[Edaily Reporter Shin Ha-yeon ] JEONGMOON INFORMATION CO.,LTD.(033050), a manufacturer of household goods and automotive interior parts, is taking steps to cover its accumulated losses in order to lay the groundwork for shareholder returns, such as dividends.

JEONGMOON INFORMATION CO.,LTD. announced on the 23rd that it will hold an extraordinary general meeting of shareholders on September 2 to propose a resolution to cover its accumulated losses by reducing statutory reserves and capital surplus.

This proposal involves covering accumulated losses by utilizing statutory reserves and capital surplus. The company explains that this is an accounting adjustment achieved through a transfer between equity accounts, meaning it will not result in a change in total equity or an outflow of cash to external parties.

The company expects that this measure will not only improve its financial structure but also lay the legal and institutional groundwork to secure distributable profits should future business performance improvements generate earnings.

JEONGMOON INFORMATION CO.,LTD. canceled 740,014 treasury shares it held last May and has been steadily reducing its accumulated deficit through business restructuring, expansion into new businesses, and strengthening the sales networks of its overseas subsidiaries.

Currently, in the household goods sector, the company is expanding its OEM and ODM businesses with clients such as Aekyung and Henkel, and it also operates a business manufacturing and supplying automotive interior parts through its U.S. subsidiary. Recently, it has been pursuing business diversification by investing in the U.S. state of Georgia.

A company official stated, “This initiative to cover the accumulated deficit is a bold decision made based on our confidence in sustained profitability improvements, such as stabilizing new OEM supply and expanding the U.S. subsidiary’s automotive interior parts business,” adding, “If the proposal is approved, we will do our utmost to implement various shareholder value enhancement policies, such as dividends, after comprehensively considering future business performance and financial conditions.”