Hanwha Solutions will launch a sweeping overhaul of its financial structure after approving a 2.4 trillion won rights issue. Despite carrying out 2.3 trillion won worth of self-help measures over the past 2 years, it judged that it should respond pre-emptively by directly repaying borrowings as pressure for a credit rating downgrade grew amid a slowdown in the business environment.

Hanwha Solutions on Wednesday approved a plan to 추진 a rights issue through its board of directors. It will be conducted as an allocation to shareholders followed by a public offering of unsubscribed shares, with May 14 set as the record date for the new share allocation. The offering price will be fixed on June 17, and subscriptions by existing shareholders will take place on June 22 to 23, while subscriptions for unsubscribed shares will run on June 25 to 26.

Of the 2.4 trillion won to be raised, 1.5 trillion won will be used directly to repay borrowings. It plans to redeem corporate bonds, commercial paper and revolving credit lines that mature this year, lowering its consolidated debt ratio to below 150 percent by the end of this year and managing net borrowings at about 9 trillion won. It set long-term targets of a 100 percent debt ratio and 7 trillion won in net borrowings by 2030.

Over the past 2 years, the company sold assets worth a total of 1.6 trillion won, including idle land in the Yeosu industrial complex, housing site land in Ulsan, renewable energy development assets and stakes in affiliates. It also raised an additional 700 billion won separately by issuing hybrid capital securities (perpetual bonds). But as the industry downturn continued, financial burdens from a credit rating downgrade and damage to corporate value emerged as realistic threats.

The remaining 900 billion won will be allocated to investments over the next 3 years to shift solar technology. It will first invest 100 billion won in a perovskite tandem (tandem) pilot line to verify reliability, process stability and mass-production readiness. Based on that, it will invest 800 billion won to build a gigawatt-scale tandem mass-production line and expand TOPCon production capacity.

Hanwha Solutions also unveiled its five-year shareholder return policy for 2026 to 2030. It will use 10 percent of consolidated net income for dividends or share buybacks and cancellations, while guaranteeing a minimum dividend of 300 won per common share even if that amount falls short of 300 won per share.

Jung-woon Nam (남정운), head of the chemicals division, and Seung-duk Park (박승덕), head of the Qcells division, said the company would continue core growth investments in renewable energy and high value-added materials to strengthen mid- to long-term business competitiveness and its earnings base. They said it would maintain stable shareholder returns centred on its minimum dividend policy, and seek to improve financial soundness through expanded shareholder returns in line with business growth and by repaying borrowings. The company presented a target of consolidated revenue of 33 trillion won and operating profit of 2.9 trillion won by 2030.