Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares

• In the past week, Hanwha Systems announced that it plans to expand third party allocation capital increase limit from 20% to 30% of issued shares in its articles of incorporation.

• This plan to significantly increase the amount of capital raise limit sets the stage for a major capital increase by Hanwha Systems in 2025, in our view.

• Unlike in 2021 when we were bullish on Hanwha Systems post a large-scale capital raise, we are more cautious on the company's potential new large scale capital raise this year.