3rd Quarter Operating Profit Margin 35% for Juseong Engineering... Company Split Plan Withdrawn

"Acquisition of 50 Billion Won in Treasury Shares to Promote Stock Price Stability"

Jusung Engineering has withdrawn its plan to separate its semiconductor, solar power, and display equipment businesses. This is because the amount requested for the shareholder's right to demand the purchase of shares opposing the split exceeded the limit of 50 billion KRW.

Hwang Cheol-ju, Chairman of Jusung Engineering, is being interviewed on April 24 at Jusung Engineering Yongin R&D Center in Gyeonggi. Photo by Kang Jin-hyung aymsdream@

Jusung Engineering announced that it decided to withdraw the plan for a physical and personnel split at a board meeting held that day. This decision was made as the total amount exercised for the shareholder's right to demand the purchase of shares exceeded the 50 billion KRW disclosed in the original split plan.

Earlier, Jusung Engineering announced in May that it would pursue a physical and personnel split. The company planned to divide into the holding company Jusung Holdings, semiconductor equipment company Jusung Engineering, and display and solar equipment company Jusung Lux. Although the split approval agenda was passed at the extraordinary general meeting of shareholders on the 8th, the company decided not to proceed with the split on this day.

A Jusung Engineering official said, "To respond to the rapidly changing global environment and to continuously invest in innovative technologies, it was resolved at the board meeting not to raise the limit on the shareholder's right to demand the purchase of shares, in order to maintain necessary cash reserves and ensure fair benefits for existing shareholders." He added, "The amount set as the limit for the shareholder's right to demand the purchase of shares will be used to acquire treasury shares to increase shareholder value and stabilize the stock price."

On the same day, the company disclosed that its consolidated operating profit for the third quarter increased by 744% year-on-year to 52.2 billion KRW. Sales rose 71% to 147.2 billion KRW. The operating profit margin was 35%.

In July, the company secured orders including a semiconductor manufacturing equipment supply contract worth 19.4 billion KRW with SK Hynix.

Jusung Engineering is a specialized manufacturer of deposition equipment that applies necessary materials onto semiconductor wafers. It is particularly recognized for its global competitiveness in the atomic layer deposition (ALD) equipment sector. Based on its semiconductor deposition equipment technology, the company is expanding its equipment business portfolio to include organic light-emitting diode (OLED) and solar power sectors.

A company official stated, "Going forward, Jusung Engineering will continue to work towards world-first and only-one technological innovations and will sustain its customer base in Asia, the Americas, and Europe to enhance corporate value," adding, "We will prioritize shareholder value above all."