[Public Notice+] Duol "Entered into a 2 Billion KRW Treasury Stock Acquisition Trust Contract... Commitment to Responsible Management"

[Asia Economy Reporter Hyunseok Yoo] Duol announced on the 25th that it has signed a trust contract to acquire treasury shares worth 2 billion KRW. The contracting institution is NH Investment & Securities. The period is from today until September 24.

The company stated, "This measure is to demonstrate our commitment to responsible management to employees and investors amid the recent unstable financial and stock markets," and explained, "There was an internal judgment that the corporate value was excessively undervalued, and based on a stable cash reserve, the purpose is to stabilize the stock price and enhance shareholder value."

Treasury share acquisition is an act where a company buys its own shares with its own funds to protect management rights against hostile takeovers and stabilize the stock price when the stock price is excessively low compared to corporate value. Since it reduces the number of issued shares and improves earnings per share and future cash flow per share, it usually acts as a factor for stock price increase.

From the company's perspective, there is an advantage of strengthening management rights by securing shares at a low cost, and it also expresses confidence in liquidity and future growth potential. Additionally, the Financial Services Commission recently eased the daily limit on treasury share acquisition as part of market stabilization measures, improving purchase conditions.

Jo Inhoe, CEO of Duol, said, "Despite the uncertain external environment, our fundamentals based on a global production system, R&D, and design capabilities remain solid," and added, "We are focusing all our company’s capabilities on stable mass production response for our clients with the belief that fulfilling our role as an industry-leading company will help overcome the current crisis." He continued, "We will also strive to gain investors' trust through continuous shareholder-friendly policies."

Meanwhile, Duol plans to hold its regular shareholders' meeting today, the 27th, chaired by CEO Jeong Jaeyeol, to resolve major agenda items including approval of financial statements and appointment of new directors.