MIRA INFORM REPORT

 

 

Report Date :

30.04.2012

 

IDENTIFICATION DETAILS

 

Name :

HANSOL CHEMICAL CO., LTD.

 

 

Registered Office :

8-2, Garakbon-dong, Songpa-gu, Seoul, Korea, 8th Fl., Jungang Daily News Bldg., Zip Code 138-716

 

 

Country :

South korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.03.1980

 

 

Com. Reg. No.:

102-81-34955

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Basic Inorganic Chemicals

 

 

No. of Employees :

316

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

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

HANSOL CHEMICAL CO., LTD.

(Korean Company Name : “()한솔케미칼”)

Registered Address

8-2, Garakbon-dong, Songpa-gu, Seoul, Korea

Building

8th Fl., Jungang Daily News Bldg.

Zip Code

138-716

Tel

+82-2-2152-2399

Fax

+82-2-2152-2391~2

E-mail

 jerry@hansol.co.kr;rodjang@hansol.com;chan@hansol.com;chan@hansol.com

Website

www.hansolchemical.com

Trading Address

8th Fl., Jungang Daily News Bldg., 8-2, Garakbon-dong, Songpa-gu, Seoul, Korea

Tel

+82-2-2152-2399

Fax

+82-2-2152-2391~2

Other Address-Ulsan Factory

231, Yeocheon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-259-8000

Fax

+82-52-267-2644

Other Address-Jeonju Factory

816, Yongam-ri, Bongdong-eup, Wanju-gun, Jeollabuk-do 565-900 Korea

Tel

+82-63-260-8114

Fax

+82-263-261-7237

Type

Export/Import

Industry

Manufacture of Other Basic Inorganic Chemicals

  Main Business

Hydrogen Peroxide, Latex, Benzoyl Peroxide, Sodium Hydrosulphite, Adhesives for Paper, Adhesives for Wood, Fixing Agent, Wet Strength Agent, Retention Aid, Alkaline Sizing Agent, Chelating Agent, Micro Capsule, Insolubilizer, Urea Formaldehyde, Benzoyl Peroxide, Pharmaceutical Fine Chemical

Established (mm/dd/yyyy)

03/13/1980

The Subject owns the premises of Ulsan Factory and Jeonju Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Resins(13111000)

Sell

Films(13111200)

Sell

TMP(Trimethylol propane)

Sell

Benzoyl peroxide(51101525)

Sell

Urea formaldehyde(13111027)

Sell

Curing agents(12162300)

Sell

Bleaches(47131807)

Sell

Inorganic peroxides(12352304)

Sell

Latex rubber(13101501)

 

CEO’s

 

Name

Park Won-Hwan

Date of Birth

05/08/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

56,475,975,000

Employees

316

Formation

Listed Company (Korea Stock Exchange : 014680) as of 05/20/1989

A Company of Hansol Group

Bank Details

Woori Bank-Teheranro Branch

Nonghyup Bank

Kookmin Bank

Corporate Registered No.

110111-0270895

Business Registered No.

102-81-34955

Permit & Licenses

01/1989 KS

11/09/2005 ISO 9001

11/09/2005 ISO 14001

 

Int’l Trade No.: 802923

Shareholder Position

Name

Shares

%

CHO DONG-HYUCK

1,619,448

14.34

KB ASSET MANAGEMENT CO., LTD.(110111-0572556)

1,340,063

11.86

ALLIANZ GLOBAL INVESTORS KOREA LIMITED (110111-2124347)

790,000

6.99

NATIONAL PENSION SERVICE(110171-0007134)

1,077,000

9.54

CHO DONG-KIL

35,479

0.31

HANSOL CSN CO., LTD.(110111-0150659)

360,573

3.19

OTHERS

6,072,632

53.76

TOTAL

11,295,195

100.00

Company History

03/1980 Incorporated as Korea Peroxide Co., Ltd.

12/1985 Renamed company to Youngwoo chemical Co., Ltd

05/1989 Listed on the Korean Stock Exchange Market

05/1994 Affiliated to Hansol conglomerate

12/1995 Renamed company to Hansol Chemical Co., Ltd.

01/2000 Renamed company to Hansol Chemience Co., Ltd.

