MIRA INFORM REPORT

 

 

Report Date :           

07.03.2012

 

IDENTIFICATION DETAILS

 

Name :

DAEWON CHEMICAL CO., LTD.

 

 

Formerly Known As :

DAEWON Chemical Industrial Company

 

 

Registered Office :

209-5, Jamsilbon-dong, Songpa-gu, Seoul, Korea, 6th Fl., Daewon Bldg., Zip Code 138-862

 

 

Country :

South korea

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

23.05.1974

 

 

Com. Reg. No.:

204-81-36263

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Plastics Synthetic Leather

 

 

No. of Employees :

237

 

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 – 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

DAEWON CHEMICAL CO., LTD.

(Korean Company Name : “대원화성()”)

Registered Address

209-5, Jamsilbon-dong, Songpa-gu, Seoul, Korea

Building

6th Fl., Daewon Bldg.

Zip Code

138-862

Tel

+82-31-372-3992

Fax

+82-31-372-3995

E-mail

howard.kwon@daewon21.co.kr;sspark@didwallpaper.com

Website

www.daewon21.co.kr

Trading Address- Osan Factory

496, Yoisammi-Dong, Osan-si, Gyeonggi-do, Korea

Tel

+82-31-372-3992

Fax

+82-31-372-3995

Other Address-Busan Office

260-34, An-dong ,Gimhae-si, Gyeongsangnam-do, Korea

Tel

+82-55-332-8777

Fax

+82-55-331-3328

Type

Export/Import

Industry

Manufacture of Plastics Synthetic Leather

  Main Business

Polyurethane Synthetic Leather, Wallpaper, DMF Refinery

  Sub Business

Manufacture of Wallpaper and Oilpaper

Established (mm/dd/yyyy)

05/23/1974

The Subject owns the premises of registered Onsan factory(45,023).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Wallpapers(30161502)

Sell

Synthetic or imitation leather(11162307)

 

 

CEO’s

 

Name

Kang Dong-Yeop

Date of Birth

03/01/1969

Title

President & CEO

Sex

Male

Nationality

Korean

 

 


Profiles

 

Capital (KRW)

13,726,350,000

Employees

237

Formation

Listed Company (Korea Stock Exchange: 024890) as of 10/28/1997

Bank Details

Woori bank-HQ Sales 2 Dept.

Korea Development Bank

Shinhan Bank

Corporate Registered No.

110111-0165393

Business Registered No.

204-81-36263

Permit & Licenses

03/03/1998 ISO 9001

04/17/2001 ISO 14001

08/02/2006 ISO/TS 16949:2002

 

AWARD

1990/03 - Won Official Commendation For A Exemplary Taxpayer-The Minister Of Finance

1994/03 - Won Official Commendation For A Exemplary Taxpayer-The Minister Of Finance

1998/12 - Received An Award For Protection Of Environment-The Governor Of Kyounggi Province

1999/12 - Received The Second Prize, The Peace Of Industrial Service Merit -The Governor Of Kyounggi Province

 

Int’l Trade No.: 524287

Shareholder Position

Name

Shares

%

KANG SOO-CHANG

2,425,677

7.79

KANG DONG-YEOP

4,077,797

13.10

KANG SANG-YEOP

3,545,490

11.39

KANG KI-YEOP

3,545,490

11.39

OTHERS

17,535,093

56.33

TOTAL

31,129,547

100.00

Company History

05/23/1974 - Established as DAEWON Chemical Industrial Company

08/06/1974 Changed company name to the present name

05/1977 - Completed Osan factory and began operation

1983 - Developed "ULTRA-PORE", breathable water proof coated fabric

1987 - Entered into technical cooperation with Toyo Polymer of Japan

1989 - Installed wet process line from Italy and finishing facilities

1991- Developed artificial leather for high quality athletic footwear, began supplying to Nike, Adidas and other brands

12/1994 - Completed automated warehouse at Osan factory

09/1995 - Established R&D Center in Osan factory

10/1997 - Listed on Korea Stock Exchange.

