MIRA INFORM REPORT

 

 

Report Date :

15.05.2012

 

IDENTIFICATION DETAILS

 

Name :

CHONG KUN DANG PHARMACEUTICAL CORP

 

 

Registered Office :

368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea, Zip Code 120-756

 

 

Country :

South korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.05.1941

 

 

Com. Reg. No.:

113-81-06667

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Finished Medicaments

 

 

No. of Employees :

1,473

 

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 – 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

CHONG KUN DANG PHARMACEUTICAL CORP.

(Trade Name : CKD Pharm)

(Korean Company Name : “()종근당”)

Registered Address

368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea

Zip Code

120-756

Tel

+82-2-2194-0300

Fax

+82-2-2194-0335

E-mail

webmaster@ckdpharm.com;ckdexport@ckdpharm.com;intl@ckdbio.com

Website

www.ckdpharm.com

Trading Address

368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea

Tel

+82-2-2194-0300

Fax

+82-2-2194-0335

Other Address-Cheonan Factory(Research Center)

15-20, Osaekdang-ri, Seonggeo-eup, Seobuk-gu, Cheonan-si, Chungcheongnam-do, Korea

Tel

+82-41-529-3100

Fax

+82-41-558-3005

Type

Export/Import

Industry

Manufacture of Finished Medicaments

  Main Business

Antipyretic, Digestive, Antibiotic

Established (mm/dd/yyyy)

05/07/1941

The Subject owns the premises of Cheonan Factory(235,046).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Antihistamines or H1 blockers(51161600)

Sell

Immunosuppressants(51201500)

Sell

Dietary supplements and nutritional therapy products(51191900)

Sell

Drugs affecting the gastrointestinal system(51170000)

Sell

Antispasmodics(51172100)

Sell

Non narcotic analgesics and antipyretics(51142000)

Sell

Anthelmintics and other antiparasitics(51101700)

Buy

Flavours or extracts(12164502)

Buy

Antiseptics(51102700)

Buy

Cyclosporine(51201502)

Buy

Menthol(51161803)

 

 

CEO’s

 

Name

Kim Jung-Woo

Date of Birth

08/19/1946

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

32,625,000,000

Employees

1,473

Formation

Listed Company (Korea Stock Exchange : 001630) as of 06/30/1976

A Company of CHONG KUN DANG

Bank Details

Woori Bank-Ahyeon-Station Branch

Corporate Registered No.

110111-0028955

Business Registered No.

113-81-06667

Permit & Licenses

Int’l Trade No.: 690104

Shareholder Position

Name

Shares

%

LEE JANG-HAN

2,478,675

18.99

KOCHON FOUNDATION(114522-0000263)

1,017,215

7.79

NATIONAL PENSION SERVICE(110171-0007134)

658,473

5.05

OTHERS

8,895,637

68.17

TOTAL

13,050,000

100.00

Company History

2004 Launched new anticancer drug, CKD-602 (Camtobell Inj.)

2003 KFDA (Korea Food & Drug Administration) approved CKD-602 (Camtobell Inj.) for the treatments of small cell lung cancer and ovarian cancer

2003 Filed DMF for Potassium Clavulanate with USA FDA

2003 Obtained Certificate of Suitability (COS) for Bacampicillin HCl with EDQM

2002 US FDA approval obtained for Cefuroxime Acid

2001 Separation of CKD Pharm and CKD Bio

2000 Out-licensed CKD-602, a novel anticancer agent to ALZA Corp. USA

2000 Out-licensed the formulation technology of Omeprazole Tab to Hexal AG, Germany

1999 Obtained approval of BGMP for Ansan plant

1998 CKD Research Institute moved to Chonan and Ansan

1998 Obtained approval of KGMP for Chonan plant

1998 Formulation plant (Seoul plant) moved to Chonan plant

1997 Produced Lovastatin

1994 Produced Cyclosporin A

1993 Produced 7-ACA

1991 US FDA approval obtained for Demeclocycline Hydrochloride

1988 Completed a new fermentation plant in Ansan

1987 US FDA approval obtained for Doxycycline Hyclate

1985 US FDA approval obtained for Rifampin

1980 US FDA approval obtained for Oxytetracycline Hydrochloride and Tetracycline Hydrochloride

1974 Completed a fermentation plant (Seoul plant) for Tetracycline Hydrochloride and Oxytetracycline Hydrochloride

1972 Established the Central Research Laboratories

1970 Antibiotic raw materials exported to USA, Japan and Southeast Asian countries for the first time in Korea

1968 US FDA approval obtained for Chloramphenicol, Chloramphenicol Palmitate and Sterile Chloramphenicol Sodium Succinate (First US FDA approval for korean products)

1967 Completed a production plant

1956 Chong Kun Dang Pharmaceutical Co., Ltd. established at Chungjungro, Seodaemun-ku, Seoul.

1941"Gungbon Pharmacy" founded on May 7, by late Chairman Mr. Chong Kun Lee, at 85, Ahyundong, Seodaemun-ku, Seoul, Korea.

