Hanwha Solutions Further Reduces Rights Offering to 1.7 Trillion Won

Subscription Ratio Drops from 32% to 30%
Plans to Sell U.S. Investment Fund

On May 26, Hanwha Solutions announced that its board of directors had resolved to revise its rights offering plan, reducing the scale from the previously planned 1.8 trillion won to 1.7 trillion won, and subsequently submitted a voluntary amendment report to the Financial Supervisory Service.

Hanwha Solutions CI.

As a result of this adjustment, the amount allocated for debt repayment will be further reduced by 100 billion won, from the original 900 billion won to 800 billion won. In contrast, the company's future growth investment plans—which include 100 billion won for upgrading the perovskite tandem pilot line and 800 billion won for establishing the tandem mass production line and expanding TOPCon production capacity, totaling 900 billion won—remain unchanged.

Hanwha Solutions plans to make up for the funding shortfall caused by the reduced rights offering by selling its U.S. venture investment fund. This fund is an asset that Hanwha Solutions has invested in via its subsidiary since 2022 to monitor future industry trends and technology in areas such as North American energy and the circular economy, and to secure early business opportunities.

The company explained that while it had not previously considered selling the fund as a short-term liquidity measure—given its long-term investment nature, such as discovering innovative companies—it has now reconsidered this option to raise additional internal funds. This move comes as the company has expanded its scope of asset liquidation beyond sales of existing non-core assets to include assets that are related to its core businesses, have a limited impact on mid- to long-term profitability, and have a high likelihood of being sold in the near term.

Hanwha Solutions stated that this further reduction in the rights offering reflects the demands of shareholders and the market following the submission of the second amended securities registration statement. As a result, the subscription ratio has been lowered from approximately 32% to around 30%, and the number of allocated shares per existing shareholder has decreased from roughly 0.2605 shares to 0.2465 shares.

The latest amendment also includes additional information to assist investors, such as supplementary disclosures on investment risk factors and legal review details of the decision-making process.

Nam Jung-woon, Head of the Chemical Division at Hanwha Solutions, and Park Seung-deok, Head of the Qcells Division, stated, "We acknowledge that we have not fully met the expectations and standards of our shareholders during the rights offering process. As improving our financial structure and investing in growth are urgent tasks, we will do our utmost to resolve the market undervaluation and enhance shareholder value."

This content was produced with the assistance of AI translation services.