MIRA INFORM REPORT

 

 

Report Date :

30.11.2012

 

IDENTIFICATION DETAILS

 

Name :

DONGBU METAL CO., LTD.

 

 

Registered Office :

21th Fl., Dongbu Financial Center, 891-10, Daechi 4-dong, Gangnam-gu, Seoul, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

04.02.2008

 

 

Com. Reg. No.:

120-87-24194

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Ferro-Alloys

 

 

No. of Employees :

446

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

South Korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

 

Basic

 

Company Name

DONGBU METAL CO., LTD.

(Korean Company Name :  “(주)동부메탈”)

Registered Address

891-10, Daechi 4-dong, Gangnam-gu, Seoul, Korea

Building

21th Fl., Dongbu Financial Center

Zip Code

135-523

Tel

+82-2-3484-1800

Fax

+82-2-553-4105

E-mail

dbmetal@dongbu.com

Website

www.dongbu-metal.com

Trading Address

21th Fl., Dongbu Financial Center, 891-10, Daechi 4-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-3484-1800

Fax

+82-2-553-4105

Other Address-Donghae Factory

882, Songjeong-dong, Donghae-si, Gangwon-do, Korea

Tel

+82-33-530-7221

Fax

+82-33-533-5250

Other Address-Busan Office

77-1, Jungang-dong 4-ga, Jung-gu, Busan, Korea

Tel

+82-51-465-1241

Fax

+82-51-469-0344

Other Address-Pohang Office

792-1, Goedong-dong, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel

+82-54-286-2900

Fax

+82-54-286-2986

Other Address-Gwangyang Office

1657-4, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-0725

Fax

+82-61-792-3064

Type

Export

Industry

Manufacture of Ferro-Alloys

Main Business

HC FeMn, Ref. FeMn, SiMn FeMn, SiMnLc

Sub Business

 

Established (mm/dd/yyyy)

02/04/2008

The Subject owns the premises of Donghae Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Stainless steel plate(30102205)

 

 

 

 

CEO’s

 

Name

Chung Hong-Yong

Address

Suite 505-1102, 1273, Sinjeong-dong, Yangcheon-gu, Seoul, Korea

Date of Birth

10/08/1944

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

15,000,000,000

Employees

446

Formation

Co., Ltd by Shares

A Company of DONGBU Group

Bank Details

Hana Bank

Korea Development Bank

Citibank, Korea

Corporate Registered No.

110111-3836678

Business Registered No.

120-87-24194

Permit & Licenses

Int’l Trade No.: 45339374

Shareholder Position

Name

Shares

%

DONGBU INVESTMENT CO., LTD.(110111-4220359)

9,300,000

31.00

DONGBU HITECK CO., LTD.(110111-0026206)

9,385,040

31.28

DONGBU CNI CO., LTD.(110111-0210859)

3,002,200

10.01

POSCO(174611-0000741)

3,000,000

10.00

CHINA STEEL CORPORATION

1,500,000

5.00

DONGBU STOCK INVESTMENT CO., LTD.(110111-4983329)

2,550,000

8.50

OTHERS

1,262,760

4.21

TOTAL

30,000,000

100.00

Company History

02/04/2008 Incorporated as the present name after spin off from DONGBU HITEK CO., LTD.(110111-0026206)

07/15/2008 Increased the authorized shares to 1,000,000,000 shares from 10,000,000 shares

08/26/2008 Spin off the par value to 500 KRW from 5,000 KRW

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Chung Hong-Yong

Male

Korean

10/08/1944

Chairman & CEO

Mr.

Kim Joon-Ki

Male

Korean

12/04/1944

Vice President & CFO

Mr.

Kwak Won-Ryeol

Male

Korean

06/13/1953

Vice President/Marketing

Mr.

Choi Boo-Cheon

Male

Korean

06/06/1952

Outside Director

Mr.

Chae Young-Bok

Male

Korean

05/25/1937

Outside Director

Mr.

Park Deuk-Pyo

Male

Korean

12/30/1935

Auditor

Mr.

