MIRA
INFORM REPORT
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Report Date : |
30.07.2007 |
IDENTIFICATION DETAILS
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Name : |
ILSHIN SPINNING CO., LTD. |
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Registered Office : |
Ilshin Bldg., 15-15, Yeouido-Dong, Yeongdeungpo-Gu, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11/03/1951 |
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Legal Form : |
Listed Company |
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Line of Business : |
Export / Import Cotton Spinning |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Basic
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Company
Name |
ILSHIN SPINNING CO., LTD. |
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Registered Address |
15-15, Yeouido-dong, Yeongdeungpo-gu, (C.P.O.BOX 91) |
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Building |
Ilshin Bldg. |
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Zip Code |
150-872 |
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Tel |
+82-2-3774-0114 |
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Fax |
+82-2-786-5891~3 |
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E-mail |
grchoi@ilshin.co.kr;cwlee@ilshin.co.kr;donghkim@ilshin.co.kr |
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Website |
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Gwangju Factory |
100, Im-dong, Buk-gu, |
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Tel |
+82-62-510-5111 |
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Fax |
+82-62-570-5105 |
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Cheongwon Factory |
231-1, Seongsan-ri, Ochang-myeon, Cheongwon-gun, |
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Tel |
+82-43-219-3114 |
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Fax |
+82-43-219-3119 |
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Banwol Factory |
644-1, Choji-dong, Danwon-gu, Ansan-si, |
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Tel |
+82-31-489-4604~5 |
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Fax |
+82-31-489-4600 |
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Type |
Export/Import |
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Industry |
Cotton Spinning |
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Main Business |
Cotton spun yarn, P/C blended spun yarn, P/C blended fabric, Combed Cotton
Yarns, Melange Yarns, Core Spun Yarns, Blended Yarns, OE Yarns, Dyed Yarns,
Dyed Fabrics, Cotton Fabrics, Knitted Fabrics, Modal Yarn |
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Established |
11/03/1951 |
Detailed Products
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Activity |
Detailed Products (UNSPSC) |
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Sell |
Yarns(11151700) -Garment Use Yarns spun with raw cotton & top dyed fibre. |
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Sell |
Cotton fabrics(11161700) |
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Sell |
Knit synthetic fabrics(11161804) |
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Sell |
Dyeing or printing or finishing services(73141706) |
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Sell |
Threads(11151600) |
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Sell |
Synthetic fabrics(11161800) |
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Buy |
Cotton(11121802) |
CEO’s
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Name |
Kim Young-Ho |
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Date of Birth |
03/09/1944 |
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Title |
Chairman & CEO |
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Sex |
Male |
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Nationality |
Korean |
Profiles
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Capital |
12,000,000,000 KRW |
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Employees |
1,037 |
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Formation |
Listed Company (KSE : 003200 ) as of
03/1999 A company of ILSHIN SPINNING CO., LTD. |
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Bank Details |
Citi Bank, Korea-Seo Yoido Branch |
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Corporate Registered No. |
110111-0041717 |
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Business Registered No. |
116-81-40780 |
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Permit & Licenses |
01/2000 ISO 9002 Int’l Trade No.: 672139 |
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Shareholder Position |
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Company History |
11/03/1951
Established 03/1995
Awarded The Presidential Prize on the Tax Day 04/2004
Awarded The Commissioner Prize of National Tax Office on the Tax Day |
The subject is in the tough competition with the
companies in developing countries, due to the cheaper labor costs and easier
raw materials supplies with the government’s strong support. However the
subject is getting through by enhancing the quality and Value Added Products.
