MIRA INFORM REPORT

 

 

Report Date :

07.01.2011

 

IDENTIFICATION DETAILS

 

Name :

KP CHEMICAL CORP

 

 

Registered Office :

427-3, Sanggae-dong, Nam-gu, Ulsan, Korea 680-180

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2010

 

 

Date of Incorporation :

28.12.2001

 

 

Com. Reg. No.:

610-81-55067

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Basic Organic Petrochemicals

 

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 :

No Complaints

 

 

Litigation :

Exists

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

South Korea

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Basic

 

Company Name

KP CHEMICAL CORP.

(Korean Company Name : “(주)케이피케미칼”)

Registered Address

427-3, Sanggae-dong, Nam-gu, Ulsan, Korea

Zip Code

680-180

Tel

+82-52-278-3400

Fax

+82-52-278-3800

E-mail

master@KPChem.co.kr

Website

www.kpchem.co.kr

Trading Address

7th Fl., Lotte Gwanak Tower, 395-67, Sindaebang 2-dong, Dongjak-gu, Seoul, Korea

Tel

+82-2-840-0000

Fax

+82-2-840-0010

Other Address

488-1, Yongyeon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-226-6400

Fax

+82-52-226-6591

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Purified Terephtalic Acid, PPR, Purified Isophtalic Acid, Resin

Established (mm/dd/yyyy)

12/28/2001

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Aromatic or heterocyclic compounds(12352005)

 

 

CEO’s

 

Name

Huh Soo-Young

Date of Birth

06/07/1951

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

491,688,910,000 KRW

Employees

601

Formation

Listed Company(Korea Stock Exchange : 064420) as of 06/21/2002

A Company of LOTTE GROUP

Bank Details

Woori bank-Corporate Sales HQ

Corporate Registered No.

230111-0082112

Business Registered No.

610-81-55067

Permit & Licenses

Int’l Trade No.: 11973160

Shareholder Position

Name

Shares

%

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

51,000,000

51.86

NATIONAL PENSION SERVICE(110171-0007134)

8,274,308

8.41

OTHERS

39,063,474

39.73

TOTAL

98,337,782

100.00

Company History

12/28/2001 Incorporated as the present name after Spin off from KOHAP CORP.(134111-0000830)

01/03/2005 Joined as a company of Lotte Group

11/28/2003 Awarded US$700 Million Export Top Prize

11/30/2004 Awarded US$1 Billion Export Top Prize

03/12/2005 Moved to the present trading address

01/26/2010 The Subsidiary of the subject, LOTTE CHEMICAL UK LIMITED(LCUK),  acquired PTA/PET Factory Facilities from ARTENIUS UK LIMITED at 29,002,500,000 KRW.

02/18/2010 Decide not to proceed the JV of PTA Factory in China

03/02/2010 Decided to pledge the payment guarantee against Deutsche Bank, One North East (UK Authority), ExxonMobil, Total, Kolmar, Helm, BP, SembCorp UK, on behalf of LOTTE CHEMICAL UK LIMITED(LCUK) for the value of 58,437,334,000 KRW.

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Huh Soo-Young

Korean

1951.06.07

Seoul National University, Korea

Director

Mr.

Lee Jae-Hyuck

Korean

1954.02.17

Seoul National University, Korea

Director

Mr.

Lee Ja Hyung

Korean

1957.02.24

Chonnam National  University, Korea

Outside Director

Mr.

Yoon Jung-Han

Korean

1954.07.20

Youngnam University, Korea

Outside Director

Mr.

Lee Kook-Young

Korean

1949.05.08

Kunkook University, Korea

Outside Director

Mr.

Ahn Joon-Ki

Korean

1952.01.08

Cheonbuk National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2010

1,759,692,071,905

1,240,393,886,851

112,317,104,097

2009

2,107,186,809,792

1,228,539,609,230

163,932,123,197

2008

2,093,817,776,214

889,375,517,302

(-)3,502,819,509

2007

1,961,973,683,834

1,001,661,050,544

37,233,910,540

2006

1,628,207,336,323

1,079,403,883,621

4,061,608,740

2005

1,529,666,310,369

1,113,414,198,368

64,904,642,965

2004

1,512,795,601,892

1,142,758,087,143

69,168,178,760

 