You Si-Young

Male

Korean

12/1942

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2012

466,305,794,402

713,521,968,470

5,835,577,297

2011

675,424,900,609

696,479,179,122

10,562,961,514

2010

502,515,763,229

591,373,788,197

58,231,447,225

2009

393,950,167,437

356,981,400,470

14,075,449,730

2008

457,150,455,457

451,946,864,655

90,823,325,068

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

15,000,000,000

Total Issues Shares

30,000,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

713,521,968,470

696,479,179,122

591,373,788,197

Current Assets

232,748,846,274

213,975,636,466

123,426,985,123

-Quick Assets

81,647,711,398

86,188,243,009

40,427,991,003

-Inventories

151,101,134,876

127,787,393,457

82,998,994,120

Fixed Assets

480,773,122,196

482,503,542,656

467,946,803,074

-Investment

16,850,163,479

22,178,080,090

39,482,072,811

-Tangibles

440,732,375,212

442,566,395,914

414,945,316,723

-Intangibles

4,345,435,175

993,618,542

74,156,390

-Others

18,845,148,330

16,765,448,110

13,445,257,150

Total Liabilities

566,227,694,364

550,520,482,313

445,443,112,319

Current Liabilities

289,708,038,025

394,098,877,113

262,011,344,246

Fixed Liabilities

276,519,656,339

156,421,605,200

183,431,768,073

Capital Stock

15,000,000,000

15,000,000,000

15,000,000,000

Capital Surplus

62,800,453,855

62,800,453,855

62,800,453,855

Profit Surplus

69,493,820,251

68,158,242,954

68,130,222,023

Capital Adjustment

-　

-　

-　

Total Equity

147,294,274,106

145,958,696,809

145,930,675,878

Liab. & Shareholder’s Equity

713,521,968,470

696,479,179,122

591,373,788,197

 

Current Liabilities

289,708,038,025

394,098,877,113

262,011,344,246

Trade Payables

37,986,035,164

25,201,363,404

6,651,919,779

Short-Term Borrowings

132,256,376,098

170,940,059,215

99,092,179,719

Account Payables

31,542,161,531

36,071,487,637

119,640,513,986

Advance Receipts

379,746,576

210,062,269

-

Withholdings

582,312,780

843,119,634

563,081,396

Accrued Expenses

13,368,154,950

14,808,476,120

8,437,302,255

Accrued Income Tax

884,892,969

2,106,637,469

11,985,578,078

Current Portion of Long-Term Debts

72,708,357,957

143,709,474,565

15,512,761,605

Current Portion of Deferred Income Tax Credit

-　

208,196,800

128,007,428

Fixed Liabilities

276,519,656,339

156,421,605,200

183,431,768,073

Long-Term Borrowings

74,330,651,459

104,569,113,830

82,023,762,710

Debentures

200,000,000,000

50,000,000,000

100,000,000,000

Provision for Severance & Retirement

8,078,595,470

6,840,268,318

4,854,082,913

Non-Current Portion of Deferred Income Tax Credit

45,273,667

322,666,667

501,279,654

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

466,305,794,402

675,424,900,609

502,515,763,229

Cost of Sold Goods

400,403,730,539

575,658,941,923

399,132,869,725

Gross Profit

65,902,063,863

99,765,958,686

103,382,893,504

Selling & Admin. Expenses

38,389,094,716

53,129,300,430

35,591,865,283

Operating Income

27,512,969,147

46,636,658,256

67,791,028,221

Non-Operating Income

12,410,048,997

23,140,591,488

37,381,161,877

Non-Operating Expenses

32,758,736,908

53,213,453,154

34,777,503,266

Income Before Taxes

7,164,281,236

16,563,796,590

70,394,686,832

Income Taxes Expenses

1,328,703,939

6,000,835,076

12,163,239,607

Net Income

5,835,577,297

10,562,961,514

58,231,447,225

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

9,486,861,097

4,202,812,837

102,591,876,916

-Net Income

5,835,577,297

10,562,961,514

58,231,447,225

-Exp. without Cash Outflow

30,151,057,053

40,213,145,669

14,767,827,292

-Revenue without Cash Inflows

-4,239,905,255

-855,392,193

-457,134,701

-Changes in Asset/ & Liability

-22,293,788,250

-45,717,902,153

30,049,737,100

Cash Flows from Investing

-8,428,921,062

-164,238,814,109

-218,298,675,137

-Cash Inflow from Investing

35,240,036,022

12,005,864,024

11,581,086,880

-Cash Outflows for Investing

-43,668,957,084

-176,244,678,133

-229,879,762,017

Cash Flows from Financing

7,035,670,399

159,862,023,387

87,884,215,057

-Cash Inflows from Financing

280,132,544,773

185,874,784,992

185,520,055,057

-Cash Outflows from Financing

-273,096,874,374

-26,012,761,605

-97,635,840,000

Increase/Decrease in Cash

8,093,610,434

-173,977,885

-27,822,583,164

Cash at the Beginning of Year

1,555,947,891

1,729,925,776

29,552,508,940

Cash at the End of Year

9,649,558,325

1,555,947,891

1,729,925,776

 

 

Products, Technologies, Services

Description    

 

Main Products & Services

HC FeMn, Ref. FeMn, SiMn FeMn, SiMnLc

Ferroalloy

Specialized Products

 

Trade Partners & Competitors

 

Suppliers

ASSMANG

BHPB

ERAMET

Customers

POSCO(174611-0000741)

HYUNDAI STEEL COMPANY(120111-0001743)

DONGBU CNI CO., LTD.(110111-0210859)

A.MITTAL

NSC

JFE

CSC

Competitors

DONGIL INDUSTRIES CO., LTD.

800, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-3201  FAX:+82-54-285-4151

 

MECHEM KOREA CO., LTD.

9TH FL., ILJIN BLDG., 50-1, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-323-5193  FAX:+82-2-323-5195

 

KTC KOREA CO., LTD.

