Hanmi Pharmaceutical 3-Party Alliance, "Hanmi Science Mid-to-Long-Term Strategy, Unrealistic Patchwork"

"A Blind Report Not Shared with Any Group Member"

Song Young-sook, Chairwoman of Hanmi Pharmaceutical Group, Vice Chairman Lim Joo-hyun, and Shin Dong-guk, Chairman of Hanyang Precision, a tripartite alliance, have raised doubts about the sincerity of the 'Hanmi Group Mid- to Long-term Growth Strategy' announced by Hanmi Science.

Yonhap News

On the 7th, the tripartite alliance criticized, "Hanmi Science's 'Hanmi Group Mid- to Long-term Growth Strategy' appears to be excerpted from a report for which Hanmi Science recently spent 3 billion KRW on external consulting. It is disappointing as it is merely a patchwork of the strategic report derived by Hanmi Group last year."

They added, "During the report preparation process, only a few interviews with affiliate representatives were conducted, and the contents being written were not shared with any Hanmi group members, making it a 'black box report,' which is regrettable."

The tripartite alliance also claimed, "The person leading the report preparation is a contract executive who has been with Hanmi Science for less than six months," and said, "It is unreasonable to invest about 3 billion KRW in a mid- to long-term strategy unknown even to the CEO of Hanmi Pharmaceutical."

Regarding the funding investment plan, the tripartite alliance pointed out, "There is no explanation about the funding procurement," and added, "Before that, there needs to be a more candid explanation about the resolution plan for the overhang issue of the two brothers, who are incurring nearly 10 billion KRW annually in interest expenses due to personal debts."

They emphasized, "It must be seriously recognized that the core factor suppressing Hanmi Science's stock value is the 'excessive debt' of the two brothers," and said, "CEO Lim Jong-hoon should transparently disclose the causes of the performance with a responsible attitude and cooperate in the company's normal management."

Earlier, Hanmi Science announced through a disclosure of 'Future Business and Management Plans' that it would invest 815 billion KRW in mergers and acquisitions (M&A) and research and development (R&D) to achieve sales of 2.3267 trillion KRW and a target operating profit margin of 13.7% by 2028. On the same day at 2 p.m., it held a 'Hanmi Group Value-up and Mid- to Long-term Growth Strategy Press Conference for Enhancing Corporate Value' at the Glad Hotel in Yeongdeungpo-gu, Seoul.