MIRA INFORM REPORT

 

 

Report Date :

27.03.2012

 

IDENTIFICATION DETAILS

 

Name :

TK CHEMICAL CORPORATION

 

 

Registered Office :

416-8, Chimsan 3-dong, Buk-gu, Daegu

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.11.2007

 

 

Com. Reg. No.:

107-87-01960

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Fibers

 

 

No. of Employees :

844

 

 

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 :

Exists

 

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 30, 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

TK CHEMICAL CORPORATION

(Korean Company Name : “()티케이케미칼”)

Registered Address

416-8, Chimsan 3-dong, Buk-gu, Daegu, Korea

Zip Code

702-857

Tel

+82-53-252-4177

Fax

+82-53-253-5216

E-mail

webmaster@tkchemi.co.kr;philiplee@tkchemi.co.kr

Website

www.tkchemi.co.kr

Trading Address

14th Fl., Korea Sinsong Center Bldg., 25-12, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-2001-6000

Fax

+82-2-2001-6180  +82-2-782-1160  +82-2-780-5263

Other Address-Synthetic 1 Factory

298-1, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-461-3401

Fax

+82-54-461-8100

Other Address-Synthetic 2 Factory

291-20, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-461-6055

Fax

+82-54-462-0460

Other Address-Synthetic 3 Factory

520, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongbuk, Korea

Tel

+82-54-971-9051

Fax

+82-54-971-9051

Other Address-Resin Factory

300, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-463-0380

Fax

+82-54-461-3922

Other Address-Daegu Office

103-6, Dongsan-dong, Jung-gu, Daegu, Korea

Tel

+82-53-252-4177

Fax

+82-53-252-4177

Type

Export/Import

Industry

Manufacture of Synthetic Fibers

  Main Business

Polyester Yarn, Spandex Yarn, Cotton Yarn, PET Resin, Chip

Established (mm/dd/yyyy)

11/07/2007

The Subject occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyester yarn(11151703)

Sell

Cotton yarn(11151702)

Sell

Resins(13111000)

 

CEO’s

 

Name

So Hong-Seok

Address

Suite 214-1302, 609-1, Donam-dong, Seongbuk-gu, Seoul, Korea

Date of Birth

06/01/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

45,000,000,000

Employees

844

Formation

Listed Company (KOSDAQ : 104480) as of 04/26/2011

Foreign Direct Investment Corporation

A Company of SM GROUP

Bank Details

Woori Bank-Yeoido Central Branch

Korea Development Bank

SC. First Bank of Korea

Corporate Registered No.

110111-3783457

Business Registered No.

107-87-01960

Permit & Licenses

Int’l Trade No.: 45338773

Shareholder Position

Name

Shares

%

SMT CHEMICAL CO., LTD.(170111-0351776)

29,865,530

33.18

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

8,000,000

8.89

WOOBANG CONSTRUCTION CO.,LTD.(170111-0352732)

6,134,470

6.82

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

6,832,950

7.59

OTHERS

39,167,050

43.52

TOTAL

90,000,000

100.00

Company History

11/07/2007 Incorporated as the present name

12/26/2007 Increased the authorized shares to 20,000,000 shares from 40,000 shares

01/22/2008 Moved to the present address from 17-26, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

01/31/2008 Acquired Spandex, Polyester, Resin Business from TONGKOOK CORP.(110111-0059950)

02/05/2008 Increased capital to 40,000,000,000 KRW from 50,000,000 KRW

07/17/2008 Registered as a Foreign Direct Investment Corporation

07/18/2008 Changed stock type to 8,000,000 shares (Common:5,300,653, Preferable:2,699,347) from 8,000,000 shares (Common: 8,000,000)

04/26/2011 Increased capital to 45,000,000,000 KRW from 40,000,000,000 KRW

07/01/2011 Moved to the present HQ address registration from 14th Fl., Korea Sinsong Center Bldg., 25-12, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

So Hong-Seok

Male

Korean

1954.06.01

Chairman

Mr.

Woo Oh-Hyun

Male

Korean

1953.11.06

Vice Chairman

Mr.

Ki Joon

Male

Korean

1946.11.08

Auditor

Mr.