The Subject Company is a manufacturer engaged
in the provision of textiles. The Company produces four main products: yarns,
including combed cotton, mélange, core spun, modal, lyocell, thermolite,
coolmax and blended yarns under the brand names Threestar and Melanstar; dyed
yarns, including rayon and stretch knitted fabrics; woven fabrics, consist of
cotton, polynosic, flax, tencel, core and nylon, and knitted fabrics, including
spandex, modal and polyester fabrics. During the year ended December 31, 2006,
the Company had a production capacity of 38,239 tons of textiles and its actual
output was 36,557 tons of textiles. The Company's headquarters are located in
Management
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Job Description |
Title |
Name |
Sex |
Nationality |
Inauguration Day |
|
Chairman & CEO |
Mr. |
Kim Young-Ho |
Korean |
1944-03-09 |
New Yok Pratt Institute, |
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President & CEO |
Mr. |
Kim Jung-Soo |
Korean |
1963-06-15 |
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Executive Director |
Mr. |
Kim Min-Soo |
Korean |
1966-09-21 |
Chamman University-USA |
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Executive Director |
Mr. |
Han Maeng-Yong |
Korean |
1951-01-11 |
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Director |
Mr. |
Ko Jeong-Seock |
Korean |
1957-05-22 |
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Outside Director |
Mr. |
Shin Young-Moo |
Korean |
1944-03-02 |
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Outside Director |
Mr. |
Song Ja |
Korean |
1936-12-02 |
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Auditor |
Mr. |
Jeong Young-Sik |
Korean |
1959-09-16 |
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Auditor |
Mr. |
Kim Jae-Hak |
Korean |
1948-09-27 |
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Financials
Unit: KRW
|
Year |
Sales |
Assets |
Net income |
|
207,866,129,138 |
456,080,235,485 |
8,330,389,610 |
|
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2005 |
248,255,400,500 |
450,494,152,554 |
22,437,968,389 |
|
2004 |
301,380,672,296 |
411,136,342,511 |
11,103,889,466 |
Financial Description
Unit: KRW
|
Authorized Capital |
30,000,000,000 |
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Paid-Up Capital |
12,000,000,000 |
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Total Issues Shares |
2,400,000 |
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Balance Sheet |
|||
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Unit : Korean Won |
01/01/2007~03/31/2007 |
As of 12/31/2006 |
As of 12/31/2005 |
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Total Assets |
450,999,989,238 |
456,080,235,485 |
450,494,152,554 |
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Current Assets |
98,818,084,503 |
105,829,245,320 |
150,803,690,743 |
|
-Quick Assets |
51,984,369,854 |
47,728,506,094 |
92,800,331,860 |
|
-Inventories |
46,833,714,649 |
58,100,739,226 |
58,003,358,883 |
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Fixed Assets |
352,181,904,735 |
350,250,990,165 |
299,690,461,811 |
|
-Investment |
114,743,040,643 |
113,113,200,877 |
114,314,561,086 |
|
-Tangibles |
235,214,201,943 |
234,816,765,757 |
183,091,692,170 |
|
-Intangibles |
266,902,388 |
279,375,686 |
188,770,675 |
|
-Others |
1,957,759,761 |
2,041,647,845 |
2,095,437,880 |
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Total Liabilities |
73,545,554,113 |
77,619,024,281 |
79,533,039,849 |
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Current Liabilities |
41,357,583,899 |
46,725,448,314 |
48,668,698,535 |
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Fixed Liabilities |
32,187,970,214 |
30,893,575,967 |
30,864,341,314 |
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Capital Stock |
12,000,000,000 |
12,000,000,000 |
12,000,000,000 |
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Capital Surplus |
187,125,413,251 |
187,125,413,251 |
187,125,413,251 |
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Profit Surplus |
169,934,022,064 |
171,815,552,827 |
166,262,200,717 |
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Capital Adjustment |
(-)7,724,759,690 |
(-)7,686,289,696 |
(-)7,563,257,115 |
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Total Equity |
377,454,435,125 |
378,461,211,204 |
370,961,112,705 |
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Liab. & Shareholder’s Equity |
450,999,989,238 |
456,080,235,485 |
450,494,152,554 |
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Current Liabilities |
41,357,583,899 |
46,725,448,314 |
48,668,698,535 |
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Trade Payables |
6,945,181,975 |
9,631,427,308 |
8,429,270,643 |
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Short-Term Borrowings |
26,889,081,933 |
27,794,301,739 |
