MIRA INFORM REPORT

 

 

Report Date :           

25.10.2011

 

IDENTIFICATION DETAILS

 

Name :

HANWHA ENGINEERING & CONSTRUCTION CORPORATION

 

 

Registered Office :

573-2, Daeya-dong, Siheung-si, Gyeonggi-do, Korea, 8th Fl., Mobidik Bldg., Zip Code 429-010

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

02.07.2002

 

 

Com. Reg. No.:

104-81-73406

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Construction of Highways, Streets and Roads

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

HANWHA ENGINEERING & CONSTRUCTION CORPORATION

(Trade Name : HANWHA E&C)

(Korean Company Name : “(주)한화건설”)

Registered Address

573-2, Daeya-dong, Siheung-si, Gyeonggi-do, Korea

Building

8th Fl., Mobidik Bldg.

Zip Code

429-010

Tel

+82-31-317-2380

Fax

+82-31-317-2381

E-mail

jeongjs@hanwha.co.kr

Website

 www.hwenc.com

Trading Address

5th Fl., Hanhwa Bldg., 1, Janggyo-dong, Jung-gu, Seoul, Korea

Tel

+82-2-729-2255

Fax

+82-2-729-2302

Type

Export/Import

Industry

Construction of Highways, Streets and Roads

  Main Business

Superhighway Construction, Bridge Construction, Apartment Construction, Petrochemistry Plant Construction, Water Supply And Drainage Processing Equipment Construction, Incinerator Equipment

  Sub Business

Construction of Industrial Plants

Established (mm/dd/yyyy)

07/02/2002

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Plumbing system construction(72102303)

Sell

Infrastructure construction(72131700)

Sell

Commercial or industrial construction(72131600)

Sell

Highway or road paving or surfacing(72131701)

Sell

Land reclamation services(77111603)

Sell

General building construction(72130000)

Sell

Refuse collection and disposal(76121500)

Sell

Sludge disposal(76121603)

Sell

Residential construction(72131500)

Sell

Pollution tracking and monitoring and rehabilitation(77120000)

 

 

CEO’s

 

Name

Kim Hyun-Chung

Date of Birth

10/18/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

140,000,000,000

Employees

1,621

Formation

Co., Ltd by Shares

A Company of HANWHA GROUP

Bank Details

Woori Bank-31ro Branch

Corporate Registered No.

110111-2558405

Business Registered No.

104-81-73406

Permit & Licenses

09/04/1998 ISO 14001

09/11/1998 ISO 9001

2009 GD Mark

Shareholder Position

Name

Shares

%

HANWHA CORP(110111-0002959)

28,000,000

100.00

TOTAL

28,000,000

100.00

Company History

07/02/2002 Incorporated as the present name

 

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kim Hyun-Chung

Male

Korean

1950.10.18

Director

Mr.

Lee Keun-Po

Male

Korean

1951.10.10

Director

Mr.

Jin Young-Dae

Male

Korean

1952.03.06

Director

Mr.

Kim Kwan-Soo

Male

Korean

1951.09.07

Director

Mr.

Noh Kyung-Sub

Male

Korean

1940.12.05

Director

Mr.

Lee Doo-Yong

Male

Korean

1964.04.25

Director

Mr.

Lee Byung-Seok

Male

Korean

1962.09.30

Director

Mr.

Lee Pyung-Ho

Male

Korean

1951.10.20

Director

Mr.

Jeon Se-Il

Male

Korean

1955.01.05

Director

Mr.

Jeong Jin-Se

Male

Korean

1949.06.07

Director

Mr.

Jeong Heung-Soo

Male

Korean

1952.09.06

Director

Mr.

Choi Sang-Kyun

Male

Korean

1966.03.12

Auditor

Mr.

Hong Dong-Wook

Male

Korean

1948.10.10

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2010

2,628,217,903,961

3,987,747,674,329

79,306,335,687

2009

2,344,380,166,388

3,462,236,898,272

76,942,245,040

2008

2,001,133,143,851

3,594,536,794,905

82,365,704,509

2007

1,676,199,041,436

2,995,314,844,720

103,552,437,981

2006

1,377,317,211,356

1,849,020,260,541

67,312,760,989

2005

1,245,975,857,331

1,703,217,421,733

57,843,367,071

Financial Description

 

Authorized Capital(KRW)

400,000,000,000

Paid-Up Capital(KRW)

