MIRA INFORM REPORT

 

 

Report Date :           

28.02.2012

 

IDENTIFICATION DETAILS

 

Name :

LS NETWORKS CORPORATION LIMITED

 

 

Formerly Known As :

Kukje Sangsa Corp.

 

 

Registered Office :

360-1, An-dong, Gimhae-si, Gyeongsangnam-do, Korea, Zip code 621-914

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

21.12.1949

 

 

Com. Reg. No.:

622-81-04805

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Wholesale of Footwear

 

 

No. of Employees :

558

 

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 :

No Complaints

 

 

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 – 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

LS NETWORKS CORPORATION LIMITED

(Korean Company Name : “()LS네트웍스”)

Registered Address

360-1, An-dong, Gimhae-si, Gyeongsangnam-do, Korea

Zip Code

621-914

Tel

+82-55-330-7111

Fax

+82-55-337-7088

E-mail

lsn-ir@lsnetworks.com 

Website

www.pro-specs.com

Trading Address

LS Yongsan Tower, 191, Hangangno 2-ga, Yongsan-gu, Seoul, Korea

Tel

+82-2-799-7114

Fax

+82-2-797-5444

Other Address-Seongnam Factory

252-1, Sangdaewon-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

Tel

+82-31-730-7000

Type

Export/Import

Industry

Wholesale of Footwear

  Main Business

Sports Shoes, Sports Wears

  Sub Business

Renting of Non-Residential Buildings

Established (mm/dd/yyyy)

12/21/1949

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Sport accessories(49221500)

Sell

Athletic wear(53102900)

Sell

Athletic footwear(53111900)

Sell

Shoes(53111600)

Sell

Sandals(53111800)

Sell

Camping and outdoor equipment(49121500)

 

 

CEO’s

 

Name

Kim Seung-Dong

Date of Birth

10/01/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

394,091,500,000

Employees

558

Formation

Listed Company (Korea Stock Exchange : 000680) as of 11/15/1973

A Company of LS GROUP

Bank Details

Woori Bank-Hangangro Branch

Corporate Registered No.

180111-0044717

Business Registered No.

622-81-04805

Permit & Licenses

12/1994 ISO 9001

07/2004 GD Mark

 

Int’l Trade No.: 671006

Shareholder Position

Name

Shares

%

E1 CORPORATION(110111-0381387)

64,462,503

81.79

OTHERS

14,355,797

18.21

TOTAL

78,818,300

100.00

Company History

12/21/1949 Incorporated as Kukje Chemical Corp.

10/25/1976 Changed company name to KUKJE SANGSA CORP.

03/08/2000 Approved of Corporate Clearing Procedure by Changwon District Court

01/31/2007 Approved of finishing Corporate Clearing Procedure by Changwon District Court

02/01/2007 Joined as a company of LS GROUP

01/29/2008 Changed company name to the present name from Kukje Sangsa Corp.

03/04/2008 Spin off ARTIS Business to ARTIS CO., LTD.

04/06/2009 Acquired F.A.S.T. Corporation(110111-3753632)

09/01/2011 Acquired OD CAMP CO., LTD.(110111-2839417)

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kim Seung-Dong

Male

Korean

1953.10.01

Director

Mr.

Koo Ja-Yeol

Male

Korean

1953.03.02

Director

Mr.

Koo Ja-Yong

Male

Korean

1955.03.27

Director

Mr.

Lee Dae-Hoon

Male

Korean

1952.11.20

Auditor

Mr.

Yoon Seung-Hyun

Male

Korean

1951.07.04

Executive Director

Mr.

Ahn Kyung-Han

Male

Korean

1968.08.18

Outside Director

Mr.

Keum Byung-Joo

Male

Korean

1946.07.05

Outside Director

Mr.

Oh Ho-Soo

Male

Korean

1944.04.29

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

423,313,532,000

1,119,236,438,000

12,467,832,000

(*)09/2011

296,317,061,673

1,096,712,646,258

7,758,543,232

2010

358,201,817,090

1,017,971,296,461

19,468,272,062

2009

271,990,548,161

1,040,437,619,106

14,653,246,774

2008

251,252,512,610

466,898,210,700

24,822,713,070

(*)09/2011 ‘s figures are based on the K-IFRS Accounting System.

