Responsible Supply Chain Management

Ⅰ. Governance

Decision-making Structure

Hanmi Pharmaceutical has established and operates four fair trade principles and a procurement code of ethics to ensure fair and ethical transactions. In particular, we are striving for responsible supply chain management through the establishment of supply chain management regulations and the formulation of green purchasing policies. Since 2023, Hanmi Pharmaceutical has been operating an ESG due diligence system for its supply chain, identifying and assessing negative impacts on human rights, the environment, and other areas. The targets for ESG due diligence are Hanmi Pharmaceutical's activity-chain-based partners, for whom negative impacts on human rights, the environment, etc., are identified, and regular inspections and monitoring are conducted. To achieve this, a Sustainable Supply Chain Due Diligence TF has been formed, with collaboration between the Procurement Team, Quality Assurance Group, and the dedicated ESG department. Furthermore, HSRM is a supply chain management platform independently developed by Hanmi Pharmaceutical, serving as a communication channel between Hanmi Pharmaceutical and its partners. HSRM includes not only partner announcements but also a partner communication channel, bidding system operation, and export/import management functions, facilitating close communication with partners. Hanmi Pharmaceutical plans to address this as a material issue for sustainable management in the pharmaceutical industry by reviewing partner supply chain ESG risk management plans and performance and expanding relevant training through the ESG Committee, which will be established under the Board of Directors within 2026.

Roles and Responsibilities

II. Strategy_Identification of Risks and Opportunities

Based on the results of the IRO analysis, Hanmi Pharmaceutical identifies key risks and opportunities that may significantly impact stakeholders and sustainability related to responsible supply chain management, and continuously strives to develop effective response measures based on these findings.

Ⅱ. Strategy_Risk and Opportunity Response Plan

Establishing a sustainable supply chain

Supply Chain Management Principles

To ensure fair supply chain management by preventing improper conduct, Hanmi Pharmaceutical has established and shared its Four Major Fair Trade Principles and Procurement Code of Ethics with its suppliers. Hanmi Pharmaceutical manages its suppliers in accordance with its Supplier Code of Conduct and Four Major Fair Trade Principles.

Hanmi Pharmaceutical's 4 Major Fair Trade Principles

Ten Principles of Procurement Ethics

Hanmi Pharmaceutical Supply Chain Management Status

As a company that produces life-saving pharmaceuticals, Hanmi Pharmaceutical dedicates meticulous effort to discovering and selecting suppliers that meet stringent standards to provide quality medicines. Hanmi Pharmaceutical manages all existing and new suppliers separately each year. Furthermore, to provide consumers with quality-assured excellent medicines, we operate a Supply Chain Management Portal (HSRM) aimed at managing and evaluating all suppliers providing raw materials, semi-finished products, finished products, or services.

Responsible Supply Chain Management

Hanmi Pharmaceutical inspects suppliers' ESG performance to identify and improve potential ESG risks within the supply chain. We have established and distributed the Hanmi Pharmaceutical Supplier Code of Conduct, referring to the global pharmaceutical supply chain initiative PSCI (Pharmaceutical Supply Chain Initiative) and K-ESG guidelines. Notably, in 2025, we conducted level assessment through an online supply chain due diligence platform, and on-site due diligence by a third party, namely in-depth assessment to check the suppliers' ESG status. Hanmi Pharmaceutical annually updates assessment items by referencing domestic and international supply chain ESG guidelines and current laws, and plans to continuously strengthen supply chain management through evaluation, inspection, and improvement.

2025 Supply Chain ESG Assessment Results

Hanmi Pharmaceutical identifies key raw material suppliers among its entire supply chain partners, considering business impact and the number of available suppliers for highly business-relevant partners such as raw materials and packaging materials. The 2025 supply chain ESG assessment was conducted through a level assessment (online self-diagnosis) and an in-depth assessment (on-site audit by a third party). For the assessment, an RTO for each area (Environment, Social, Governance, Information Disclosure)¹⁾ or lower was identified as a supplier requiring improvement. A total of 109 companies participated in the level assessment, with 82 of them identified as needing improvement, showing particular vulnerabilities in the environmental and information disclosure sectors. Furthermore, among the companies that underwent the level assessment, 36 key suppliers were selected for an in-depth assessment, and of these, 20 companies were identified as needing improvement, showing vulnerabilities in the safety and health sector.
Hanmi Pharmaceutical plans to identify areas requiring management and support for suppliers identified as needing improvement and monitor the progress of their risk improvement implementation. Additionally, the company plans to revise its 2026 supply chain ESG due diligence regulations and SOPs to establish a global-level supply chain ESG due diligence system.
1) RTO : Risk Trade-Off / Certain Level

<Level Assessment Results>

<In-Depth Assessment Results>

Strengthening supply chain win-win cooperation system

Hanmi Pharmaceutical practices co-growth through various supplier support policies. We not only provide diverse educational support, such as training for the ESG advancement of our suppliers, but also operate systems like improved payment terms, volume assurance, long-term contracts, priority contracts for new products, and a supplier proposal system. Furthermore, in 2025, for effective and practical co-growth, we enhanced security risks and improved supplier convenience by upgrading 'e-Sarangbang', a multilateral communication channel among relevant departments, buyers, and suppliers. We also introduced and operate a third-party anonymous reporting channel (K-Whistle) where grievances such as power abuse, harassment, or sexual harassment against suppliers can be reported. Hanmi Pharmaceutical plans to undertake various improvement activities in the future to strengthen the win-win cooperation system with its suppliers.

Operating Hanmi Pharmaceutical-Supplier Communication Channels

2025 Supplier Support Status

III. Risk Management

Hanmi Pharmaceutical integrates risk and opportunity management processes related to responsible supply chain management with its Enterprise Risk Management (ERM) system, thereby effectively managing company-wide risks, maximizing potential opportunities, and promoting sustainable growth.

Ⅳ. Indicators and Targets