Hanon Systems Executes 900 Billion Won Paid-in Capital Increase to "Strengthen Financial Soundness"

Final Board Approval on September 23

Hanon Systems, the automotive thermal energy management solutions company under Hankook & Company Group, is conducting a rights offering worth 900 billion won to strengthen its financial soundness.

On September 23, Hanon Systems held a board meeting and finalized a rights offering totaling 900.025 billion won. The funds raised will be primarily used for debt repayment, as well as to improve business operations efficiency and organizational structure.

This rights offering will issue 347.5 million registered common shares, representing 51.20% of the existing issued shares, through a shareholder allocation followed by a public offering of forfeited shares. Twenty percent of the new shares will be preferentially allocated to the employee stock ownership association, and the remaining shares will be distributed equally to existing shareholders as of the new share allocation record date (November 14). Any forfeited shares or fractional shares will then be offered to the public.

The planned issue price is 2,590 won per share. Taking into account the enhancement of corporate value and the minimization of infringement on existing shareholders' rights, a 15% discount rate has been applied to the reference price. The final issue price will be determined on December 16, just before the public subscription.

The funds secured through this rights offering will be used primarily for debt repayment. In addition, they will be allocated to key areas such as working capital, facility maintenance, and investment in new production facilities. Through this, Hanon Systems aims to reduce its interest burden, improve its financial structure, and strengthen the foundation for sustainable growth through investments in new production facilities.

Lee Sooil, CEO (Vice Chairman) of Hanon Systems, stated, "Stabilizing our financial structure is a prerequisite for future growth," adding, "We will do our utmost to flexibly respond to market changes and enhance both corporate value and shareholder value through continuous technological development and strengthening of business capabilities."