Bae Soon-Ki

Male

Korean

1957.07.08

Director

Mr.

Sohn Kwang-Min

Male

Korean

1963.04.30

Outside Director

Mr.

Park Se-Kyu

Male

Korean

1953.09.10

Outside Director

Mr.

Lee Min-Ki

Male

Korean

1949.12.03

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

1,000,564,178,112

497,716,778,656

16,632,656,176

(*)2010

882,043,327,810

457,268,415,266

26,155,939,425

2009

777,194,493,448

323,556,543,330

25,632,641,591

2008

710,630,616,602

320,963,467,180

-17,308,870,150

2007

-

48,690,862

(-)456,138

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

45,000,000,000

Total Issues Shares

90,000,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

497,716,778,656

457,268,415,266

 

Current Assets

224,471,800,009

217,237,207,966

 

Cash & Cash Equivalents

70,819,238,653

78,872,195,640

 

Deposits

12,911,263,158

8,261,263,158

 

Trade Receivables & Other Receivables

79,168,806,259

71,568,891,446

 

Inventories

46,061,969,324

27,614,108,884

 

Income Taxes

1,773,426,451

-

 

Other Current Non-Financial Assets

10,858,295,154

29,335,000,000

 

Other Current Assets

2,878,801,010

1,585,748,838

 

Non-Current Assets

273,244,978,647

240,031,207,300

 

Non-Current Financial Instruments

103,000,000

103,000,000

 

Long-Term Trade Receivables & Other Receivables

407,029,110

372,535,605

 

Non-Current Marketable Financial Instruments

725,000

725,000

 

Investment_Subsidiary Companies

16,345,200,000

-

 

Investment_Related Companies

10,000,000,000

-

 

Tangibles

243,092,603,842

237,479,183,807

 

Investment_Real Estates

837,900,000

837,900,000

 

Intangibles

1,366,937,631

64,863,245

 

Non-Current Financial Instruments

1,027,655,738

991,731,696

 

Other Non-Current Assets

63,927,326

181,267,947

 

Total Liabilities

298,421,638,127

395,631,272,904

 

Current Liabilities

243,844,070,396

278,740,521,316

 

Trade Payables & Other Payables

133,382,036,305

131,757,234,590

 

Short-Term Borrowings

109,339,928,723

132,946,330,043

 

Accrued Income Tax

-

12,009,365,672

 

Other Current Financial Debts

2,500,000

-

 

Other Current Liabilities

1,119,605,368

2,027,591,011

 

Non-Current Liabilities

54,577,567,731

116,890,751,588

 

Long-Term Trade Payables & Other Payables

-

35,698,653,186

 

Long-Term Borrowings

23,000,000,000

10,000,000,000

 

Provision for Severance & Retirement

28,811,916,362

29,320,955,442

 

Deferred Income Tax Credit

2,225,081,849

3,706,442,460

 

Other Non-Current Financial Debts

540,569,520

38,164,700,500

 

Capital Stock

45,000,000,000

29,703,265,000

 

Capital Surplus

128,795,451,155

21,707,724,131

 

Profit Surplus

25,499,689,374

10,226,153,231

 

Total Equity

199,295,140,529

61,637,142,362

 

Liab. & Shareholder’s Equity

497,716,778,656

457,268,415,266

 

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

425,269,431,920

323,556,543,330

320,963,467,180

Current Assets

185,211,147,033

80,105,833,754

59,258,666,693

-Quick Assets

157,597,038,149

56,738,379,245

33,166,704,954

-Inventories

27,614,108,884

23,367,454,509

26,091,961,739

Fixed Assets

240,058,284,887

243,450,709,576

261,704,800,487

-Investment

1,754,947,682

1,865,117,378

3,720,212,688

-Tangibles

237,437,756,114

240,631,476,927

257,352,541,243

-Intangibles

865,581,091

954,115,271

632,046,556

Total Liabilities

291,334,646,357

235,645,121,110

258,684,686,551

Current Liabilities

246,164,847,687

158,514,947,144

143,394,196,872

Fixed Liabilities

45,169,798,670

77,130,173,966

115,290,489,679

Capital Stock

40,000,000,000

40,000,000,000

40,000,000,000

Capital Surplus

39,588,106,917

39,588,106,917

39,588,106,917

Profit Surplus

54,346,678,646

8,323,315,303

-17,309,326,288

Capital Adjustment

 

