SNT Holdings has proposed a Sept. 29 meeting with SMEC’s management, major shareholders and other stakeholders at the company’s Juchon plant in Gimhae to discuss mid-to-long-term growth, investment, financing, financial stability and shareholder value. SNT Holdings and affiliate SNT Motive together hold 28.15% of SMEC, making them its largest shareholder. The proposal follows SNT Holdings’ claims that SMEC has not complied with a court order granting access to and copying of its accounting books and has not met the revised Commercial Act’s requirement for two separately elected audit committee members. An indirect compulsory enforcement order has been finalized, allowing penalties of 10 million won per day, capped at 300 million won, although SNT Holdings has not started enforcement while awaiting voluntary compliance. The companies have also disputed treasury share disposals and voting rights; in March, the Changwon District Court dismissed SNT Holdings’ injunction request seeking to block voting-right exercises by SMEC and others. SNT Holdings acknowledged SMEC’s growth prospects from expanding specialized semiconductor-equipment orders but raised concerns over rising leverage. Revenue and operating profit are estimated at 217.9 billion won and 23.4 billion won in the current year, forecast at 255.4 billion won and 29.9 billion won next year, and 284.3 billion won and 32.8 billion won in 2028. SMEC’s debt-to-equity ratio rose from 158.7% at the end of 2022 to 221.5% at the end of June this year, while total borrowings increased from 64.9 billion won to 171.4 billion won. SNT Holdings said future external funding should be assessed against its necessity, scale, terms, financial stability and effect on existing shareholders.