MIRA INFORM REPORT

 

 

Report Date :

25.05.2012

 

IDENTIFICATION DETAILS

 

Name :

AEKYUNG PETROCHEMICAL CO., LTD.

 

 

Registered Office :

Miseong Bldg., 106-3, Guro 5-dong, Guro-gu, Seoul, Korea, Zip Code 152-842

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

13.10.1970

 

 

Com. Reg. No.:

113-81-10894

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of all other chemical products

 

 

No. of Employees :

245

 

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

AEKYUNG PETROCHEMICAL CO., LTD.

(Trade Name : AKP)

(Korean Company Name : “애경유화()”)

Registered Address

Miseong Bldg., 106-3, Guro 5-dong, Guro-gu, Seoul, Korea

Zip Code

152-842

Tel

+82-2-850-2000

Fax

+82-2-838-8435

E-mail

jmseo@akp.co.kr

Website

www.akp.co.kr

Trading Address

Miseong Bldg., 106-3, Guro 5-dong, Guro-gu, Seoul, Korea

Tel

+82-2-850-2000

Fax

+82-2-838-8435

Other Address-Busan Branch

433-4, Allak 1-dong, Dongnae-gu, Busan, Korea

Tel

+82-51-526-6381

Fax

+82-51-526-2308

Other Address-Ulsan Factory

724, Sanggae-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-259-8400

Fax

+82-52-273-1216

Other Address-Daejeon Laboratory

217-2, Sinsung-dong, Yusung-gu, Daejeon, Korea

Tel

+82-42-879-0013

Fax

+82-42-879-0019

Other Address-Youngnam Branch

1394-1, Oncheon-dong, Dongrae-gu, Busan, Korea

Tel

+82-51-554-6381

Fax

+82-51-554-6389

Other Address-Joongbu Logistics Center

657-4, Kajoa-dong, Seo-gu, Incheon,Korea

Tel

+82-32-578-0655

Fax

+82-32-578-0656

Type

Export/Import

Industry

Manufacture of All Other Chemical Products n.e.c.

  Main Business

Phthalic Anhydride, Maleic Anhydride, Itaconic Acid, Pa Polyol, Plasticizer

Established (mm/dd/yyyy)

10/13/1970

The Subject owns the premises of Joongbu Logistics Center, Ulsan Factory and Daejeon Laboratory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Plasticizers(12162000)

Sell

Chemistry reagents or solutions(41116105)

Sell

Other adhesives and sealants(31201600)

Sell

Cement accelerators(12162302)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Mixtures(12352400)

 

 

CEO’s

 

Name

Boo Kyu-Hwan

Address

 

Date of Birth

05/10/1954

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

44,500,000,000

Employees

245

Formation

Listed Company (Korea Stock Exchange: 006840 ) as of 08/11/1999

Foreign Direct Investment Corporation

A Company of AEKYUNG Business Group

Bank Details

Busan Bank

Korea Development Bank

Woori Bank

Corporate Registered No.

110111-0029721

Business Registered No.

113-81-10894

Permit & Licenses

11/17/2000 ISO 14001

07/20/2006 ISO 9001

 

Int’l Trade No.: 727235

Shareholder Position

Name

Shares

%

MITSUBISHI GAS CHEMICAL COMPANY, INC.(JAPAN)

714,000

8.02

ITOCHU CORPORATION(JAPAN)

672,000

7.55

CHAE HYUNG-SEOK

873,116

9.81

AEKYUNG DEVELOPMENT CO., LTD.

686,112

7.71

CHAE DONG-SEOK

666,875

7.49

CHAE SEUNG-SEOK

584,443

6.57

CHANG YOUNG-SHIN

557,297

6.26

OTHERS

4,146,157

46.59

TOTAL

8,900,000

100.00

Company History

12/12/2011 Awarded US$ 400 Million Export Top Prize

11/30/2007 Awarded US$ 300 Million Export Top Prize

11/30/2005 Awarded US$200 Million Export Top Prize

03/03/2004 Awarded the minister of Finance and Economy's prize, marking " Tax day"

11/12/2003 Awarded energy saving industrial prize

07/30/2001 Completion of the Aekyung Central Research Institute (Dejun Research Complex)

11/17/2000 Acquisition of ISO-14001 (DNV Quality Certificate Board)

08/11/1999 Listed on the Korea Stock Exchange

03/03/1997 The 31st Tax Day Steel Tower Industrial Decoration awarded

Mar.03,1993  Model Tax Payer Award granted by the Minister of Financial Affairs

11/30/1991 Awarded  US$100 Million Export Top Prize

09/14/1991 Plasticizers Plant completed, Incheon

11/30/1989 Awarded  US$50 million Export Top Prize

11/30/1980 Awarded  US$10 million Export Top Prize

07/17/1975 Signed joint investment contracts by same ratio with Japan's three companies

- Mitsubishi Gas Chemical

- Dainippon Ink & Chemical

- Itochu Corporation

07/19/1972 Registered as import/export business

03/25/1971  Registered as petrochemical industry

10/23/1970  Incorporated as Samkyung Chemical Co., Ltd.

