Parkers to Retire All Treasury Shares Equal to About 30% of Market Cap: "Strengthening Shareholder Returns and New Growth Engines"

KOSDAQ-listed company Parkers has decided to purchase an additional 3 billion won worth of treasury shares and then cancel all of them as part of its shareholder return policy. The company plans to boost its corporate value by developing both its K-beauty platform and optoelectronics platform as key future growth engines.

Parkers announced on the 21st that its board of directors had resolved to acquire 3 billion won worth of treasury shares. All acquired shares will be retired, as the company continues to implement a capital policy aimed at enhancing shareholder value.

Previously, the company had finalized plans to retire treasury shares equivalent to 14.48% of all outstanding shares on August 3. The newly acquired treasury shares will also be retired, and in addition, the company retains treasury shares equivalent to about 5.12% of previously issued shares. This provides a foundation for further shareholder return measures going forward.

A company representative stated, "We believe the current corporate value does not fully reflect our technological capabilities and future growth potential," adding, "The purchase and retirement of treasury shares is part of a long-term capital policy aimed at enhancing our corporate value, and we will consistently pursue responsible shareholder returns in the future."

Based on the stable profit foundation of its existing printer cartridge business, Parkers is developing K-beauty and optoelectronics as future growth drivers.

Its subsidiary Aalok is shifting its business structure from a focus on beauty device sales to a repeat-purchase K-beauty platform that combines devices and refill-type cosmetic cartridges.

The company has established a business model that distributes beauty devices at a relatively reasonable price, then continues to sell functional cosmetic cartridges—such as those for soothing, whitening, and elasticity—on an ongoing basis. This model is similar to the 'Razor & Blade' strategy, in which razors are sold followed by recurring purchases of blades; the key is to secure stable revenue through repeat cartridge purchases rather than device sales alone.

In Japan, the company is conducting local market testing with about 500 existing beauty device sets, and is working to expand ODM (Original Design Manufacturing) supply based on these results. Talks are also underway with major Japanese distributors for an exclusive local distribution agreement for a new product combining the device and refill-type cosmetic cartridges.

In the United States, full-scale sales are set to begin in August through major online channels such as Amazon and TikTok Shop. The company plans to use digital marketing to increase device adoption and link this to ongoing cartridge purchases as part of its platform strategy.

Starting in Japan and the United States, Parkers aims to expand its business into Asian and European markets, with the goal of becoming a global K-beauty platform company.

The optoelectronics business is also being nurtured as another major growth engine. Centering on its subsidiary-to-be, Elpoton, the company plans to expand its next-generation optoelectronics platform business.

Elpoton possesses a range of optoelectronics technologies, including micro LEDs, UVC LEDs and associated modules, optical sensors, and power semiconductors. Building on these, Parkers plans to expand into diverse applications such as artificial intelligence (AI), next-generation communications, advanced displays, industrial light sources, and air/water sterilization.

The company intends to combine its existing manufacturing expertise with Elpoton's optoelectronics technology to commercialize products and enter the global market as a new mid- to long-term growth engine.

A company representative explained, "This treasury share purchase and retirement is not a one-off shareholder return, but the starting point for a long-term capital policy to enhance corporate value. By leveraging stable profits from existing businesses to develop the K-beauty platform and optoelectronics platform as dual growth engines, we aim to build a company where sustainable growth and shareholder returns create a virtuous cycle."

This treasury share retirement and new business strategy reflect Parkers' mid- to long-term growth plan to simultaneously enhance corporate value by pursuing an active shareholder return policy and nurturing K-beauty and optoelectronics businesses.

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