Hanmi Pharmaceutical: "Cannot Conclude Beijing Hanmi’s Accounts Receivable as Total Loss"

"Strengthening Group-Level Management System"

Hanmi Pharmaceutical stated on July 29 that, in response to concerns raised regarding Beijing Hanmi's accounts receivable, "We are further strengthening the group's receivables management system," and added, "We are closely reviewing improvement measures, including collection plans and strategies to prevent recurrence."

According to Hanmi Pharmaceutical, Beijing Hanmi's accounts receivable have exhibited a recurring pattern of increasing throughout the year and being temporarily collected at the beginning of the year. The total accounts receivable stood at approximately 900 million yuan at the end of last year, and as of now, it is about 670 million yuan. Receivables overdue for more than three months decreased from approximately 320 million yuan at the end of last year to 90 million yuan in February, but have since increased to about 430 million yuan as of the current date.

The company is currently analyzing the causes behind the recent increase in long-term receivables while considering various approaches to enhance collection efforts.

A company representative stated, "The balance of Beijing Hanmi's accounts receivable at a specific point in time does not by itself determine the possibility of collection or loss." The representative added, "Receivables not collected for more than three months are simply managed in accordance with accounting classification standards, and should not be immediately interpreted as fully irrecoverable or as requiring full loss recognition."

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