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

M/S.

Chang Young-Shin

Korean

1936.07.22

Chestnut Hill College-USA

Vice Chairman & CEO

Mr.

Boo Kyu-Hwan

Korean

1954.05.10

Korea University, Korea

Director

Mr.

Ham Tae-Yong

Korean

1933.07.16

Seoul National University, Korea

Auditor

Mr.

Lee Yong-Soon

Korean

1946.06.13

Sungkyunkan University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2012

221,830,146,082

513,336,647,339

9,121,908,809

(*)2011

851,803,596,921

499,907,143,375

29,909,570,894

(*)2010

779,907,373,377

435,171,137,980

34,081,830,003

2009

604,613,264,917

395,691,178,636

-12,279,332,685

2008

539,373,835,628

480,043,278,860

-18,153,636,699

2007

514,259,407,969

421,825,161,042

27,673,416,529

2006

425,924,970,708

365,382,444,815

3,305,619,100

2005

380,269,860,349

360,687,893,562

5,147,190,686

2004

339,866,942,189

366,174,457,786

13,144,514,444

2003

271,095,475,740

358,975,955,389

12,939,295,786

(*)2010, 2011 and 03/2012 ‘s figures are based on the K-IFRS Accounting System.


Financial Description

 

Authorized Capital(KRW)

150,000,000,000

Paid-Up Capital(KRW)

44,500,000,000

Total Issues Shares

8,900,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

513,336,647,339

499,907,143,375

435,171,137,980

Current Assets

213,432,419,461

199,790,188,567

174,342,219,614

Cash & Cash Equivalents

52,620,046,080

48,044,411,622

32,750,467,394

Current Financial Instruments

0

2,000,000,000

0

Marketable Financial Instruments

24,220,000

24,220,000

9,825,000

Trade Receivables & Other Receivables

104,318,561,264

90,427,950,482

95,618,641,110

Other Current Assets

3,165,919,791

4,636,275,185

3,106,867,246

Derivatives

546,715,013

2,038,033,207

218,593,959

Inventories

52,756,957,313

52,619,298,071

42,637,824,905

Non-Current Assets

299,904,227,878

300,116,954,808

260,828,918,366

Non-Current Financial Instruments

124,500,000

124,500,000

127,000,000

Marketable Financial Instruments

780,018,537

777,562,637

14,271,969,606

Investment_Related Companies

202,308,327,317

202,308,327,317

153,298,008,357

Tangibles

87,826,345,640

88,166,770,170

85,660,960,754

Investment_Real Estates

2,761,657,069

2,782,415,359

2,865,455,094

Long-Term Trade Receivables & Other Receivables

2,631,536,165

2,485,536,175

1,763,426,525

Other Non-Current Assets

1,424,949,039

1,424,949,039

1,594,112,813

Intangibles

2,046,894,111

2,046,894,111

1,247,985,217

Total Liabilities

187,945,855,681

177,302,438,217

192,712,101,019

Current Liabilities

173,534,081,741

163,829,115,365

182,289,190,742

Trade Payables

65,100,152,242

53,952,102,270

56,671,343,329

Other Current Financial Debts

84,141,067,925

95,092,096,976

106,505,999,453

Account Payables

16,174,956,359

8,020,508,622

9,291,569,905

Other Current Liabilities

8,117,905,215

6,764,407,497

9,820,278,055

Non-Current Liabilities

14,411,773,940

13,473,322,852

10,422,910,277

Confirmed Salaries

5,141,329,356

4,746,987,135

3,007,797,996

Long-Term Finance Debts

2,777,000,000

2,777,000,000

0

Long-Term Trade Payables & Other Payables

686,273,753

686,273,753

1,196,510,204

Deferred Income Tax Credit

5,807,170,831

5,263,061,964

6,218,602,077

Capital Stock

44,500,000,000

44,500,000,000

30,000,000,000

Capital Surplus

89,824,136,776

89,824,136,776

44,116,064,756

Profit Surplus

200,218,361,458

197,434,194,814

177,603,955,930

Others

17,034,533

15,114,677

-92,242,616

Capital Adjustment

-9,168,741,109

-9,168,741,109

-9,168,741,109

Total Equity

325,390,791,658

322,604,705,158

242,459,036,961

Liab. & Shareholder’s Equity

513,336,647,339

499,907,143,375

435,171,137,980

 

