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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