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Dr.

Lee Jang-Han

Korean

1952.08.28

Korea University, Korea

President & CEO

Mr.

Lee Kyung-Joo

Korean

1956.01.25

-

Director

Mr.

Kim Jung-Woo

Korean

1946.08.19

Chungang University, Korea

Vice Chairman

Mr.

Kim Young-Eun

Korean

1947.03.31

Yonsei University, Korea

Director

Mr.

Kim Sung-Ki

Korean

1954.08.09

Seoul National University, Korea

Director

Mr.

Ha Seung-Ho

Korean

1954.05.08

Yonsei University, Korea

Outside Director

Mr.

Lee Jong-Yoon

Korean

1947.02.11

Yale University, Korea

Outside Director

Mr.

Oh Dae-Kyu

Korean

1952.08.02

Yonsei University, Korea

Auditor

Mr.

Park Jung-Soo

Korean

1954.08.21

Chungang University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(**)03/2012

104,157,000,000

 

7,001,000,000

(*)2011

442,194,675,857

570,853,740,753

49,050,618,244

(*)2010

419,632,736,301

540,920,386,750

40,070,710,974

2009

354,496,947,951

390,409,266,372

25,192,546,319

2008

303,232,967,170

366,493,888,931

20,422,245,079

2007

252,021,524,805

331,196,721,429

19,943,793,940

2006

242,809,965,103

323,215,003,158

22,417,161,418

2005

235,774,161,462

296,158,281,228

24,914,261,577

2004

186,220,354,615

263,201,563,832

15,616,129,291

2003

162,000,707,248

275,272,114,236

9,609,165,067

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

(**)The financials (03/2012) are released by the subject company as tentative figures as of 04/27/2012. It can be changeable by the Auditors confirmation.

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

32,625,000,000

Total Issued Shares

13,050,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

570,853,740,753

540,920,386,750

 

Current Assets

295,059,098,520

282,046,514,328

 

Cash & Cash Equivalents

59,736,723,598

71,636,666,584

 

Current Financial Instruments

20,650,000,000

2,640,000,000

 

Trade Receivables

142,377,322,977

127,878,646,248

 

Other Receivables

17,942,606,360

24,467,520,959

 

Guarantee Deposits

2,040,957,289

2,528,760,695

 

Advance Payments

410,150,974

568,365,000

 

Prepaid Expenses

806,433,906

1,000,914,121

 

Unearned Income

608,808,072

318,536,538

 

Inventories

50,486,095,344

51,007,104,183

 

Non-Current Assets

275,794,642,233

258,873,872,422

 

Non-Current Financial Instruments

4,371,000,000

2,359,000,000

 

Marketable Financial Instruments

14,444,558,857

13,015,193,782

 

Investment_Subsidiaries

37,621,802,127

36,772,392,696

 

Investment_Related Companies

89,239,905

89,239,905

 

Guarantee Deposits

2,906,091,030

3,089,019,265

 

Tangibles

175,850,966,421

161,797,202,000

 

Investment_Real Estates

21,796,567,844

22,250,661,196

 

Intangibles

18,640,316,049

19,427,063,578

 

Other Investment

74,100,000

74,100,000

 

Total Liabilities

226,600,480,205

232,587,103,772

 

Current Liabilities

151,814,505,646

130,222,266,264

 

Trade Payables

29,883,114,995

33,300,509,725

 

Account Payables

18,343,232,447

14,427,982,836

 

Short-Term Borrowings

79,630,000,000

51,000,000,000

 

Withholdings

1,176,585,215

1,089,369,357

 

VAT Withhold

5,891,369,167

6,004,466,626

 

Guarantee Deposits

1,170,993,453

1,651,444,887

 

Accrued Expenses

4,625,708,975

8,558,007,974

 

Accrued Income Tax

8,078,223,415

11,284,665,091

 

Finance Guarantee Liabilities

84,479,631

143,892,603

 

Provisions

2,912,759,703

2,733,142,878

 

Other Current Liabilities

18,038,645

28,784,287

 

Non-Current Liabilities

74,785,974,559

102,364,837,508

 

Long-Term Borrowings

46,600,000,000

75,400,000,000

 

Long-Term Account Payables

10,623,069,935

10,447,820,767

 

Guarantee Deposits

23,310,852

216,189,061

 

Deferred Income Tax Credit

6,002,816,292

3,897,509,692

 

Provision for Severance & Retirement

11,536,777,480

12,403,317,988

 

Capital Stock

32,625,000,000

32,625,000,000

 

Installments

24,967,786,012

29,858,899,014

 

Others

443,220,462

1,591,321,866

 

Profit Surplus

286,217,254,074

244,258,062,098

 

Total Equity

344,253,260,548

308,333,282,978

 

Liab. & Shareholder’s Equity

570,853,740,753

540,920,386,750

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

442,194,675,857

419,632,736,301

 

