MIRA
INFORM REPORT
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Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEXEN CORPORATION |
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Registered Office : |
262-14, An-dong, Gimhae-si, Gyeongsangnam-do 621-914 |
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Country : |
Korea |
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Financials (as on) : |
30.06.2008 |
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Date of Incorporation : |
09.10.1968 |
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Com. Reg. No.: |
618-81-15827 |
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Legal Form : |
Listed Company |
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Line of Business : |
Manufacture of Tires and Tubes |
RATING &
COMMENTS
|
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 |
NEXEN
CORPORATION |
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Registered Address/Factory |
262-14, An-dong, Gimhae-si,
Gyeongsangnam-do, Korea |
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Zip Code |
621-914 |
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Tel |
+82-55-333-0771 |
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Fax |
+82-55-333-0778 |
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E-mail |
dwhuh77@nexencorp.co.kr |
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Website |
www.nexencorp.co.kr |
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Trading Address-Seoul Branch |
796-27, Bangbaebon-dong, Seocho-gu, Seoul,
Korea |
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Tel |
+82-2-595-9811 |
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Fax |
+82-2-595-0582 |
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Other Address-Siheung Factory |
Da-301, Sihwa Industrial Complex, 1245,
Jeongwang-dong, Siheung-si, Gyeonggi-do, Korea |
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Tel |
+82-31-499-2751 |
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Fax |
+82-31-499-2750 |
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Other Address-Daejeon Sales Office |
46-2, Daehwa-dong, Daedeok-gu, Daejeon, Korea |
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Tel |
+82-42-627-4860 |
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Other Address-Busan Branch |
300-2, Bugok 2-dong, Geumjeong-gu, Busan,
Korea |
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Tel |
+82-55-320-7377 |
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Fax |
+82-55-333-0778 |
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Type |
Export |
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Industry |
Manufacture of Tires and Tubes |
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Main Business |
Automotive Tire, Automotive Tire Inner Tube, Golf Ball |
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Established (mm/dd/yyyy) |
09/10/1968 |
The Subject owns
the premises of registered HQ address/Factory, Siheung Factory and Daejeon Sales Office.
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Golf balls(49211602) |
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Sell |
Tires and tire tubes(25172500) |
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Sell |
Mechanical wire(31151800) |
|
Buy |
Packaging films(24141514) |
|
Buy |
Steel(11101704) |
|
Buy |
Packaging boxes(24121503) |
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Buy |
Processed and synthetic rubber(13101600) |
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Buy |
Natural rubber(13101500) |
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Buy |
Packaging tape(31201517) |
CEO’s
|
Name |
Kang Byeong-Jung |
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Date of Birth |
07/25/1939 |
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Title |
Chairman & CEO |
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Sex |
Male |
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Nationality |
Korean |
Profiles
|
Capital |
15,190,000,000 KRW |
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Employees |
