MIRA INFORM REPORT

 

 

Report Date :

06.08.2007

 

IDENTIFICATION DETAILS

 

Name :

SAEHAN INDUSTRIES INC

 

 

Registered Office :

287, Gongdan 2-dong, Gumi-si, GYEONGSANGBUK-DO, KOREA

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

07.01.1972

 

 

Com. Reg. No.:

515-81-00097

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturers pf man-made Fiber Fabrics.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Exists

 

 

Basic

 

Company Name

SAEHAN INDUSTRIES INC.

Registered Address/Gumi 1st Factory

287, Gongdan 2-dong, Gumi-si, GYEONGSANGBUK-DO, KOREA

Zip Code

730-906

Tel

+82-54-469-4114

Fax

+82-54-469-4444

E-mail

webmaster@saehan.co.kr

Website

www.saehan.co.kr

Trading Address  / Seoul Office

254-8, Gongdeok-dong, Mapo-gu, SEOUL, Korea

Tel

+82-2-3279-7000

Fax

+82-2-3279-7062

Gumi 2nd Factory

309, Gongdan-dong, Gumi, Gyungsangbuk-do, Korea

Tel

+82-54-480-3000

Fax

+82-54-480-3002

Anseong Factory

58, Singeonji-dong, Anseong-si, GYEONGGI-DO, KOREA

Tel

+8231-677-2831~4

Fax

+82-31-677-2835

Type

Export/Import

Industry

Manufacture of Man-Made Fiber Fabrics

  Main Business

Yarn, Fabrics, PET Sheet, Filter, Chip

Established

07/01/1972

 

The Subject owns the Gumi 1st and 2nd Factories and Seoul Office.

 

 

Detailed Products

 

Activity

Detailed Products

Sell

Yarns(11151700

Sell

Blank tapes(43202002)

Sell

Magneto Optical MO disks(43202006)

Sell

Cotton fibers(11151507)

Sell

Resins(13111000)

Sell

Filters(40161500)

Sell

Concrete pilings(30102802)

Sell

Polyester films(13111210)

Sell

Blank video tapes(45131604)

Sell

Fabrics and leather materials(11160000)

Sell

Water purification equipment(47101514)

Sell

Sheet(30102500)

 

 

CEO’s

 

Name

Park Kwang-Up

Address

-

Date of Birth

08/15/1951

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital

235,186,090,000 KRW

Employees

1,130

Formation

Listed Company (KOREA STOCK EXCHANGE : 008000 ) as of

Foreign Direct Investment Corporations

Bank Details

Woori Bank-Gangnam Sales Head Branch

Corporate Registered No.

174811-0000151

Business Registered No.

515-81-00097

Permit & Licenses

11/1993 ISO 9002

09/1994 ISO 9001

12/1995 ISO 9002-Kyungsan factory

12/1996 ISO 14001 Gumi 1 Factory

12/1997 ISO 14001-Kyungsan factory

 

Int’l Trade No.: 875527

Shareholder Position

Name

Shares

%

Hyundai III Securitization Specialty Co.,Ltd.

3,948,266

8.39

Woori Bank

3,722,566

7.91

Kookmin Bank

3,433,566

7.30

CHB NPL

3,324,399

7.07

Seoul Guarantee Insurance Company

2,851,000

6.06

KAMCO

2,697,759

5.74

Others

27,059,662

57.53

Total

47,037,218

100.00

Company History

07/01/1972 Established Cheil Synthetics Textiles Co. Ltd

02/28/1989 Changed company name to Cheil Synthetics Inc.

08/31/1995 Separated from Samsung Business Group

02/28/1997 Changed company name to the present name

08/2000 Sold Music Business Div.

03/2001 Sold Battery Business Div.

09/2001 Sold PHILTEX Business Div.

11/2001 Sold Electronic Information Div.

04/2002 Sold Processing Film Div.

07/2002 Sold Mapo Head Office Building

07/2002 Sold Garments Business Div.

07/2006 Changed the registered Head office address to one of Gumi Factory.

