Celltrion to Cancel 100 Billion Won Worth of Treasury Stock, Accelerating Shareholder Return Policy

544,299 Shares to Be Cancelled
Cancellation Scheduled for September 30

Celltrion will cancel approximately 100 billion won worth of treasury stock to enhance shareholder value. This move marks the company's full-scale implementation of its recently announced mid- to long-term shareholder return policy.

Celltrion Headquarters Exterior in Yeonsu-gu, Incheon. The Asia Business Daily Database

Celltrion announced on the 16th that it had resolved to cancel 544,299 shares of treasury stock to enhance shareholder value. The cancellation date is scheduled for September 30, and the change in listing is expected to be completed in October.

The total value of this cancellation amounts to about 100 billion won. As a result, the total amount of treasury stock acquired and planned for cancellation by Celltrion this year will increase in two rounds to 200 billion won.

Recently, Celltrion announced a mid- to long-term principle to return approximately one-third, or 33%, of its annual consolidated net income to shareholders through treasury stock cancellation or cash dividends. The current cancellation of treasury stock follows the announcement of this shareholder return policy.

Celltrion plans to complete the process by both acquiring and canceling the treasury shares, thereby eliminating the possibility of future resale and increasing the predictability of its shareholder return policy. Moving forward, the company will comprehensively consider share price levels, market conditions, surplus cash flow, R&D investment, and global facility investment plans each year to determine the allocation between cash dividends and treasury stock buybacks and cancellations. If the share price is deemed undervalued relative to the company's intrinsic value or growth potential, the company will actively use buybacks and cancellations. When there is a need to return cash to shareholders, this will be done in parallel through dividends.

This expansion of shareholder returns has been supported by improved financial results. Last year, Celltrion recorded consolidated sales of 4.1625 trillion won and an operating profit of 1.1685 trillion won. In the first half of this year, the company achieved sales of 2.5387 trillion won and an operating profit of 773.7 billion won.

A Celltrion representative stated, "This cancellation of treasury stock is a concrete step toward implementing the recently announced mid- to long-term shareholder return policy," adding, "Based on our robust performance and strong cash generation, we will continue to invest in future growth while consistently adhering to our principle of returning one-third of consolidated net income to shareholders."

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