Dongyang E&P to Cancel All 300,000 Treasury Shares... Launches Corporate Value Enhancement and Shareholder Return Policy

Dongyang E&P has decided to cancel all of its treasury shares following the announcement of its corporate value enhancement plan, actively implementing a shareholder return policy.

KOSDAQ-listed Dongyang E&P (co-CEOs Kim Jaeman and Kim Jaesoo) announced on the 22nd that it has decided to cancel all of its 300,000 treasury shares as part of its efforts to enhance corporate value and shareholder value.

The treasury shares to be canceled account for approximately 3% of the total number of issued shares. The company explained that this decision reflects the management’s commitment to responsible management and mutual growth with shareholders.

Alongside this cancellation, Dongyang E&P also revealed its core mid- to long-term growth strategies for expanding corporate value. The company’s main growth pillars are: ▲strengthening the competitiveness of existing businesses ▲securing new growth engines based on its automotive electronics business ▲and actively carrying out shareholder return measures.

First, the company plans to further strengthen the competitiveness of its existing power supply and power conversion technology businesses to maintain a stable profit-generation base. Dongyang E&P aims to improve efficiency and establish a foundation for sustainable growth by leveraging the technological prowess and market competitiveness secured through its current operations.

Another growth strategy involves expanding the automotive electronics business through synergy with Motivelink. Dongyang E&P intends to combine Motivelink’s capabilities in developing electric vehicle electronics components and its global customer network—recently acquired—with Dongyang E&P’s own manufacturing and quality competitiveness to improve its business structure.

Through this, the company plans to expand its product portfolio from a focus on existing businesses to one centered on automotive electronics components and high value-added power conversion modules, thereby securing future growth drivers.

The third growth pillar is strengthening shareholder returns to enhance corporate value. Following the cancellation of 300,000 treasury shares, Dongyang E&P plans to continue additional treasury share purchases in the future.

The company aims to use the purchased treasury shares to stabilize its share price and enhance per-share value, ultimately building a structure for long-term growth for both shareholders and the company.

This initiative also aligns with the government’s corporate value-up policy direction. Dongyang E&P plans to raise corporate value by pursuing a balanced approach that emphasizes growth investment, capital efficiency improvements, and stable shareholder returns, rather than focusing solely on short-term share price responses.

Since going public, Dongyang E&P has maintained trust with shareholders through annual dividends. The company has consistently paid at least KRW 300 per share as a fixed dividend over the long term, and it plans to consider increasing the fixed dividend and implementing additional distributions in the event of excess profits, particularly as the automotive electronics business starts to deliver tangible results.

A Dongyang E&P representative stated, “The full cancellation of treasury shares is a direct demonstration of management’s commitment to grow together with shareholders,” adding, “We will continue to actively reflect the perspectives of investors and shareholders, and gradually implement shareholder value enhancement policies that fit the company’s capabilities.”

The representative further added, “Following the Motivelink acquisition, we will transparently disclose the progress of the automotive electronics business, capital allocation status, and additional treasury share purchase and utilization plans in accordance with relevant laws and disclosure standards.”

Dongyang E&P is expected to lay the groundwork for a corporate value re-evaluation through the cancellation of treasury shares, strengthening its core business competitiveness, expanding its automotive electronics business, and continuously returning value to shareholders.

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