Asia Cement Achieves 99.7% Shareholder Return Rate in 2025, Secures Dividend Resources by Reducing Capital Reserves by KRW 66.1B, Positive for Shareholder Value
Recorded a 99.7% shareholder return rate in 2025: Asia Cement had previously disclosed in a fair disclosure on December 18, 2024, that it would use at least 40% of its separate net income for shareholder returns in 2025-2026. In 2025, it achieved an actual return rate of 99.7% through an interim dividend of KRW 50 and a year-end dividend of KRW 200 (total KRW 250, dividend yield 1.98%), along with a KRW 10 billion share buyback and cancellation.
Expanded dividend resources: At an extraordinary general meeting on September 26, 2025, the company resolved to transfer approximately KRW 66.1 billion from capital reserves (share premium) to retained earnings, increasing distributable profits. This positive move enhances future dividend capacity.
Share buyback and cancellation: In 2025, the company purchased and fully cancelled KRW 10 billion worth of treasury shares, directly contributing to shareholder value enhancement.
Maintained shareholder returns despite earnings decline: In 2025, consolidated revenue fell to KRW 1.0228 trillion (down 7.9% YoY), operating profit to KRW 77.1 billion (-45.2%), and net profit to KRW 16.4 billion (-79.5%). Nevertheless, the company faithfully executed its promised shareholder return policy.
Governance status: The core governance indicator compliance rate is 60%. Although the notice of the general meeting was sent only three weeks in advance (failing to meet the four-week recommendation), the company has implemented electronic voting, avoided concentrated meeting dates, and achieved 100% board attendance by outside directors. It also operates an ESG management council and disclosed a corporate value enhancement plan in March 2026.
[AI Summary]Asia Cement delivered an outstanding shareholder return rate of 99.7% despite weak earnings, and secured future dividend capacity by reducing capital reserves. While some governance metrics fall short and earnings are declining, the company's strong commitment to shareholder value is a positive signal. Investors should monitor the sustainability of returns amid the challenging business environment.