Securing Mid- to Long-Term Dividend Resources
through Transfer of Capital Surplus to Retained Earnings
Huons Group's Humedix has decided to repurchase its own shares, continuing its efforts to enhance shareholder value.
On May 8, Humedix Co., Ltd. announced that on May 7 it had disclosed a decision to repurchase its own shares worth 5 billion KRW, as well as to convert its capital surplus into retained earnings.
The decision to repurchase its own shares through the board of directors is part of its shareholder return policy. This follows a previous buyback of shares worth 3 billion KRW in May of last year, with the company deciding to proceed with an additional repurchase.
Despite increasing internal and external economic uncertainties, Humedix has achieved stable sales growth by strengthening domestic and overseas marketing based on its strong product competitiveness. According to its separate financial statements for last year, the company recorded sales of 161.9 billion KRW, operating profit of 43.1 billion KRW, and net profit of 39.3 billion KRW, representing increases of 6%, 16%, and 58% year-on-year, respectively. Exports of aesthetic products to countries such as China and Brazil increased, and contract manufacturing (CMO) orders also grew, leading to a rise in sales of specialty pharmaceuticals.
The company stated that it decided to repurchase its own shares based on the expectation that its corporate value will continue to rise. As part of its efforts to enhance shareholder value and practice responsible management, the company aims to support its somewhat undervalued share price and strengthen its relationship of trust with shareholders.
Additionally, the reduction of capital surplus, which was approved as an agenda item at the extraordinary general meeting of shareholders, is intended to maximize shareholder value by converting capital surplus into retained earnings, thereby securing distributable profits. The increase in distributable profits resulting from the reduction of capital surplus is planned to be used as a source for future tax-free dividends.
Kang Minjong, CEO of Humedix, stated, "We have decided on this measure to enhance shareholder value in order to stand with and support our shareholders who trust and support Humedix," adding, "We will continue to increase the company's value and maximize shareholder value, further strengthening our credibility."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
