Sam-il Pharmaceutical Increases Asset Value by 64.7 Billion KRW Through Asset Revaluation... Financial Improvement

Increase in Asset Real Value under IFRS Expected to Reflect in Company Enterprise Value

[Asia Economy Reporter Kwangho Lee] Samil Pharmaceutical announced on the 26th that its assets increased by 64.7 billion KRW through an asset revaluation conducted to reflect the actual value of assets in accordance with IFRS (Korean International Financial Reporting Standards).

The assets subject to this revaluation include the headquarters building located in Bangbae-dong, Seocho-gu, and five other land sites including the pharmaceutical manufacturing plant located in Danwon-gu, Ansan-si. The land book value of the Bangbae-dong headquarters and Ansan plant, acquired in the 1980s, was recorded as 2.45 billion KRW.

Through this asset revaluation based on appraisal, the land appraisal value increased from 2.45 billion KRW to 67.15 billion KRW, and the total assets increased by 28.58% from 226.4 billion KRW at the end of 2021 on a consolidated basis to 291.1 billion KRW. Additionally, other comprehensive income revaluation surplus of 64.7 billion KRW is expected to be reflected through this asset revaluation.

A company official stated, “The results of this asset revaluation will be reflected in the financial statements as of the end of December 2022, and along with the increase in assets, there will be a significant improvement in the financial structure due to a decrease in the debt ratio. We expect that the increase in the actual value of assets according to IFRS will also be reflected in the company’s corporate value.”

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