DB HiTek 2025 Business Report: Revenue and Profit Growth, Share Cancellation and Dividend Proposal Signal Commitment to Shareholder Value
Consolidated revenue reached KRW 1.40 trillion (+23.5% YoY), operating profit KRW 277.3 billion (+45.3%), net income KRW 252.6 billion (+10.1%). The significant improvement was driven by strengthened foundry specialization and cost reduction efforts, resulting in an operating margin of 19.85%
Dividend: Proposed cash dividend of KRW 810 per common share (total KRW 32.9 billion). Although lower than the previous year's KRW 1,230, the company maintains consistent shareholder return policy through share cancellations and facility investments via exchangeable bonds
In 2025, 894,000 common shares were cancelled (approx. KRW 39.4 billion). Additional cancellation of 592,000 common shares and 10,621 preferred shares is planned for 2026, as part of capital efficiency improvement for shareholder value
In September 2025, issued zero-coupon exchangeable bonds worth KRW 125.6 billion (exchange price KRW 56,562, exchangeable into 2,220,000 treasury shares). Proceeds are earmarked for clean room expansion and mass production equipment investment. Post-issuance, 353,593 shares were exchanged, and an additional 1,106,168 shares were tendered after the period end
Business diversification: Acquired 100% of DB Metal (alloy steel manufacturer) and Komeland (railway track construction). Subsidiary DB World (real estate and golf course operation) also contributed to results
Financial structure: Debt ratio 33.36% (vs 19.80% prior year), net debt ratio -4%, indicating stable cash flow. Total borrowings of KRW 355.9 billion are exceeded by cash and short-term financial instruments of KRW 455.9 billion, maintaining a net cash position
[AI Summary]DB HiTek's 2025 performance showed solid growth in both revenue and profitability, and its shareholder return policy through share cancellations and dividends is positive; however, potential dilution from exchangeable bonds and reduced dividends remain investor concerns. The diversified business portfolio and stable financial structure provide a foundation for mid- to long-term growth, but semiconductor industry volatility and large-scale investment burdens require continuous monitoring
KOSPI Filing Information
Filing: [Correction of Description] Business Report (2025.12)