MIRA INFORM REPORT

 

 

Report Date :

17.01.2011

 

IDENTIFICATION DETAILS

 

Name :

YUHAN CORPORATION

 

 

Registered Office :

49-6, Daebang-dong, Dongjak-gu, Seoul, Korea 156-754

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2010

 

 

Date of Incorporation :

20.06.1926

 

 

Com. Reg. No.:

118-81-00601

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Medicinal Chemicals and Antibiotics

 

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

YUHAN CORPORATION

(Korean Company Name : “(주)유한양행”)

Registered Address

49-6, Daebang-dong, Dongjak-gu, Seoul, Korea

Zip Code

156-754

Tel

+82-2-828-0181

Fax

+82-2-828-0050

E-mail

jangdak@yuhan.co.kr

Website

www.yuhan.co.kr

Trading Address

49-6, Daebang-dong, Dongjak-gu, Seoul, Korea

Tel

+82-2-828-0181

Fax

+82-2-828-0050

Other Address-Ochang Factory

807-1, Yangcheong-ri, Ochang-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-240-1000

Fax

+82-43-217-0650

Other Address-Anyang Factory

Yuhan Corporation, 27-3, Dangjeong-dong, Gunpo-si, Gyeonggi-do, Korea

Tel

+82-31-451-4111~8

Fax

+82-31-457-6711

Other Address-Gyeongbuk Branch

178-2, Beomeo 2-dong, Suseong-gu, Daegu, Korea

Tel

+82-53-752-0515

Fax

+82-53-751-6440

Other Address-Busan Branch

1151-1, Choryang 3-dong, Dong-gu, Busan, Korea

Tel

+82-51-462-4970~5

Fax

+82-51-462-4977

Type

Export/Import

Industry

Manufacture of Medicinal Chemicals and Antibiotics

  Main Business

Antibiotic, Analgesic, Gastric Ulcer, Pulmonary Surfactant Preparation, Soap

  Sub Business

Manufacture of Toothpaste, Soap and Synthetic Detergents

Established (mm/dd/yyyy)

06/20/1926

The Subject owns the premises of registered HQ address, Ochang Factory, Anyang Factory and Busan Branch.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

Sell

Antifungal drugs(51101800)

Sell

Vitamin supplements(51191905)

Sell

Antacids and antiflatulents(51171500)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Clinical and diagnostic analyzer reagents(41116000)

Sell

Cough and cold and antiallergy products(51161800)

Sell

Non narcotic analgesics and antipyretics(51142000)

Sell

Antibiotics(51101500)

Sell

Antineoplastic agents(51110000)

Sell

Antimycotics(41106201)

Sell

Thrombolytic drugs and platelet aggregation inhibitors(51131700)

Buy

Drugs affecting the gastrointestinal system(51170000)

Buy

Formulas and products for nutritional support(42231800)

Buy

Antiulcer and related gastrointestinal GI drugs(51171900)

Buy

Biochemicals(12352200)

Buy

Inorganic metal salts(12352302)

Buy

Amines or imines or its substitutes(12352116)

Buy

Herbal drugs(51212000)

 

 

CEO’s

 

Name

Choi Sang-Hoo

Date of Birth

06/01/1949

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

54,312,715,000

Employees

1,498

Formation

Listed Company (Korea Stock Exchange : 000100) as of 11/01/1962

A Company of YUHAN CORPORATION

Bank Details

Shinhan Bank

Hana Bank

Korea Exchange Bank-Youngdungpo Branch

Corporate Registered No.

110111-0014409

Business Registered No.

118-81-00601

Permit & Licenses

2002 ISO 14001

 

Int’l Trade No.: 670856

Shareholder Position

Name

Shares

%

YUHAN FOUNDATION(115022-0000121)

1,717,723

15.81

YUHAN ACADEMY(115131-0000013)

766,135

7.05

SHINHAN BANK(110111-0012809)

677,979

6.24

FIRST STATE INVESTMENT MANAGEMENT (UK) LIMITED(23 ST. ANDREW SQUARE, EDINBURGH, MIDLOTHIAN, EH2 1BB, SCOTLAND, U.K.)

