MIRA INFORM REPORT

 

 

Report Date :           

16.04.2012

 

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) :

31.12.2011

 

 

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

 

 

No. of Employees :

1,992

 

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

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 : “()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

1,992

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

Chairman & CEO

Mr.

Kim Seung-Yon

Male

Korean

1952.02.07

President & CEO / Overseas

Mr.

Kim Hyun-Chung

Male

Korean

1950.10.18

President & CEO / Domestic

Mr.

Lee Keun-Po

Male

Korean

1951.10.10

Vice President

Mr.

Jin Young-Dae

Male

Korean

1952.03.06

Auditor

Mr.

Han Kwon-Tae

Male

Korean

1955.03.22

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

2,745,247,447,362

4,456,148,747,992

17,559,301,165

(*)2010

2,637,413,762,274

4,038,299,487,031

-51,488,060,243

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

(*)2010 and 2011 ‘s figures are based on the K-IFRS Accounting System.

 

 


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 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

4,456,148,747,992

4,038,299,487,031

 

Current Assets

2,005,263,149,895

1,696,280,094,985

 

Cash & Cash Equivalents

205,815,936,699

33,021,662,241

 

Other Finance Assets

22,210,899,271

13,215,350,234

 

Trade Receivables & Other Receivables

1,348,601,953,791

1,246,372,380,099

 

Other Current Assets

316,557,359,473

272,113,936,281

 

Inventories

96,874,514,987

79,560,039,827

 

Assets to be Sold

15,202,485,674

51,996,726,303

 

Non-Current Assets

2,450,885,598,097

2,342,019,392,046

 

Marketable Financial Instruments

250,997,474,777

296,285,556,997

 

Other Finance Assets

256,172,338,166

143,620,275,551

 

Investment_Related Companies

1,535,450,007,330

1,514,177,259,126

 

Investment_Real Estates

324,861,953,604

323,370,997,421

 

Tangibles

51,828,266,957

37,191,658,886

 

Intangibles

31,575,557,263

27,373,644,065

 

Total Liabilities

3,183,963,793,400

2,737,804,110,182

 

Current Liabilities

2,269,118,422,964

1,904,916,950,104

 

Trade Payables & Other Payables

949,381,490,387

639,020,704,613

 

Short-Term Borrowings

1,078,086,770,765

1,155,659,163,392

 

Other Current Financial Debts

70,509,679,973

51,519,767,707

 

Provisions

500,000

500,000

 

Other Current Liabilities

156,696,069,638

45,778,793,553

 

Deferred Income Tax Credit

14,443,912,201

12,938,020,839

 

Non-Current Liabilities

914,845,370,436

832,887,160,078

 

Long-Term Borrowings

790,719,640,039

721,325,810,049

 

Other Finance Debts

4,175,770,546

746,066,922

 

Confirmed Salaries

49,610,072,774

32,482,724,097

 

Provisions

34,447,834,712

20,958,051,844

 

Other Non-Current Debts

-

100,000

 

Deferred Income Tax Credit

35,892,052,365

57,374,407,166

 

Capital Stock

140,000,000,000

140,000,000,000

 

Capital Surplus

631,931,650,139

631,931,650,139

 

Others

74,566,381,839

112,198,550,200

 

Profit Surplus

425,686,922,614

416,365,176,510

 

Total Equity

1,272,184,954,592

1,300,495,376,849

 

Liab. & Shareholder’s Equity

4,456,148,747,992

4,038,299,487,031

 

 

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

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

2,745,247,447,362

2,637,413,762,274

 

Cost of Sold Goods

2,430,130,163,414

2,324,564,822,452

 

Gross Profit

315,117,283,948

312,848,939,822

 

Selling & Admin. Expenses

203,755,867,859

172,176,698,748

 

Other Operating Income

112,404,342,494

63,891,653,049

 

Other Operating Expenses

46,312,381,733

135,740,172,618

 

Operating Income

177,453,376,850

68,823,721,505

 

Finance Income

15,297,156,536

28,616,545,500

 

Finance Expenses

123,489,905,703

110,295,846,602

 

Non-Operating Income

-20,315,343,369

-47,366,098,706

 

Income Before Taxes

48,945,284,314

-60,221,678,303

 

Income Taxes Expenses

31,385,983,149

-8,733,618,060

 

Net Income

17,559,301,165

-51,488,060,243

 

 

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 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

439,514,690,228

-188,371,413,155

 

Cash Flows from Investing

-133,663,897,591

-103,639,440,471

 

Cash Flows from Financing

-132,790,335,365

266,172,587,036

 

Increase/Decrease in Cash

173,060,457,272

-25,838,266,590

 

Cash at the Beginning of Year

33,021,662,241

58,860,990,295

 

Cash at the End of Year

205,815,936,699

33,021,662,241

 

 

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

-Revenue 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

 


Products, Technologies, Services Description

 

Main Products & Services

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

 

 

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)

Competitors

DAEWOO ENGINEERING & CONSTRUCTION CO., LTD.(110111-2137895)

KUMHO ASIANA FIRST TOWER, 57, SINMUNNO 1-GA, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2288-3114  FAX:+82-2-2288-3113

 

SAMSUNG C&T CORPORATION(110111-0002975)

1321-20, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-2145-2114  FAX:+82-2-2145-3114

 

GS ENGINEERING & CONSTRUCTION CORP(110111-0002694)

GS YEOKJEON BLDG., 537, NAMDAEMUNNO 5-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-728-1112~4  FAX:+82-2-728-1203

 

DAELIM INDUSTRIAL CO., LTD.(110111-0084915)

DAELIM BLDG., 146-12, SUSONG-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2011-7114  FAX:+82-2-2011-8000

 


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

2011

2010

2009

Export

713,778

476,745

268,307

Domestic

2,014,449

2,138,478

2,053,987

Others

17,020

12,995

22,086

Total

2,745,247

2,628,218

2,344,380

 

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

 

 

Court Action

 

There are 8 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 118,497,000,000 KRW.

 

 

News Clipping

 

---

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.42

UK Pound

1

Rs.81.93

Euro

1

Rs.67.67

 

 

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

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NB

New Business

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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%)

 

 

 

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.