Daejin Advanced Materials Signals Governance Simplification... "Enhancing Management Efficiency"

On August 26, Daejin Advanced Materials, a global advanced materials company, announced its plans to enhance shareholder trust by simplifying its governance structure and strengthening financial stability.

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Daejin Advanced Materials recently made a strategic investment in the paid-in capital increase of KEIMTECH, a company specializing in electric vehicle battery parts, following a board resolution and audit approval. This decision was not intended to support a specific company, but rather to expand synergies with new businesses such as ESS (Energy Storage Systems) and CNT (Carbon Nanotube), which the company is actively pursuing as new growth drivers, and to secure a core supply chain.

Earlier this year, Daejin Advanced Materials supplied the initial batch of ESS products, thereby validating the market potential in this sector. Based on this, the company strategically expanded its ESS pipeline. In addition, KEIMTECH signed a contract worth 80 billion KRW with a global parts manufacturer. Further orders of the same scale, each worth 80 billion KRW, are highly likely, highlighting the company’s strong growth prospects. Participation in this paid-in capital increase was based on the judgment that KEIMTECH is an important partner capable of generating synergy by combining its capabilities with Daejin Advanced Materials’ material technologies. This is a strategic decision at the company level to strengthen the core supply chain and secure new business opportunities.

As a leading player in the materials sector, Daejin Advanced Materials is responsible for the materials division, while InnoWave, specializing in electric vehicles and ESS, handles the parts division, and KEIMTECH is in charge of equipment. Together, they form the three pillars of the "materials-parts-equipment" value chain. Through this governance simplification and strategic investment, the company expects to further enhance synergy among the three firms.

Additionally, the company is working to prevent unnecessary misunderstandings related to affiliated parties and is streamlining its governance structure. Through these efforts, investors will have access to more transparent information, and trust in the market is expected to be strengthened.

Recently, Daejin Advanced Materials raised 15.8 billion KRW by issuing convertible bonds (CB) to domestic mezzanine investment asset management companies such as Orion, Skywalk, and Kansas, based on trust. This was achieved based on 100% of the call option volume.

The funds raised will be used for proactive investment in new businesses. The company expects this to contribute to stable cash flow management and to securing long-term growth momentum.

Yoo Sungjun, CEO of Daejin Advanced Materials, stated, "Simplifying our governance structure is a company-level strategy to prevent unnecessary misunderstandings and to enhance management efficiency and transparency. By securing funding based on our own credit and making proactive investments, we will deliver tangible results in the ESS and CNT new businesses, and ultimately maximize shareholder value over the long term."

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