 

The market expects the future of textile industry will be tough because of China’s low priced products, exchange rate and high oil price. The subject has been proceeded the restructuring course until 2005. It is known at its result was good. However financial performance did not meet the market expectation due to Exchange rate, High Oil Price and Downturn of domestic market.

 

The Subject Company is a Korea-based company that is principally engaged in the production and supply of textiles and industrial and environmental materials. The Company's product portfolio consists of polyester filament yarns, including wool-like yarns, silk-like yarns, linen-like yarns, cotton-like yarns, rayon-like yarns, stretch yarns, micro yarns and functional yarns; polyester staple fiber, including polyester staple fiber for spinning, non-woven polyester staple fiber and special polyester staple fiber available in 50 colors; textured and functional textiles, such as synthetic fiber, natural fiber and blended fiber textiles; filters, mainly osmosis membranes and micro filters, and plastic sheets, including polyethylene terephthalate (PET) sheets, impact-resistant, chemical-resistant PET plates and polycarbonate (PC) sheets. The Company also offers water treatment materials, mainly fiber membranes, and chip products, including PET chips and special chips.

 

-History of Corporate Work-Out Procedure

05/18/2000 Applied to Corporate Work-Out Procedure

06/02/2000 Decided to Corporate Work-Out Procedure at the 2nd meeting of Creditors

10/18/2002 Signed the agreement on the Corporate Work-Out Procedure between the creditors of financial institutes and the Subject Company

12/30/2004 Postponed the payment of debts until 12/31/2006 based on the agreement on the 3rd Corporate Work-Out Procedure

12/28/2006 Postponed the payment of debts until 06/30/2007 based on the agreement on the 4th Corporate Work-Out Procedure

04/05/2007 Postponed the payment of debts until 12/31/2008 based on the agreement on the 5th Corporate Work-Out Procedure

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Inauguration Day

President & CEO

Mr.

Park Kwang-Up

Korean

51.08.15

Sungkyunkwan University

Director

Mr.

Kim Jung-Hoon

Korean

59.12.21

-

Director

Mr.

Morino Hitoshi

Japanese

47.08.12

-

Outside Director

Mr.

Shin Ki-Sup

Korean

55.10.29

-

Outside Director

Mr.

Park Tae-Young

Korean

51.01.15

-

Auditor

Mr.

Lee Min-Ki

Korean

49.12.03

Chonbuk National University

 

 

Financials

                                                                                                                Unit: KRW

Year

Sales

Assets

Net income

2006

736,267,430,972

886,459,599,104

(-)91,438,625,923

2005

744,435,173,207

1,004,443,504,799

5,506,215,130

2004

742,625,976,438

1,122,944,383,321

15,122,739,623

 

It is recommendable to consider as the account with a high level of risk.

 

 

Financial Description  

                                                                                         Unit: KRW

Authorized Capital

1,00,000,000,000

Paid-Up Capital

235,186,090,000

Total Issues Shares

47,037,218

 

 

Balance Sheet

Unit : Korean Won

01/01/2007~03/31/2007

As of 12/31/2006

As of 12/31/2005

Total Assets

   883,890,000,000

886,459,599,104

1,004,443,504,799

Current Assets

   236,700,000,000

232,799,646,729

301,832,072,936

-Quick Assets

   147,817,000,000

152,904,148,818

215,698,979,333

-Inventories

     88,883,000,000

79,895,497,911

86,133,093,603

Fixed Assets

   647,190,000,000

653,659,952,375

702,611,431,863

-Investment

   339,079,000,000

344,865,492,719

99,541,961,317

-Tangibles

   301,207,000,000

307,779,182,336

602,671,690,797

-Intangibles

         970,000,000

1,015,277,320

397,779,749

-Others

       5,934,000,000

-

-

Total Liabilities

   611,020,000,000

607,076,975,861

630,684,672,505

Current Liabilities

   321,720,000,000

319,087,893,649

236,277,605,538

Fixed Liabilities

   289,300,000,000

287,989,082,212

394,407,066,967

Capital Stock

   235,186,000,000

235,186,090,000

235,186,090,000

Capital Surplus

     21,287,000,000

107,219,779,285

106,516,965,914

Profit Surplus

(-) 6,829,000,000

(-)85,932,410,793

5,506,215,130

Capital Adjustment

     23,226,000,000

22,909,164,751

26,549,561,250

Total Equity

   272,870,000,000

279,382,623,243

373,758,832,294

Liab. & Shareholder’s Equity

   883,890,000,000

886,459,599,104

1,004,443,504,799

 