01/2000 Established Pharmaceutical Fine Chemical R&D center

02/2001 Expanded THP factory)

09/2001 Expanded SB-LATEX factory

10/2001 Expanded new regeneration process of hydrogen peroxide factory

04/2002 Consecutive 3,340days accident-free operation in Jeonju, Ulsan plant

10/2002 Established joint venture on ink cartridge factory in China

04/2003 Designated Bulk Good Manufacturing Practice awarding Korea Food & Drug Administration

06/2003 Established joint venture of Trimethylolpropane business with Perstorp

09/2003 Designated new labor-management culture awarding Ministry of Labor in Chonju plant

10/2003 Completed joint venture factory of ink cartridge in China

03/2004 Renamed company to Hansol Chemical Co., Ltd.

06/2004 Acquired INNOPTIX Co., Ltd.

09/2004 Received the Minister's Award from Ministry of Commerce, Industry and Energy for productivity improvement in Ulsan Plant

04/2005 Expanded half pure Hydrogen Peroxide plant in Ulsan

09/2006 Consecutive 5520 days accident-free operation in Ulsan plant

12/2007 Acquired C&P Chemical Co.,Ltd

12/2008 Update the Credit Rating (BBB0 → BBB+)

02/2009 Moved to the present HQ address

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Park Won-Hwan

Korean

1954.05.08

Hanyang University, Korea

Director

Mr.

Cho Dong-Hyuck

Korean

1950.11.22

MIDDLEBURY University

Director

Mr.

Shim Byung-Sub

Korean

1965.06.20

Chungang University, Korea

Outside Director

Mr.

Lee Joon-Haeng

Korean

1960.10.10

University of Pennsylvania, USA

Auditor

Mr.

Cho Yong-Kwang

Korean

1951.05.03

Kyungbuk National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)/2011

278,623,403,000

304,880,910,000

13,311,992,000

(*)2010

228,250,587,000

252,155,500,000

14,130,749,000

2009

192,376,780,000

199,337,702,000

16,959,424,000

2008

190,168,994,000

180,507,244,000

3,159,769,000

2007

157,934,388,723

190,563,710,819

5,286,916,106

2006

154,626,000,938

187,921,821,032

11,338,886,237

2005

164,774,204,000

199,920,288,000

12,303,753,000

2004

161,892,863,000

193,123,644,000

10,060,139,000

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

 

Financial Description

 

Authorized Capital(KRW)

150,000,000,000

Paid-Up Capital(KRW)

56,475,975,000

Total Issues Shares

11,295,195

 

 

Balance Sheet

 

Unit : Thousand Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

304,880,910

252,155,500

 

Current Assets

90,276,171

64,513,920

 

Cash & Cash Equivalents

803,706

667,377

 

Current Financial Instruments

 

600,000

 

Trade Receivables & Other Receivables

69,812,687

50,732,610

 

Inventories

19,520,377

12,394,050

 

Other Finance Assets

34,728

29,438

 

Other Current Assets

104,673

90,445

 

Non-Current Assets

214,604,739

187,641,580

 

Non-Current Financial Instruments

23,000

23,000

 

Marketable Financial Instruments

35,093,617

42,877,016

 

Investment_Subsidiaries

11,944,364

11,944,364

 

Investment_Related Companies

16,338,364

16,338,364

 

Tangibles

141,504,896

109,526,040

 

Intangibles

7,992,990

6,000,345

 

Other Finance Assets

1,707,508

870,420

 

Other Non-Current Assets

 

62,031

 

Total Liabilities

159,372,009

110,997,086

 

Current Liabilities

97,449,729

61,823,583

 

Trade Payables & Other Payables

61,845,288

35,741,278

 

Short-Term Borrowings

14,422,440

20,831,424

 

Current Portion of Debentures

 

 

 

Current Portion of Long-Term Borrowings

18,800,000

 

 

Deferred Income Tax Credit

1,119,258

4,076,240

 

Other Financial Debts

18,300

16,326

 

Other Current Liabilities

1,244,443

1,158,315

 

Non-Current Liabilities

61,922,280

49,173,503

 

Debentures

39,838,444

 

 

Long-Term Borrowings

15,000,000

33,800,000

 

Provision for Severance & Retirement

 

8,086,807

 

Deferred Income Tax Credit

7,038,836

7,150,143

 

Provisions for Repairing

45,000

42,345

 

Other Financial Debts

 

94,208

 

Capital Stock

56,475,975

56,475,975

 

Capital Surplus

15,206,719

14,879,387

 

Others

18,836,166

23,347,218

 

Profit Surplus

54,990,041

46,455,834

 

Total Equity

145,508,901

141,158,414

 

Liab. & Shareholder’s Equity

304,880,910

252,155,500

 

