Hansong Neotek Participates in Capital Increase of Secondary Battery Material Subsidiary... "Strengthening Control and Enhancing Parent Company Value"

[Asia Economy Reporter Jang Hyowon] Shinwha IT, a specialist company in secondary battery materials, has recently increased its production capacity (CAPA) by more than five times through the expansion of its second production line and has begun full-scale mass production. Meanwhile, its parent company Hansong Neotek is strengthening its control and enhancing corporate value by participating in Shinwha IT's paid-in capital increase.

Hansong Neotek announced on the 26th that it participated in a paid-in capital increase worth a total of 1.5 billion KRW conducted by its subsidiary Shinwha IT. Through this capital increase participation, Hansong Neotek acquired 100% of the new shares issued by Shinwha IT, raising its stake from the previous 63% to 67.2%.

A Shinwha IT official stated, "Although we recently completed the expansion and significantly increased production capacity, supply requests from numerous global customers continue," adding, "To proactively respond to the rapidly increasing demand, we proceeded with this additional paid-in capital increase to establish a high-efficiency production system."

A Hansong Neotek official explained, "This participation in the paid-in capital increase is a strategic investment to strengthen the fundamentals of the secondary battery materials business while further solidifying control over our subsidiary," and added, "Along with the recent expansion, we are focusing on research and development of high-performance and high-value-added lead tabs for next-generation EV (electric vehicles) and ESS (energy storage systems). We expect Shinwha IT's secondary battery materials business to become Hansong Neotek's second growth engine."

Established in 1998, Shinwha IT produces high-quality lead tabs, one of the essential materials for secondary batteries, and supplies products to numerous domestic and international global secondary battery companies such as SES, ENOVIX, and Enertech International.

Lead tabs are materials commonly used in next-generation secondary batteries such as lithium-sulfur and lithium-metal all-solid-state batteries. In particular, Shinwha IT's lead tabs significantly reduce the probability of battery fires and explosions through differentiated "edge processing technology" and "low-temperature bonding technology."