(*)The financials (2011) are released by the subject company as tentative figures as of 02/08/2012. It can be changeable by the Auditors confirmation.

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000,000

Paid-Up Capital(KRW)

394,091,500,000

Total Issues Shares

78,818,300

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

1,096,712,646,258

1,009,390,674,022

 

Current Assets

213,312,250,071

154,056,179,288

 

Cash & Cash Equivalents

3,446,709,220

17,657,187,096

 

Trade Receivables & Other Receivables

40,881,464,514

27,505,608,042

 

Current Financial Instruments

1,442,456,000

10,485,036,000

 

Current Non-Financial Instruments

2,546,923,086

12,336,505,368

 

Inventories

164,994,697,251

86,071,842,782

 

Non-Current Assets

883,400,396,187

855,334,494,734

 

Long-Term Trade Receivables & Other Receivables

21,578,950,958

17,251,984,808

 

Investment_Subsidiaries

10,323,911,816

18,322,821,307

 

Investment_Related Companies

2,119,288,000

0

 

Investment_Co-Subsidiaries

650,696,654

0

 

Non-Current Financial Instruments

55,234,051,349

74,275,599,670

 

Non-Current Non-Financial Instruments

1,772,812,869

922,045,045

 

Tangibles

196,329,073,182

165,218,307,240

 

Investment_Real Estates

585,207,435,916

570,417,471,225

 

Intangibles

10,184,175,443

8,926,265,439

 

Total Liabilities

293,928,298,544

183,922,068,845

 

Current Liabilities

121,892,770,526

36,563,204,880

 

Trade Payables & Other Payables

48,179,830,702

23,723,388,584

 

Short-Term Borrowings

61,751,589,868

1,969,774,184

 

Other Current Liabilities

5,779,516,933

4,835,782,770

 

Accrued Income Tax

6,181,833,023

6,034,259,342

 

Non-Current Liabilities

172,035,528,018

147,358,863,965

 

Long-Term Trade Payables & Other Payables

48,738,110,304

43,624,555,425

 

Long-Term Borrowings

31,380,120,531

1,565,541,447

 

Other Non-Current Financial Debts

1,946,036,637

2,050,589,131

 

Provision for Severance & Retirement

1,521,661,945

15,931,517

 

Deferred Income Tax Credit

88,449,598,601

100,102,246,445

 

Capital Stock

394,091,500,000

393,464,130,000

 

Capital Surplus

-6,647,024,081

-46,418,640,044

 

Others

-37,654,591,584

-22,760,491,233

 

Profit Surplus

452,994,463,379

501,183,606,454

 

Total Equity

802,784,347,714

825,468,605,177

 

Liab. & Shareholder’s Equity

1,096,712,646,258

1,009,390,674,022

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

1,017,971,296,461

1,040,437,619,106

466,898,210,700

Current Assets

165,683,731,610

209,404,511,669

217,274,393,448

-Quick Assets

79,611,888,828

141,006,411,797

153,690,280,657

-Inventories

86,071,842,782

68,398,099,872

63,584,112,791

Fixed Assets

852,287,564,851

831,033,107,437

249,623,817,252

-Investment

87,777,035,580

87,728,166,735

83,981,771,833

-Tangibles

737,799,541,399

725,968,496,877

146,909,642,570

-Intangibles

4,689,289,697

5,111,270,300

635,878,574

-Others

22,021,698,175

12,225,173,525

18,096,524,275

Total Liabilities

196,728,933,045

191,937,336,868

60,732,558,347

Current Liabilities

36,384,619,344

30,155,948,167

17,031,023,236

Fixed Liabilities

160,344,313,701

161,781,388,701

43,701,535,111

Capital Stock

393,464,130,000

394,278,995,000

394,278,995,000

Capital Surplus

 

 

 