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000,000

Paid-Up Capital(KRW)

491,688,910,000

Total Issues Shares

98,337,782

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

1,240,393,886,851

1,228,539,609,230

889,375,517,302

Current Assets

539,693,934,290

562,670,763,865

379,236,684,858

-Quick Assets

429,928,767,377

452,567,542,724

281,907,068,464

-Inventories

109,765,166,913

110,103,221,141

97,329,616,394

Fixed Assets

700,699,952,561

665,868,845,365

510,138,832,444

-Investment

331,531,418,279

244,295,503,010

61,015,016,795

-Tangibles

348,643,447,184

398,180,492,789

409,814,192,157

-Intangibles

2,026,221,655

2,675,083,103

292,666,284

-Others

18,498,865,443

20,717,766,463

39,016,957,208

Total Liabilities

317,180,647,480

402,152,672,573

252,664,738,848

Current Liabilities

268,476,944,637

368,363,237,301

243,997,047,110

Fixed Liabilities

48,703,702,843

33,789,435,272

8,667,691,738

Capital Stock

491,688,910,000

491,688,910,000

491,688,910,000

Capital Surplus

-　

-　

-　

Profit Surplus

402,399,432,852

304,832,138,055

140,900,014,858

Capital Adjustment

29,124,896,519

29,865,888,602

4,121,853,596

Total Equity

923,213,239,371

826,386,936,657

636,710,778,454

Liab. & Shareholder’s Equity

1,240,393,886,851

1,228,539,609,230

889,375,517,302

 

Current Liabilities

268,476,944,637

368,363,237,301

243,997,047,110

Trade Payables

237,072,750,885

340,149,773,003

182,732,685,094

Account Payables

16,168,676,891

24,296,394,496

55,489,434,962

Advance Receipts

2,842,233,870

316,923,732

1,765,076,867

Withholdings

608,076,895

2,004,177,820

580,175,847

Guarantee Deposit Withhold

-　

123,425,000

123,425,000

Accrued Expenses

186,250,470

1,472,543,250

3,306,249,340

Accrued Income Tax

10,954,665,741

-

-

Current Portion of Deferred Income Tax Credit

644,289,885

-

-

Fixed Liabilities

48,703,702,843

33,789,435,272

8,667,691,738

Provision for Guarantee Losses

473,628,866

473,628,866

473,628,866

Provision for Severance & Retirement

18,522,970,295

16,963,964,260

15,065,496,103

Long-Term Account Payables

18,875,493,000

14,217,893,000

1,816,527,000

Deferred Income Tax Credit

20,248,125,552

12,238,570,827

-

Guarantee Deposit Withhold

123,425,000

-

-

 

 

Income Statement

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Sales

1,759,692,071,905

2,107,186,809,792

2,093,817,776,214

Cost of Sold Goods

1,614,501,982,390

1,880,137,737,091

2,029,763,836,691

Gross Profit

145,190,089,515

227,049,072,701

64,053,939,523

Selling & Admin. Expenses

58,440,858,620

69,121,863,979

73,493,963,139

Operating Income

86,749,230,895

157,927,208,722

-9,440,023,616

Non-Operating Income

98,378,484,491

119,402,920,980

115,470,675,961

Non-Operating Expenses

41,288,027,004

70,030,063,467

140,812,954,162

Ordinary Income

143,839,688,382

207,300,066,235

-34,782,301,817

Special Income

-

-

-

Income Before Taxes

143,839,688,382

207,300,066,235

-34,782,301,817

Income Taxes Expenses

31,522,584,285

43,367,943,038

-31,279,482,308

Net Income

112,317,104,097

163,932,123,197

-3,502,819,509

 

 

Cash Flows

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

15,008,486,624

327,063,604,989

77,059,826,191

-Net Income

112,317,104,097

163,932,123,197

-3,502,819,509

-Exp. without Cash Outflow

74,470,699,227

98,614,154,356

147,209,901,401

-Revenue without Cash Inflows

-61,227,326,389

-67,463,896,862

-39,662,587,430

-Changes in Asset/ & Liability

-110,551,990,311

131,981,224,298

-26,984,668,271

Cash Flows from Investing

-111,667,394,743

-264,320,024,959

-35,059,900,145

-Cash Inflow from Investing

245,585,219,966

3,877,510,065

98,441,026,759

-Cash Outflows for Investing

-357,252,614,709

-268,197,535,024

-133,500,926,904

Cash Flows from Financing

-16,722,609,300

-　

-　

-Cash Inflows from Financing

-

-　

-　

-Cash Outflows from Financing

-16,722,609,300

-　

-　

Increase/Decrease in Cash

-113,381,517,419

62,743,580,030

41,999,926,046

Cash at the Beginning of Year

198,849,449,363

136,105,869,333

94,105,943,287

Cash at the End of Year

85,467,931,944

198,849,449,363

136,105,869,333

 