555 |
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Formation |
Listed Company (Korea Stock Exchange :
005720) as of 12/19/1987 |
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Bank Details |
Korea Exchange Bank Kookmin Bank Busan Bank |
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Corporate Registered No. |
184611-0000583 |
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Business Registered No. |
618-81-15827 |
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Permit & Licenses |
06/30/1979 KS Mark 06/14/1982 KS Mark 05/20/1994 ISO 9002 05/20/1994 ISO 9001 Patent No : 4998733 (Golf Ball) Registered : March 12, 1991 Certified by : Korea Intellectual Property
Office Characterized by the cone-shaped dimples
and the Propellent Hexagonal Configuration (P.H.C), which symmetrically
arranges dimples of different sizes and depths PHC dimple pattern P.H.C → (Propellant
Hexagon Configuration) Patent No : 054262 (Golf Ball) Registered : August 31, 1992 Certified by : Korea Intellectual Property
Office Description : Characterized by the
cone-shaped dimples and the Propellent Hexagonal Configuration (P.H.C), which
symmetrically arranges dimples of different sizes and depths PHC dimple
pattern P.H.C → (Propellant Hexagon Configuration) Int’l Trade No.: 781831 |
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Shareholder Position |
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Company History |
04/2007 Stopped Business of Recycled Tire
Div. 11/2003 Established Qingdao Nexen
Corporation in China 09/2003 Established ERP System 08/2002 Changed the company name from
Heungah to Nexen Corporation 12/2001 Acquisition of Korea New Network
Co,.(KNN) 03/2000 Established Nexen Engineering 06/1999 Acquisition Nexen Tires
Corporation 06/1995 Established Qingdao Heungah
Corporation in China 05/1994 certificate of ISO 9001 for tire
inner tubes and envelopes and ISO 9002 for golf balls 02/1994 established Nexen Tech Corporation
06/1992 Awarded the Trade Promotion Prize 11/1989 Awarded the export prize over $50
MM 12/1987 Listed Stock at KSE Market 09/1968 Incorporated as Heung Ah Tire Co.,
Ltd. |
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The Subject Company
is a manufacturer engaged in the provision of rubber products. The Company
provides tire inner tubes for passenger cars, light trucks, buses, motorcycles,
scooters and others; tire flaps, for trucks and buses, radial trucks and buses,
light trucks, tractors, sand tires, off-the road tires and industrial tires;
products for retreading tires, including curing envelopes, curing tubes and
curing flaps, and solid tires. The Company provides its tube and tire products
under the brand name NEXEN. It also provides golf balls under the brand names
NEXEN and FARMAX.
Management
|
Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
|
Chairman & CEO |
Mr. |
Kang Byeong-Jung |
Korean |
1939.07.25 |
Dongah University |
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President & CEO |
Mr. |
Hwang Kyung-Soo |
Korean |
1952.06.26 |
Seoul National University |
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Vice President |
Mr. |
Kang Ho-Chan |
Korean |
1971.10.30 |
Yonsei University |
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Outside Director |
Mr. |
Kim Ok-Jo |
Korean |
1940.08.16 |
Sungkyunkwan University |
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Auditor |
Mr. |
Song Tae-Myung |
Korean |
1949.10.30 |
Seoul National University |
Financials
Unit: KRW
|
Year |
Sales |
Assets |
Net income |
|
139,927,008,243 |
257,373,987,098 |
11,906,490,784 |
|
|
2006 |
126,462,071,840 |
244,705,643,914 |
-5,375,452,000 |
|
2005 |
144,949,571,794 |
252,257,171,948 |
11,651,258,960 |
|
2004 |
158,314,308,680 |
247,085,143,668 |
16,908,976,839 |
|
2003 |
144,940,325,573 |
231,925,900,717 |
14,883,844,229 |
Financial Description
Unit: KRW
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Authorized
Capital |
40,000,000,000 |
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Paid-Up
Capital |
15,190,000,000 |
|
Total Issues Shares |
