MIRA INFORM REPORT

 

 

Report Date :

02.06.2012

 

IDENTIFICATION DETAILS

 

Name :

WELCRON KANGWON CO., LTD.

 

 

Formerly Known As :

KANGWON B&E CO., LTD.

 

 

Registered Office :

580-1, Jang-an-ri, Jang-an-myeon, Hwaseong-si, Gyeonggi-do, Korea, (New Address System : 919-18, Poseungjangan-ro, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea), Zip Code 445-943

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

06.02.1976

 

 

Com. Reg. No.:

124-81-46960

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Nuclear Reactors and Steam Generators

 

 

No. of Employees :

102

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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

WELCRON KANGWON CO., LTD.

(Ex. Company Name : KANGWON B&E CO., LTD., “강원비앤이()”

(Korean Company Name : “()웰크론강원”)

Registered Address

580-1, Jang-an-ri, Jang-an-myeon, Hwaseong-si, Gyeonggi-do, Korea

(New Address System : 919-18, Poseungjangan-ro, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea)

Zip Code

445-943

Tel

+82-31-358-7683

Fax

+82-31-358-8676

E-mail

kwb21@kwb21.com

Website

www.kwb21.com

Trading Address

212-24, Guro-dong, Guro-gu, Seoul, Korea

Tel

+82-2-6670-9000

Fax

+82-2-2108-4611

Type

Export/Import

Industry

Manufacture of Nuclear Reactors and Steam Generators

  Main Business

Industrial Boilers, HRSG, Heat Exchangers, Incinerators, Furnaces, Fired Heater, Direct Fired Incinerator, Catalytic Oxidizer

  Sub Business

Manufacture of Central Heating Boilers and Radiators

Established (mm/dd/yyyy)

02/06/1976

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Boilers(40102000)

Sell

Fire tube boilers(40102001)

Sell

Water tube boiler(40102002)

Sell

Convection heaters(40101811)

 

 

CEO’s

 

Name

Lee Young-Kyu

Date of Birth

11/10/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

           

Capital (KRW)

2,650,000,000

Employees

102

Formation

Listed Company (KOSDAQ : 114190) as of 11/20/2009

Bank Details

Industrial Bank of Korea-Gaebong Branch

Corporate Registered No.

110111-0191398

Business Registered No.

124-81-46960

Permit & Licenses

12/21/1997 ISO 9001

12/27/1997 EM Mark

04/23/2001 ISO 14001

 

Int’l Trade No.: 175272

Shareholder Position

Name

Shares

%

WELCRON HANTEC CO., LTD. (110111-1118276)

2,261,700

35.71

OTHERS

4,071,713

64.29

TOTAL

6,333,413

100.00

Company History

03/1971 Established as KANGWON BOILER CO.(Sole Proprietorship)

02/06/1976 Incorporated as KANGWON BOILER MANUFACTURING CO., LTD.

11/2001 Awarded US$ 5 Million Export Top Prize

11/2007 Awarded US$ 10 Million Export Top Prize

06/2008 Changed company name to KANGWON B&E CO., LTD.

11/30/2011 Awarded US$ 20 Million Export Top Prize

03/23/2012 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Young-Kyu

Korean

1959.11.10

-

Vice Chairman

Mr.

Lee Hyo-Kook

Korean

1949.02.16

Lusiana State University, USA

Outside Director

Mr.

Han Dong-Jin

Korean

1945.04.10

Hanyang University, Korea

Outside Director

Mr.

Lee Haeng-Ki

Korean

1946.09.18

-

Outside Director

Mr.

Jang Se-Dong

Korean

1956.10.

-

Executive Director

Mr.

Lee Hun-Kyu

Korean

1963.08.

-

Vice President & CEO

Mr.

Han Cheon-Seok

Korean

1954.09.09

Seogang Univeristy, Korea

Executive Director

Mr.

Yeom Sung-Woon

Korean

1960.04.17

-

Director

Mr.

Jung Sung-Sik

Korean

1968.05.03

-

Auditor

Mr.

Song Young-Sub

Korean

1961.09.06

Korea University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2012

31,979,175,911

86,813,595,547

4,523,286,421

12/2011

5,803,423,154

59,922,123,862

921,015,620

11/2011

50,222,892,047

53,719,067,042

5,754,714,777

11/2010

30,619,298,393

28,677,831,553

1,716,785,857

11/2009

38,673,259,927

31,707,898,689

2,590,391,566

11/2008

49,499,532,666

29,219,823,693

2,333,829,008

11/2007

31,479,842,441

22,319,635,110

2,334,372,519

 

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

2,650,000,000

Total Issues Shares

6,333,413

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~03/31/2012

12/01/2011~12/31/2011

12/01/2010~11/30/2011

Total Assets

86,813,595,547

59,922,123,862

53,719,067,042

Current Assets

80,527,279,541

54,120,885,299

47,950,974,687

Cash & Cash Equivalents

23,516,631,545

16,960,214,072

15,338,009,297

Other Financial Assets

17,571,133,543

5,881,337,665

5,853,837,665

Marketable Financial Instruments

 

 

