Hecto Innovation to Cancel 130,000 Treasury Shares Again This Year... "Continued Commitment to Shareholder Return Policy"

IT-based information service company Hecto Innovation is continuing its 'three-year shareholder return plan' by carrying out another treasury stock cancellation this year, following last year.

On November 5, Hecto Innovation announced its plan to cancel treasury shares through a resolution of the board of directors. The number of shares scheduled for cancellation is 131,246, which accounts for 1% of the total number of issued shares and comes from recently acquired treasury stock. As a result of the cancellation, Hecto Innovation's total number of issued shares will decrease from 13,124,613 to 12,993,367. The cancellation date is set for November 17.

The reduction in the number of shares through treasury stock cancellation is expected to increase the value of shares held by existing shareholders. Since its listing on KOSDAQ, Hecto Innovation has consistently implemented shareholder return measures, such as annual cash dividends. In March last year, the company announced a three-year shareholder return plan, including treasury stock cancellation and cash dividends, thereby strengthening its commitment to shareholder returns.

Accordingly, starting in 2024, Hecto Innovation is canceling treasury shares equivalent to 1% of its total issued shares each year. The company aims to raise its minimum dividend payout ratio by at least 1% annually from the current 22%, using separate net income as the source of funds, with a long-term target of reaching at least 25%. This shareholder return policy will be continuously pursued.

In addition, Hecto Innovation is actively working to secure new growth engines to enhance mid- to long-term shareholder value. In September, the company acquired a 47.15% stake in blockchain wallet technology company WalletOne (formerly Hexlant) for approximately 9.29 billion KRW. It is fostering blockchain-based Web3 and stablecoin-related services as new growth drivers.

WalletOne has the most extensive track record in wallet commercialization among domestic companies holding a VASP (Virtual Asset Service Provider) license. It offers not only digital asset custody but also stablecoin payment solutions and scalability for integration with various Web3 services. Hecto Innovation plans to leverage WalletOne's blockchain wallet technology to secure digital asset infrastructure and take the lead in the global digital wallet ecosystem.

Recently, Hecto Innovation was the only Korean company selected as a participant in the 'Enabling Developers - Digital Wallets' category for the public testnet of Circle's stablecoin-dedicated blockchain mainnet, Arc. This recognition demonstrates the company's global reputation for operational stability and technological reliability in digital asset wallet management.

Lee Hyuncheol, CEO of Hecto Innovation, stated, "This treasury stock cancellation is a responsible implementation of the three-year shareholder return plan announced last year. Moving forward, we will continue to diligently practice our shareholder return policy, pursue stable business growth, and drive sustainable performance and corporate value enhancement through the commercialization of new growth engines such as blockchain wallets."