MIRA INFORM REPORT

 

 

Report Date :

10.07.2012

 

IDENTIFICATION DETAILS

 

Name :

JW PHARMACEUTICAL CORPORATION

 

 

Formerly Known As :

CHOONGWAE PHARMA CORPORATION

 

 

Registered Office :

5th Fl., Choongwae Bldg., 698, Sindaebang 1-dong, Dongjak-gu, Seoul, Korea Zip Code 156-854

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.08.1953

 

 

Com. Reg. No.:

118-81-02477

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Medicinal Medicaments

 

 

No. of Employees :

1,093

 

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 :

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

JW PHARMACEUTICAL CORPORATION

(Ex. Company Name : CHOONGWAE PHARMA CORPORATION,중외제약()”)

(Korean Company Name : “제이더블유중외제약()”)

Registered Address

5th Fl., Choongwae Bldg., 698, Sindaebang 1-dong, Dongjak-gu, Seoul, Korea

Zip Code

156-854

Tel

+82-2-840-6777

Fax

+82-2-841-1213

E-mail

webmst@cwp.co.kr;kjlee@cwp.co.kr

Website

www.cwp.co.kr

Trading Address

5th Fl., Choongwae Bldg., 698, Sindaebang 1-dong, Dongjak-gu, Seoul, Korea

Tel

+82-2-840-6777

Fax

+82-2-841-1213

Other Address-Suwon Factory

146-141, Annyeong-dong, Hwaseong-si, Gyeonggi-do, Korea

Tel

+82-31-230-6114

Fax

+82-31-230-6123

Other Address-Sihwa Factory

1354, Jeongwang-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-431-8101

Fax

+82-31-431-8107

Type

Export/Import

Industry

Manufacture of Medicinal Medicaments

  Main Business

Drugs & Pharmaceutical Products, Nutrition Tonic

Established (mm/dd/yyyy)

08/08/1953

 

The Subject owns the premises of registered HQ address(3,273) and factories(156,743).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Dietary supplements and nutritional therapy products(51191900)

Sell

Antibiotics(51101500)

Sell

Hair care supplies(53131602)

Sell

Lens cleaner(46181806)

Sell

Combinational fructose Dextrose and phosphoric acid(51171811)

Sell

Drugs used for gallbladder disease(51172000)

Sell

Cough and cold and antiallergy products(51161800)

Sell

Antidepressants(51141600)

Sell

Diazoxide(51121701)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Hormones and antihormones(51111800)

Sell

Medical thermometers and accessories(42182200)

Sell

Antidotes and emetics(51211600)

Sell

Antifungal drugs(51101800)

Sell

Vitamin supplements(51191905)

Sell

Antianemic drugs(51131500)

Buy

Lens cleaner(46181806)

Buy

Packaging boxes(24121503)

Buy

Hair care(91101700)

Buy

Domestic spoons(52151704)

Buy

Caps or tops(24122004)

Buy

Bottles(24122000)

Buy

Inorganic acids(12352301)

Buy

Labels(55121600)

Buy

Non metallic bins(24112003)

Buy

Packaging pouches or bags(24121502)

Buy

Surfactants(12161900)

 

 

CEO’s

 

Name

Lee Chong-Ho

Date of Birth

12/01/1932

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

27,004,830,000

Employees

1,093

Formation

Listed Company (Korea Stock Exchange: 001060) as of 06/14/1976

A Company of JW HOLDINGS CO., LTD.(110111-3710468)

Bank Details

S.C. First bank of Korea-HQ

Woori Bank

Citi Bank, Korea

Corporate Registered No.

110111-0019342

Business Registered No.

118-81-02477

Permit & Licenses

Int’l Trade No.: 740858

 

Regulations:

KGMP(Korea Good Manufacturing Practice)

KGSP(Korea Good Supplying Practice)

KGLP(Korea Good Laboratory Practice)

KGCP(Korea Good Clinical Practice)

Shareholder Position

Name

Shares

%

CHOONGWAE HOLDINGS CO., LTD. (110111-3710468)

4,300,867

40.56

OTHERS

6,501,065

59.44

TOTAL

10,801,932

100.00

Company History

08/08/1945 Established as CHOSUNG CHOONGWAE PHARMA CO.

08/08/1953 Incorporated as DAEHAN CHOONGWAE PHARMA CORPORATION

11/08/1982 Changed company name to CHOONGWAE PHARMA CORPORATION

12/08/1986 Moved to the present HQ address from San 75-31, Yeoksam-dong, Gangnam-gu, Seoul, Korea

07/03/2007 JW HOLDINGS CO., LTD. has been spin-off from CHOONGWAE PHARMA CORP.

