AJ Networks Recovers Approximately KRW 35 Billion via Subsidiary AJ Rental Capital Reduction with Limited Shareholder Impact

AJ Networks recovers approximately KRW 34.97 billion through a capital reduction of its subsidiary AJ Rental. The purpose is to return surplus cash from the subsidiary to the parent, conducted by canceling 23 million shares at USD 1 per share.
AJ Networks retains 100% ownership of AJ Rental after the reduction, so the parent company's outstanding shares remain unchanged. Thus, no dilution or value change occurs for existing shareholders.
As of end-2025, AJ Rental reported total assets of about KRW 105.7 billion, total liabilities of about KRW 9.9 billion, and a net loss of approximately KRW 7.2 billion. The recovered cash represents about 7.65% of the parent's equity.
[AI Summary]AJ Networks' subsidiary capital reduction is an internal capital efficiency measure with no direct impact on parent shareholder value. The lack of disclosed use for the recovered cash warrants monitoring of future capital allocation, but immediate shareholder value impairment is unlikely.