Sonokong Completes 5 Billion Won Capital Increase Payment..."Full-Scale Push for Strengthening Financial Structure and New Business Investment"

Sonokong has completed the payment for a third-party allotment capital increase worth 5 billion won, accelerating the strengthening of its financial structure and investments in new businesses.

On July 22, Sonokong announced that it had completed the payment for a third-party allotment capital increase, targeting its largest shareholder HK Mobility and Five Guys Investment Association. A total of 5 billion won was injected through this capital increase, and the company plans to use the funds to improve its financial structure and invest in new growth businesses.

This capital increase was carried out by issuing 2 million common shares at 2,500 won per share. HK Mobility received an allotment of 1.52 million shares, while Five Guys Investment Association was allotted 480,000 shares. All new shares are subject to a mandatory one-year lock-up from the listing date. Of the raised funds, 3 billion won will be used as operating capital, and 2 billion won will be allocated for debt repayment.

As of the first quarter of this year, on a consolidated basis, Sonokong's total assets stood at approximately 113.8 billion won, total liabilities at around 61 billion won, and total equity at approximately 52.7 billion won. Sales amounted to about 38.4 billion won, a 732% increase compared to the same period last year, and operating loss improved to about 700 million won from the previous year. Consolidated net profit for the period was about 3.4 billion won.

The company plans to gradually invest the funds raised from this capital increase, as well as additional future resources, into new businesses such as mobility, AI wellness, and toy IP. Their goal is to achieve 200 billion won in annual consolidated sales, positioning this capital increase as a key driver for growth.

In the mobility sector, Sonokong will leverage synergies with its largest shareholder HK Mobility to expand operations across the entire automotive value chain, including entrusted management of Seo-Seoul Motorium, used car sales, auctions, overseas exports, and online platforms. In AI wellness, the company plans to expand into direct-to-consumer and subscription-based healthcare by leveraging its exclusive Korean distribution agreement with NetEase's affiliate Easyfuture for the AI massage robot 'R2E.'

The toy business will be reinforced by launching products related to the release of Nintendo Switch 2, as well as diversifying into character licensing, webtoons, video content, and kids cafes using its own IP. The company is also building a global mobility platform encompassing imports and distribution of Chinese electric vehicles, related parts, maintenance, and financial services.

Hyunil Cha, CEO of Sonokong, said, "The capital increase of 5 billion won secured through this third-party allotment marks an important turning point for Sonokong's investments in new businesses such as mobility and AI wellness, as well as for stabilizing our financial structure. It also demonstrates the commitment to responsible management by the new leadership centered around HK Mobility."

Meanwhile, Sonokong is scheduled to hold an extraordinary general meeting on September 3 to discuss agenda items such as the reduction of capital reserves and offsetting accumulated losses. The company expects that by using the reduction of capital reserves to offset accumulated losses, it can transform into a legally dividend-eligible company and thus lay the foundation for future shareholder return policies. Previously, the company had also completed the absorption-type merger of its wholly owned subsidiary Sonokong IB. By completing the payment for the capital increase, merging its subsidiary, and reducing capital reserves, Sonokong aims to further detail its plan for improving its financial structure.

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