Beijing Hanmi Pharm, Selected as 'High-Tech Enterprise' for 5 Consecutive Times

Hanmi Pharmaceutical announced that its local Chinese subsidiary, Beijing Hanmi Pharmaceutical, recently received the 'High and New Technology Enterprise' certification from the Chinese government.

[Asia Economy Reporter Lee Chun-hee] Beijing Hanmi Pharmaceutical, the local subsidiary of Hanmi Pharmaceutical in China, has achieved the remarkable feat of being selected as a 'High and New Technology Enterprise (高新技術企業)' in China for the fifth consecutive time, based on its excellent technological capabilities.

Hanmi Pharmaceutical announced on the 14th that Beijing Hanmi Pharmaceutical was recently selected as a High and New Technology Enterprise by the Chinese government. Having passed the evaluation and designation conducted every three years five times in a row, it has thus maintained the certification for an impressive 15 consecutive years. Among Korean companies operating in China, Beijing Hanmi Pharmaceutical is the first to pass the High and New Technology Enterprise certification five consecutive times.

The High and New Technology Enterprise certification is overseen by the National High and New Technology Enterprise Recognition and Management Department, organized by the Chinese Science and Technology Commission, the Ministry of Finance, and the State Taxation Administration. It targets local private companies in China that establish intellectual property (IP) systems and conduct business activities in areas prioritized by the state. The certification criteria evaluate companies that meet all four conditions among local enterprises: ▲whether the business is in key sectors designated by the Chinese government such as bio and new drugs ▲possession of IP related to core technologies in the relevant business field ▲securing R&D personnel accounting for more than 10% of the workforce ▲a certain level of R&D investment, and that demonstrate sustainable growth potential.

Various benefits are provided to High and New Technology Enterprises. Through this, Beijing Hanmi Pharmaceutical is subject to a corporate tax rate of about 15%, approximately 10 percentage points lower than the statutory corporate income tax rate of 25%. Additional benefits include extra income deductions for research personnel and R&D expenses, as well as subsidies for improving the business environment.

Beijing Hanmi Pharmaceutical invests about 10% of its annual sales in new drug development R&D. Through its local research center, it is developing various new drugs applying its proprietary bispecific antibody platform technology called 'Pentambody.'

Lim Hae-ryong, General Manager of Beijing Hanmi Pharmaceutical, said, "Obtaining the High and New Technology Enterprise certification, which provides benefits such as corporate tax reductions, five times consecutively means that the Chinese government and regulatory agencies highly evaluate Beijing Hanmi Pharmaceutical's potential for new drug development. We will do our best to accelerate new drug research and bring products to market as quickly as possible."

This content was produced with the assistance of AI translation services.