Hanwha Solutions will move to raise capital to secure future growth engines by strengthening financial soundness and investing in innovative solar technologies.
Hanwha Solutions said on the 26th that its board approved a rights offering with a general public subscription for forfeited shares worth 2.4 trillion won. The record date for new share allotment is May 14, and the issue price will be finalized on June 17.
Hanwha Solutions plans to improve its financial structure by using the funds raised to repay borrowing fund accumulated during facility investments. It will then expand renewable energy production lines focused on high output and high efficiency. It is targeting 33 trillion won in sales and 2.9 trillion won in operating profit on a consolidation basis in 2030.
Over the past 2 years, Hanwha Solutions has pursued measures to improve its financial structure, including asset sales and the issuance of hybrid securities. It sold 1.6 trillion won in assets, including idle land in the Yeosu Industrial Complex, housing site land in Ulsan, renewable energy development assets, and equity in affiliates. It raised 700 billion won in the capital market by issuing hybrid securities (perpetual bonds).
Despite these efforts, pressure on its credit rating has grown due to a downturn in the global solar and chemical industries, the company said. Of the funds secured this time, about 1.5 trillion won will be used to improve the financial structure and strengthen mid- to long-term financial soundness. It plans to lower the consolidation debt ratio to below 150% in 2026 and manage net borrowing fund at around 9 trillion won.
The remaining 900 billion won will be allocated as investment resources for future growth over the next 3 years. It will invest 100 billion won in a perovskite tandem (hereafter tandem) pilot line. It plans to invest 800 billion won in large-scale facility investments.
It also plans to step up shareholder returns. Over the next 5 years (2026–2030), it intends to return 10% of consolidation net income to shareholders through dividends, share buybacks, and cancellations. Even if 10% of consolidation net income falls short of a common-share dividend of 300 won per share, a minimum dividend of 300 won per share will be guaranteed.
Nam Jung-woon, head of the Hanwha Solutions chemical division, said, "We will continue core growth investments in renewable energy and high value-added materials to strengthen mid- to long-term business competitiveness and the foundation for profit generation," and added, "We will maintain stable shareholder returns centered on a minimum dividend policy, and seek to enhance financial soundness through expanded shareholder returns driven by business growth and the repayment of borrowing fund."