Suseong's Largest Shareholder Expands Stake... "Corporate Value to Increase with Semiconductor Business, etc."

[Asia Economy Reporter Yoo Hyun-seok] Suseong Innovation, a manufacturer of electric forklifts and logistics machinery, announced on the 14th that it received approximately 10.6 billion KRW in cash by selling convertible bonds (CB) acquired before maturity in 2019. The company expects its financial structure to improve. Along with this, Suseong's largest shareholder expanded its stake to increase management control.

Suseong's largest shareholder is Uninvest Investment Association No.1, holding a 16.94% stake. According to disclosures, Uninvest Investment Association No.1, the largest shareholder, participated with about 4 billion KRW in purchasing the convertible bonds acquired before maturity, and CEO Kim Dae-jin also purchased convertible bonds to increase his stake.

A company official stated, "Due to the impact of COVID-19, the dynamism of the logistics industry has been highlighted, and with the acquisition of a semiconductor equipment company scheduled for August, we believe it is necessary to expand management control by enhancing corporate value."

On a separate basis, Suseong posted sales of 20.7 billion KRW and an operating profit of 700 million KRW last year. In the first quarter of this year, it recorded sales of 7 billion KRW and an operating profit of 600 million KRW. After paying the remaining 2 billion KRW related to the management rights acquisition and completing the audit, Suseong will incorporate Future Hightech, a semiconductor inspection parts company that posted sales of 12.4 billion KRW last year, as a subsidiary.

The company expects Future Hightech's performance to improve significantly from this year due to the semiconductor market boom, large-scale line expansions, and a substantial increase in sales to China.