Polaris Sewon Decides 10 Billion Won Capital Increase Targeting Major Shareholder Polaris Office... "Responsible Management"

Polaris Sewon, a specialized company in automotive air conditioning parts, is enhancing corporate value through responsible management activities.

Polaris Sewon announced on the 11th that it held a board meeting on the 10th and decided to conduct a third-party allotment paid-in capital increase worth 10 billion KRW targeting its largest shareholder, Polaris Office. A total of 11,111,112 new common shares will be issued at 900 KRW per share.

Starting with this capital increase participation by the largest shareholder, Polaris Office plans to prepare measures to increase corporate value. The funds secured through this capital increase will be used as operating capital for business diversification to accelerate the expansion of sales channels.

A company official stated, "With the recent growth of the eco-friendly vehicle market, the importance of vehicle thermal management systems is also emerging, and we have secured additional leading customers. This capital increase is part of a proactive measure to prepare for future expansion of the thermal management system business."

He added, "Recently, stabilizing the parts supply chain has become a trend in the automotive industry. Polaris Sewon, which has secured excellent financial soundness as an automotive parts company, will overcome severe undervaluation and take a step forward by diversifying sales channels and expanding profitability through factory expansion."

Meanwhile, Polaris Sewon supplies air conditioning parts to finished vehicle and electric vehicle manufacturers such as Hyundai Motor, Kia, GM, Ford, Tesla, Lucid Motors, and Rivian through its customers, leveraging its air conditioning parts technology covering both internal combustion engine and electric vehicles.

Based on an order backlog worth 500 billion KRW, the company has maintained stable performance while improving financial soundness through cash flow and quality improvements over the past two years. To respond to the recent increase in demand for air conditioning parts and secure growth potential, it has completed its third factory dedicated to welding and pipelines in Hwaseong, Gyeonggi-do.