Cost of Sold Goods

174,105,088,566

162,213,042,063

 

Gross Profit

268,089,587,291

257,419,694,238

 

Selling & Admin. Expenses

199,304,021,227

196,174,109,713

 

Other Operating Profits

3,600,037,805

749,651,023

 

Other Operating Income

5,182,562,757

4,354,679,472

 

Other Operating Expenses

1,582,524,952

3,605,028,449

 

Operating Income

72,385,603,869

61,995,235,548

 

Finance Profits

-4,736,303,862

-5,558,171,035

 

Finance Income

2,590,646,283

1,293,754,719

 

Finance Expenses

7,326,950,145

6,851,925,754

 

Income Before Taxes

67,649,300,007

56,437,064,513

 

Income Taxes Expenses

18,598,681,763

16,366,353,539

 

Net Income

49,050,618,244

40,070,710,974

 

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

44,918,331,861

75,097,308,386

 

Cash Flows from Operating

69,277,612,797

90,549,281,819

 

Net Income

49,050,618,244

40,070,710,974

 

Adjustment

48,786,423,866

45,697,402,351

 

Changes in Asset/ & Liability

-28,559,429,313

4,781,168,494

 

Interests Received

1,898,137,643

1,396,993,829

 

Interests Paid

-7,330,511,609

-6,448,957,056

 

Dividends Received

130,188,700

131,544,100

 

Income Taxes

-19,057,095,670

-10,531,554,306

 

Cash Flows from Investing

-45,629,458,771

-47,435,230,830

 

Cash Inflow from Investing

6,189,591,292

8,215,925,174

 

Cash Outflows for Investing

-51,819,050,063

-55,651,156,004

 

Cash Flows from Financing

-11,257,796,002

2,416,821,460

 

Cash Inflows from Financing

12,000,000,000

75,400,000,000

 

Cash Outflows from Financing

-23,257,796,002

-72,983,178,540

 

Increase/Decrease in Cash

-11,968,922,912

30,078,899,016

 

Cash at the Beginning of Year

71,636,666,584

41,571,160,689

 

Cash at the End of Year

59,736,723,598

71,636,666,584

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Antipyretic, Digestive, Antibiotic

 

Anthelmintics

Antibiotics

Antihistamines or H1 blockers

Antispasmodics

Cipol-N Soft Caps

Cyclosporine

Digestives

Drugs used for respiratory tract disorders

Extract

Glycyrrhiza extract

Hair care supplies

Insecticides and insect control traps

Menthol

Non narcotic analgesics and antipyretics

Nutritious foods and drugs

Spray insecticides

Tincture

 

 

Trade Partners & Competitors

 

Suppliers

ROCHE

Competitors

DONGA PHARMACEUTICAL CO., LTD.(110111-0017990)

YUHAN CORPORATION(110111-0014409)

HANMI PHAM CO., LTD.(134811-0003187)

GREEN CROSS CORPORATION(110111-0109854)

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

CHONG KUN DANG INDUSTRIES CO., LTD.(110111-0253437)

(13.13% held by the subject company)

 

ANSUNG PRECISION MACHINERY CO., LTD.( 134811-0013673)

(88.5% held by the subject company)

 

BELLCOM CO., LTD.(110111-2261339)

(90.63% held by the subject company)

 

CHONGKUNDANG HEALTH CARE CO., LTD.(135011-0049540)

(16.44% held by the subject company)

 

CKD VENTURE CAPITAL CORPORATION(160111-0065098)

(56.29% held by the subject company)

 

CKD BIO CORP.(110111-2373308)

(3.10% held by the subject company)

 

KYOUNGBO CHEMICAL CO., LTD. (164811-0001961)

(59.28% held by the subject company)

 

CKD BIO CORPORATION(110111-2373308)

(3.10% held by the subject company)

 

KOREA HINET CO., LTD. (110111-0892136)

BELL SMS CO., LTD.(110111-3483841)

CKD LIVING CO., LTD.(110111-3667049)

BELL I&S CO., LTD.(110111-3895913)

Affiliates-Overseas

BARDIA FARMA S.P.A

 

EQUIS PHARMACEUTICALS, INC

(60.0% held by the subject company)

Subsidiary

KYOUNGBO CHEMICAL CO., LTD. (164811-0001961)

(59.28% held by the subject company)

 

CKD VENTURE CAPITAL CORPORATION(160111-0065098)

(56.29% held by the subject company)

 

ANSUNG PRECISION MACHINERY CO., LTD.( 134811-0013673)

(88.5% held by the subject company)

 

BARDIA FARMA S.P.A

 


Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in China, Japan, Pakistan, Vietnam and Guatemala.

 

 

Court Action

 

There are 4 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 3,245,000,000 KRW.

 

 

News Clipping

 

--


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.71

UK Pound

1

Rs.86.34

Euro

1

Rs.69.23

 

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.