DB HiTek

DB HiTek reported strong preliminary Q2 2026 results on a consolidated basis, with revenue of KRW 414.5 billion (+22.8% YoY, +15.3% QoQ) and operating income of KRW 105.2 billion (+42.5% YoY, +57.3% QoQ), both on a continuing-operations basis. Net income surged 92.7% YoY to KRW 115.6 billion, and first-half 2026 cumulative net income of KRW 202.5 billion nearly doubled the prior-year first-half figure (+91.2%). The outsized pre-tax income growth (+123.8% YoY) signals significant non-operating gains beyond core foundry operations. A key disclosure note is that subsidiary DB World's ferroalloy segment has been classified as discontinued operations following a temporary business suspension announced on May 29, 2026; revenue and operating income figures therefore reflect continuing operations only. All figures are unaudited and subject to revision.

DB Inc., the largest shareholder of DB HiTek, filed a mass holding report reflecting a change in its contractual arrangements rather than its underlying ownership. Total shares held remain unchanged at 10,918,429 shares (25.03% stake). However, shares subject to major contracts (likely pledged as collateral) decreased from 9,396,010 (21.54%) to 8,896,010 (20.40%), a reduction of 500,000 shares. The filing reason is listed as a modification of contracts related to the reporter's holdings. The purpose of holding remains influence over management as the largest shareholder, with no specific corporate actions currently planned.

Mirae Asset Global Investments reported a 1.19 percentage point decrease in its stake, falling from 11.02% (4,796,002 shares) to 9.83% (4,276,882 shares) as of June 2, 2026. The 519,120-share reduction was driven primarily by ETF redemptions, securities lending, and routine market trading between May 28 and June 2. The crossing below the 10% major shareholder threshold is the key regulatory event, though much of the movement reflects passive fund operations rather than active conviction selling. Trading prices ranged from approximately KRW 181,400 to KRW 220,500 across the reporting period.

The company filed its annual Corporate Governance Report for fiscal year 2025, reporting 86.7% compliance with the 15 key governance indicators set by the Korea Exchange. Notable governance practices include an independent director serving as Board Chair, a board composition of 6 outside directors out of 9 members (including 1 female), and an audit committee composed entirely of outside directors with a financial expert. The company will abolish its anti-cumulative-voting clause at the 73rd AGM (March 24, 2026), with the change taking effect September 10, 2026. Consolidated revenue grew to KRW 1,397.2 billion (up from KRW 1,131.2 billion) with operating profit of KRW 277.3 billion, reflecting strong recovery in the foundry business.

The company filed a correction to its FY2025 annual report (originally submitted 2026-03-16) to fix currency unit reporting errors in Note 35 (Financial Risk Management) of both the consolidated and separate financial statements. The original disclosure mixed multiple currencies (USD, JPY, EUR, CNY) into single rows using inconsistent base-currency units (thousand USD, hundred thousand JPY, hundred thousand CNY), which caused confusion and misstatement of foreign-currency asset and liability balances. The corrected version separates each currency into its own row using a uniform 'thousand' unit, making FX exposure figures readable and internally consistent. Underlying KRW-translated amounts are unchanged, so this is a presentation/disclosure fix rather than a restatement of financial results. No impact on reported earnings, cash, or net asset values.

Subsidiary DB World will temporarily suspend its ferroalloy division effective September 30, 2026, due to a steel industry downturn and persistent accumulated losses. The halted business represents KRW 40.06 billion, or 28.9% of the most recent consolidated revenue (2025 basis). Management expects short-term revenue declines but anticipates improved profitability, cash flow, and debt ratios from cutting fixed costs in the loss-making segment. The suspension date may shift depending on raw material and product inventory depletion. DB World is a major subsidiary engaged in real estate development and golf course operations, with total assets representing 18.7% of the parent's consolidated assets.

Mirae Asset Global Investments filed an amended major shareholder report showing its stake in DB HiTek decreased from 11.10% to 11.02% (-31,369 shares), keeping it above the 10% major shareholder threshold. The net change reflects routine portfolio activity between May 21-27, 2026, including market sales, ETF creation/redemption flows, and stock lending/return transactions rather than a strategic reduction. Reported transaction prices ranged from KRW 155,205 to KRW 220,500 per share across the period. The small reduction is operational in nature and Mirae Asset remains a significant institutional shareholder.