140,000,000,000

Total Issues Shares

28,000,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

3,987,747,674,329

3,462,236,898,272

3,594,536,794,905

Current Assets

1,593,211,897,464

1,393,977,466,161

1,728,484,424,901

-Quick Assets

1,513,651,857,637

1,315,536,121,226

1,118,238,509,629

-Inventories

79,560,039,827

78,441,344,935

610,245,915,272

Fixed Assets

2,394,535,776,865

2,068,259,432,111

1,866,052,370,004

-Investment

2,031,367,596,067

1,674,361,553,470

1,481,463,099,175

-Tangibles

291,300,876,998

279,655,070,572

313,541,482,685

-Intangibles

4,674,683,759

4,038,585,419

4,311,727,948

-Others

67,192,620,041

110,204,222,650

66,736,060,196

Total Liabilities

2,609,045,093,298

2,227,670,726,416

2,480,753,698,433

Current Liabilities

1,710,678,498,265

1,695,160,134,280

1,526,852,869,020

Fixed Liabilities

898,366,595,033

532,510,592,136

953,900,829,413

Capital Stock

140,000,000,000

140,000,000,000

140,000,000,000

Capital Surplus

631,931,650,139

631,931,650,139

631,931,650,139

Profit Surplus

515,667,838,573

436,361,502,886

360,163,093,028

Capital Adjustment

91,103,092,319

26,273,018,831

-18,311,646,695

Total Equity

1,378,702,581,031

1,234,566,171,856

1,113,783,096,472

Liab. & Shareholder’s Equity

3,987,747,674,329

3,462,236,898,272

3,594,536,794,905

 