Balance Sheet

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

445,832,529,657

395,691,178,636

480,043,278,860

Current Assets

170,205,395,613

147,613,031,417

204,338,508,446

-Quick Assets

127,567,570,708

109,462,517,888

98,711,546,426

-Inventories

42,637,824,905

38,150,513,529

105,626,962,020

Fixed Assets

275,627,134,044

248,078,147,219

275,704,770,414

-Investment

183,441,924,068

150,590,166,617

180,107,014,664

-Tangibles

88,526,415,848

93,554,378,888

92,089,019,147

-Intangibles

3,658,794,128

3,933,601,714

3,508,736,603

Total Liabilities

189,486,799,652

183,516,159,078

244,547,249,768

Current Liabilities

176,516,883,368

173,070,502,035

233,053,594,223

Fixed Liabilities

12,969,916,284

10,445,657,043

11,493,655,545

Capital Stock

30,000,000,000

30,000,000,000

30,000,000,000

Capital Surplus

105,764,966,160

105,764,966,160

105,764,966,160

Profit Surplus

122,324,284,870

77,730,394,783

94,346,889,158

Capital Adjustment

-1,743,521,025

-1,320,341,385

5,384,173,774

Total Equity

256,345,730,005

212,175,019,558

235,496,029,092

Liab. & Shareholder’s Equity

445,832,529,657

395,691,178,636

480,043,278,860

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

221,830,146,082

851,803,596,921

779,907,373,377

Cost of Sold Goods

199,357,506,755

762,535,622,401

690,113,427,197

Gross Profit

22,472,639,327

89,267,974,520

89,793,946,180

Selling & Admin. Expenses

10,459,573,134

38,951,900,015

40,043,414,489

Operating Income

12,013,066,193

50,316,074,505

49,750,531,691

Other Operating Income

1,434,407,718

10,280,258,557

9,331,235,105

Other Operating Expenses

1,274,471,598

21,565,028,759

11,915,752,337

Finance Income

2,382,343,247

11,100,867,581

10,225,654,499

Finance Expenses

2,698,565,877

11,740,566,673

13,887,431,638

Income Before Taxes

11,856,779,683

38,391,605,211

43,504,237,320

Income Taxes Expenses

2,734,870,874

-8,482,034,317

-9,422,407,317

Net Income

9,121,908,809

29,909,570,894

34,081,830,003

 


 

Income Statement

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

779,907,373,377

604,613,264,917

539,373,835,628

Cost of Sold Goods

690,299,903,280

546,335,419,831

490,049,261,554

Gross Profit

89,607,470,097

58,277,845,086

49,324,574,074

Selling & Admin. Expenses

40,964,871,916

35,571,992,945

31,297,097,658

Operating Income

48,642,598,181

22,705,852,141

18,027,476,416

Non-Operating Income

36,371,214,847

31,624,088,774

46,670,828,082

Non-Operating Expenses

25,997,228,986

65,010,112,753

84,354,391,870

Income Before Taxes

59,016,584,042

-10,680,171,838

-19,656,087,372

Income Taxes Expenses

10,155,636,455

1,599,160,847

-1,502,450,673

Net Income

48,860,947,587

-12,279,332,685

-18,153,636,699

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

14,710,879,779

32,880,581,096

 

Net Income

9,121,908,809

29,909,570,894

 

Adjustment

4,610,206,871

29,838,655,512

 

Changes in Asset/ & Liability

1,060,742,706

-11,871,734,389

 

Interests Received

192,356,067

257,135,750

 

Dividends Received

-599,891,104

-3,859,516,286

 

Interests Paid

351,750,000

1,145,178,000

 

Income Taxes

-26,193,570

-12,538,708,385

 

Cash Flows from Investing

670,483,406

-57,086,686,393

 

Cash Flows from Financing

-10,854,829,051

39,652,741,585

 

Increase/Decrease in Cash

4,526,534,134

15,446,636,288

 

Cash at the Beginning of Year

48,044,411,622

32,750,467,394

 