Current Liabilities

   321,720,000,000

319,087,893,649

236,277,605,538

Trade payables

     46,966,000,000

43,077,993,110

56,984,149,024

Short-Term Borrowings

     38,375,000,000

40,450,996,743

14,727,332,959

Account Payables

     42,720,000,000

41,447,629,344

46,123,730,490

Advance Receipts

   181,517,000,000

182,579,634,676

104,834,397,938

Withholdings

       1,307,000,000

1,767,829,455

1,878,044,504

Guarantee Deposits Withhold

          32,000,000

96,250,000

101,250,000

Accrued Expenses

       5,725,000,000

4,247,639,494

6,137,883,132

Leasehold Deposits Received

       3,370,000,000

3,515,000,000

3,779,000,000

Current Portion of Long-Term, Debts

         500,000,000

497,479,232

1,711,817,491

Provision for Corporate Work-Out

       1,208,000,000

1,407,441,595

-

Fixed Liabilities

   289,300,000,000

287,989,082,212

394,407,066,967

Debentures

     93,567,000,000

93,567,496,453

93,567,496,453

Long-Term Borrowings

   176,431,000,000

176,325,607,865

286,422,866,429

Provision for Severance & Retirement

     33,964,000,000

32,833,142,465

31,144,644,482

Transferred to the National Pension Fund

(-)1,198,000,000

(-)1,204,632,462

(-)1,369,015,462

Deposits for Severance  Insurance

(-) 14,167,000,000

(-)14,273,335,109

(-)15,494,300,935

Provision for Repairs

         703,000,000

740,803,000

135,376,000

 

Income Statement

Unit : Korean Won

01/01/2007~03/31/2007

As of 12/31/2006

As of 12/31/2005

Sales

   184,268,000,000

736,267,430,972

744,435,173,207

Cost of Sold Goods

   169,264,000,000

688,256,766,913

688,868,042,626

Gross Profit

     15,004,000,000

48,010,664,059

55,567,130,581

Selling & Admin. Expenses

     14,783,000,000

59,104,867,264

55,190,311,504

Operating Income

         221,000,000

(-)11,094,203,205

376,819,077

Non-Operating Income

       4,013,000,000

23,372,245,847

104,476,175,188

Non-Operating expenses

     11,063,000,000

103,716,668,565

99,346,779,135

Ordinary Income

(-)6,828,000,000

(-)91,438,625,923

5,506,215,130

Special Income

 -

-

-

Income Before Taxes

(-)6,828,000,000

(-)91,438,625,923

5,506,215,130

Income Taxes Expenses

 -

-

-

Net Income

(-)6,828,000,000

(-)91,438,625,923

5,506,215,130

 

 

 

 

 

 

 

 

 

                                                                        Cash Flows

Unit : Korean Won

01/01/2007~03/31/2007

As of 12/31/2006

As of 12/31/2005

Cash Flows from Operating

         58,000,000

(-)19,257,001,825

125,150,631,115

-Net Income

(-)6,829,000,000

(-)91,438,625,923

5,506,215,130

-Exp. without Cash Outflow

   17,851,000,000

91,864,480,831

95,271,015,822

-Revenue without Cash Inflows

       646,000,000

(-)6,221,072,508

(-)73,497,932,823

-Changes in Asset/ & Liability

(-)10,318,000,000

(-)13,461,784,225

97,871,332,986

Cash Flows from Investing

(-)12,119,000,000

46,913,545,334

79,893,246,021

-Cash Inflow from Investing

     1,112,000,000

94,334,565,000

154,112,377,712

-Cash Outflows for Investing

   13,231,000,000

(-)47,421,019,666

(-)74,219,131,691

Cash Flows from Financing

(-)2,154,000,000

(-)84,311,841,294

(-)199,312,801,348

-Cash Inflows from Financing

                     -

25,723,676,683

57,024

-Cash Outflows from Financing

     2,154,000,000

(-)110,035,517,977

(-)199,312,858,372

Increase/Decrease in Cash

(-)14,215,000,000

(-)56,655,297,785

5,731,075,788

Cash at the Beginning of Year

   39,608,000,000

96,263,457,483

90,532,381,695

Cash at the End of Year

   25,393,000,000

39,608,159,698

96,263,457,483

 

