CJ CHEILJEDANG Discloses Corporate Governance Report: Maintains Dividend Despite Net Loss, Continues Governance Improvements
In 2025, CJ CHEILJEDANG recorded consolidated revenue of 27.34 trillion KRW and operating profit of 1.23 trillion KRW, but posted a net loss of 416.96 billion KRW, turning to red due to sluggish domestic and global operations
Despite the net loss, the company maintained a common share dividend of 6,000 KRW per share under its policy to return at least 25% of separate net income (excluding one-off items), totaling 96.2 billion KRW (88.2 billion for common, 8.0 billion for preferred)
In February 2025, the company announced a three-year (2024-2026) shareholder return policy, aiming to raise quarterly dividend to 75% of annual dividend; payout ratio not calculable due to net loss
12 out of 15 core governance indicators compliant (80%); non-compliances: convocation notice not given 4 weeks before AGM (due to consolidation delays), board chair not independent, cumulative voting not adopted (to be introduced in September 2026)
Board consists of 3 inside and 4 outside directors (57.14%); audit, internal transaction, and compensation committees entirely composed of outside directors; lead independent director system introduced in December 2025
Audit committee entirely outside directors including two accounting/finance experts; quarterly meetings with external auditors without management; internal accounting management system deemed effective
Consolidated net loss poses investment risk, but maintained dividends and governance improvements support shareholder value protection
[AI Summary]Although the net loss transition creates financial pressure, predictable dividend policy and governance enhancements (cumulative voting, lead independent director) partially sustain investor confidence, limiting near-term stock price impact