1. The Move: What Happened?

SM High Plus Co., Ltd., the largest shareholder of SM Veccell, purchased an additional 26,867 shares between August 6th and 11th, 2025, increasing its stake from 87.50% to 87.52%. This was reported as a change in shareholding with the purpose of “influencing management.”

2. Decoding the Intent: Why the Increase?

This stake increase can be interpreted as a move to stabilize management control and demonstrate a commitment to shareholder value. With an already significant stake, the additional purchase signals a commitment to responsible management and can be seen as a positive sign.

3. Impact on Investors: What Does it Mean for You?

Given the small increase in stake, significant short-term stock fluctuations are unlikely. However, management stability is a positive factor for long-term investment. However, Q1 2025 results showed revenue growth but also slowing profitability and challenges in battery production capacity utilization. These fundamental factors are likely to have a greater impact on the stock price.

4. Investor Action Plan: What Should You Do?

Short-term investors should approach with caution, as significant price fluctuations are unlikely. Long-term investors should monitor the company’s performance on key issues like profitability improvement, increasing battery production capacity utilization, and customer diversification. While the major shareholder’s increased stake is a positive signal, investment decisions should be based on thorough fundamental analysis.