HanWool & Jeju Completes 90% Capital Reduction, Shares Reduced to One-Tenth; Balance Sheet Improvement Expected Amid Past Losses
HanWool & Jeju completed a 90% capital reduction on April 16, 2026, following the registration of capital decrease. Ordinary shares were reduced from 22,149,847 to 2,214,984, and capital stock decreased from 11.07 billion won to 1.11 billion won. The par value of 500 won remains unchanged, and the reduction ratio of 90% applies equally to both major and minority shareholders.
This capital reduction is interpreted as a defensive measure aimed at improving the financial structure by eliminating accumulated deficits. The effective date of the reduction is April 14, 2026, and the listing change is expected on May 6, 2026.
With a 90% reduction in shares, the stock price is expected to increase proportionally, but the underlying enterprise value remains unchanged. However, the reduction implies past losses, so investors should monitor future profitability improvements.
This disclosure does not include any treasury stock acquisition or dividend payout.
[AI Summary]HanWool & Jeju's 90% capital reduction has a neutral impact on shareholder value: while it improves EPS by reducing share count, it aims to cover deficits rather than raise capital. The growth purpose score is low due to no capital raising, and governance score is neutral as it is a restructuring without external counterparties. The final weighted score of 6 reflects mixed expectations of financial improvement and risks from past losses.