MIRA
INFORM REPORT
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Report Date : |
18.05.2007 |
IDENTIFICATION DETAILS
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Name : |
LG INTERNATIONAL (HK) LTD |
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Registered Office : |
15/F, Bank Of |
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Country : |
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Date of Incorporation : |
23-12-1977 |
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Com. Reg. No.: |
57497 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading of general merchandise. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To USD500, 000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
LG INTERNATIONAL (HK) LTD
15/F, BANK OF
TEL : 852 28207800
FAX : 852 28681460
EXECUTIVE SUMMARY
INCORPORATION DATE :
23-12-1977
REGISTRATION NO. :
57497
REGISTERED LEGAL FORM :
PRIVATE LIMITED CO.
CHIEF EXECUTIVE : YUN TAE KEUN (DIRECTOR)
STAFF STRENGTH :
43
AUTHORIZED CAPITAL
: HK$78M = 78,000 SHARES @ HK$1,000.-
PAID-UP
CAPITAL : HK$78M
BUSINESS LINE :
TRADING OF GENERAL MERCHANDISE
TURNOVER :
KRW5, 577,583M (GROUP, YEAR ENDED 31-12-2006)
EQUITIES :
N/A (AS OF DEC. 31, 2006)
PAYMENT :
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
HKD 7.82178 = USD1 AS OF 2007-05-18
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M – million
HKD –
SC is a private limited company registered under
incorporation file no. 57497 on 23-12-1977.
SC's shareholders & directors are shown to be as
follows:
Shareholders (as at 23-12-2006) Number
of shares held
- LG International Corp. 78,000
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Directors (as at 23-12-2006)
- Yun Tae Keun / MP0067177
- Hong Hyeong Ki / YP0459641
The above registration information is based on SC's annual
return filed at Companies Registry within the last 2 years.
Our current search revealed certain material change or
amendment of SC has been recorded within the last 2 years & noted as
follows:
Shares transfers :
Date No. of shares Transferor(s) Transferee(s)
1-6-2005 33 Lee
Soo Ho LG
International Corp.
SC is a subsidiary of LG International Corp. which is a
public co. listed on the Korea Stock Exchange whose partial information is as
follows:
Year established : 1953
Registered/business
address : LG Twin Towers, 20 Yoido-Dong,
Youngdungpo-gu,
Business
line : As a holding
co with diverse interests through its subsidaries & affiliates in trading
machinery, electronics & metals; importing raw materials & commodities;
finance; engineering & infrastructure development; processing & sale of
food; apparel mfg.
No. of employees : 796 (as at 31-1-2007)
Civil litigation & winding-up petition : None in our
database
Turnover : KRW5,577,583M (year ended 31-12-2006)
Partial financial data of the said company:
Items Fiscal
yr 31-12-2006 Fiscal yr 31-12-2005
Current
assets : KRW582,975M KRW895,763M
Current
liabilities : KRW476,869M KRW586,267M
Fixed
assets & non-current assets : KRW544,488M KRW585,784M
Tangible
worth/(net deficit) : KRW650,594M KRW895,280M
Turnover
: KRW5,577,583M KRW6,397,957M
Net
income/(net loss) : KRW96,592M KRW121,672M
Yun Tae Keun, director:
- He is by Korean nationality
- Embarked upon his career to present field as an executive
trainee in his mid 20's
Currently active in SC's day-to-day operations & is
responsible for its management.
Registered residential address: Rm 1501, 15/F of the heading
address.
Credit
history check : This refers to a check
of our database whether the said person has been involved in any of
the
following records stored by us within the last 6 years:
Civil
litigation as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent
payment records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Hong Hyeong Ki, director:
- He is by Korean nationality
- He has over 10 years of experience in present field
Currently active in SC's day-to-day operations & is responsible
for its management.