 

Products, Technologies, Services Description

 

Main Products & Services

PTA, PIA, PET, PPR, BTX, Fiber

 

Brand Name : PAPET, KP Chem

 

 

Trade Partners & Competitors

 

Suppliers

EXXON MOBIL(M-X(MIXED XYLENE))

Customers

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

COCA COLA

PEPSI COLA

Competitors

SAMNAM PETROCHEMICAL CO., LTD.(110111-0557061)

SAMSUNG PETROCHEMICAL CO., LTD.(181211-0000435)

GS-CALTEX CORPORATION(110111-0078819)

TK CHEMICAL CORP.(110111-3783457)

SK CHEMICALS CO., LTD.(130111-0005727)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

LOTTE ENGINEERING & CONSTRUCTION CO., LTD.(110111-0014764)

LOTTE CHILSUNG BEVERAGE CO., LTD(110111-0003684)

LOTTE CONFECTIONERY CO., LTD.(110111-0076300)

LOTTE ENGINEERING & MACHINERY MFG. CO., LTD.(110111-0154560)

CANON KOREA BUSINESS SOLUTIONS INC.(130111-0007666)

LOTTE ALUMINIUM CO., LTD.(110111-0003121)

HONAM PETROCHEMICAL CORPORATION(110111-0193196)

LOTTE DATA COMMUNICATION CO., LTD.(110111-1358343)

LOTTE SAMKANG CO., LTD.(110111-0033722)

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

LOTTE HAM CO., LTD.(110111-0229371)

LOTTERIA CO., LTD.(110111-0262850)

LOTTE FRESH DELICA CO., LTD.(134511-0034295)

LOTTE BOULANGERIE CO., LTD(135511-0109807)

LOTTE PHARM CO., LTD.(110111-0657788)

LOTTE MIDOPA CO., LTD.(110111-0045983)

FOOD STAR, INC.(110111-1739155)

CINEMA TRADING CO., LTD(110111-3180918)

WELLGA INC.(184511-0000379)

SANJUNG BEVERAGE CO., LTD.(111511-0013288)

CHANG DAE TRADING CO., LTD.(110111-0904907)

HOTEL LOTTE CO., LTD.(110111-0145410)

LOTTE GIANTS BASEBALL CLUB(110111-0317556)

HOTEL LOTTE PUSAN CO., LTD(180111-0053461)

LOTTE MOOLSAN CO., LTD.(110111-0320707)

LOTTE JTB CO., LTD(110111-3685710)

THE CINEMA OF KOREA(110111-3837501)

LOTTE CITY HOTEL CO., LTD(110111-3946518)

LOTTE TRADING CO., LTD(110111-0159099)

LOTTE LOGISTICS CORP.(110111-0040446)

KOREA SEVEN CO., LTD.(110111-0899976)

LOTTE.COM INC(110111-1843972)

LOTTE ASAHI LIQUOR COMPANY LTD.(110111-0530033)

WOORI HOME SHOPPING(110111-2248957)

KP CHEMTECH(230111-0100443)

DAESAN MMA CORPORATION(161411-0016995)

KOREA FUJIFILM CO., LTD(110111-0042715)

HOWTECH CORPORATION(110111-2110114)

LOTTE ALUMINUM CO., LTD.(110111-0003121)

LOTTE ASSET DEVELOPMENT CO., LTD(110111-2394263)

DAEHONG COMMUNICATIONS INC.(110111-0249981)

FRL KOREA CO., LTD.(110111-3133298)

LOTTE CAPITAL CO., LTD.(110111-1217416)

LOTTE CARD CO., LTD.(110111-0641434)

CHEONGNA ENERGY CO., LTD.(110111-3256818)

LOTTE MILK CO., LTD.(110111-3650838)

LOTTE STATION BUILDING CO., LTD.(110111-0505903)

LOTTE SHOPPING CO., LTD.(110111-0000086)

LOTTE ENGINEERING & CONSTRUCTION CO., LTD(110111-0014764)

SEETECH CO., LTD.

