S&K Polytech Decides to Transfer Capital Reserves to Retained Earnings for Shareholder Returns

S&K Polytech has begun securing distributable profits for shareholder returns.

On August 19, S&K Polytech announced that it had convened a board meeting and decided to transfer capital reserves to retained earnings in order to enhance shareholder returns and increase shareholder value. This agenda item is scheduled to be approved at an extraordinary general meeting of shareholders to be held on September 28.

This decision aims to secure distributable profits for the implementation of shareholder return policies such as cash dividends and share repurchases. Although the company will generate distributable profits from next year following the recognition of significant gains from the sale of an idle factory worth 48 billion won in June, S&K Polytech is acting preemptively to secure sufficient resources for shareholder returns. In particular, dividends paid by reducing capital reserves can increase the effective dividend yield due to tax benefits.

The company will also change its name to S&K Global in line with its merger with Sunjin Engineering, a company specializing in automotive components. Through this merger and absorption of Sunjin Engineering, the company's business structure will change to encompass its entire group, including its subsidiary Caff, and reflects its intent to expand in overseas markets.

A representative from S&K Polytech said, "The decision to convert capital reserves into retained earnings was made to secure resources for proactive shareholder returns, such as dividends and share repurchases, and to enhance corporate value."

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