DB Inc., the largest shareholder of DB HiTek, reported a reduction in its combined holdings (including special-related parties) from 12,450,689 shares (28.55%) to 10,918,429 shares (25.03%), a decrease of roughly 1.53 million shares or 3.52 percentage points. The number of shares subject to major contracts remained unchanged at 9,396,010 shares (21.54%). The change reflects both a variation in special-related party holdings and the removal of Samdong Heungsan, Biltech, Shin Hae-cheol, and Kim Jae-young from the special-related party list after a May 19, 2026 court decision suspended the effect of the Fair Trade Commission's notice incorporating them into the 'DB' business group. The filing is made under Article 147 of the Financial Investment Services and Capital Markets Act for purposes of influencing management control.

The largest shareholder group's combined holding decreased by 1,532,260 shares (-3.51%p), falling from 28.55% to 25.03% as of May 19, 2026. The reduction was not driven by share sales but by the dissolution of the special-relationship status of four affiliated parties — Biltech Co., Samdong Heungsan Co., and two affiliate executives (Kim Jae-young, Shin Hae-cheol) — following the suspension of their deemed-inclusion effect. DB Inc. remains the principal shareholder with 19.75% (8,613,783 shares), and no actual disposal of shares by the controlling family occurred. The change is technical/regulatory in nature rather than reflecting a shift in control or insider sentiment.

Mirae Asset Global Investments, a 10%+ major shareholder, increased its holdings from 4,599,432 shares (10.57%) to 4,827,371 shares (11.10%) as of May 20, 2026, a net increase of 227,939 shares. The change was driven primarily by ETF creation/redemption activity along with on-market buying and selling across May 14-20. While the headline shows accumulation, most of the activity reflects index-related flows rather than directional conviction. The continued holding above the 10% threshold maintains Mirae Asset's status as a major shareholder requiring ongoing disclosure.

DB HiTek filed its Q1 2026 quarterly report covering January 1 to March 31, 2026, the 74th fiscal year. As a pure-play 8-inch foundry, the company operates two fabs (Bucheon FAB1 and Sangwoo FAB2) with overseas subsidiaries in the US and China, plus branches in Taiwan, Japan, and Europe. The report notes the global semiconductor market is projected at ~$1.35 trillion in 2026, with system semiconductors comprising about 50%, and the total foundry market sized at ~$183.9 billion, of which pure-play foundry accounts for roughly 95%. Per regulatory filing standards, sections on company overview, history, capital changes, share totals, and articles of incorporation are omitted from quarterly reports and will appear in semi-annual/annual filings.

Mirae Asset Global Investments reported its ownership of DB HiTek common shares increased from 9.92% to 10.57% (4,599,432 shares) as of May 13, 2026, crossing the 10% major shareholder threshold. The 283,027-share net increase was driven primarily by ETF creation and redemption flows, along with stock lending returns and modest market buying/selling around the 152,000-189,000 won range. Crossing the 10% line triggers stricter disclosure obligations under Korean rules, requiring more frequent reporting of any future trades. The activity reflects index/ETF mechanical flows rather than an active conviction build by the asset manager.

Mirae Asset Global Investments has filed an initial major shareholder disclosure for DB HiTek, reporting ownership of 4,316,405 shares (9.92%) as of May 8, 2026. This is a new filing triggered on May 4, 2026, indicating the asset manager has crossed the 5% reporting threshold and now holds just under 10% of outstanding shares. The bulk of the position (4,246,641 shares) was pre-existing holdings, with subsequent daily changes driven primarily by ETF creation/redemption activity, securities lending, and modest on-market trades. Transaction prices ranged from roughly KRW 152,600 to KRW 162,000 over the May 4-8 reporting window. The disclosure signals that a major domestic institutional investor holds a substantial position in DB HiTek, though much of the activity reflects passive ETF mechanics rather than active conviction trades.

DB HiTek disclosed the latest exercise of exchange rights on its 121st series unregistered, zero-coupon, unsecured private exchangeable bonds, which are exchangeable into the company's treasury shares. Cumulative exercises (excluding previously reported amounts) total 441,990 shares, equivalent to 1.02% of total shares outstanding (43,504,588). The most recent exercise on May 11, 2026 converted KRW 5 billion of bonds at an exchange price of KRW 56,562, delivering 88,398 shares. Of the original KRW 125.57 billion issuance, KRW 18 billion in unexchanged bonds remain, representing a potential further 318,234 shares. Because the underlying shares are treasury stock rather than newly issued, this exercise does not dilute existing shareholders but does increase the public float.