SNT Holdings Proposes Meeting with SMEC Shareholders: "To Discuss Growth and Enhancing Shareholder Value"

[Financial News] SNT Holdings, SMEC's largest shareholder, has proposed an official meeting with SMEC's management on the 29th at SMEC's Juchon plant in Gimhae.
The proposal comes as SMEC's failure to comply with a court decision and its failure to meet the revised Commercial Act's requirements for audit committee composition have continued for an extended period. As the largest shareholder, SNT Holdings seeks to open an official forum for dialogue and broadly address pending issues, including mid- to long-term growth strategies, measures to enhance shareholder value, improvements to corporate governance, and securing financial stability.
SNT Holdings explained, "Although the court granted SNT Holdings' application for a provisional injunction allowing it to inspect and copy SMEC's accounting books, SMEC has not complied, and the decision on indirect compulsory enforcement has also become final. In addition, the audit committee composition required under the revised Commercial Act has yet to be completed. In this situation, we determined that, as the largest shareholder, it was necessary to create an official forum for dialogue again."
According to IR materials released by SMEC and analytical reports from securities firms, SMEC is expected to enter a full-fledged growth phase on the back of increased orders for semiconductor-specialized equipment and other products. This year's revenue and operating profit are projected at KRW 217.9 billion and KRW 23.4 billion, respectively, while the figures are expected to reach KRW 255.4 billion and KRW 29.9 billion in 2027 and KRW 284.3 billion and KRW 32.8 billion in 2028.
By contrast, SMEC's debt-to-equity ratio rose from 158.7% at the end of 2022 to 221.5% at the end of June 2026. Over the same period, total borrowings increased approximately 2.6-fold, from KRW 64.9 billion to KRW 171.4 billion.
SNT Holdings believes that this financial burden could lead to higher interest expenses and constrain investment capacity, making it more difficult for SMEC to fully capitalize on opportunities in new growth businesses such as semiconductor equipment.
SNT Holdings also maintains that if external financing becomes necessary to expand new growth businesses, including semiconductor equipment, the company should consider not only the amount and terms of the financing but also its impact on financial stability and the value of existing shareholders' holdings.
SNT Holdings plans to review its future course of action after taking into account the responses from the parties involved regarding the meeting proposal and the progress of discussions.
[email protected] Kwon Byung-seok Reporter