23,700,431,474 |
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Current Portion of Long-Term Debts |
487,006,952 |
1,594,980,872 |
10,119,006,694 |
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Account Payables |
2,521,827,341 |
2,697,039,129 |
1,558,412,022 |
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Accrued Expenses |
3,922,632,492 |
4,411,175,168 |
4,194,399,323 |
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Accrued Income Tax |
151,383,692 |
96,235,113 |
114,907,900 |
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Accrued Dividends |
16,154,160 |
1,930,410 |
4,914,190 |
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Advance Receipts |
85,291,845 |
174,785,656 |
205,031,587 |
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Withholdings |
339,023,509 |
323,572,919 |
308,254,928 |
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Others |
- |
- |
34,069,774 |
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Fixed Liabilities |
32,187,970,214 |
30,893,575,967 |
30,864,341,314 |
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Long-Term Borrowings |
253,320,530 |
255,967,310 |
1,993,177,767 |
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Provision for Severance & Retirement |
2,625,776,940 |
2,112,256,000 |
1,948,461,000 |
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Leasehold Guarantee Received |
27,644,965,686 |
27,233,652,685 |
25,394,408,922 |
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Non-Current Deferred Income Tax Credit |
3,370,682,800 |
2,928,182,800 |
3,082,282,800 |
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Income Statement |
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Unit : Korean Won |
01/01/2007~03/31/2007 |
As of 12/31/2006 |
As of 12/31/2005 |
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Sales |
55,318,601,396 |
207,866,129,138 |
248,255,400,500 |
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Cost of Sold Goods |
52,189,999,494 |
195,778,864,620 |
236,462,692,040 |
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Gross Profit |
3,128,601,902 |
12,087,264,518 |
11,792,708,460 |
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Selling & Admin. Expenses |
3,331,359,650 |
11,534,409,883 |
13,281,868,121 |
|
Operating Income |
(-)202,757,748 |
552,854,635 |
(-)1,489,159,661 |
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Non-Operating Income |
2,175,113,408 |
12,754,207,665 |
14,126,553,699 |
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Non-Operating expenses |
725,590,040 |
4,846,893,059 |
4,916,458,858 |
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Ordinary Income |
1,246,765,620 |
8,460,169,241 |
30,479,797,399 |
|
Special Income |
- |
- |
- |
|
Income Before Taxes |
1,246,765,620 |
8,460,169,241 |
30,479,797,399 |
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Income Taxes Expenses |
359,983,883 |
129,779,631 |
8,041,829,010 |
|
Net Income |
886,781,737 |
8,330,389,610 |
22,437,968,389 |
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Cash Flows |
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|
Unit : Korean Won |
01/01/2007~03/31/2007 |
As of 12/31/2006 |
As of 12/31/2005 |
|
Cash Flows from Operating |
13,680,093,575 |
5,470,676,302 |
28,826,535,195 |
|
-Net Income |
886,781,737 |
8,330,389,610 |
22,437,968,389 |
|
-Exp. without Cash Outflow |
3,389,982,035 |
6,337,833,735 |
10,106,694,039 |
|
-Revenue without Cash Inflows |
1,225,769,301 |
8,651,509,622 |
10,437,091,685 |
|
-Changes in Asset/ & Liability |
10,629,099,104 |
(-)546,037,421 |
6,718,964,452 |
|
Cash Flows from Investing |
(-)7,349,945,636 |
658,240,941 |
(-)29,373,221,087 |
|
-Cash Inflow from Investing |
34,069,948,319 |
238,594,291,662 |
208,625,877,120 |
|
-Cash Outflows for Investing |
41,419,893,955 |
237,936,050,721 |
237,999,098,207 |
|
Cash Flows from Financing |
(-)5,051,587,211 |
(-)7,519,497,974 |
798,014,171 |
|
-Cash Inflows from Financing |
5,818,550,000 |
40,819,213,109 |
42,659,164,418 |
|
-Cash Outflows from Financing |
10,870,137,211 |
48,338,711,083 |
41,861,150,247 |
|
Increase/Decrease in Cash |
1,278,560,728 |
(-)1,390,580,731 |
251,328,279 |
|
Cash at the Beginning of Year |
1,016,430,778 |
2,407,011,509 |
2,155,683,230 |
|
Cash at the End of Year |
2,294,991,506 |
1,016,430,778 |
2,407,011,509 |
Products,
Technologies, Services
Description
|
Main Products & Services |
Combed yarns are The Subject Company's main
products. The Subject Company is biggest combed cotton yarn spinning mill in Brand Name : THREE STAR |
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Production Capacity (Unit: Ton) |
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Major Properties (Unit: KRW) |
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Due to the fire of Cheongwon Factory in
09/2005, the production capacity has been decreased.
