Hanwha Solutions: 1.8 Trillion Won Rights Offering and Deteriorating Financial Health

Rights offering of 1.8 trillion won (56 million shares) via rights issue and public offering; largest shareholder plans to subscribe 120%
Planned cancellation of 4,450,816 treasury shares (shareholder return)
Dividend: No 2025 year-end dividend; future payout = greater of 10% of consolidated net income or 300 won per share
Consolidated debt ratio 191%, current ratio 93%, net debt/EBITDA 2026E 5.9x
Interest coverage ratio 0.6x (consolidated); 2025 operating loss of 364.8 billion won, net loss of 615.3 billion won
Q1 2026 operating profit 92.6 billion won, but net loss of 38.2 billion won (continued losses)
Credit rating AA- (negative outlook); downgrade would increase annual financial costs by 75 billion won
Total borrowings 15.7 trillion won; 7.9 trillion won maturing in 2026; risk of early repayment (approx. 4.7 trillion won) if financial covenants violated
Guarantees 9.2 trillion won; lawsuits (defendant) 90 cases totaling approx. 165.4 billion won; AAA Backsheet claim up to 50 million euros
Goodwill 1.3 trillion won (99.3% from solar); impairment risk
Yeocheon NCC force majeure, Hormuz blockade risk, solar AD/CVD risk
Reduction in offering size (2.4 tr → 1.8 tr) leads to unfaithful disclosure designation notice

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Filing: [Correction of Description] Securities Registration Statement (Equity Securities)
Company: HANWHA SOLUTIONS (009830)
Submission: HANWHA SOLUTIONS CORPORATION
Receipt: 05-14-2026