Affiliates-Overseas

LOTTE CHINA FOODS CO., LTD.

ZAO LOTTE RUS, LOTTE INDIA CO., LTD.

LOTTE TRADING NEW YORK CORPORATION

LOTTE QINGDAO FOODS CO., LTD.

HAEMUNGYO SEONGANRYUN CO., LTD.

LOTTE PHILIPPINES CO., LTD.

VIETNAM LOTTERIA CO., LTD.

LOTTE VIETNAM CO., LTD.

KP CHEMICAL (H.K.)LIMITED

LOTTE TAIWAN CO., LTD.

LOTTE SHOPPING RUS LTD.

LOTTEAODELI BEVERAGE CO.LTD.

LOTTE CONSTRUCTION CO., LTD.

ZAO L&S, HOSEOK CHEMICAL TRADE CO., LTD.

LOTTE SHANGHAI FOODS. CO., LTD.

GAHEUNG HOSEOK GONGJEONG SORYO CO., LTD.

LOTTE FOOD HOLDING CO.,LIMITED

LOTTE PACKAGE CO., LTD.

LOTTE INVESTMENT CO., LTD.

HONAM OVERSEAS HOLDINGS LIMITED

LOTTE CONFECTIONERY RUS LLC

LH FOODS CO., LIMITED

SOGLASIE-LOTTE HOTEL DUTY FREE LTD.

OPERATOR-LOTTE-DUTY FREE LTD.

UNITED NCRI-LOTTE CONSTRUCTION CORPORATION

LOTTE ENGINEERING AND CONSTRUCTION INDIA PVT. LTD.

LOTTE HUABANG CO., LTD.

LOTTE QINGDAO FOODS CO., LTD.

WEIFANG YASING GROUP CO., LTD.

PAKISTAN PTA LIMITED

(75.01% held by the subject company)

Overseas Office

KP CHEMICAL (H.K.) LIMITED

(100.0% held by the subject company)

UNIT NO. 818, 8TH FLOOR, PENINSULA CENTRE, NO.67, MODY ROAD, TSIM SHA TSUI, KOWLOON, HONG KONG.

TEL:+852-2368-3650 FAX:+852-2368-3651

 

KP CHEMICAL CORP. MOSCOW REP. OFFICE

OFFICE 732, 7TH FLOOR GATE 6, KRASNOPRESNENSKAYA NAB.,12, MOSCOW. 123610, RUSSIA.

TEL:+7-095-967-0905 FAX:+7-095-967-0907

 

KP CHEMICAL CORP. SHANGHAI REP. OFFICE

RM 209, SHANGHAI INTERNATIONAL TRADE CENTER, NO.2201, YAN AN WEST ROAD, SHANGHAI, 200336, CHINA.

TEL:+86-21-6219-2779 FAX:+86-21-6219-3138

Subsidiary

KP CHEMTECH(230111-0100443)

(100.0% held by the subject company)

 

HAEMUN KYOSUNG ANRYUN CO., LTD.(CHINA)

(68.22% held by the subject company)

 

KP CHEMICAL (H.K.) LIMITED

(100.0% held by the subject company)

 

LOTTE CHEMICAL UK LIMITED(LCUK)

(100.0% held by the subject company)

 

PAKISTAN PTA LIMITED

(75.01% held by the subject company)

Corporate Ownership

LOTTE MOOLSAN CO., LTD.(110111-0320707)

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

Major Shareholders

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

 

-Technical Support from

UOP LLC, USA

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2010

2009

2008

Export

1,525,263

1,886,899

1,931,468

Domestic

234,429

220,288

162,687

Total

1,759,692

2,107,187

2,094,155

The Subject exports to Russia, China, USA and South East Asia.

 

 

Court Action

 

There are 2 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 25,239,000,000 KRW, and 2 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 370,000,000 KRW.

 

 

News Clipping

 

---

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.31

UK Pound

1

Rs.70.26

Euro

1

Rs.59.56

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.