Trade Partners
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Suppliers |
The Subject imports cotton 100% from HUVIS-Polyester Oh Young Industrial Co., Ltd.-Chemicals for
Dyes |
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Customers |
Sales Channel Domestic : Domestic Direct Buyers ( 26%) Local Export: Fabric Exporters (62%) Export: Overseas Direct Buyers (12%) Conditions Export: L/C, BANK CHEQUE, T/T Domestic: Cash and Credit |
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Competitors |
The subject is 1st player in the
domestic market among Jeon Bang, Kyung Bang and Dong Il Spinning. |
Related Parties
(Subsidiaries, Joint-
Venture &
Affiliates)
|
Affiliates |
Ilshin Investment Co., Ltd. (200111-0020308) Ilshin Industry Development Co., Ltd. Shin Dong Coroperation (110111-0006159) Shin Dong Wine Co., Ltd. Shin Dong Wine Sales Co., Ltd. BSK CORPORATION (110111-1358616) |
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Overseas Office |
#913, Kwai Cheong Center, 40-52, Kwai
Cheong Road, Kwai Chung, N.T. Hong Kong TEL: +852-2573-3664 FAX: +852-2573-3755 2517 TEL:+1-310-541-6871 FAX +1-310-265-8561 E-Mail: enxenla@hotmail.com |
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Sales by Region (Activity
& Markets)
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Sales/ Unit :Mil KRW |
2006 |
2005 |
2004 |
|
Export |
157,845 |
182,052 |
223,780 |
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Domestic |
50,021 |
66,203 |
77,601 |
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Total |
207,866 |
248,255 |
301,381 |
Court Action
No.
News Clipping
Listed Firms Recommend Qualified Outside Directors
MAEIL NEWSPAPER : 02/19/2007
As companies that settled their accounts in December, 2006 are
finalizing their general stockholders meetings, the financial industry has
predicted that former high-profile figures are expected to become the outside
directors of the listed firms.
According to a public notice by the Financial Supervisory Service (FSS)
and the Korea Exchange (KRX), listed companies including KT, Hyundai Motor
Group, Shinsegae Co. Ltd. and SK Telecom Co. Ltd., have recommended several
former qualified outside directors from the highly bureaucratic, legal circles
and supervisory institutes and are currently waiting for approvals from the
general meeting of stockholders.
KT has recommended Oh Myung, chairman of Konkuk University who held
posts in succession of the minister of science and technology, while Soosan Co.
Ltd., has recommended Jin Nyum, an advisor from Samjong KPMG Inc. and former
deputy prime minister and minister of finance and economy as the new candidates
for outside directors.
Seoul Broadcasting System (SBS) has recommended Cheong Hae-chang, former
minister of justice and the President's executive secretary, currently a chief director
of Songseouldang Education Foundation, while Ilshin Spinning Co. Ltd. has
recommended Song Ja, former minister of education and Kyeryong Construction Co.