 

Balance Sheet

Unit : Thousand Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

252,305,799

199,337,702

180,507,244

Current Assets

64,297,439

41,942,257

33,786,485

-Quick Assets

51,903,389

29,514,785

22,006,306

-Inventories

12,394,050

12,427,472

11,780,179

Fixed Assets

188,008,360

157,395,445

146,720,759

-Investment

74,780,607

49,894,183

40,048,042

-Tangibles

109,506,116

104,948,326

103,634,130

-Intangibles

2,759,186

1,629,566

1,303,428

-Others

962,451

923,370

1,735,159

Total Liabilities

109,232,979

84,804,291

72,711,529

Current Liabilities

60,667,576

76,282,493

55,003,505

Fixed Liabilities

48,565,403

8,521,798

17,708,024

Capital Stock

56,475,975

56,475,975

56,475,975

Capital Surplus

27,166,897

27,248,288

27,166,897

Profit Surplus

48,884,512

37,947,346

24,296,632

Capital Adjustment

10,545,436

-7,138,198

-143,789

Total Equity

143,072,820

114,533,411

107,795,715

Liab. & Shareholder’s Equity

252,305,799

199,337,702

180,507,244

 

 

Income Statement

 

Unit : Thousand Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

278,623,403

228,250,587

 

Cost of Sold Goods

235,139,177

188,429,777

 

Gross Profit

43,484,226

39,820,810

 

Selling Expenses

8,040,462

7,995,484

 

Admin. Expenses

11,375,879

11,534,051

 

Other Income & Losses

75,282

-520

 

Other Operating Income

2,979,544

4,461,390

 

Other Operating Expenses

4,431,212

1,615,981

 

Operating Income

22,691,499

23,136,164

 

Finance Income

231,466

247,006

 

Finance Expenses

5,249,776

3,157,252

 

Income Before Taxes

17,673,189

20,225,918

 

Income Taxes Expenses

4,361,198

6,095,169

 

Net Income

13,311,992

14,130,749

 

 

Income Statement

Unit : Thousand Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

228,250,587

192,376,780

190,168,994

Cost of Sold Goods

188,406,304

154,956,432

161,601,783

Gross Profit

39,844,283

37,420,348

28,567,211

Selling & Admin. Expenses

19,511,057

18,839,285

17,730,055

Operating Income

20,333,226

18,581,063

10,837,156

Non-Operating Income

5,735,074

5,024,538

3,764,093

Non-Operating Expenses

4,768,125

4,789,870

10,039,026

Income Before Taxes

21,300,175

18,815,731

4,562,223

Income Taxes Expenses

6,220,610

1,856,307

1,402,454

Net Income

15,079,565

16,959,424

3,159,769

 

 

Cash Flows

 

Unit : Thousand Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

11,938,130

21,917,922

 

Net Income

13,311,992

14,130,749

 

Adjustment

16,512,227

13,590,295

 

Changes in Asset/ & Liability

-11,446,936

-5,764,558

 

Interests Received

48,348

127,625

 

Interests Paid

-3,159,816

-2,901,446

 

Dividends Received

2,697,519

4,283,264

 

Income Taxes

-6,025,204

-1,548,007

 

Cash Flows from Investing

-41,236,592

-14,718,327

 

Cash Flows from Financing

29,431,900

-16,327,940

 

Increase/Decrease in Cash

133,437

-9,128,346

 

Cash at the Beginning of Year

667,377

9,782,666

 

Cash at the End of Year

803,706

667,377

 

 

Cash Flows

Unit : Thousand Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

-5,332,469

32,333,485

17,105,409

-Net Income

15,079,565

16,959,424

3,159,769

-Exp. without Cash Outflow

9,382,478

12,063,805

15,361,742

-Revenue without Cash Inflows

-4,975,497

-4,611,407

-3,273,585

-Changes in Asset/ & Liability

-24,819,015

7,921,663

1,857,483

Cash Flows from Investing

-14,756,265

-15,646,507

-7,591,162

-Cash Inflow from Investing

85,328,999

3,474,770

1,597,775

-Cash Outflows for Investing

-100,085,264

-19,121,277

-9,188,937

Cash Flows from Financing

10,973,445

-7,525,728

-9,472,442

-Cash Inflows from Financing

117,082,485

30,173,021

18,004,889

-Cash Outflows from Financing

-106,109,040

-37,698,749

-27,477,331

Increase/Decrease in Cash

-9,115,289

9,161,250

41,805

Cash at the Beginning of Year

9,782,666

621,416

579,611

Cash at the End of Year

667,377

9,782,666

621,416

 