03/1998 - Acquired ISO 9001. (The first certification in the Synthetic leather & wallpaper industry in Korea)

12/1998 - Established Guangzhou Sales branch Office

04/2001 - Acquired ISO 14000

08/08/2001 Moved to the present HQ address from 823, Yeoksam-dong ,Gangnam-gu, Seoul, Korea

01/2002 - President Dong-Yeop, Kang took office as CEO

11/2002 - Developed “High-Lock”, began supplying to Hynudai Motor Company

12/2003 - Acquired ISO 14001. (The first certification in the Synthetic leather & wallpaper industry in Korea)

08/2006 - Acquired ISO/TS 16949:2002

06/12/2007 Participated and Invested in Lucky ship Project in Canada

 

 

Management

 

Job Description

Title

Name

Sex

Date of Birth

Education

President & CEO

Mr.

Kang Dong-Yeop

Korean

69.03.01

Yonsei University, Korea

Director

Mr.

Kang Soo-Chang

Korean

43.01.16

Yonsei University, Korea

Director

Mr.

Park Dong-Hyuck

Korean

42.10.12

Yonsei University, Korea

Auditor

Mr.

Hur Hoon-Jong

Korean

55.02.20

Daegu Commercial High, Korea

Outside Director

Mr.

Ju Young-Eun

Korean

41.08.24

Yonsei University, Korea

Outside Director

Mr.

Kim Seung-Hern

Korean

43.04.13

Korea University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

115,754,238,000

112,122,152,000

-2,373,323,000

(*)09/2011

86,533,906,302

113,461,102,118

-1,711,462,251

2010

108,692,038,782

109,970,937,203

-7,715,296,767

2009

91,582,201,328

107,080,255,699

-3,026,564,454

2008

92,952,226,930

106,919,829,244

-7,818,416,065

(*)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 02/24/2012. It can be changeable by the Auditors confirmation.

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

13,726,350,000

Total Issued Shares

2,745,270

 


Balance Sheet

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

113,461,102,118

113,902,666,500

 

Current Assets

45,159,269,434

47,886,925,493

 

Cash & Cash Equivalents

619,892,799

2,827,989,683

 

Current Financial Instruments

1,000,000,000

 

 

Marketable Financial Instruments

0

1,012,725,000

 

Trade Receivables

28,501,003,231

31,694,432,542

 

Other Receivables

632,633,929

908,941,273

 

Advance Payments

918,354,170

23,820,217

 

Prepaid Expenses

99,867,606

50,914,172

 

Inventories

13,335,899,301

11,312,086,066

 

Other Current Assets

51,618,398

56,016,540

 

Non-Current Assets

68,301,832,684

66,015,741,007

 

Non-Current Financial Instruments

57,590,000

197,590,000

 

Non-Current Financial Instruments

2,571,707,764

2,571,707,764

 

Investment_Related Companies

8,594,755,982

8,594,755,982

 

Long-Term Loans

7,973,420,000

7,698,964,000

 

Tangibles

47,288,735,487

45,327,976,460

 

Intangibles

16,451,137

15,219,735

 

Other Non-Current Assets

1,799,172,314

1,609,527,066

 

Total Liabilities

62,394,429,553

61,211,556,287

 

Current Liabilities

51,102,731,155

52,081,612,285

 

Trade Payables

12,236,202,361

13,482,420,892

 

Short-Term Borrowings

35,088,567,595

28,776,101,025

 

Account Payables

2,119,546,080

2,641,765,510

 

Advance Receipts

363,044,826

189,515,535

 

Withholdings

106,633,940

85,703,430

 

Accrued Expenses

159,877,413

211,240,887

 

Current Portion of Long-Term Debts

701,101,400

6,040,695,760

 

Other Current Liabilities

327,757,540

654,169,246

 

Non-Current Liabilities

11,291,698,398

9,129,944,002

 

Confirmed Salaries

1,346,698,604

1,213,671,522

 

Deferred Income Tax Credit

3,827,299,794

4,370,198,540

 

Long-Term Borrowings

6,117,700,000

3,546,073,940

 

Capital Stock

15,564,773,500

15,564,773,500

 

