Frankly, from a shareholder’s perspective, it’s their money going in, so it’s not always welcome news. However, there must be a clear reason why the company made such a decision. Shall we delve into the inside story with me today?

Public Backlash, Why Did It Happen?

In fact, when the news of the Hanwha Solutions rights offering first came out, I remember the public reaction was quite cold. Since it was a shareholder-allocated rights offering, existing shareholders had to inject additional funds. This method can burden existing shareholders and often leads to a decline in stock prices.

In particular, there was criticism that the company lacked a clear vision or plans to enhance shareholder value compared to the large-scale fundraising plan. Personally, I regret that the company didn’t pay a little more attention to communicating with shareholders. Of course, securing the company’s financial soundness is important, but gaining the trust of shareholders is also a core aspect of corporate management.

Major Shareholder Hanwha Corp.’s Responsible Actions

Nevertheless, the news that the largest shareholder, Hanwha Corp., plans to absorb more than 100% of the allocated shares was a relief. It shows an effort to minimize additional borrowing, doesn’t it?

Such a decision can act as a positive signal to the market. The fact that the largest shareholder participates in the rights offering with a sense of responsibility

• demonstrates strong confidence in the company’s future, and
• can be seen as an effort to minimize harm to existing shareholders.

In fact, it’s crucial for the major shareholder to take the lead and show such a commitment. Only then will other investors have an incentive to participate with confidence. In my opinion, if this rights offering is successfully completed, Hanwha Solutions‘ financial structure will become much stronger.

Considering Asset Securitization for Financial Improvement

In addition to this rights offering, Hanwha Solutions is also considering asset securitization to improve its financial situation. Isn’t this proof that they are making efforts from various angles? It seems like they are not just stopping at the rights offering but are actively trying to secure cash flow by efficiently utilizing the assets the company holds.

Asset securitization is

• an effective way to reduce a company’s financial burden, and
• to secure new investment resources.

Of course, we’ll have to wait and see which assets will be securitized and how, but I think this proactive intention to improve finances is commendable. Honestly, it’s much more desirable for a company to explore various options rather than just sitting idly in a difficult situation.

What’s Next for Hanwha Solutions?

We’ll have to wait and see what results this rights offering and financial improvement efforts will bring for Hanwha Solutions. What’s clear is that the company is showing a strong will to overcome its current difficult situation and establish a stronger foundation.

Personally, I hope these efforts bear fruit, leading to an increase in corporate value and good news for shareholders. How about we continue to pay attention to Hanwha Solutions‘ future moves?

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The Meaning of Hanwha Solutions‘ Declaration: ‘Absolutely No’ Rights Issue Until 2030

Recently, Hanwha Solutions held an investor relations meeting and officially stated that there are no plans for additional rights issues until 2030. Honestly, I was surprised when I heard this news.
This means the company was well aware of how anxious shareholders had been due to the large-scale rights issue. This announcement strongly conveys the company’s intention to soothe shareholders’ concerns and restore trust.

Why Did They Make This Announcement Now?

In fact, from a company’s perspective, a rights issue is an important means of fundraising. But by explicitly stating they won’t do it until 2030, I believe it’s a strong message that they are seriously committed to enhancing shareholder value.
In my opinion, there are two main reasons:

• First, they likely wanted to quell the stock price decline and shareholder dissatisfaction caused by the recent rights issue.
• Second, they want to demonstrate confidence in the company’s financial health and future business. Since they stated that business performance will improve starting this year, it seems like an effort to build trust with shareholders.

What is Hanwha Solutions‘ Future Business Direction?

Along with this announcement, Hanwha Solutions projected that business performance will improve starting this year. In particular, there seems to be high expectations for eco-friendly energy businesses such as solar and hydrogen.
As the global eco-friendly energy market continues to grow, it’s clear they are strongly committed to achieving results in these areas. It will be interesting to observe how the company’s business portfolio changes in the future.

What Changes Can Shareholders Expect?

This declaration of ‘no additional rights issues’ can be interpreted as a positive signal for shareholders in several ways.

• First, with reduced concerns about stock dilution, we can expect a more stable stock price trend.
• Also, there’s an expectation that the company will focus more on its core business and strive to improve performance.
• In the long term, I believe it will have a good impact on increasing corporate value.

To be honest, from a shareholder’s perspective, such promises are really important. I look forward to seeing if Hanwha Solutions can gain shareholders’ trust by keeping this promise in the future.
It’s been a long time since shareholders heard such hopeful news, so I’m happy too. I wish Hanwha Solutions all the best in fulfilling its promise. Let’s all invest successfully!

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