3,038,000 |
Balance
Sheet
|
Unit : Korean Won |
01/01/2008~06/30/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Total Assets |
287,063,277,242 |
257,373,987,098 |
244,705,643,914 |
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Current Assets |
86,070,419,417 |
59,260,011,048 |
54,685,123,126 |
|
-Quick Assets |
58,614,941,879 |
40,099,705,371 |
33,902,179,591 |
|
-Inventories |
27,455,477,538 |
19,160,305,677 |
20,782,943,535 |
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Fixed Assets |
200,992,857,825 |
198,113,976,050 |
190,020,520,788 |
|
-Investment |
126,121,041,651 |
122,637,594,840 |
112,222,887,243 |
|
-Tangibles |
72,494,407,821 |
72,895,059,070 |
75,723,933,393 |
|
-Intangibles |
878,872,430 |
942,876,485 |
1,025,138,401 |
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-Others |
1,498,535,923 |
1,638,445,655 |
1,048,561,751 |
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Total Liabilities |
90,560,385,205 |
74,964,487,221 |
74,700,420,862 |
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Current Liabilities |
57,260,626,149 |
42,446,831,497 |
27,384,643,085 |
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Fixed Liabilities |
33,299,759,056 |
32,517,655,724 |
47,315,777,777 |
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Capital Stock |
15,190,000,000 |
15,190,000,000 |
15,190,000,000 |
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Capital Surplus |
42,672,083,240 |
42,672,083,240 |
41,140,888,867 |
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Profit Surplus |
137,038,286,943 |
124,511,401,510 |
113,162,573,094 |
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Capital Adjustment |
1,602,521,854 |
36,015,127 |
511,761,091 |
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Total Equity |
196,502,892,037 |
182,409,499,877 |
170,005,223,052 |
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Liab. & Shareholder’s Equity |
287,063,277,242 |
257,373,987,098 |
244,705,643,914 |
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Current
Liabilities |
57,260,626,149 |
42,446,831,497 |
27,384,643,085 |
|
Trade Payables |
6,052,468,191 |
7,759,328,036 |
7,380,477,099 |
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Short-Term Borrowings |
36,714,261,787 |
24,021,568,450 |
15,305,408,000 |
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Account Payables |
213,128,146 |
116,962,409 |
89,123,718 |
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Advance Receipts |
2,824,102,914 |
1,705,228,662 |
1,135,269,114 |
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Withholdings |
184,627,894 |
262,346,872 |
183,493,635 |
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Accrued Expenses |
3,219,666,246 |
3,176,564,818 |
3,242,270,731 |
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Accrued Income tax |
4,923,464,346 |
2,353,971,090 |
- |
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Accrued Dividends |
- |
- |
- |
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Current Portion of Long-Term
Debts |
3,029,032,200 |
3,027,510,750 |
24,534,000 |
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Unearned Income |
99,874,425 |
14,191,780 |
19,335,615 |
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Derivatives |
- |
- |
4,731,173 |
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Deferred Income Tax |
- |
9,158,630 |
- |
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Fixed
Liabilities |
33,299,759,056 |
32,517,655,724 |
47,315,777,777 |
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Long-Term Borrowings |
372,573,900 |
387,472,950 |
18,410,252,527 |
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Provision for Severance &
Retirement |
5,818,787,262 |
5,449,657,015 |
6,225,604,220 |
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Deferred Income Tax |
21,597,816,820 |
21,650,994,262 |
18,380,020,909 |
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Others |
8,502,144,000 |
8,463,025,000 |
8,447,846,000 |
Income
Statement
|
Unit : Korean Won |