03/18/2011 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Lee Chong-Ho

Korean

1932.12.01

Dongkook University

President & CEO

Mr.

Lee Kyung-Ha

Korean

1963.08.29

Sungkyungwan University

Director

Mr.

Park Koo-Seo

Korean

1955.01.05

Chuungang University, Korea

Sr. Executive Director

Mr.

Kim Jung-Ho

Korean

1958.01.25

Seoul National University

Outside Director

Mr.

Lee In-Shik

Korean

1951.02.24

UCLA University, USA

Outside Director

Mr.

Kim Chang-Hern

Korean

1943.07.19

Sungkyunkwan University, Korea

Auditor

Mr.

Cho Nam-Choon

Korean

1939.05.19

Seoul National University

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2012

102,158,047,770

672,379,869,747

245,460,242

(*)2011

431,007,280,998

665,878,421,331

-9,868,459,019

(*)2010

443,275,671,638

633,714,587,596

2,484,010,809

2009

455,146,859,628

498,237,086,791

10,918,717,581

2008

437,648,380,387

419,782,334,422

6,433,178,499

2007

385,010,282,247

304,251,216,616

8,761,047,704

2006

342,767,189,415

361,205,306,663

10,756,898,540

2005

311,357,207,577

349,825,395,527

15,120,931,925

2004

303,167,358,887

370,464,963,991

13,875,224,375

2003

282,358,847,031

346,539,936,795

12,958,759,158

 


Financial Description

 

Authorized Capital(KRW)

120,000,000,000

Paid-Up Capital(KRW)

27,004,830,000

Total Issued Shares

10,801,932

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

672,379,869,747

665,878,421,331

633,714,587,596

Current Assets

408,277,130,094

402,824,362,923

377,002,715,002

Cash & Cash Equivalents

844,659,846

2,051,172,336

8,636,026,827

Current Financial Instruments

380,000,000

245,000,000

336,925,722

Marketable Financial Instruments

304,162,120

304,552,120

 

Trade Receivables

301,705,970,559

307,685,398,488

271,479,540,928

Short-Term Receivables

763,456,171

763,456,171

797,413,712

Other Receivables

11,342,582,825

3,605,418,317

2,584,364,263

Earned Income

166,742,958

152,182,069

319,218,964

Advance Payments

581,968,760

1,500,000

 

Prepaid Expenses

2,964,060,193

2,099,116,255

2,164,216,143

Inventories

89,223,526,662

85,916,567,167

90,685,008,443

Non-Current Assets

264,102,739,653

263,054,058,408

256,711,872,594

Non-Current Financial Instruments

1,955,074,400

1,901,612,364

2,885,236,835

Investment_Related Companies from Equity Method

1,141,290,898

1,141,290,898

1,141,290,898

Tangibles

232,288,997,957

234,451,128,884

235,660,585,401

Intangibles

24,098,963,992

22,823,413,856

13,354,372,232

Other Non-Current Assets

4,618,412,406

2,736,612,406

3,670,387,228

Total Liabilities

500,192,760,175

496,840,929,432

452,198,657,304

Current Liabilities

279,710,297,570

318,181,994,294

261,538,443,960

Trade Payables

42,861,297,481

39,714,414,076

30,695,671,666

Short-Term Borrowings

137,418,736,534

179,389,268,598

158,343,465,186

Account Payables

12,328,861,726

12,483,142,542

13,164,218,922

Withholdings

493,370,826

1,036,620,298

1,055,735,494

VAT Withhold

2,178,543,864

2,497,816,032

2,757,959,400

Accrued Expenses

3,040,280,503

3,369,710,567

3,276,570,742

Accrued Income Tax

 

 

679,637,529

Accrued Dividends

2,064,534,126

21,563,926

18,646,056

Gurantee Deposits

335,222,000

312,863,000

270,590,000

Provisions for Refund

6,959,893,275

6,838,147,006

6,257,282,301

Current Portion of Long-Term Debts

17,091,302,000

16,027,196,000

 

Current Portion of Debentures

30,416,666,674

30,833,333,340

45,018,666,664

Current Portion of Bonds With Warrant

24,480,251,575

25,657,918,909

 

Finance Guarantee Debts

41,336,986

 

 

Non-Current Liabilities

220,482,462,605

178,658,935,138

190,660,213,344

Debentures

60,000,000,000

60,000,000,000

70,259,333,340

Bonds With Warrant

26,931,116,242

 

30,147,873,832

Convertible Bonds

17,948,069,752

 

 

