Amid ongoing management disputes within the Hanmi Pharmaceutical Group, Hanmi Science, the group’s holding company controlled by the late founder Lim Sung-ki’s sons, Lim Jong-yoon and Lim Jong-hoon, has announced a plan to invest approximately 800 billion won to achieve sales of 2.3267 trillion won by 2028.
The holding company disclosed the plan in a mid-to-long-term growth strategy announcement made after the market closed the previous day.
Hanmi Science explained that to achieve its 2028 sales target, it plans to invest 568 billion won in mergers and acquisitions (M&A), 200 billion won in research and development (R&D), 42 billion won in manufacturing facilities, and 5 billion won in information technology (IT) infrastructure. The company also set a target operating profit margin of 13.7% by 2028.
Hanmi Science stated that it would pursue shareholder-friendly policies, such as expanding the average annual shareholder return rate to 25%. Last year’s shareholder return rate was 18%. The company also promised an average annual cash dividend of 20% until 2028. Additionally, it revealed plans to sequentially buy back and cancel 0.5% of the total issued shares each year until 2028.
However, the rosy plan was met with criticism by the tri-party alliance, consisting of the late Chairman Lim’s wife Song Young-sook, daughter Lim Joo-hyun, and Shin Dong-guk, chairman of Hanyang Precision, who are in a management dispute with the brothers. The alliance expressed doubts about the funding sources in a statement released that morning. They stated, “It is hard to see this strategy announcement as a genuine act to enhance corporate value,” and emphasized, “The ‘secret’ report, which was prepared while damaging the value of Hanmi Science, should not be used to relieve the debts of some shareholders through the attraction of external forces.”
They added, “The recent report, which cost Hanmi Science over 3 billion won for external consulting, is disappointing as it is a ‘patchwork’ and has not been shared with any Hanmi Group members,” expressing regret.
Furthermore, they pointed out, “The person who led the report’s preparation is a contract executive who has been with Hanmi Science for less than six months and lacks an understanding of Hanmi Pharmaceutical Group’s philosophy and vision,” adding, “It is absurd to invest over 3 billion won in a mid-to-long-term strategy that even the Hanmi Pharmaceutical CEO was unaware of and had no consultation on.”
They argued that an explanation is needed on how the 815 billion won of funds listed in the disclosure will be raised, but no such explanation was provided. The disclosure did not reveal specific details on how the investment funds would be secured. As of the first half of this year, Hanmi Science’s cash assets amounted to only 2.4 billion won.
The tri-party alliance raised several questions, stating, “In the midst of intense disputes, are they planning a ‘third-party allotment capital increase’? Can such a significant investment matter be announced externally without the board’s approval? Are they planning to sell shares of core affiliates? At a time when criticism of corporate capital increases is rising, is it appropriate to disclose the possibility of a capital increase that could significantly dilute existing shareholders’ stakes in the name of enhancing shareholder value?”
They continued, “The two brothers, who are burdened with nearly 10 billion won in annual interest costs due to personal debts, need to explain more candidly how they plan to resolve the overhang issue,” and expressed concern, “The key factor suppressing Hanmi Science’s stock value is not the company’s future strategy but the brothers’ ‘excessive debt,’ which should be recognized seriously.”
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