Profit Surplus

76,585,479,799

58,772,568,391

44,141,691,602

Capital Adjustment

351,192,753,617

395,448,718,847

-32,255,034,249

Total Equity

821,242,363,416

848,500,282,238

406,165,652,353

Liab. & Shareholder’s Equity

1,017,971,296,461

1,040,437,619,106

466,898,210,700

 


 

Income Statement

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Sales

296,317,061,673

 

 

Cost of Sold Goods

142,776,742,608

 

 

Gross Profit

153,540,319,065

 

 

Selling & Admin. Expenses

145,832,850,255

 

 

Other Operating Income

2,239,235,315

 

 

Other Operating Expenses

1,761,584,358

 

 

Operating Income

8,185,119,767

 

 

Finance Income

2,763,003,170

 

 

Finance Expenses

889,769,599

 

 

Income Before Taxes

10,058,353,338

 

 

Income Taxes Expenses

2,299,810,106

 

 

Net Income

7,758,543,232

 

 

 

Income Statement

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

358,201,817,090

271,990,548,161

251,252,512,610

Cost of Sold Goods

176,752,568,277

134,468,011,891

121,986,453,102

Gross Profit

181,449,248,813

137,522,536,270

129,266,059,508

Selling & Admin. Expenses

151,588,300,514

116,688,455,427

110,127,686,028

Operating Income

29,860,948,299

20,834,080,843

19,138,373,480

Non-Operating Income

7,380,983,780

6,445,414,994

13,953,200,587

Non-Operating Expenses

8,989,365,464

6,756,169,388

2,348,676,308

Income Before Taxes

28,252,566,615

20,523,326,449

30,742,897,759

Income Taxes Expenses

8,784,294,553

5,870,079,675

5,920,184,689

Net Income

19,468,272,062

14,653,246,774

24,822,713,070

 

 

Cash Flows

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

-30,475,164,416

 

 

Net Income

7,758,543,232

 

 

Adjustment

-28,635,197,279

 

 

Income Taxes

-9,598,510,369

 

 

Cash Flows from Investing

-47,968,948,959

 

 

Cash Flows from Financing

64,228,552,255

 

 

Increase/Decrease in Cash

-14,210,477,876

 

 

Cash at the Beginning of Year

17,657,187,096

 

 

Cash at the End of Year

3,446,709,220

 

 

 


 

Cash Flows

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

10,232,360,232

43,509,724,154

24,872,686,874

-Net Income

19,468,272,062

14,653,246,774

24,822,713,070

-Exp. without Cash Outflow

22,151,115,863

14,509,424,460

9,854,698,084

-Revenue without Cash Inflows

-2,877,140,263

-54,344,822

-678,296,857

-Changes in Asset/ & Liability

-28,509,887,430

14,401,397,742

-9,126,427,423

Cash Flows from Investing

32,605,725,701

-44,629,662,079

-15,850,580,141

-Cash Inflow from Investing

90,385,563,166

60,351,627,827

229,217,739,415

-Cash Outflows for Investing

-57,779,837,465

-104,981,289,906

-245,068,319,556

Cash Flows from Financing

-46,950,213,450

-1,161,291,910

-102,880,930

-Cash Inflows from Financing

44,000,629,389

1,404,597,416

0

-Cash Outflows from Financing

-90,950,842,839

-2,565,889,326

-102,880,930

Increase/Decrease in Cash

4,112,127,517

-2,281,229,835

8,919,225,803

Cash at the Beginning of Year

21,769,314,613

24,050,544,448

15,131,318,645

Cash at the End of Year

17,657,187,096

21,769,314,613

24,050,544,448

 

 

Products, Technologies, Services Description

 

Main Products & Services

Real Estate/Lease Business

Investment Business

Brand Business

Bicycle Distribution Business

Composite New Distribution Business

 

Fashion, Sportswear, Outdoor Products, Toyota Motors, Bicycle, Fruits

 

Brand Name-PROSPECS, SKECHERS, Jack Wolfskin, TOYOTA, biclo, Walk&Talk

 

 

Trade Partners & Competitors

 

Competitors

SAE-A TRADING CO., LTD.