Provision for Severance & Retirement

8,222,828,189

8,985,670,309

4,106,446,759

Long-Term Borrowings

100,738,066,000

105,041,604,000

78,954,000,000

Deferred Income Tax Credit

6,151,382,422

4,140,660,829

7,192,559,413

Other Non-Current Liabilities

491,000,000

491,000,000

 

Capital Stock

27,004,830,000

25,518,912,500

24,486,725,000

Capital Surplus

63,062,203,956

59,566,288,552

58,642,484,816

Others

-150,747,974

-106,466,233

-60,199,656

Installments

-274,409,011

-284,519,479

-753,848,511

Profit Surplus

82,545,232,601

84,343,276,559

99,200,768,643

Total Equity

172,187,109,572

169,037,491,899

181,515,930,292

Liab. & Shareholder’s Equity

672,379,869,747

665,878,421,331

633,714,587,596

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

102,158,047,770

431,007,280,998

443,275,671,638

Cost of Sold Goods

66,428,521,460

283,012,555,477

281,455,293,255

Gross Profit

35,729,526,310

147,994,725,521

161,820,378,383

Selling & Admin. Expenses

30,774,461,120

130,402,223,711

136,036,002,882

Other Operating Income

784,643,749

1,101,809,116

1,339,003,766

Other Operating Expenses

382,190,315

2,008,117,983

1,418,009,811

Operating Income

5,357,518,624

16,686,192,943

25,705,369,456

Finance Income

2,121,700,948

3,535,403,592

7,704,072,123

Finance Expenses

6,990,150,989

31,769,267,661

28,674,664,705

Income Before Taxes

489,068,583

-11,547,671,126

4,734,776,874

Income Taxes Expenses

243,608,341

-1,679,212,107

2,250,766,065

Net Income

245,460,242

-9,868,459,019

2,484,010,809

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

-1,050,384,505

-18,127,035,104

-9,812,365,706

Cash Flows from Operating

4,466,940,302

6,798,701,538

23,105,134,163

Interests Received

19,158,359

337,119,054

72,774,241

Interests Paid

-5,531,917,493

-23,283,381,925

-24,863,370,999

Dividends Received

0

0

0

Income Taxes

-4,565,673

-1,979,473,771

-8,126,903,111

Cash Flows from Investing

-4,444,711,204

-19,098,459,381

-24,830,808,950

Cash Flows from Financing

4,288,583,219

30,640,639,994

31,916,850,551

Increase/Decrease in Cash

-1,206,512,490

-6,584,854,491

-2,726,324,105

Cash at the Beginning of Year

2,051,172,336

8,636,026,827

11,362,350,932

Cash at the End of Year

844,659,846

2,051,172,336

8,636,026,827

 

 

Products, Technologies, Services Description

 

Main Products & Services

Drugs & Pharmaceutical Products, Nutrition Tonic

 

 

Trade Partners & Competitors

 

Competitors

DONGA PHARMACEUTICAL CO.,LTD(110111-0017990)

HANMI PHAM CO.,LTD(134811-0003187)

YUHAN CORPORATION(110111-0014409)

GREEN CROSS CORPORATION(110111-0109854)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JW HOLDINGS CO., LTD.(110111-3710468)

JW CHOONGWAE SHIN-YAK CORPORATION(110111-0304149)

CHOONGWAE INDUSTRIAL CORPORATION LTD.(110111-0601454)

JW LIFE SCIENCE CORPORATION(135011-0057395)

JW CHOONGWAE MEDICAL CORPORATION(110111-3330935)

CHOONGWAE INFORMATION & TECHNOLOGY CO., LTD.

C&C NEW PHARMA RESEARCH CENTER CO., LTD.

JW CHEMITOWN CORPORATION(110111-1769194)

JW CREAGENE INC.(160111-0070021)

CREAGENE JAPAN CO., LTD.

CORAZONX

 

THERIAC PHARMACEUTICAL CORPORATION

(100.0% held by the subject company)

Subsidiary

THERIAC PHARMACEUTICAL CORPORATION

(100.0% held by the subject company)

600 BROADWAY MEDICAL CENTER, SUITE 510, SEATTLE, WA, USA

Cooperative Enterprise

CHUGAI PHARMACEUTICAL CO., LTD.

EN OTSUKA

ABBOTT KOREA

MERCK LIMITED

MITSUBISHI TANABE PHARMA CORPORATION

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

0

0

0

Domestic

102,158

431,007

443,276

Total

102,158

431,007

443,276

 

The Subject exports to Brazil, China, Cambodia, India and Vietnam, and it also imports from USA, UK, Italy, Swiss, Netherland and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.02

UK Pound

1

Rs.86.78

Euro

1

Rs.68.83

 

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.