The Financial Services Commission (FSSC) has once again halted Hanwha Solutions' massive paid-up capital increase plan, and as a result, the timeline for issuing new shares is expected to suffer serious setbacks. According to recent statements from financial authorities, the FSSC has demanded revisions to the securities filing documents submitted on the 17th, marking the second administrative action taken in just nine days. Authorities stated that there are unclear aspects in the submitted documents, such as failure to comply with legal formalities, inclusion of false information, or omissions of important information, which could hinder investors' rational judgment.
Consequently, the relevant securities filing remains in a suspended state without approval, and there is a high likelihood that the entire securities issuance process, including the subscription schedule, will be altered. If Hanwha Solutions fails to resubmit the revised filing within three months from today, the capital increase plan will be deemed withdrawn. This is not merely a paperwork issue but a major variable affecting the company's capital-raising strategy, simultaneously attracting market attention and concern.
Hanwha Solutions previously argued on March 26 that it needed to improve its financial structure to prevent a downgrade in credit ratings due to the downturn in the global solar and chemical industries. Without sufficient communication with shareholders beforehand, the company made a surprise move to announce a paid-up capital increase of 2.4 trillion won. During this process, the company faced shareholder backlash due to the lack of prior discussion and concerns about stock dilution from a large increase in shareholders. Even after reducing the capital increase scale from 2.4 trillion won to 1.8 trillion won following the FSSC's first correction request, the plan still failed to pass the authorities' review this time.
The Hanwha Solutions side has stated that it is taking the FSSC's second correction request very seriously. It promised to once again deeply reflect on the various criticisms and opinions raised by shareholders and the media regarding the paid-up capital increase plan with a humble attitude. The authorities stated that they intend to prepare and submit a filing that can meet the correction request requirements in good faith, expressing their will to prioritize enhancing corporate transparency and protecting investors during this process.