567-49, YEONNAM-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-3144-5052  FAX:+82-2-3141-5846

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic

DONGBU STEEL CO., LTD.(110111-0393308)

DONGBU HITECK CO., LTD.(110111-0026206)

DONGBU FINE CHEMICALS CO., LTD.(110111-0026206)

DONGBU INVESTMENT CO., LTD.(110111-4220359)

DONGBU FINECELL CO., LTD.(110111-1504102)

TOMATO LSI INC.(110111-1801988)

SOLEX SEMICONCODUCTOR CO., LTD.(110111-3727611)

DONGBU METAL CO., LTD.(110111-3836678)

DONGBU CORPORATION(110111-0005002)

DONGBU ENGINEERING CO., LTD. (110111-0659536)

DONGBU PUSAN CONTAINER TERMINAL CO., LTD.(180111-0356013)

CENTRAL PIER OPERATION CO., LTD.(180111-0290237)

DONGBU GWANGYANG LOGISTICS CENTER CO., LTD.(204611-0025180)

DONGBU EXPRESS MARINE CO., LTD.(180111-0605866)

FINE-ADVANTAS AMC CORPORATION CO., LTD.(110111-3783811)

DONGBU COMPLEX LOGISTICS CO., LTD.(204611-0026203)

DAESUNG FREZING TRANSPORTATION CO., LTD.(115611-0011096)

DAESUNG TOTAL LOGISTICS SYSTEM CO., LTD.(115611-0038892)

DCT CO., LTD.(144711-0015786)

DONGBU GWANGYANG STEEL DISTRIBUTION CENTER CO., LTD.(204611-0027649)

BAIKSAN ITS CO., LTD.(110111-2585630)

DONGBU INSURANCE CO., LTD.(110111-0095285)

DONGBU AUTOMOBILE INSURANCE CLAIM ADJUSTMENT CO., LTD.(110111-0367402)

DONGBU SECURITIES CO., LTD.(110111-0339956)

DONGBU MUTUAL SAVING BANK (110111-0135627)

DONGBU ASSET MANAGEMENT CO., LTD. (110111-1363160)

DONGBU CNI CO., LTD.(110111-1054339)

GONGJU ENVIRONMENT CO., LTD.(161211-0011288)

DONGBU INCHEON PORT TERMINAL CO., LTD.(120111-0305327)

DONGBU LIFE INSURANCE CO., LTD.(110111-0623606)

DONGBU CAPITAL CORP. (110111-1220641)

DONGBU CO., LTD. (110111-0367212)

DONGBU WORLD INC.(110111-0628086)

Affiliates-Overseas

DONGBU AUSTRALIA PTY. LTD.

DONGBU EXPRESS INDIA LOGISTICS PRIVATE LIMITED

YOUNGKU DONGBU HANNONG SEEDS CO., LTD.

DONGBUCHEM.HK LTD.

EASTERNCHEM PTE. LTD

DONGBU HITEK USA, INC.

DONGBU HIGHTECH HONGKONG CO., LIMITED

DONGBU HITECK(SHIMCHEON) CO., LTD.(CHINA)

MICROCMOS, INC.

DONGBU ZSC

DONGBU HANNONG (HEILONGJIANG) CHEMICAL CORP.

SOLEX SEMICONDUCTOR(SHANGHAI) R&D LTD

SOLEX SEMICONDUCTOR INDIA PRIVATE LIMITED

SHANGHAI DONGBU INTERNATIONAL FREIGHT AGENCY CO., LTD.

DONGBU ELECTRIC COMPENENTS CO., LTD.

DONGBU PRECISION PRODUCTS CO., LTD.

DONGBU U.S.A. INC.

DONGBU JAPAN CO., LTD.

DONGBU SINGAPORE PTE, LTD.

Overseas Office

DONGBU METAL CO., LTD. JAPAN BRANCH

DAIICHITAMURACHO BLDG, 6F SHIMBASHI 2-1-10, MINATO-KU,TOKYO, 105-0004, JAPAN

TEL:+81-03-3519-6971~6972 FAX:+81-03-3501-6643

 

AMERICA BRANCH

1701 E WOODFIELD ROAD UNIT #705 SCHAUMBURG, IL 60173

TEL:+1-847-463-1464 FAX:+1-847-463-1465

 

MIDDLE EAST BRANCH

4EB 242, DUBAI AIRPORT FREE ZONE PO BOX 371017, DUBAI, U.A.E.

TEL:+971-4-701-7456 FAX:+971-4-701-7457

Joint Venture

POS-HIMETAL CO., LTD.(204611-0030197)

(20.0% held by the subject company, 80.0% held by POSCO(174611-0000741))

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

304,657

443,663

282,998

Domestic

161,649

231,762

219,518

Total

466,306

675,425

502,516

The Subject exports to USA and Japan.

 

 

 

 

Court Action

 

Not Available

 

 

News Clipping

 

---

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.20

UK Pound

1

Rs.88.37

Euro

1

Rs.71.47

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.