1,048,013

9.65

MATTHEWS INTERNATIONAL FUNDS(FOUR EMBARCADERO CENTER, SUITE 550, SAN FRANCISCO, CA 94111, USA)

559,945

5.15

MIRAE ASSET INVESTMENT MANAGEMENT CO., LTD.(110111-1441685)

503,363

4.63

TREASURY STOCK

338,716

3.12

OTHERS

6,815,786

62.75

TOTAL

10,862,543

100.00

Company History

1997 Pusan branch office building completed.

1997 In 1994, started building new head office building. The 20-story high intelligent building was completed and the head offices moved into it.

1996 Completion of the second research building in the Central Research Laboratory.

1996 Extended to food processing business by Investing in Q Foods Inc., thus establishing YuHan-Q Foods

1995 Awarded Grand Prize in the second annual Korean Corporate Culture Awards

1995 Established YuHan-C&T, a computer related company.

1995 Celebration of 100th birthday of the late Dr. Ilhan New.

1994 Awarded or quality innovation in Productivity Awards

1992 YuHan Chemicals Co. completed building Shihwa Synthesizing Plant in Shihwa Industrial Complex.

1992 Producing Rifampicin at G.T.B.L. of India, and supplying to the local market.

1991 King of Belgium awarded YuHan a medal, for Janssen Korea became a model for a successful joint venture company.

1991 The late Ilhan New was awarded with the first True Entrepreneur Award.

1988 YuHan-SmithKline became a wholly-owned subsidiary of YuHan Corp., and changed its name to Yukyung Corporation.

1988 The central research laboratory was designated as a KGLP sanctioned manufacturer. The first among national pharmaceutical companies.

1987 YuHan Corp. bought out from its former partner, KIST, YuHan Chemical Co., Ltd., and increased investment to advance the field of specialty chemistry.

1984 Government named YuHan as a KGMP sanctioned manufacturer.

1984 Completion of central research laboratory

1983 Janssen Pharmaceutica Belgium, and YuHan formed the Janssen Korea joint venture company.

1983 YuHan received the Silver Tower award by the order of Industrial Service Merit on the occasion of Worker's Day.

1982 Joint ventures with worldwide pharmaceutical companies. YuHan-SmithKline, YuHan-SP, and YuHan-Cyanamid Co., Ltd.

1980 YuHan, investing with KIST, formed the YuHan Chemical Co., Ltd.

1979 Anyang plant with state-of-the-art facilities completed.

1977 YuHan jointed with Corox Co., forming the YuHan-Corox Co., Ltd. joint venture.

1945 With the independence of Korea, YuHan lost its branch offices in North Korea and Manchuria.

1936 Grew by building branch offices in southeast Asia.

1936 Became incorporated and built a new plant in Sosa, Kyunggi-do.

06/20/1926 Incorporated as the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Co-President & CEO

Mr.

Choi Sang-Hoo

Korean

1949.06.01

Myungji University, Korea

Co-President & CEO

Mr.

Kim Yoon-Searb

Korean

1948.07.20

Chungang University, Korea

Sr. Executive Director

Mr.

Lee Jung-Hee

Korean

1951.11.02

Youngnam University, Korea

Sr. Executive Director

Mr.

Oh Do-Hwan

Korean

1953.04.04

Dongkuk University, Korea

Director

Mr.

Hong Soon-Eok

Korean

1934.11.24

Seoul National University, Korea

Outside Director

Mr.

Cho Jung-Hyung

Korean

1935.11.07

Seoul National University, Korea

Outside Director

Mr.

Pyo In-Soo

Korean

1959.02.27

Seoul National University, Korea

Auditor

Mr.

Park Young-Koo

Korean

1951.01.12

Korea University, Korea

Auditor

Mr.

Lee Won-Nyeong

Korean

1950.01.02

Korea University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2010

489,310,397,701

1,206,024,031,788

102,958,532,996

2009

630,347,320,330

1,115,568,119,205

121,326,960,007

2008

595,720,036,530

1,021,065,354,268

125,683,158,487

2007

482,204,803,651

972,624,833,628

91,954,234,426

2006

411,705,437,389

918,243,961,989

67,088,873,211

2005

391,985,534,732

884,940,739,326

63,122,197,720

 

 

Financial Description

 

Authorized Capital(KRW)

75,000,000,000

Paid-Up Capital(KRW)

54,312,715,000

Total Issues Shares

10,862,543

 