Registered residential address: Flat H, 15/F,
Credit
history check : This refers to a check
of our database whether the said person has been involved in any of
the following
records stored by us within the last 6 years:
Civil
litigation as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent
payment records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Ownership background appraisal:
Rating : 1 Obtained scores : 84 (see explanatory notes
below)
Keys : 1 : scores 81-100 : Excellent
2
: scores 61-80 : Good
3
: scores 46-60 : Average
4
: scores 21-45 : Fair
5
: scores 01-20 : Poor
The rating indicates the personal financial &
operational strength of SC's major principals.
It is calculated from a composite of scores obtained from the following 5
factors which carry equal weight in our analysis:
Personal financial strength, credit history & trade
reputation, business experience & track record, market connection and
management skill.
During our report preparation, the principals could not be
contacted while the staff members hesitated to release financial information
without the principals' consent.
As per current co. search, total amount of indebtedness of
SC in respect of all mortgages and charges which are required to be registered
with Companies Registry as at 23-12-2006 was nil.
Banking relations are maintained principally with:
- BNP Paribas
- Korea Exchange Bank
- HSBC
This section will contain the civil litigations & winding-up
petitions filed against SC for the last 6 years (as stored in our database),
and the mortgage/charge records filed by SC for the last 2 years. In
Civil litigation/winding-up
petitions : None in our
database.
Mortgage/charge record(s) : None filed within the last 2 years as per
our current search.
Mortgage Index:
Year(s) in which mortgage registration(s) are filed: 1998,
1999, 2000, 2003
Year(s) in which mortgage satisfaction record(s) are filed:
1998, 1999, 2000, 2002
Overall payment appraisal :
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments
habits and ability to pay. It is based
on the 3 weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment records and our debt collection record concerning SC.
Trade
payment experience : A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
First Second
Type of supplies : Merchandise Merchandise
Time known : 3 years 2
years
Selling terms : Net 30 days Net
60 days
Total purchases (last 6 months) : $0.7M $1M
Present balance : $0.28M $0.45M
Payment record : 2 3
Payment record keys : 1 = Prompt
: Payment made before the credit period expires
2
= As agreed terms : Payment made upon due
date
3
= Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4
= Slow : Payment made 16 to 45 days beyond
agreed terms
5
= Poor : Payment made over 45 days beyond
agreed terms
6
= Payment slowing down : Payment formerly
prompt but slowing down in recent months
7
= No comment : Account is newly opened
& record is not yet established
Note : In some instances, payment beyond terms can
be the result of disputes over merchandise, lost invoices, disputed accounts
& etc.
Delinquent payment record : None
in our database.
Debt collection record : No
overdue amount owed by SC was placed to us for collection within the last 6
years.
Business categories :
SC is engaged in trading of general merchandise.
Items available include electronic & electrical
products, petroleum, steel, nonferrous metals, coke & semi coke of coal,
garments, cables & wires, elevators, chemical products, textile fabrics,
telecommunication products, industrial machinery, foodstuffs, animal feeds,
skin care products, yarn, floor covering, wall paper, wall & floor tiles,
plastic resin, oil refinery & petrochemical.
A portion is sold under its own brand(s) `LG'.
Principal purchases :
Major types of sourcing :
Merchandise
Local--type of suppliers :
Importers & distributors
Buying terms :
Credit of 30 to 90 days
Overseas--supplying countries :
PR China, S. Korea & SE Asia
Buying terms :
L/C, T/T & open account of 30 days
Principal market :
Local--type of customers :
Wholesalers, dealers & the industrial sector
Selling terms :
Credit of 30 to 60 days
Overseas--buying countries :
Selling terms :
L/C & T/T
Total number of employees : 43.
Location : Maintaining its office at the heading business
address which occupies a gross area of 4,500 square feet at a commercial
building in a commercial district.
Condition inside the premises
during our visit :
Office/factory layout : Good.
Jointly occupying the premises with LG Group of companies.
SC is considered a well-maintained business with solid base
to
meet moderate amount of credit dealings.
LG Int'l Corp.'s share price movements are as follows:
- Closed on 16-5-2007: KRW28, 800
- Year high / low: NA
- Price earning ratio: NA
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)