1. What Happened?

Hydrolithium announced on July 25, 2025, the decision to sell 750,000 treasury shares (approximately 1.4 billion KRW, representing 1.38% of total outstanding shares). The shares will be sold through NH Investment & Securities.

2. Why the Share Sale?

While companies often sell treasury shares to improve liquidity or manage stock prices, Hydrolithium’s recent performance suggests other possibilities. Their Q1 2025 report revealed an 18.3% decrease in revenue year-over-year and an operating loss of 4,463 million KRW. High inventory levels remain a concern. Given this context, the sale could be a move to secure emergency funds or potentially boost investment in their lithium business.

3. What’s Next?

The sale could negatively impact stock prices in the short term due to the increased supply of shares. However, long-term prospects could be positive if the funds are strategically invested in the lithium sector, driving future growth. The current macroeconomic uncertainties (high interest rates, China slowdown) and volatile commodity prices pose challenges for Hydrolithium.

4. What Should Investors Do?

Hydrolithium’s treasury share sale presents both risks and opportunities. Investors should carefully consider the following before making any decisions:

  • The specific use of funds from the share sale.
  • The growth potential of the lithium business.
  • Changes in the macroeconomic environment.

Closely monitoring future announcements and market conditions is crucial.