 

Products, Technologies, Services Description

 

Main Products & Services

Hydrogen Peroxide

SB-Latex

Fixing Agent

Wet Strength Agent

Retention Aid

Alkaline Sizing Agent

Chelating Agent

Micro Capsule

Insolubilizer

Organic Coagulant

Polyacrylamide

Decolorizing Agent

Benzoyl Peroxide

Sodium Hydrosulfite

Dye Sublimation Ribbon

Inkjet Printer Ink

 

Brand Name : Hitex, Han-Floc, Superox

Annual Production Capacity

(Unit : 1,000 Ton)

Factory

03/2011

2010

2009

Ulsan Factory

9.9

39

36

Jeonju Factory

63.3

235.3

224

Total

73.2

274.3

260

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG FINE CHEMICALS CO., LTD.(181211-0000013)

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

HUCHEMSFINECHEMICALCORPORATION(110111-2611906)

LS-NIKKO COPPER INC.(230111-0058436)

Customers

HANSOL PAPER CO., LTD.(110111-0017867)

HANSOL HOMEDECO CO., LTD.(110111-0825624)

SAMYOUNG PURE CHEMICALS CO., LTD.(110111-0655378)

JEONJU PAPER CORPORATION(210111-0022435)

TECHNOSEMICHEM CO., LTD.(110111-0610083)

Competitors

KOREA KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

ULSAN PACIFIC CHEMICAL CORP.(110111-0011309)

LG CHEM LTD.(110111-2207995)

DONG HWA ENTERPRISE CO., LTD.(160111-0018104)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

HANSOL HOMEDECO CO.,LTD.(110111-0825624)

HANSOL PAPER CO., LTD.(110111-0017867)

HANSOL CONSTRUCTION CO.,LTD.(110111-2664400)

HANSOL DEVELOPMENT CO., LTD.(141211-0005540)

HANSOL LCD INC.(110111-0004682)

HANSOL CSN CO.,LTD(110111-0150659)

HANSOL EME CO., LTD.(160111-0123185)

INNOWAVE CO.,LTD(110111-2296253)

HANSOL PNS CO.,LTD. (110111-0175970)

SEOUL PAPER CO., LTD.(110111-0990609)

CNP CHEMICAL CO., LTD.(124411-0043349)

E-SERVICE CO.,LTD.(284311-0011634)

HANSOL LIGHTING INC.(110111-3626003)

SEOUL PAPER CO.,LTD.(110111-0990609)

MUNGYEONG ESCO CO.,LTD.(131311-0079553)

HANSOL INTICUBE CO., LTD.(110111-2915605)

MAUL SOUP CO., LTD.(110111-3858078)

ARTONE PAPER MFG. CO., LTD.(134811-0000034)

ULSAN ESCO CO., LTD.(230111-0147122)

SAMYOUNG PURE CHEMICALS CO., LTD.(110111-0655378)

(49.0% held by the subject company)

Affiliates-Overseas

GLOBAL FIBRES INC.

SOUTH CHINA PAPER

HANSOL AUSTRALIA

C. K. FIBERS

HANSOL HONG KONG

HANSOL P.I.

HANSOL NEW ZEALAND

KOPRI

HANSOL ELECTRONICS THAILAND

BRIGHTECH CO., LTD.

HANSOL LCD SLOVAKIA S.R.O

KOREA INTERNATIONAL FREIGHT TRANSPORTATION (SHANGHAI) CO., LTD.

KOREA INTERNATIONAL FREIGHT TRANSPORTATION (TENJIN) CO., LTD.

HANSOL GOLD POINT LLC.

HANSOL CSN LOGISTICS INDIA PRIVATE LIMITED

TIANJIN C&P CHEMICAL CO., LTD.

TIANJIN OPTOWAVE CO., LTD.

Subsidiary

INNOPTIX CO., LTD.(110111-2296253)

(69.91% held by the subject company)

 

DAEYOUNG POLYMERS.CO., LTD.(124411-0043349)

(90.0% held by the subject company)

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

2011

2010

2009

Export

29,746

26,785

23,833

Domestic

248,878

201,466

168,543

Total

278,623

228,251

192,377

The subject deals with the companies in China, Hong Kong and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.68

UK Pound

1

Rs.85.12

Euro

1

Rs.69.38

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.