 

Products, Technologies, Services

Description

 

Main Products & Services

Polyester Filament

Polyester Staple Fiber

Chip

Textile

Filter

Water Treatment

Sheet

Production Capacity

(Unit: Thousand YD / Thousand EA / Ton)

Products

2006

2005

P S F

196,487

185,528

P   F

67,027

68,271

Technologies Acquired

 

 

 

Organization Structure

 

Competitors

HUVIS

DAEHAN SYNTHETIC FIBER CO., LTD.

 

 

 

 

 

 

Related Parties (Subsidiaries, Joint-

Venture & Affiliates)

 

Affiliates

SAEHAN INFORMATION SYSTEM CO., LTD.

SAEHAN LOGICS CO., LTD.

HYOSUNG CORPORATION

SAM KWANG SUKI CO., LTD.

Overseas Office

Tokyo Office

7f. Akasaka Habitation Bldg. 1-3-5, Akasaka Minato-ku

Tokyo,107-0052, Japan

TEL : 81-3-5114-5950,1 FAX : 81-3-3583-4361

 

Qingdao Office

Room 405A, BlockB, Fullhopy Plaza,

No. 12 Hongkong Middle Rd., Qingdao, Shandong, China 266071

TEL : 86-532-502-8522 FAX : 86-532-502-8525

 

Beijing Office

1st Fl., Guomen Bldg., 1 Zuojia-zhuang

Qiaoyang-qu, Beijing, China 100028

TEL : 86-10-8451-3301,4 FAX : 86-10-8451-1941

 

Vietnam Office

516 Cong Hoa ST. Ward 13, Tan Binh Dist,

Hochiminh City, Vietnam

TEL : 84-8-106-831/2, 834 FAX : 84-8-106-833

Subsidiary

SAEHAN JEHAP TRADING(SHANGHAI) CO., LTD.

Rm 2307, International Trade Center,

2200 Yanan Road(w). Shanghai

TEL : 86-21-6219-0119

 

CHUNJIN SAEHAN CO., LTD.(CHINA)

No 54, Jian-Chang ST, Hebei District,

Tianjin, China 300240

TEL : 86-22-2612-4000 FAX : 86-22-2612-2041

 

P.T.SAEHAN TEXTILES

Gedung Surya Lt. 6 Suite 606, JL. MH. Thamrin Kav-9, Jakarta 10350
TEL : 62-21-390-2630 FAX : 62-21-390-2605

 

SAEHAN MEDIA IRELAND LIMITED

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2006

2005

2004

Export

        442,451

   452,206

   446,478

Domestic

        271,306

   266,986

   269,631

Others

          22,510

     25,243

     26,517

Total

        736,267

   744,435

   742,626

 

 

 

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Thousand KRW)

Status

 

Seoul Administration Court

The Subject Company

Fair Trade Commission

Cancellation on order of Correction

-

Proceeding

 

Seoul District Court

Keum In-Soon and Others

The Subject Company

Claim for damages

 436,496

Proceeding

 

Seoul High Court

Fair Trade Commission

The Subject Company

Violation on the law of Fair Trade

-

Proceeding

 

Seoul High Court

Jeong Hyun-Joon

The Subject Company

Application for Dividends

217,440

Proceeding

 

Seoul District Court

Dawon E&C and Others

The Subject Company

Nullifying the bid of Subcontracting on construction

50,000

Proceeding

 

Seoul District Court

Jungsan City Development Co., Ltd.

The Subject Company

Claim for damages

8,888,064

Proceeding

 

Seoul District Court

Lee Sung-Sung

The Subject Company

Claim for damages

 556,470

Proceeding

 

Seoul District Court

Bae Ki-Taik

The Subject Company

Claim for Clearance on the Registry

 1,800,000

Proceeding

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions