DB HiTek disclosed on the 30th a plan to enhance corporate value targeting a 30% shareholder return ratio, a 20% payout ratio, and at least a 25% total shareholder return (TSR). It also announced an additional cancellation plan for treasury shares it already holds.
DB HiTek has maintained a shareholder return ratio of more than 30% over the past three years through dividends and share buybacks. Last year, it recorded 31.4%. In addition, it plans to cancel an extra 592,000 shares, equivalent to 1.4% of existing treasury shares, within this year.
The company said, "From a governance perspective, it will reflect the amended provisions of the Commercial Act in its articles of incorporation and adopt cumulative voting," adding that it will specify ▲ electronic general meetings of shareholders ▲ a 3% cap on the combined equity of the largest shareholder and related parties when appointing or dismissing audit committee members ▲ directors' duty of loyalty.
DB HiTek plans to invest about 2 trillion won over five years. With growing demand for power semiconductors alongside the rise of artificial intelligence (AI) data centers and electric vehicles, it aims to advance its 8-inch foundry.
It will also push to expand mass production of high-value-added high-voltage power semiconductors, commercialize next-generation power semiconductors such as silicon carbide (SiC) and gallium nitride (GaN), and expand new process businesses including silicon capacitors (Silicon Capacitor). Along with this, it aims for mid- to long-term sustainable growth by ▲ expanding its fabless (semiconductor design) business ▲ entering 12-inch production ▲ and developing new growth businesses.
In 2024, DB HiTek became the first in manufacturing to release a corporate value enhancement plan. Since then, it has been sharing related details each year through voluntary disclosures. It is currently included in the Korea Value-up Index.