Balance Sheet

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

1,206,024,031,788

1,115,568,119,205

1,021,065,354,268

Current Assets

545,956,777,211

504,847,341,551

404,307,790,668

-Quick Assets

465,581,000,723

431,591,795,369

339,798,337,619

-Inventories

80,375,776,488

73,255,546,182

64,509,453,049

Fixed Assets

660,067,254,577

610,720,777,654

616,757,563,600

-Investment

372,983,129,289

317,098,107,752

309,539,052,133

-Tangibles

274,223,817,221

283,012,575,659

296,933,956,773

-Intangibles

3,498,706,483

3,647,413,596

4,074,104,047

-Others

9,361,601,584

6,962,680,647

6,210,450,647

Total Liabilities

162,083,593,217

148,142,985,779

158,123,896,554

Current Liabilities

120,885,256,650

104,372,099,508

112,616,297,099

Fixed Liabilities

41,198,336,567

43,770,886,271

45,507,599,455

Capital Stock

54,312,715,000

51,786,100,000

49,308,185,000

Capital Surplus

177,647,870,914

179,546,365,658

181,239,532,730

Profit Surplus

849,760,760,466

756,920,180,870

645,256,141,263

Capital Adjustment

-37,780,907,809

-20,827,513,102

-12,862,401,279

Total Equity

1,043,940,438,571

967,425,133,426

862,941,457,714

Liab. & Shareholder’s Equity

1,206,024,031,788

1,115,568,119,205

1,021,065,354,268

 

Current Liabilities

120,885,256,650

104,372,099,508

112,616,297,099

Trade Payables

62,309,695,072

51,158,303,642

54,262,981,710

Account Payables

18,009,906,416

16,824,145,411

13,864,006,734

Withholdings

19,248,800,261

18,032,473,829

18,976,320,810

Accrued Expenses

35,046,555

130,730,032

-

Accrued Income Tax

8,395,878,346

5,395,396,594

15,427,737,845

Guarantee Deposit Withhold

12,885,930,000

12,831,050,000

10,085,250,000

Fixed Liabilities

41,198,336,567

43,770,886,271

45,507,599,455

Provision for Severance & Retirement

69,867,563,365

59,930,187,880

55,609,095,276

Provision for Refund

5,372,000,000

5,372,000,000

5,372,000,000

Non-Current Portion of Deferred Income Tax Credit

21,201,613,099

24,460,134,446

25,418,387,389

Long-Term Guarantee Deposit Withhold

5,221,080,000

5,610,960,000

7,326,460,000

 

 

Income Statement

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Sales

489,310,397,701

630,347,320,330

595,720,036,530

Cost of Sold Goods

286,593,209,741

357,719,753,931

323,700,022,670

Gross Profit

202,717,187,960

272,627,566,399

272,020,013,860

Selling & Admin. Expenses

136,072,104,722

196,755,468,200

202,898,007,786

Operating Income

66,645,083,238

75,872,098,199

69,122,006,074

Non-Operating Income

56,702,573,758

85,387,407,214

95,414,398,093

Non-Operating Expenses

8,657,112,053

27,609,933,660

23,658,525,184

Ordinary Income

114,690,544,943

133,649,571,753

140,877,878,983

Special Income

-

-

-

Income Before Taxes

114,690,544,943

133,649,571,753

140,877,878,983

Income Taxes Expenses

11,732,011,947

12,322,611,746

15,194,720,496

Net Income

102,958,532,996

121,326,960,007

125,683,158,487

 

 

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

92,870,313,930

123,726,134,058

115,779,094,113

-Net Income

102,958,532,996

121,326,960,007

125,683,158,487

-Exp. without Cash Outflow

27,476,520,356

39,414,462,287

32,981,077,671

-Sale without Cash Inflows

-33,584,513,335

-61,416,429,127

-57,755,086,375

-Changes in Asset/ & Liability

-3,980,226,087

24,401,140,891

14,869,944,330

Cash Flows from Investing

-119,862,402,115

-11,931,647,082

-25,120,356,581

-Cash Inflow from Investing

180,481,195,877

75,281,060,719

82,498,660,494

-Cash Outflows for Investing

-300,343,597,992

-87,212,707,801

-107,619,017,075

Cash Flows from Financing

-26,681,368,104

-16,495,266,810

-52,719,319,870

-Cash Inflows from Financing

6,021,975,566

17,306,574,300

13,012,206,300

-Cash Outflows from Financing

-32,703,343,670

-33,801,841,110

-65,731,526,170

Increase/Decrease in Cash

-53,673,456,289

95,299,220,166

37,939,417,662

Cash at the Beginning of Year

226,729,325,634

131,430,105,468

93,490,687,806

Cash at the End of Year

173,055,869,345

226,729,325,634

131,430,105,468

 

 

Products, Technologies, Services Description

 

Main Products & Services

The Subject Company is a Korea-based company engaged in the research, development, manufacturing and marketing of pharmaceuticals.