8TH FL., SE-A VENTURE TOWER, 946-12, DAECHI 3-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-6252-7000  FAX:+82-2-6252-7002

 

KYUNG SEUNG TRADING CO., LTD.

4TH FL., KYUNGSEUNG BLDG., 960, DAECHI-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-566-6842  FAX:+82-2-566-6867

 

NIKE SPORTS KOREA CO., LTD.

30TH FL., GANGNAM FINANCE CENTER, 737, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2006-5700  FAX:+82-2-557-9002

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

LS CORP.(110111-0003965)

LS CABLE LTD.(134111-0168357)

LS MTRON LTD.(134111-0168349)

LS-NIKKO COPPER INC.(230111-0058436)

GAON CABLE CO., LTD.(134111-0000567)

E1 CORPORATION(110111-0381387)

YESCO CO., LTD.(110111-0290778)

LS NETWORKS CORPORATION LIMITED(180111-0044717)

POUNTEK LTD.(151111-0022867)

GLOBAL CABLE INC.(130111-0008797)

ALUTEK LTD.(110111-1479909)

JS CABLE CO., LTD.(124311-0004327)

YESCO SERVICE CO., LTD.(110111-1030082)

KOSPACE CO., LTD.(134411-0012243)

CARBONIX, INC.(171711-0036242)

E&R INC.(164411-0005052)

DAEHAN GM CORPORATION(110111-0613045)

CASCO CO.,LTD.(210111-0047938)

LS GLOBAL INCORPORATED., LTD.(110111-3359985)

LS ASSET MANAGEMENT CO., LTD.(110111-1896137)

E1 CONTAINER TERMINAL CO., LTD.(120111-0432039)

E1 LOGISTICS CORPORATION(124611-0257243)

KJ MOTORRAD(110111-3740499)

DONGBANG CITY GAS INDUSTRY CO., LTD.(141111-0011979)

GRM CO., LTD.(154611-0008012)

OD CAMP CO., LTD.(110111-2839417)

DAESUNG ELECTRIC CO., LTD.(110111-01415590

DELTECH CO., LTD.(134911-0010809)

ACE R&A CO., LTD. (135111-0047493)

TORECOM CORPORATION(135011-0054119)

PLANET SYSTEM CO., LTD.(110111-1619745)

RECYTECHKOREA CO., LTD.(161511-0044861)

TRINNO TECH CO., LTD.(134111-0169397)

Affiliates-Overseas

LS KONGJO(SHANDONG) CO., LTD-CHINA

LS JEONRAM(MUSEOK) CO., LTD-CHINA

LS MACHINERY(MUSEOK) CO., LTD-CHINA

LS-VINA

LS CABLE MALAYSIA

LS CABLE(TENJIN) CO., LTD-CHINA

LS CABLE AMERICA INC

LS SANGMOO(SHANGHAI) CO., LTD-CHINA

LS CABLE VIETNAM CO. LTD.

LS ELECTRONIC-DEVICES QINGDAO CO. LTD.

LEADING SOLUTION CABLE INDIA PVT LTD.

LS CABLE UK LTD.

LS AGRICULTURAL EQUIPMENT(QINGDAO)CO.LTD

CYPRUS INVESTMENTS, INC.

SUPERIOR ESEEX INC.

LS INDUSTRIAL SYSTEMS(DAIRIAN) CO., LTD.-CHINA

LS VINA I.S

LS INDUSTRIAL SYSTEM ELECTRIC(SHANGHAI) CO., LTD-CHINA

LS INDUSTRIAL SYSTEMS(MUSEOK) CO., LTD.-CHINA

LS I.S(MIDDLE EAST) FZE

CASCO DALIAN

PT E1-PERTAGAS

Corporate Ownership

E1 CORPORATION(110111-0381387)

 

 

Sales by Region

(Activity & Markets)

 

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

---


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.05

UK Pound

1

Rs.77.78

Euro

1

Rs.65.89

 

 

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.