[Edaily Reporter KIM SUNG-JIN ] As concerns arise over the possibility that Beijing Hanmi, a Chinese subsidiary of Hanmi Group, may be unable to collect its accounts receivable, attention is turning to the financial condition of Cory Group, its primary business partner. This is because it is difficult to view the question of whether Beijing Hanmi will be able to collect its accounts receivable from Cory Group—or whether it will have to write them off as bad debt—as unrelated to Cory Group’s financial strength.

Although the Kori Group stated, “There are no unusual circumstances or specific issues regarding the accounts receivable,” it appears that the controversy surrounding the accounts receivable has not been fully resolved, as Hwang Sang-yeon, CEO of Hanmi Pharmaceutical, is reportedly traveling to China on business.

Cash Outflow Continues… Cash Reserves Also Declining

Cory Group is owned by Chairman Lim Jong-yun, the eldest son of the late Lim Seong-ki, former chairman of Hanmi Pharmaceutical, and operates a business distributing pharmaceuticals produced by Beijing Hanmi in China through major affiliates such as Beijing Medicare. This accounts receivable controversy reportedly arose from transactions between Beijing Hanmi and Beijing Medicare; simply put, Beijing Hanmi delivered pharmaceuticals to Beijing Medicare but has not yet received payment for them.

A review of the Cory Group’s financial statements filed with the Hong Kong Stock Exchange on the 12th reveals a trend of improving profitability over the three fiscal years from 2023 to 2025. Cory Group’s operating profit showed a steady annual increase, reaching $46.62 million in 2023, $43.33 million in 2024, and $52.97 million in 2025. Operating profit rose even as revenue decreased from $350.37 million in 2023 to $304.07 million in 2025.

However, the picture is different when looking at cash flow. The Cory Group posted consecutive deficits in cash flow from operating activities over two fiscal years: $10.26 million in 2024 and $7.07 million in 2025. Cash flow from operating activities, as the name implies, is an account that records the net inflow and outflow of cash actually earned and spent by a company through operating activities, such as the sale of goods and services. It is often described as the “true picture of a company’s financial health” because it is considered less distorted than the income statement.

“Cash flow from investing activities” also showed a negative trend. While there was a surplus of $4.72 million in 2023, the company recorded deficits of $29.25 million in 2024 and $2.81 million in 2025. Notably, an item totaling approximately $19 million stands out as a major factor behind the significant deficit in cash flow from investing activities in 2024. This amount represents a loan provided by OFMOM, a subsidiary of the Kori Group, to Dx&Vx. According to the report, the loan was originally due on March 7, 2027, but it was specified that the entire amount was repaid early on January 16 of this year. Dx&Vx is a KOSDAQ-listed company engaged in genomic diagnostics, vaccines, and the development of new drugs based on the microbiome; it has been managed by Chairman Im Jong-yun since he became the largest shareholder in 2021.

Cash flows from financing activities, which track borrowing and repayment, have been in the black for the past two years, but not to the extent of offsetting the deficits in cash flows from operating and investing activities. Consequently, the company experienced a net cash outflow of $38.6 million in 2024 and $7.75 million in 2025.

Rapid Increase and Prolonged Accounts Payable

Cash outflows over the past two years have led to a significant decline in cash and cash equivalents. As of the end of last year, Kori Group’s cash equivalents stood at $16.09 million (approximately 22.7 billion won); considering that the company owes Beijing Hanmi approximately 100 billion won, this cannot be considered a comfortable financial position. Even including the $19 million (approximately 26.8 billion won) received from Dx&Vx as an early repayment this past January, the total cash on hand amounts to approximately 50 billion won based on a simple calculation.

In fact, an examination of the Cory Group’s accounts payable reveals a significant increase over the past three years. Accounts payable, which stood at approximately $30.29 million in 2023, surged to $92.73 million in 2025. It appears that the majority of Cory Group’s accounts payable are concentrated in a single entity: Beijing Hanmi. As of 2025, approximately 94% of the $92.73 million in accounts payable was recorded as related to Beijing Hanmi.

In particular, the structure of trade payables has become more long-term. In 2023, trade payables due within three months of invoice issuance accounted for about 82% of the total, but by 2025, this proportion had decreased to 38.1%. At the same time, accounts payable outstanding for 3–6 months accounted for 34.6%, those for 6–12 months for 17.2%, and those exceeding 12 months for 10.2%. Considering the note in the audit report stating that “accounts payable are interest-free and are typically settled within 30 days,” it is analyzed that accounts payable have not only increased but also become more prolonged.

An accountant who requested anonymity commented on this, stating, “It seems crucial to determine whether these are problematic accounts receivable—whether the volume has increased due to a long-term accumulation or a sudden surge in a short period.” The accountant added, “Given the scale, this is viewed as an issue that could impact Hanmi Pharmaceutical as a whole.”

Cori Group maintains that there are no major issues underlying the increase in Beijing Hanmi’s accounts receivable. Cori Group stated, “Structural changes in the Chinese market have also had an impact,” citing price inversions between hospitals and pharmacies, insurance drug price regulations, and the expansion of generic drugs as key factors. The group further stated, “There are no unusual circumstances or specific problems with the accounts receivable,” adding, “If there are issues with Beijing Hanmi’s accounts receivable, they can be assessed based on late payment fees, payment deadlines, bad debt provisions, repayment plans, and actual recovery rates.”

Regarding this controversy, Hanmi Pharmaceutical stated, “We are further strengthening our group-wide accounts receivable management system and are closely reviewing improvement measures, including recovery plans and measures to prevent recurrence.” The company further explained, “Beijing Hanmi’s accounts receivable have followed a recurring pattern of rising throughout the year and then being temporarily recovered at the beginning of the year.”

Cori Group is a company in which Chairman Lim Jong-yoon holds a 100% stake, either directly or indirectly, and is currently pursuing a listing on the Hong Kong Stock Exchange. Chairman Lim also serves as the chairman of Beijing Hanmi, overseeing its management. In March, Chairman Lim sold his entire stake (6.45%) in Hanmi Science to Shin Dong-guk, chairman of Hanyang Precision, and ostensibly stepped back from the management control dispute.