 

 

Total Equity

133,934,785,563

87,911,422,220

62,278,780,629

Liab. & Shareholder’s Equity

425,269,431,920

323,556,543,330

320,963,467,180

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

1,000,564,178,112

882,043,327,810

 

Cost of Sold Goods

930,317,081,977

770,886,119,222

 

Gross Profit

70,247,096,135

111,157,208,588

 

Selling Expenses

24,246,762,089

28,811,250,826

 

Admin. Expenses

8,941,846,142

8,043,102,877

 

R&D

1,072,475,463

691,003,424

 

Other Operating Income

9,158,533,833

193,805,298

 

Other Operating Expenses

18,167,133,442

2,445,801,068

 

Operating Income

26,977,412,832

71,359,855,691

 

Finance Income

18,864,376,567

14,196,198,491

 

Finance Expenses

23,601,057,366

46,134,773,576

 

Profits from Investment on Related Companies

1,499,997,000

-

 

Income Before Taxes

20,740,735,033

39,421,280,606

 

Income Taxes Expenses

4,108,078,857

13,265,341,181

 

Net Income

16,632,656,176

26,155,939,425

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

882,043,327,810

777,194,493,448

710,630,616,602

Cost of Sold Goods

772,376,877,192

697,166,166,097

650,732,355,077

Gross Profit

109,666,450,618

80,028,327,351

59,898,261,525

Selling & Admin. Expenses

38,435,141,344

29,803,551,130

32,356,845,745

Operating Income

71,231,309,274

50,224,776,221

27,541,415,780

Non-Operating Income

14,390,003,789

19,443,735,115

19,052,223,847

Non-Operating Expenses

26,761,448,853

34,804,811,945

68,959,289,304

Income Before Taxes

58,859,864,210

34,863,699,391

-22,365,649,677

Income Taxes Expenses

12,836,500,867

9,231,057,800

-5,056,779,527

Net Income

46,023,363,343

25,632,641,591

-17,308,870,150

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

3,299,439,086

66,897,221,162

 

Net Income

16,632,656,176

26,155,939,425

 

Interests Received

2,703,676,163

531,600,185

 

Income Taxes

-18,938,317,280

-10,915,343,968

 

Cash Flows from Investing

-42,603,236,759

-52,686,253,620

 

Cash Inflow from Investing

111,241,228,756

18,430,483,374

 

Cash Outflows for Investing

-153,844,465,515

-71,116,736,994

 

Cash Flows from Financing

30,855,037,034

43,466,846,558

 

Cash Inflows from Financing

451,257,993,979

174,008,042,188

 

Cash Outflows from Financing

-420,402,956,945

-130,541,195,630

 

Increase/Decrease in Cash

-8,448,760,639

57,677,814,100

 

Cash at the Beginning of Year

78,872,195,640

21,195,162,776

 

Cash at the End of Year

70,819,238,653

78,872,195,640

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

82,231,992,435

73,035,568,682

9,349,861,492

-Net Income

46,023,363,343

25,632,641,591

-17,308,870,150

-Exp. without Cash Outflow

31,325,738,227

26,273,934,045

36,235,314,815

-Revenue without Cash Inflows

-1,238,669,152

-405,010,143

-5,672,348,410

-Changes in Asset/ & Liability

6,121,560,017

21,534,003,189

-3,904,234,763

Cash Flows from Investing

-52,686,253,620

-114,781,824

16,489,962,683

-Cash Inflow from Investing

18,430,483,374

5,046,743,268

38,817,300,659

-Cash Outflows for Investing

-71,116,736,994

-5,161,525,092

-22,327,337,976

Cash Flows from Financing

28,131,294,049

-55,967,647,595

-21,646,430,724

-Cash Inflows from Financing

141,432,368,559

13,447,468,509

191,411,822,370

-Cash Outflows from Financing

-113,301,074,510

-69,415,116,104

-213,058,253,094

Increase/Decrease in Cash

57,677,032,864

16,953,139,263

4,193,393,451

Cash at the Beginning of Year

21,195,162,776

4,242,023,513

48,630,062

Cash at the End of Year

78,872,195,640

21,195,162,776

4,242,023,513

 

