Dongyang ENP Accelerates Automotive Electronics Business with Motivlink Acquisition: "Pursuing Growth Investment and Shareholder Returns Simultaneously"

Dongyang ENP has laid out a strategy to enhance corporate value by actively entering the automotive electronics business through the acquisition of Motivlink, while simultaneously pursuing both growth investment and shareholder returns.

KOSDAQ-listed Dongyang ENP (Co-CEOs Kim Jaeman and Kim Jaesoo) announced on June 18 that, by acquiring Motivlink, it plans to expand its existing power conversion technology into the automotive electronics sector and simultaneously secure mid- to long-term growth drivers and enhance shareholder value.

The company plans to maintain its dividend policy, which has been in place since its listing, while also promoting value enhancement measures that combine growth investment and shareholder returns in line with the government's corporate value-up policy direction. Key initiatives include the cancellation of 300,000 treasury shares, a review of dividend policies linked to the performance of the automotive electronics business, and consideration of introducing a Restricted Stock Unit (RSU) program for employees.

Through this acquisition of Motivlink, Dongyang ENP plans to expand its core business capabilities, such as power conversion and circuit design, into the field of automotive electronics components. The company aims to broaden its business scope to the electric vehicle and automotive electronics markets, thereby establishing a new foundation for growth.

Dongyang ENP possesses competitiveness in manufacturing fields such as power conversion, circuit design, and quality management, while Motivlink has experience in developing electric vehicle electronics components and has secured a customer network.

The two companies plan to combine their technological strengths to expand their business portfolios with a focus on high value-added products, including electronics components, power conversion modules, and circuit modules. By moving away from a business structure centered on single-product manufacturing and transitioning to a module-based system, they aim to establish a new revenue base.

Dongyang ENP will proceed with the cancellation of 300,000 treasury shares as a means to improve capital efficiency and enhance per-share value.

In addition, the company will continue its dividend policy, which has been maintained since listing. Dongyang ENP has paid dividends every year since its listing, maintaining a minimum fixed dividend of 300 won per share for an extended period.

Going forward, the company plans to maintain its basic fixed dividend policy, but if the growth of the automotive electronics business through the acquisition of Motivlink materializes, it will consider gradually increasing dividend payments. Additionally, it will review various shareholder return measures such as additional dividends in the event of excess profits and the acquisition and cancellation of treasury shares.

The company is also considering acquiring an additional 100,000 treasury shares to be used as a long-term compensation resource for employees. By linking employee compensation to management goals such as the expansion of the automotive electronics business and new sales growth, the company aims to align corporate performance with the interests of its members.

A Dongyang ENP official stated, "We have maintained our basic principle of shareholder return by paying dividends every year since listing," and added, "Through the acquisition of Motivlink, we will foster the automotive electronics business as a new growth axis and create a virtuous cycle where business performance leads to shareholder returns and employee compensation."

Based on the acquisition of Motivlink, Dongyang ENP plans to strengthen its competitiveness in the automotive electronics sector, while also launching a full-fledged strategy to enhance corporate value by pursuing both growth investment and shareholder returns.

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