Hanon Systems Announces Rights Offering of Approximately 900 Billion KRW to Strengthen Financial Stability

• The capital increase is designed to enhance corporate value and secure operational funds for sustainable growth
• A portion of the funds will be used for debt repayment to strengthen the company's financial stability
• Rights offering to be conducted through shareholder allocation and public subscription of shares

SEOUL, South Korea, Sept. 23, 2025 /PRNewswire/ -- Hanon Systems (KS:018880), a leading global provider of automotive thermal management solutions and a subsidiary of Hankook & Company Group (Chairman Hyun-bum Cho), today announced that its board of directors has approved a rights offering totaling approximately 900 billion KRW. The capital increase is aimed at enhancing corporate value and securing operational funds to support long-term growth. A portion of the funds will be allocated for debt repayment to strengthen the company's financial stability.  

Under the terms of offering, Hanon Systems will issue 347,500,000 registered common shares, representing 51.20% of the existing shares, through a shareholder allocation. Of the newly issued shares, 20% will be allocated to the Employee Stock Ownership Association, with the remaining shares distributed to existing shareholders as of the record date, November 14. Any unsubscribed or fractional shares will be subsequently made available via public offering.

The expected issue price is 2,590 KRW per share, calculated based on the lower value between the weighted average share price over the past one month and one week, and the closing price on the business day immediately preceding the board resolution. A 15% discount rate was applied to minimize dilution of existing shareholders' rights and enhance corporate value. The final issue price will be determined on December 16.

The funds raised through this rights offer will be allocated primarily for debt repayment to strengthen the company's financial stability. In addition, the capital will be used to secure operational funds, maintain existing facilities, and invest in new production equipment. These measures are intended to enhance corporate value and support Hanon Systems' long-term growth.

Soo-il Lee, Vice Chairman and CEO of Hanon Systems said: "Stabilizing our financial structure is an essential step toward sustainable growth. Through continuous technological innovation and the strengthening of our business capabilities, we will remain responsive to market changes and committed to enhancing both corporate and shareholder value."

About Hanon Systems
Hanon Systems, founded in 1986, is a global leader in thermal management solutions. In January 2025, it became a subsidiary of Hankook & Company Group. Its offering includes a wide range of solutions in the areas of heating, ventilation and air conditioning, powertrain cooling, compressor, fluid transport, and electronics and fluid pressure. The company currently operates 50 manufacturing sites and three regional innovation centers and employs more than 20,000 people across 21 countries. To learn more, visit hanonsystems.com.

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SOURCE Hanon Systems