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Yarn (Full Dull, Middle Dull, Cation Dyable, High Shrinkage, Supper Bright, Bright)

SPANDEX Yarn

CHIP(FD, CD, HS)

Resin for PET Bottle

 

Brand Name: TexPet, ARACHRA, TEXLON

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG PETROCHEMICAL CO., LTD.(181211-0000435)

Customers

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

LG INTERNATIONAL CORP(110111-0004632)

KIPSCO(KOREA)

YOONSE TONGSANG CO., LTD.(KOREA)

Competitors

TAEKWANG INDUSTRIAL CO., LTD.

162-1, JANGCHUNGDONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-3406-0300  FAX:+82-2-2273-9166

 

HUVIS CORP.

HUVIS BLDG., 151-7, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2189-4567 FAX:+82-2-2189-4569

 

WOONGJIN CHEMICAL CO., LTD.

287, GONGDAN 2-DONG, GUMI-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-469-4114  FAX:+82-54-469-4444

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

NAMSUN ALUMINIUM CO.,LTD.(170111-0005042)

SAMRA CONSTRUCTION CO., LTD. (200111-0013220)

JINDUK CO., LTD.(110111-0002834)

KYUNGNAM WOOL TEXTILE CO., LTD(190111-0004107)

BEXEL CORPORATION(176011-0028438)

DAEWOO LIFE CO., LTD.(176011-0028595)

CHOYANG CO., LTD. (130111-0009662)

KUKDONG CO. LTD(200111-0075931)

SAMRA ENGINEERING & CONSTRUCTION CO., LTD.(200111-0013220)

SAMRA INDUSTRIAL DEVELOPMENT CO., LTD.(20111-0071319)

SAMRA MIDAS CO., LTD.(200111-0069330)

BULLWHUI CO., LTD.

GIMPO CHARACTER WORLD CO., LTD.(124411-0050211)

KOREA COMMUNICATION ENGINEERING CO., LTD.(110111-0204654)

SMT CHEMICAL CO., LTD.(170111-0351776)

TK CHEMICAL HOLDINGS CO., LTD.(170111-0352732)

Affiliates-Overseas

QINGDAO KYUNGNAM WOOL TEXTILE CO., LTD.(CHINA)

BEST CHEMICALS & PLASTICS, INC.(BCPI)

BESTCHEM, INC(BCI)

Overseas Office

TK CHEMICAL CORP. ISTANBUL OFFICE

BESIKTAS LEVENT NISPETIYE CAD. NO.30 C BLOCK D.23 ISTANBUL, TURKIYE

TEL:+90-212-3257861/3257862  FAX:+90-212+3258242

Subsidiary

HIPLUSCARD CO., LTD.(131111-0191187)

(100.0% held by the subject company)

Corporate Ownership

SAMRA CONSTRUCTION CO., LTD.(200111-0013220)

SMT CHEMICAL CO., LTD.(170111-0351776)

Major Shareholders

SMT CHEMICAL CO., LTD.(170111-0351776)

Cooperative Enterprise

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

622,668

761,367

666,003

Domestic

134,433

120,676

111,191

Total

757,101

882,043

777,194

The Subject exports to Asia, USA, Middle East and Europe.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

Supreme Court

Kyunghan Industry Co., Ltd.

The Subject Company & KEPCO

Confirmation of Ownership

775,000,000

3rd round is proceeding.

 

Seoul Nambu District Court

The Subject Company

Kyunghan Industry Co., Ltd.

Refund of Inappropriate Profits

1,049,197,000

1st round is proceeding.

 

Seoul Central District Court

The Subject Company

ASAM Investment Advisory(110111-1295850) & Others(10)

Refund of Stock Transferring amount

1,499,997,000

1st round is proceeding.

 

 

News Clipping

 

---

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.30

UK Pound

1

Rs.81.36

Euro

1

Rs.67.97

 

 

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.