FSS Demands Second Revision to Hanwha Solutions' Capital Increase Plan

The Financial Supervisory Service (FSS) has once again put the brakes on Hanwha Solutions' capital increase, even after the company scaled back its plans. This persistent scrutiny highlights the FSS's concerns that the explanations regarding the funding structure and the intended use of the raised capital remain inadequate, potentially hindering investors' ability to make informed decisions.

Initially, Hanwha Solutions announced a substantial capital increase of 2.4 trillion won. However, this plan drew significant criticism when it became apparent that a large portion of the funds would be allocated to debt repayment. In response to the FSS's first amendment request, the company revised its plan, reducing the amount to 1.8 trillion won. Despite this adjustment, the FSS has not yet approved the filing, indicating that the core issues remain unresolved.

The FSS's decision to request a second amendment suggests that the revised filing still lacks sufficient detail concerning the impact of the altered funding structure on the company's finances and the specific purposes for which the capital will be utilized. This situation echoes a previous instance in April of last year, where the FSS also requested an amendment for Hanwha Aerospace's capital increase, which was subsequently reduced before being refiled.

With the effectiveness of the current filing suspended, Hanwha Solutions faces a critical deadline. The company must resubmit a satisfactory amended filing within three months. Failure to do so will result in the withdrawal of the capital increase plan. Hanwha Solutions has acknowledged the FSS's second request, stating they will "humbly accept" the concerns raised by shareholders and the media and will diligently prepare a revised filing that meets the FSS's requirements.

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We take the FSS's second amendment request very seriously. We will humbly accept the criticisms and opinions raised by our shareholders and the media regarding our capital increase, and diligently prepare a filing that meets the requirements of the amendment request.