936,624,950

Trade Receivables

27,361,037,492

17,989,855,441

12,650,935,481

Other Receivables

364,583,338

662,357,981

612,930,232

Inventories

2,064,249,748

4,461,701,388

3,989,692,235

Other Current Assets

9,649,643,875

8,165,418,752

8,568,944,827

Non-Current Assets

6,286,316,006

5,801,238,563

5,768,092,355

Marketable Financial Instruments

644,694,495

644,694,495

644,694,495

Non-Current Financial Instruments

885,095,400

576,667,760

557,580,740

Tangibles

4,107,817,781

3,926,352,978

3,912,293,790

Intangibles

332,226,666

332,226,666

332,226,666

Other Non-Current Receivables

82,243,300

82,243,300

82,243,300

Other Non-Current Assets

234,238,364

239,053,364

239,053,364

Total Liabilities

57,604,859,637

34,498,674,154

29,216,632,954

Current Liabilities

45,466,956,552

34,329,909,160

29,049,481,696

Trade Payables

17,841,723,945

14,087,692,725

13,966,075,750

Other Current Liabilities

27,625,232,607

20,242,216,435

15,083,405,946

Non-Current Liabilities

12,137,903,085

168,764,994

167,151,258

Bond With Warrant

5,955,924,696

 

 

Deferred Income Tax Credit

171,424,810

154,673,528

153,325,493

Provision for Severance & Retirement

10,557,701

14,091,466

13,825,765

Other Non-Current Liabilities

5,999,995,878

 

 

Capital Stock

2,650,000,000

2,650,000,000

2,650,000,000

Capital Surplus

6,172,587,743

6,155,226,039

6,155,226,039

Others

-849,948,736

-856,324,163

-856,324,163

Profit Surplus

21,236,096,903

17,474,547,832

16,553,532,212

Total Equity

29,208,735,910

25,423,449,708

24,502,434,088

Liab. & Shareholder’s Equity

86,813,595,547

59,922,123,862

53,719,067,042

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~03/31/2012

12/01/2011~12/31/2011

12/01/2010~11/30/2011

Sales

31,979,175,911

5,803,423,154

50,222,892,047

Cost of Sold Goods

24,058,108,301

4,236,747,565

37,631,682,953

Gross Profit

7,921,067,610

1,566,675,589

12,591,209,094

Selling & Admin. Expenses

2,447,519,864

602,930,555

6,335,758,798

Other Operating Income

143,442,161

182,374,401

764,461,238

Other Operating Expenses

207,180,999

57,825,112

429,904,002

Operating Income

5,409,808,908

1,088,294,323

6,590,007,532

Finance Income

331,023,712

122,142,627

745,100,730

Finance Expenses

11,219,357

221,230

89,474,417

Income Before Taxes

5,729,613,263

1,210,215,720

7,245,633,845

Income Taxes Expenses

1,206,326,842

289,200,100

1,490,919,068

Net Income

4,523,286,421

921,015,620

5,754,714,777

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~03/31/2012

12/01/2011~12/31/2011

12/01/2010~11/30/2011

Operating Activities Cash Flows

7,480,220,979

789,090,165

15,102,829,626

Net Income

4,523,286,421

921,015,620

5,754,714,777

Adjustment

3,410,255,191

-186,851,287

9,329,103,673

Interests Paid

-

-221,230

-16,729,702

Interests Received

210,823,085

64,149,742

374,955,134

Income Taxes

-664,143,718

-9,002,680

-339,214,256

Cash Flows from Investing

-12,147,246,425

835,108,590

-4,700,331,036

Cash Flows from Financing

11,211,544,928

 

-626,155,015

Increase/Decrease in Cash

6,556,417,473

1,622,204,775

9,773,098,824

Cash at the Beginning of Year

16,960,214,072

15,338,009,297

5,654,910,473

Cash at the End of Year

23,516,631,545

16,960,214,072

15,338,009,297

 

Products, Technologies, Services Description

 

Main Products & Services

Industrial Boilers, HRSG, Heat Exchangers, Incinerators, Furnaces, Fired Heater, Direct Fired Incinerator, Catalytic Oxidizer

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

Competitors

SEENTEC CO., LTD.(194211-0046004)

TODAYSURE PROJECT(USA)

ENERCON SYSTEM(UK)

HS THERMAL ENGINEERING(UK)

GEM CANADA(CANADA)

MACCI(ITALY)

CELICES(MEXICO)

THERMAX(INDIA)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

WELCRON HANTEC CO., LTD. (Ex. HANTEC ENGINEERING CO., LTD. 110111-1118276)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit : KRW

03/2012

2011

2010

Export

27,646,405,752

40,233,668,779

23,986,650,195

Domestic

4,332,770,159

9,999,223,268

6,632,648,198

Total

31,979,175,911

50,222,892,047

153,137,921,474

 

The Subject exports to China, Germany, Indonesia, Iran, Japan, Philippines, Russia, Thailand and Egypt.

 

 

Court Action

 

Not Available.

 

News Clipping

 

-----


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.92

UK Pound

1

Rs.86.03

Euro

1

Rs.69.13

 

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.