The company aims to improve financial stability and invest heavily into solar technology by issuing new shares.
Category: Business
Hanwha Solutions, a major South Korean energy firm, announced on March 26, 2026, that it will proceed with a capital increase of approximately 2.4 trillion won (about $2 billion) through the issuance of new shares. This decision comes after the company faced mounting pressure on its credit ratings, necessitating swift action to bolster its financial structure.
The board of directors resolved to issue 72 million common shares, which accounts for about 42% of the existing common stock. The capital raised will be allocated primarily to debt repayment and investment for future growth. Approximately 1.5 trillion won will be used to repay maturing corporate bonds, commercial paper, and other loans, with the aim of reducing the company’s consolidated debt ratio below 150% this year.
According to a report by Chosun, Hanwha Solutions has been implementing various self-rescue measures over the past two years, including the sale of assets worth 1.6 trillion won and the issuance of 700 billion won worth of hybrid capital securities. These efforts, unfortunately, have not sufficed to offset the downward pressure on its credit rating.
“We decided to conduct this capital increase due to the expanded credit risks we are facing,” the company stated. The remaining 900 billion won from the capital increase will be allocated for future growth investments over the next three years, particularly targeting advancements within the solar energy sector.
Hanwha Solutions plans to invest 100 billion won into the development of a perovskite tandem pilot line, a technology considered a game-changer within the solar industry, which aims to significantly increase efficiency and output. The company has set ambitious targets of achieving 33 trillion won (approximately $27.5 billion) revenue and 2.9 trillion won (about $2.4 billion) operating profit by 2030.
Following the announcement of the capital increase, the company’s stock price fell sharply. By 3:03 PM on the same day, shares were trading at 36,450 won, down 19% from the previous day.
The capital increase will be conducted via a rights offering followed by a public offering of any unsubscribed shares. The record date for the new share allocation is set for May 14, 2026, with the offering price to be confirmed on June 17, 2026. Subscription for existing shareholders will take place from June 22 to 23, and the general public offering for any unsubscribed shares will occur on June 25 and 26.
Hanwha Solutions has also outlined a new shareholder return policy, stating that it will allocate 10% of its consolidated net income for dividend payments or share buybacks over the next five years. The minimum dividend per share has been set at 300 won.
“We will continue to invest heavily into renewable energy and high-value materials to strengthen our long-term business competitiveness and profit generation,” said Nam Jeong-woon, head of Hanwha Solutions’ chemical division, and Park Seung-deok, head of the solar division. They emphasized the importance of maintaining a stable shareholder return policy and enhancing financial health through debt repayment and increased shareholder returns.
With the global shift toward renewable energy, Hanwha Solutions aims to position itself at the forefront of the solar market, leveraging advancements like the perovskite tandem technology to capture greater market share.
The company’s previous fiscal year saw revenues of 13.3 trillion won, alongside an operating loss of 615.3 billion won, highlighting the challenges it faces even within a rapidly growing industry.