Ltd. recommended a lawyer, Kim Gak-young, former vice-minister and the Attorney
General as the candidates for outside directors.
Shinsegae has recommended Lee Joo-suk, advisor at Kim & Chang, the
legal firm, and former director of the Office of National Tax Administration,
and Hwang Byung-gi, former secretary-general at the FSS as the candidates for
outside director, while SK Telecom has recommended Shim Dal-sup, former
director of customs at the Ministry of Finance and Economy (MOFE) as the
candidate for an inspection commissioner.
Companies tend to recruit figures who can wield influence in the
industry as outside directors.
Hyundai Motor Group, expecting to hold a general meeting of stockholders
on March 9, has recommended Lim Young-chul, director of the Policy Division at
the Fair Trade Commission (FTC) and
Institutional investors unheard
JoongangIlbo : 02/16/2007
A private think tank’s study showed
The Center for Good Corporate Governance said its study ranked
The center noted that 64 percent of companies sent notice one to three
days before the legal deadline for notification, which is two weeks prior to
shareholder gatherings.
Less than 10 percent notified their foreign institutional investors 10
days before the two-week deadline.
Only about 5 percent of the companies with foreign shareholders composed
such notices in English.
And less than 5 percent reported specific numerical results of
shareholders’ votes.“The major reason institutional investors have not been
actively voicing their opinions is that the current system discourages them
from doing so,” the center’s report argued.
Two Korean companies this week did rock the boat using their shareholder
rights.On Wednesday, Shinyoung Investment Management cast a dissenting vote on
candidates for an outside director and for three board positions at Ilshin
Spinning Co.
That the latter recommended.
Shinyoung said the outside director candidate, Song Ja, has missed more
than half of its board meetings.Then yesterday, Sei Asset Korea Co.
voted against KCC Corp.’s recommendation of Chung Jong-soon as one of
its outside directors.Sei Asset noted that Mr.
Chung has served as chief executive of Kumgang Korea Chemical, the old
form of KCC, and that such an experience could keep him from acting as an
objective, independent voice on the company.Mr.
Chung is currently a senior advisor to KCC.
Women Workers Takes 20% of Listed Firms
MAEIL NEWS PAPER : 04/26/2006
The ratio of female employees in major domestic firms has exceeded the
20 percent mark.
After study was made of 548 business reports in fiscal year 2005 which
were submitted on April 26 to the Financial Supervisory Service (FSS) by the
stock market listed firms, it has been found that female workers accounted for
21.44 percent of the firms' employees last year.
This is a 1.61 percent increase from the 19.83 percent reached during
2004.
The total number of employees in the 548 companies had increased by 3.77
percent in just one year, from 849,000 to 881,000; the number of male workers
had jumped 1.69 percent from 681,000 to 692,000 while female workers had
increased 12.21 percent from 168,000 to 189,000.
Of the total increased number, 64.18 percent consisted of women, which
showed that two out of every three newly-employed were women last year.
Meanwhile, it was found that 7.66 percent or 42 of the 548 enterprises
had over 50 percent female workers.
By company, the fashion business, Handsome marked the highest female
employee ratio with 84.74 percent with 761 out of 898 employees being women.
This record was followed by Pulmuone, with 78.92 percent and Woongjin
Think Big with 78.05 percent.
Like Handsome, female recruits were mostly found in the textile or
clothing industries, including Kyungbang (72.47 percent), Yoohwa (71.05
percent), Ilshin Spinning (70.92 percent) and Cheonbang (67.36 percent).
Additionally, more women than men worked in department stores, such as
Lotte Shopping (60.73 percent), Hyundai Department Store (56.25 percent),
Shinsegae (54.26 percent), Lotte Midopa (67.91 percent) and Gwangju Shinsegae
(67.59 percent).
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%)