HANMI SCIENCE CO., LTD - COMPANY INTELLIGENCE BRIEF

1. BUSINESS OVERVIEW

[TRANSLATION NOTE: Business segment details not provided in filing data]

Hanmi Science Co., Ltd. (KSE: 008930) is a South Korean company with a market capitalization of approximately KRW 2.69 trillion (USD ~2.0 billion). Based on the consolidated financial statements, the company maintains significant non-current assets (KRW 1,021 billion as of December 2024), representing approximately 76% of total assets, suggesting substantial fixed asset holdings and long-term investments. This asset composition is characteristic of pharmaceutical or chemical manufacturing operations requiring significant production infrastructure and R&D investments.

2. FINANCIAL TREND

Hanmi Science demonstrates consistent top-line growth but deteriorating profitability. Revenue increased 2.8% year-over-year to KRW 1,283 billion in 2024 (from KRW 1,248 billion in 2023), and showed 22.7% growth over the two-year period from 2022 (KRW 1,046 billion).

However, operating profit declined sharply by 20.6% to KRW 98.9 billion in 2024 from KRW 124.5 billion in 2023, indicating margin compression. The operating margin fell from 10.0% to 7.7%. Net income dropped even more dramatically by 50.8% to KRW 56.7 billion in 2024 from KRW 115.1 billion in 2023, with net margin contracting from 9.2% to 4.4%.

The balance sheet remains healthy with total equity of KRW 838.7 billion and a debt-to-equity ratio of approximately 61% (total liabilities KRW 510.4 billion). Current assets of KRW 328 billion comfortably cover current liabilities of KRW 468.8 billion, though the current ratio of 0.70 suggests potential short-term liquidity concerns.

3. OWNERSHIP STRUCTURE

[TRANSLATION NOTE: Ownership and foreign investor data not included in provided filing excerpts]

Specific ownership structure and foreign ownership percentage cannot be determined from the financial statement data provided. The stated capital of KRW 35.0 billion remained unchanged between 2023 and 2024.

4. KEY RISKS

Profitability deterioration: Despite modest revenue growth, operating profit fell 21% and net income halved in 2024, indicating severe margin pressure from rising costs, competitive pricing pressures, or operational inefficiencies that management has not successfully addressed.

Liquidity tightness: Current liabilities increased 18.6% to KRW 468.8 billion while current assets grew only 19.7% to KRW 328 billion, resulting in a current ratio below 1.0, which may constrain operational flexibility and require additional financing.

5. INVESTMENT CONSIDERATION

Hanmi Science presents a case of stable revenue growth overshadowed by alarming profitability decline and tightening liquidity, requiring investor scrutiny of management's ability to restore operating leverage and working capital efficiency.