Current Liabilities

1,710,678,498,265

1,695,160,134,280

1,526,852,869,020

Trade Payables

338,209,882,406

273,496,870,195

399,829,765,676

Short-Term Borrowings

542,044,215,411

327,091,882,663

453,400,000,000

Short-Term Debentures

230,000,000,000

220,000,000,000

-

Account Payables

30,793,713,819

43,935,380,142

102,138,724,438

Advance Receipts

167,380,244,967

287,531,797,810

167,667,372,214

Withholdings

39,510,107,136

20,444,438,110

13,765,870,869

VAT Withhold

-

-

116,130,416

Accrued Expenses

6,694,038,802

4,854,349,678

6,889,635,290

Accrued Income Tax

12,938,020,839

20,526,804,364

21,091,310,507

Current Portion of Long-Term Debts

335,000,000,000

458,666,640,000

327,345,031,710

Unearned Income

2,109,556,532

1,377,330,332

1,382,536,178

Provision for Construction Losses

5,953,488,872

30,971,213,932

32,024,131,115

Guarantee Deposit Withhold

159,970,500

173,834,900

120,022,400

Deferred Income Tax Credit

-

-

1,037,516,790

Derivatives

-

6,484,970,776

147,420,090

Fixed Liabilities

898,366,595,033

532,510,592,136

953,900,829,413

Debentures

620,000,000,000

185,000,000,000

532,725,000,000

Long-Term Borrowings

103,500,000,000

253,150,000,000

356,438,640,000

Long-Term Advance Receipts

100,000

38,983,621

155,634,445

Leasehold Deposit Received

13,475,771,639

13,965,271,639

14,597,023,639

Provision for Repairing

4,768,404,724

5,987,571,542

4,555,099,983

Provision for Severance & Retirement

51,343,741,950

41,778,350,710

40,043,148,960

Deferred Income Tax Credit

123,175,176,166

48,575,299,646

1,495,909,321

Derivatives

-

223,380,000

16,551,839,800

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

2,628,217,903,961

2,344,380,166,388

2,001,133,143,851

Cost of Sold Goods

2,312,914,477,157

2,080,220,839,526

1,736,496,982,250

Gross Profit

315,303,426,804

264,159,326,862

264,636,161,601

Selling & Admin. Expenses

174,149,863,979

129,099,763,504

134,184,001,984

Operating Income

141,153,562,825

135,059,563,358

130,452,159,617

Non-Operating Income

279,318,909,397

264,826,713,716

146,890,472,589

Non-Operating Expenses

313,599,052,759

269,882,220,265

196,978,726,174

Ordinary Income

106,873,419,463

130,004,056,809

80,363,906,032

Special Income

-

-

-

Income Before Taxes

106,873,419,463

130,004,056,809

80,363,906,032

Income Taxes Expenses

27,567,083,776

53,061,811,769

-2,001,798,477

Net Income

79,306,335,687

76,942,245,040

82,365,704,509

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

-292,739,077,682

409,207,853,805

-80,522,872,124

-Net Income

79,306,335,687

76,942,245,040

82,365,704,509

-Exp. without Cash Outflow

218,975,709,680

146,593,241,146

99,181,859,607

-Sale without Cash Inflows

-233,983,143,677

-197,665,847,747

-108,492,196,135

-Changes in Asset/ & Liability

-357,037,979,372

383,338,215,366

-153,578,240,105

Cash Flows from Investing

-118,242,292,982

-170,732,831,630

-180,338,202,533

-Cash Inflow from Investing

148,452,724,129

137,532,518,604

56,910,316,813

-Cash Outflows for Investing

-266,695,017,111

-308,265,350,234

-237,248,519,346

Cash Flows from Financing

385,142,042,610

-224,425,579,266

290,872,500,000

-Cash Inflows from Financing

1,399,447,245,411

668,013,915,305

921,652,500,000

-Cash Outflows from Financing

-1,014,305,202,801

-892,439,494,571

-630,780,000,000

Increase/Decrease in Cash

-25,839,328,054

14,049,442,909

30,011,425,343

Cash at the Beginning of Year

58,860,990,295

44,811,547,386

14,800,122,043

Cash at the End of Year

33,021,662,241

58,860,990,295

44,811,547,386

 

 

Trade Partners & Competitors

 

Customers

AAC Ethyleneamines Co

NAFTEC

Saudi Arabian Mining Co

Power and Water Utility Company for Jubail and Yanbu(MARAFIQ)

Samra Electric Power Generating Company(SEPGCO)

Kuwait Oil Tanker Company

MARAFIQ

KOTC

 

Korea National Housing Corporation(114671-0001381)

KOREA EXPRESSWAY CORPORATION(131171-0000019)

Korea Land Corporation(114271-0001818)

korea water resources corporation(164171-0000052)

HYUNDAI ENGINEERING CO., LTD.(110111-2153015)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestics

HANWHA CORP (110111-0002959)

HANWHA CHEMICAL CORPORATION (110111-0360935)

HANWHA TIMEWORLD CO., LTD. (160111-0003410)

HANWHA SECURITIES CO.,LTD (110111-0003155)

HANWHA NON-LIFE INSURANCE CO., LTD. (110111-0006456)

HANWHA LIVING & CREATIVE CORP (110111-1725930)

HANWHA POLYDREAMER CO.,LTD (161511-0001861)

HANWHA STATION DEVELOPMENT CO., LTD. (110111-0544133)

HANWHA CHONGNYANGNI STATION DEVELOPMENT CO., LTD. (110111-3008376)

HANWHA INVESTMENT TRUST MANAGEMENT CO., LTD. (110111-0571201)

HANWHA VC CORP. (110111-1912909)

KLI INSURANCE INVESTIGATION CO., LTD. (110111-3192913)

KOREA TELE MARKETING & SERVICES CO., LTD (110111-3199349)

RADISSON SEOUL PLAZA HOTEL (110111-0154776)

HAN COMM. INC. (110111-0362957)

ENVIRONMENT FACILITIES MANAGEMENT CORPORATION (141411-0006564)

DREAMPHARMA CORP. (110111-1181025)

HANWHA S&C CO., LTD (110111-2204470)

GUNPO ECOTECH CORPORATION (110111-2629941)

HANWHA 63 CITY CORPORATION (110111-0425622)

DAEDEOK TECHNO VALLEY CO., LTD (160111-0115059)

YANGJU ENVIRO CORPORATION (110111-2503244)

HANWHA CITY DEVELOPMENT CO.,LTD (160111-0182230)

KUMDAN ECOTECH CORPORATION (110111-3205659)

HANWHA GALLERIA CO., LTD.( 110111-0202989)

HANWHA TOUR

HANWHA RESORT CO.,LTD (110111-0249709)

KOREA LIFE INSURANCE CO.,LTD (110111-0003204)

HANWHA EAGLES PROFESSIONAL BASEBALL CLUB (160111-0007214)

DANGJIN TECHNO POLIS CO., LTD(165011-0022657)

AZDEL INC.

