enhance shareholder value by accelerating fixed cost reduction and focusing on our core business with the funds secured."

Meanwhile, Selector, which is scheduled to become a Sonid subsidiary, recorded sales growth of 44.9% and operating profit growth of 3,381.8% last year compared to the previous year. The company is also pursuing fixed cost reductions amounting to several billion KRW through measures such as relocating the headquarters and subsidiary offices, reducing outsourcing expenses, and reallocating personnel.

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