Hanwha Solutions is speeding up a self-help plan to make up for funding shortfalls after cutting the size of its rights offering. Hanwha Solutions said on Wednesday it issued 300 billion won worth of redeemable convertible preferred shares (RCPS) through its Qcells unit’s U.S. EPC (engineering, procurement and construction) business entity. It will use the proceeds to replenish funds reduced by the smaller rights offering and to improve its financial structure.

RCPS are shares that carry a redemption right that can be exercised at maturity and a conversion right that allows preferred shares to be converted into common shares. Depending on conditions, they can be classified as equity under accounting rules, which can help strengthen shareholders’ equity. The issuing entity, the Qcells EPC unit, directly carries out solar power plant and energy storage system (ESS) projects in the United States, and signed a module supply and EPC contract with Microsoft in 2024.

Hanwha Solutions recently securitised additional advanced manufacturing production tax credits (AMPC) worth a total of $220.3 million, or about 340 billion won, including $120.3 million for 2025 and $100 million for 2026. This enabled it to early-monetise the full $373.7 million, or about 576.8 billion won, of AMPC received for 2025 to secure liquidity. The company said tax credit rights generated at its 'Solar Hub', North America's largest integrated solar production complex, are being recognised for substantial asset value.

Hanwha Solutions earlier cut the size of its rights offering to 1.7 trillion won from an initial 2.4 trillion won to protect shareholder value. It will raise the resulting 700 billion won shortfall through self-help measures. Following the 300 billion won RCPS issuance, it plans to secure an additional 400 billion won through the liquidation of investment assets and the sale of a U.S. venture investment fund.

Hanwha Solutions Chief Financial Officer Jaebin Lee (이재빈) said, "After swiftly finalising the 700 billion won self-help plan, we will secure a foundation for sustainable growth and focus on strengthening future competitiveness." He said, "We will work to ensure the market appropriately evaluates our corporate value and do our best to enhance shareholder value."