Celltrion (068270.KS) will expand cash dividends for shareholders this year and has signaled a shift to quarterly dividends starting next year.
Celltrion Group Chairman Seo Jung-jin made the announcement at the company's 35th annual general meeting held Thursday at Songdo Convensia in Yeonsu-gu, Incheon.
"We have been purchasing a significant amount of treasury shares for our shareholders, but from now on, rather than helping shareholders through treasury stock buybacks, we will expand cash dividends," Seo said. "The supply-demand balance is stabilizing well, and if the stock price is undervalued, Celltrion Holdings will purchase shares."
Seo explained that the company will maintain its current once-a-year dividend payment for this year before switching to quarterly dividends starting next year. "Until now, we haven't paid much in cash dividends, but this year we will distribute one-third of total after-tax profit as cash dividends," he said. "Starting next year, we will change to a quarterly dividend system. We will pay one-third of after-tax net profit as cash dividends."
Seo outlined a plan to allocate one-third of this year's after-tax net profit to cash dividends for shareholders, one-third to investment, and the remaining one-third to cash reserves.
At the annual general meeting, Celltrion put forward key agenda items including approval of the 35th fiscal year financial statements (consolidated and separate), partial amendments to the articles of incorporation, appointment of directors and audit committee members, approval of executive compensation limits, and plans for treasury stock holdings, disposal, and cancellation.
The proposed amendments to the articles of incorporation include improvements to board operating structure — including whether to adopt cumulative voting — as well as provisions reflecting treasury stock disposal plans and other regulatory updates. Under the director appointment agenda, Ki Woo-sung and Shin Min-chul were nominated as inside directors, while Ko Young-hye, Choi Won-kyung, and Choi Jong-moon were nominated as outside directors.
To strengthen the audit committee, Lee Jung-jae and Yoon Tae-hwa were nominated as outside directors who will serve on the audit committee, and Ko Young-hye, Choi Won-kyung, and Choi Jong-moon were nominated as audit committee members. The meeting also addressed approval of executive compensation limits, treasury stock holding and disposal plans, and treasury stock cancellation, with discussions expected on shareholder return policies and corporate governance improvements.