Huons Global Purchases Approximately 400 Million KRW Worth of HuM&C Shares On-Market

Commitment to Enhancing Shareholder Value and Responsible Management

Huons Global has demonstrated its commitment to responsible management as a holding company by purchasing shares of its subsidiary HuM&C through on-market transactions.

Huons Global announced on May 22 that it had acquired a total of 408,757 shares of HuM&C, worth approximately 3,967.3 million KRW, through on-market purchases between May 14 and May 16. As a result of this share acquisition, Huons Global’s stake in HuM&C increased by 0.83%, from 57.09% to approximately 57.92%. The company explained that the purchase was intended to both increase its stake in HuM&C and enhance shareholder value by stabilizing the share price.

Previously, on May 13, HuM&C announced an 80% capital reduction without compensation, merging five common shares into one, in order to improve its financial structure. The effective date for this capital reduction, aimed at offsetting accumulated losses and enhancing the financial structure, is July 28. Upon completion, the company’s capital will decrease from approximately 24.5 billion KRW to 4.9 billion KRW, and the number of listed shares will be reduced from about 49.05 million to 9.81 million.

The company also resolved to transfer the capital reserve to retained earnings. By reducing the capital reserve and distributing dividends, shareholders will be able to receive tax-free dividends on the relevant amount. In addition, the company expects that future share buybacks will be possible, further enhancing corporate value.

In the first quarter of this year, HuM&C recorded sales of 12.5 billion KRW and operating profit of 500 million KRW. The cosmetics division posted 5.1 billion KRW in sales, a 77.2% increase year-on-year, due to the effect of business acquisition. The glass division is expected to see improved performance in the second quarter, as the Vietnam production plant, completed last year, begins full-scale operations.

HuM&C plans to continue its efforts to improve its financial structure, focusing on maximizing shareholder value and securing future growth engines for the company.

Song Sooyoung, CEO of Huons Global, stated, "Through this on-market purchase of HuM&C shares, we will fulfill our responsibility as the holding company of Huons Group." He added, "We will continue to actively support HuM&C so that it can improve its fundamentals and achieve stable, sustainable growth as a member of Huons Group."

Meanwhile, HuM&C recently completed an investment of approximately 8 billion KRW in its overseas production base, the Vietnam production plant. The company expects that, starting in the second quarter, full-scale production will lead to a significant improvement in the performance of the glass division.