Capital Surplus

16,115,140,101

16,115,140,101

 

Others

-3,528,313,700

-3,560,285,951

 

Profit Surplus

22,915,072,664

24,571,482,563

 

Total Equity

51,066,672,565

52,691,110,213

 

Liab. & Shareholder’s Equity

113,461,102,118

113,902,666,500

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

109,970,937,203

107,080,255,699

106,919,829,244

Current Assets

48,582,636,458

43,249,879,668

44,688,603,945

-Quick Assets

37,270,550,392

35,367,839,095

37,526,931,098

-Inventories

11,312,086,066

7,882,040,573

7,161,672,847

Fixed Assets

61,388,300,745

63,830,376,031

62,231,225,299

-Investment

14,631,884,753

19,071,513,442

21,732,242,429

-Tangibles

45,131,669,191

43,324,266,233

34,961,238,312

-Intangibles

15,219,735

17,469,303

70,007,341

-Others

1,609,527,066

1,417,127,053

5,467,737,217

Total Liabilities

61,774,864,814

55,105,947,532

61,453,848,279

Current Liabilities

52,081,612,285

41,314,587,936

38,462,451,641

Fixed Liabilities

9,693,252,529

13,791,359,596

22,991,396,638

Capital Stock

15,564,773,500

13,815,191,500

13,815,191,500

Capital Surplus

16,115,140,101

13,742,853,997

13,742,853,997

Profit Surplus

-1,715,120,193

6,000,176,574

9,026,741,028

Capital Adjustment

18,231,278,981

18,416,086,096

8,881,194,440

Total Equity

48,196,072,389

51,974,308,167

45,465,980,965

Liab. & Shareholder’s Equity

109,970,937,203

107,080,255,699

106,919,829,244

 

 

Income Statement

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Sales

86,533,906,302

 

 

Cost of Sold Goods

78,531,543,693

 

 

Gross Profit

8,002,362,609

 

 

Selling & Admin. Expenses

9,193,422,651

 

 

Other Operating Income

3,065,034,072

 

 

Other Operating Expenses

2,723,753,682

 

 

Operating Income

-849,779,652

 

 

Interest Income

815,611,488

 

 

Interest Expenses

2,245,927,920

 

 

Income Before Taxes

-2,280,096,084

 

 

Income Taxes Expenses

-568,633,833

 

 

Net Income

-1,711,462,251

 

 

 

Income Statement

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

108,692,038,782

91,582,201,328

92,952,226,930

Cost of Sold Goods

96,264,065,386

81,426,019,543

83,549,529,124

Gross Profit

12,427,973,396

10,156,181,785

9,402,697,806

Selling & Admin. Expenses

10,801,059,127

10,053,048,768

11,775,883,728

Operating Income

1,626,914,269

103,133,017

-2,373,185,922

Non-Operating Income

3,980,160,560

8,996,723,847

13,485,017,722

Non-Operating Expenses

12,048,741,543

11,964,464,975

20,885,107,131

Income Before Taxes

-6,441,666,714

-2,864,608,111

-9,773,275,331

Income Taxes Expenses

1,273,630,053

161,956,343

-1,954,859,266

Net Income

-7,715,296,767

-3,026,564,454

-7,818,416,065

 

 

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

-3,134,986,748

 

 

Net Income

-1,711,462,251

 

 

Adjustment

2,596,649,527

 

 

Changes in Asset/ & Liability

-2,092,914,356

 

 

Interests Received

442,866,179

 

 

Interests Paid

-2,403,980,077

 

 

Income Taxes

33,854,230

 

 

Cash Flows from Investing

-1,915,362,409

 

 

Cash Flows from Financing

2,846,044,750

 

 

Increase/Decrease in Cash

2,827,989,683

 

 

Cash at the Beginning of Year

 

 

 

Cash at the End of Year

619,892,799

 