Cash at the End of Year

52,620,046,080

48,044,411,622

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

19,063,525,364

105,272,853,690

-70,029,468,761

-Net Income

48,860,947,587

-12,279,332,685

-18,153,636,699

-Exp. without Cash Outflow

13,483,347,157

41,356,921,323

39,748,246,240

-Revenue without Cash Inflows

-19,215,916,345

-8,114,530,920

-11,586,416,578

-Changes in Asset/ & Liability

-24,064,853,035

84,309,795,972

-80,037,661,724

Cash Flows from Investing

-8,949,607,500

-1,828,197,724

-46,419,085,171

-Cash Inflow from Investing

10,345,382,630

29,783,867,911

16,389,122,883

-Cash Outflows for Investing

-19,294,990,130

-31,612,065,635

-62,808,208,054

Cash Flows from Financing

-589,042,356

-96,512,872,940

92,414,340,827

-Cash Inflows from Financing

3,678,015,144

2,682,000

101,362,455,827

-Cash Outflows from Financing

-4,267,057,500

-96,515,554,940

-8,948,115,000

Increase/Decrease in Cash

9,524,875,508

6,931,783,026

-24,034,213,105

Cash at the Beginning of Year

23,225,591,886

16,293,808,860

40,328,021,965

Cash at the End of Year

32,750,467,394

23,225,591,886

16,293,808,860

 

 

Products, Technologies, Services Description

 

Main Products & Services

PA (Phthalic Anhydride)

-the raw material of Phthalate plasticizers (DOP, DINP, DIDP, DBP...), raw material of resins, used for dyestuff's intermediate.

 

MA (Maleic Anhydride)

-the raw material used for unsaturated polyester resin, detergent and GBL for rechargeable battery.

 

ITA (Itaconic Acid)

-SB latex polymerization stabilizer, surfactant, modifier for acrylic resin.

 

Plasticizer

-Leather,sheet, PVC films, electric wires, etc. Supplements for flexibility, low temperature resistance, volatility-resistance, and electric resistance

(DOP/DINP/DOA/TOTM/DBP/DIDP/DOM/DINA/CITROCIZER/NONPCIZER/OLICIZER/PYROCYZER)

 

Polyol

-used as the raw material of Polyurethane, rigid foams, PIR rigid foam, spray foams, etc. 

(AK POL-1010/1020/1040/260CT/1031/5001/7001/3002/1000/1000S/8001)

 

 

Trade Partners & Competitors

 

Customers

AEKYUNG PNC CO., LTD.(174611-0004610)

Competitors

OCI CO., LTD.

50, SOGONG-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-727-9500  FAX:+82-2-773-0615

 

HANWHA CHEMICAL CORPORATION

17TH FL., HANWHA BLDG., 1, JANGGYO-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-729-2700  FAX:+82-2-729-1455

 

LG CHEM CO., LTD.

24TH FL., LG TWIN TOWER EAST ANNEX, 20, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-3773-1114  FAX:+82-2-3773-7933

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

AEKUYNG CO., LTD. (110111-0028575)

AEKYUNG IND. CO., LTD. (110111-0398275)

KOSPA CORP. (154511-0002686)

AEKYUNG DEVELOPMENT CO., LTD. (134211-0002321)

ATEC CO., LTD(110111-0954374)

AEKYUNG CHEMICAL CO., LTD. (110111-0293011)

AK CHEMTECH CO., LTD.(160111-0004541)

AEKYUNG PNT(134811-0002600)

JS AVIATION CO., LTD.(120111-0562993)

AM PLUS PFV GANGNAM CO., LTD.(110111-4726638)

 

AEKYUNG INDUSTRIAL CO., LTD.(110111-0398275)

(20.23% held by the subject company)

 

AEKYUNG PNC CO., LTD.(174611-0004610)

(86.94% held by the subject company)

 

DP&F(110111-2042820)

(40.93% held by the subject company)

 

SUWON AEKYUNG STATION DEVELOPMENT CO., LTD(130111-0034487)

(24.62% held by the subject company)

 

ARD HOLDINGS, INC. (131311-0029384)

(16.20% held by the subject company)

 

PYUNGTACK STATION DEVELOPMENT CO., LTD.

(8.51% held by the subject company)

 

JEJUAIR CO., LTD.        (220111-0050575)

(20.77% held by the subject company)

 

HONGIK(115911-0021172)

(100.00% held by the subject company)

 

AIRLAINE

(42.86% held by the subject company)

 

MOZLE (57.14% held by the subject company)

AEKYUNG PAVE1

Overseas Office

AEKYUNG HONG KONG CO., LTD.

ROOM 2802-2803,28/F,BANK OF AMERICA, 12 HARCOURT ROAD HONG KONG

TEL: 852-2537-8382 FAX: 852-2537-8891

Subsidiary

AEKYUNG PNC CO., LTD.(174611-0004610)

(86.94% held by the subject company)

 

AK-VINA

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD(110111-0013328)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

142,731

516,346

513,230

Domestic

79,100

335,458

266,677

Total

221,830

851,804

779,907

The Subject deals with the companies in China, Iran, Japan, Thailand, USA and Europe.

 

 

Court Action

 

There is 1 case filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 4,730,000,000 KRW.

 

 

News Clipping

 

---


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.29

UK Pound

1

Rs.88.26

Euro

1

Rs.70.82

 

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

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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.