HANWHA INDEPENDENT ENERGY CORPORATION(110111-3780932)

GIMHAE TECHNO VALLEY CO.,LTD.(195511-0120447)

HANWHA CHEMICAL OVERSEAS HOLDINGS, CO., LTD.(110111-4137207)

Affiliates-Overseas

KOREA LIFE INVESTMENT (AMERICA) LTD.

HANWHA (SHANGHAI) CO., LTD.

HANWHA CHEMICAL THAILAND.

MAXFORMA INCORPORATED.

UNION INDUSTRIAL DEVELOPMENT INC.

BOR DEVELOPMENT LLC.

MAXFORMA HOLDINGS INCORPORATED

MAXFORMA PLASTICS LLC.

HANWHA CHEMICAL (BEIJING) CO., LTD.

HANWHA CHEMICAL (SHANGHAI) CO., LTD.

UNIVERSAL BEARINGS INC.

HANWHA AMERICA DEVELOPMENT INC.

HANWHA LANCASTER LLC.

HANWHA DEVELOPMENT SERVICES LLC.

LANCASTER DEVELOPMENT GROUP LLC.

HANWHA INTERNATIONAL(S) PTE LTD.

MGM RT.

ACROPARK GOLF CORP.

HANWHA BANK HUNGARY LTD.

HANWHA FIRST INVESTMENT CO.,BV

HANWHA CHANDLER LLC.

CHANDLER LLC.

HANWHA SONORAN LLC.

SONORAN VISTA LLC.

HANWHA SAUDI CONTRACTING CO. LTD.

HANWHA  RESOURCES (CANADA) LTD. (12/14/2007 Joined as an Affiliated company)

HANWHA L&C CANADA INC. (01/02/2008 Joined as an Affiliated company)

HANWHA PARCEL LLC(07/02/2009 Joined as an Affiliated company)

HANWHA INTERNACIONAL DO BRASIL INTERMEDIACOES DE NEGOCIOS LTDA.(08/19/2009 Joined as an Affiliated company)

 

HANWHA CORSICANA LLC(07/07/2009 Joined as an Affiliated company)

HANWHA PARCEL O LLC(07/03/2009 Joined as an Affiliated company)

Overseas Office

HANWHA AMERICA DEVELOPMENT, INC(HAD)

(100.00% held by the subject company)

303, E WACKER DR. #2750, CHICAGO, IL 60601, USA

 

HANWHA SAUDI CONTRACTING CO., LTD.(HSCC)

(100.00% held by the subject company)

EASTERN CEMENT TOWER, 5TH FL., 506, KING FAHED ROAD, KLOBAR-DAMMAM HIGHWAY, ALKHOBAR, KINGDOM OF SAUDI ARABIA

 

HANWHA CANADA DEVELOPMENT, INC.(HCDI)

SUITE 304, 3016 5TH AVENUE NE, CALGARY, ALBERTA T2A 6KA

TEL:+1-403-984-9583

Subsidiary

YANGJU ENVIRO CORPORATION (110111-2503244)

(100.00% held by the subject company)

 

KUMDAN ECOTECH CORPORATION (110111-3205659)

(100.00% held by the subject company)

 

CHILGOK ENVIRO CO., LTD.( 175211-0014541)

(51.00% held by the subject company)

 

YEOSU SEA WORLD CORPORATION(110111-4284602)

(80.0% held by the subject company)

 

ILSAN SEAWORLD,CO.,LTD.(110111-4368901)

(46.29% held by the subject company)

Corporate Ownership

HANWHA CORP(110111-0002959)

Major Shareholders

HANWHA CORP(110111-0002959)

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

 

 

Sales by Region

 (Activity & Markets)

 

Sales/ Unit :Mil KRW

2010

2009

2008

Export

476,745

268,307

113,168

Domestic

2,138,478

2,053,987

1,848,164

Others

12995

22086

39801

Total

2,628,218

2,344,380

2,001,133

The Subject provides the services to Middle East and North America.

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

2010NA81836

 

Wongok 1 Danji Housing Construction Association

The Subject Company

Claim for Compensation from Damages

21,229

Proceeding

2010CHA3464 & Others(7)

 

Kang Wol-Soon & Others(10)

The Subject Company

Receivables from Lotting Out

2,910

Proceeding

2009GAHAP144956

 

Lee Hye-Jin & Others(12)

The Subject Company

Claim for Compensation from Damages

1,535

Proceeding

 

 

News Clipping

 

---

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.87

UK Pound

1

Rs.79.73

Euro

1

Rs.69.52

 

 

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.