 

The Company operates its business under three main segments: pharmaceutical segment, which provides non-prescription drugs such as vitamins, cosmetics, hair dyes and remedies for skin diseases, and prescription drugs such as antibiotics, anti-platelet aggregation drugs, cold remedies, gastric ulcer remedies, hypertension drugs, diabetes drugs and others; life and healthcare segment, which provides household products such as bleaching agents, and animal drug products such as antimicrobials, and overseas business segment which mainly distributes remedies for acquired immune deficiency syndrome (AIDS), antibiotics and others to overseas countries.

 

It is also engaged in the research and development of new drugs for its customers, and provision of healthcare foods.

 

 

Trade Partners & Competitors

 

Suppliers

GILEAD SCIENCES LIMITED(USA)

ASTRAZENECA

DAINIPPON SUMITOMO

WEISHENG

ALMIRALL

ESSEX CHEMIE

SHIRE

ASSIA CHEMICAL

ASTRAZENECA

PROTO CHEMICAL

 

YUHAN CHEMICAL IND. CO., LTD.(134111-0007315)

KYUNGDONG PHARM CO., LTD.(120111-0003765)

DONGSIN TUBE GLASS IND. CO., LTD.(120111-0009797)

SAMMIN CHEMICAL IND CO., LTD.(120111-0008616)

Customers

SHENZHEN ZHIJUN PHARMACEUTICAL CO., LTD(CHINA)

CADILA HEALTHCARE LTD.(INDIA)

Competitors

DONGA PHARMACEUTICAL CO., LTD.(110111-0017990)

252, YONGDU-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-920-8114  FAX:+82-2-924-2662

 

HANMI PHARM CO., LTD.(110111-0014409)

893-5, HAJEO-RI, PALTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-356-3311 FAX:+82-31-356-5151

 

GREEN CROSS CORPORATION(110111-0109854)

303, BOJEONG-DONG, GIHEUNG-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-260-9300 FAX:+82-31-260-9413

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

YUHAN-KIMBERLY LTD.(110111-0021462)

(30.00% held by the subject company)

 

JANSSEN KOREA LTD.(110111-0350457)

(30.00% held by the subject company)

 

YUHAN CHEMICAL IND. CO., LTD.(134111-0007315)

(100.00% held by the subject company)

 

YUHAN MEDICA CORPORATION(110111-0323264)

(100.00% held by the subject company)

 

YUHAN CLOROX CO., LTD(120111-0003517)

(50.00% held by the subject company)

 

INDIA G.T.B.L

(33.19% held by the subject company)

Subsidiary

YUHAN CHEMICAL IND. CO., LTD.(134111-0007315)

(100.00% held by the subject company)

 

YUHAN MEDICA CORPORATION(110111-0323264)

(100.00% held by the subject company)

 

YUHAN CLOROX CO., LTD(120111-0003517)

(50.00% held by the subject company)

Cooperative Enterprise

-Licensing Agreement with

SEIKAGAKU BIOBUSINESS

CADILA HEALTHCARE LTD

GILEAD SCIENCE LTD.

SMITHKLINE BEECHAM

RANBAXY

MITSUBISHI PHARMA

GENOVATE

 

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2010

2009

2008

Export

60,094

89,469

86,461

Domestic

429,216

540,878

509,259

Total

489,310

630,347

595,720

The Subject deals with the companies in Brazil, China, Indonesia, Japan, Vietnam and USA.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

Seoul Seobu District Court

The National Health Insurance Corporation (NHIC)

The Subject Company & Others(22)

Claim for Damage Compensation

843,522

1st round is proceeding

 

Seoul Seobu District Court

The National Health Insurance Corporation (NHIC)

The Subject Company & Others(6)

Claim for Damage Compensation

12,835,588

1st round is proceeding

 

Seoul High Court

LG LIFE SCIENCES CO., LTD.(110111-2581183)

The Subject Company

Infringement of Patent Rights

50,000

The Subject won at 1st round, and 2nd round is proceeding.

 

 

News Clipping

 

----

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.30

UK Pound

1

Rs.71.73

Euro

1

Rs.60.40

 

 

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%)

 

 

 

 

 

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