01/01/2008~06/30/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Sales |
99,766,663,555 |
139,927,008,243 |
126,462,071,840 |
|
Cost of Sold Goods |
76,634,812,714 |
114,599,148,197 |
108,940,896,629 |
|
Gross Profit |
23,131,850,841 |
25,327,860,046 |
17,521,175,211 |
|
Selling & Admin. Expenses |
9,554,516,846 |
16,470,862,462 |
14,233,133,379 |
|
Operating Income |
13,577,333,995 |
8,856,997,584 |
3,288,041,832 |
|
Non-Operating Income |
10,466,530,175 |
19,009,915,439 |
11,288,351,215 |
|
Non-Operating expenses |
5,686,012,134 |
9,327,794,742 |
12,056,770,042 |
|
Ordinary Income |
18,357,852,036 |
18,539,118,281 |
2,519,623,005 |
|
Special Income |
- |
- |
- |
|
Income Before Taxes |
18,357,852,036 |
18,539,118,281 |
2,519,623,005 |
|
Income Taxes Expenses |
5,156,521,872 |
6,150,810,986 |
7,504,088,306 |
|
Net Income |
13,201,330,164 |
11,906,490,784 |
(-)5,375,452,000 |
Cash
Flows
|
Unit : Korean Won |
01/01/2008~06/30/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Cash Flows from Operating |
(-)4,563,640,849 |
13,760,832,212 |
8,350,254,480 |
|
-Net Income |
13,201,330,164 |
11,906,490,784 |
(-)5,375,452,000 |
|
-Exp. without Cash Outflow |
4,701,196,256 |
10,944,489,591 |
12,961,371,032 |
|
-Revenue
without Cash Inflows |
(-)5,920,924,706 |
(-)14,201,276,997 |
(-)4,515,654,669 |
|
-Changes in
Asset/ & Liability |
(-)16,545,242,563 |
5,111,128,834 |
5,279,990,117 |
|
Cash Flows
from Investing |
3,196,860,740 |
(-)3,541,538,420 |
(-)4,608,353,662 |
|
-Cash Inflow
from Investing |
14,361,797,629 |
68,902,724,513 |
34,773,373,126 |
|
-Cash
Outflows for Investing |
(-)11,164,936,889 |
(-)72,444,262,933 |
(-)39,381,726,788 |
|
Cash Flows
from Financing |
10,246,231,776 |
(-)7,249,510,661 |
(-)7,160,445,283 |
|
-Cash
Inflows from Financing |
56,054,787,597 |
70,266,021,641 |
175,974,254,614 |
|
-Cash Outflows
from Financing |
(-)45,808,555,821 |
(-)77,515,532,302 |
(-)183,134,699,897 |
|
Increase/Decrease
in Cash |
8,879,451,667 |
2,969,783,131 |
(-)3,418,544,465 |
|
Cash at the
Beginning of Year |
7,381,319,980 |
4,411,536,849 |
7,830,081,314 |
|
Cash at the End of Year |
16,260,771,647 |
7,381,319,980 |
4,411,536,849 |
Products, Technologies, Services
Description
|
Main
Products & Services |
Automotive Tire, Automotive Tire Inner Tube, Golf Ball Brand Name : NEXEN, FARMAX |
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Annual
Production Capacity (Unit: Mil. KRW) |
|
Trade
Partners
|
Suppliers |
QINGDAO HEUNGAH YUNTAE CO., LTD.-CHINA |
|
Customers |
NEXEN TIRE CORPORATION(110111-0014219) |
Related Parties (Subsidiaries,
Joint-Venture & Affiliates)
|
Affiliates |
NEXEN TECH CORPORATION(180111-0152057) (34.64% held by the subject company) NEXEN TIRE CORPORATION(110111-0014219) (29.58% held by the subject company) NEXEN ENGINEERING CO., LTD.(184611-0038104) (49.74% held by the subject company) KOREA NEW NETWORK
CORPORATION(180111-0162585) (6.85% held by the subject company) |
|
Overseas Office |
NEXEN AMERICA CORPORATION 14241 EAST FIRESTONE BLVD., SUITE 230, LA
MIRADA, CA 90638 USA TEL:+1-909-923-4441 FAX : +1-909-923-448 QINGDAO NEXEN CORPORATION JIANGSHAN TOWN, BUSAN INDUSTRIAL PARK,
LAJXI CITY, QINGDAO, CHINA TEL: +86-532-8646-0535 FAX:
+86-532-8646-0539 |
|
Subsidiary |
NEXEN SERVICE CO., LTD. (100.0% held by the subject company) QINGDAO NEXEN SANKYO CO., LTD-CHINA (100.0% held by the subject company) QINGDAO HEUNGAH YUNTAE CO., LTD.-CHINA (100.0% held by the subject company) |
|
Cooperative Enterprise |
-Insured Company LIG INSURANCE CO., LTD(110111-0017859) |
Sales by
Region (Activity &
Markets)
|
Sales/ Unit :Mil KRW |
2007 |
2006 |
2005 |
|
Export |
103,602 |
90,794 |
104,038 |
|
Domestic |
36,325 |
35,668 |
40,912 |
|
Total |
139927 |
126,462 |
144,950 |
The Subject exports to Iran, Japan, Mexico, Saudi Arabia, Europe, North
America, Middle & South America and South & East Asia.
Court
Action
No.
News
Clipping
--
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.26 |
|
UK Pound |
1 |
Rs.79.00 |
|
Euro |
1 |
Rs.63.53 |
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. |
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%)