[Shin-Min Joon, Edaily Reporter] Humedix an aesthetic subsidiary of Huons Group is paving its way for shareholder return.
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Humedix (CEO Kang Min jong) announced that the company will acquire treasury stock worth 5 billion Korean won and transfer capital reserves to retained earnings. The company filed its disclosures on Korea‘s electronic disclosure system (DART) on May 7.
The company acquired treasury stock worth 3 billion won in May of last year. This acquisition was decided at the recent board meeting as part of shareholder return policy.
Despite global economic challenges, Humedix reported steady sales growth by enhancing marketing strategy based on top quality products that clearly differentiate Humedix from other competitors.
Last year based on individual financial statements Humedix recorded sales of 161.9 billion won and operating profit of 43.1 billion won and net profit of 39.3 billion won up 6%, 16% and 58% year on year, respectively.
Exports of aesthetics to China and Brazil and sales of ethical drug (ETC) from increasing orders of contract manufacturing organizations (CMO) attributed to improving its profitability.
The company’s decision on treasury stock acquisition shows confidence on the future of the company. The company saw the recent undervalued stock as an opportunity to buyback and fulfill the previously announced promise of shareholder return plan and responsible management, building strong trust with shareholders.
Moreover the company announced a convocation of extraordinary general meeting on June 24. The agenda on reduction of capital reserve aims to increase shareholder’s value by transferring capital reserves to retained earnings. The following increased earnings available for dividends will later be used as tax exempt dividends.
Humedix’s CEO Kang Min jong said “Humedix has decided this shareholder return plan to accompany our supportive shareholders. The company will ultimately enhance the shareholder’s value and trust by finding its place as a global leader.”