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

785,828,984

-7,124,176,730

-1,422,820,180

-Net Income

-7,715,296,767

-3,026,564,454

-7,818,416,065

-Exp. without Cash Outflow

8,833,820,637

8,667,404,903

15,177,441,052

-Revenue without Cash Inflows

-1,156,305,644

-4,003,373,172

-6,436,223,951

-Changes in Asset/ & Liability

823,610,758

-8,761,644,007

-2,345,621,216

Cash Flows from Investing

-3,463,943,794

4,922,542,642

-17,758,785,053

-Cash Inflow from Investing

3,950,301,733

7,336,181,919

11,954,274,357

-Cash Outflows for Investing

-7,414,245,527

-2,413,639,277

-29,713,059,410

Cash Flows from Financing

2,570,819,268

-856,642,488

14,431,144,637

-Cash Inflows from Financing

14,436,303,109

14,309,798,069

34,803,842,596

-Cash Outflows from Financing

-11,865,483,841

-15,166,440,557

-20,372,697,959

Increase/Decrease in Cash

-107,295,542

-3,058,276,576

-4,750,460,596

Cash at the Beginning of Year

2,935,285,225

5,993,561,801

10,744,022,397

Cash at the End of Year

2,827,989,683

2,935,285,225

5,993,561,801

 

Products, Technologies, Services Description

 

Main Products & Services

The Subject Company is a PU synthetic leather supplier of its wet type PU items for shoes & balls such as for NIKE, ADDIDAS, WILSON, SPALDING and so on, and also wallpaper.

 

- Synthetic Leather

- Wallpaper

- Solvent(D.M.F) Refining

 

Brand Name: Art-Lite, Ace-Buck, High-Lock, Encarta, Unio, D&D, 4U

 

 

Trade Partners & Competitors

 

Customers

NIKE, ADIDAS, REEBOK, WILSON, SPALDING

DID CO., LTD.

YUE YUEN FOOTWEAR CO., LTD

KOLON INDUSTRIES INC (110111-0030528)

Competitors

-SYNTHETIC LEATHER

DCKSUNG CO.,LTD (134111-0000096)

BAIKSAN CO.,LTD (114711-0003729)

DAEWOO INTERNATIONAL CORPORATION (110111-2137358)

KOLON INDUSTRIES INC (110111-0030528)

 

-SOLVENT(D.M.F) REFINING

HANONE FINE CHEMICAL CO.,LTD (110111-0515712 )

KOLON INDUSTRIES INC (110111-0030528)

 

- WALLPAPER

DAE DONG WALL PAPER CO., LTD(180111-0024975)

LG CHEM LTD (110111-2207995)

SEOULWALLPAPER CO., LTD(115411-0002742)

GAENARI INC(110111-2529373)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DID CO., LTD.

PHARM CLEAN ENERGY CO., LTD

(24.28% held by the subject company)

 

CELTRION CO., LTD.

(0.2% held by the subject company)

Overseas Office

CHINA BRANCH

#1217 SOUTH TOWER, GUANZHOU WORLD TRADE CENTER COMPLEX, HUANSHI DONG-LU, GUANZHOU, P.R.C

TEL : +86-20-8760-9609  FAX : +86-20-8760-9615

E-MAIL : DAEWONGZ@GDVNET.COM

 

TAIWAN BRANCH

11F-8, NO.77, SHIZHENG N. 1ST ROAD, TAICHUNG CITY 407, TAIWAN R.O.C.

TEL : +886-4-2251-3490 / FAX : +886-4-2251-4039

E-MAIL : TED.GOO@DAEWON21.CO.KR

Joint Venture

YOUNGPA WONRYUNG WALLPAPER CO., LTD.(CHINA)

(40.0% held by the subject company)

Subsidiary

DAEWON CHEMICAL.VINA.CO., LTD.

(100.0% held by the subject company)

 

DAEWON INTERNATIONAL AMERICA CORP.

(100.0% held by the subject company)

 

DAEWON SHANGHAI CO., LTD.

(100.0% held by the subject company)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

46,376

54,693

52,572

Domestic

40,157

53,999

39,010

Total

86,533

108,692

91,582

The Subject exports to China, Taiwan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.03

UK Pound

1

Rs.79.32

Euro

1

Rs.66.02

 

 

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%)

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.