MIRA INFORM REPORT

 

 

Report Date :

06.10.2012

 

IDENTIFICATION DETAILS

 

Name :

HANKUK GLASS INDUSTRIES INC.

 

 

 

 

Registered Office :

15th Fl., Yeongpung Bldg. 33, Seorin-dong, Jongno-gu, Seoul, Korea 110-752

 

 

 

 

Country :

South Korea

 

 

 

 

Financials (as on) :

30.06.2012

 

 

 

 

Date of Incorporation :

25.03.1957

 

 

 

 

Com. Reg. No.:

116-81-00115

 

 

 

 

Legal Form :

Listed Company

 

 

 

 

Line of Business :

Manufacture of Plate Glass

 

 

 

 

No. of Employees :

427

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

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 Information

 

Company Name

HANKUK GLASS INDUSTRIES INC.

(Korean Company Name : “한국유리공업(주)”)

Registered Address

33, Seorin-dong, Jongno-gu, Seoul, Korea

Building

15th Fl., Yeongpung Bldg.

Zip Code

110-752

Tel

+82-2-3706-9114

Fax

+82-2-3706-9363

E-mail

ehjang@hanglas.co.kr;jlmoon@hanglas.co.kr

Website

www.hanglas.co.kr

Trading Address

15th Fl., Yeongpung Bldg., 33, Seorin-dong, Jongno-gu, Seoul, Korea

Tel

+82-2-3706-9114

Fax

+82-2-3706-9363

Other Address-Busan Factory

345, Ilgwang-myeon, Gijang-gun, Busan, Korea

Tel

+82-51-720-4214

Fax

+82-51-721-5697

Other Address-Gunsan Factory

77, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63 -460-4251

Fax

+82-63-462-2151

Other Address-Daejeon Sales Office

20-1, Yongjeon-dong, Dong-gu, Daejeon, Korea

Tel

+82-42-623-4539

Fax

 

Type

Export/Import

Industry

Manufacture of Plate Glass

  Main Business

Flat Glass, Pair Glass, Automotive Safety Glass, Specialty Glass

  Sub Business

 

Established (mm/dd/yyyy)

03/25/1957

The Subject owns the premises of Busan Factory and Gunsan Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Glass products(30171700)

Sell

Float glass(30171708)

Sell

Safety glass(30171707)

 

 

CEO’s

 

Name

Lee Nam-Geun

Address

Suite 126-907, 38, Mokdongseo-ro, Yangcheon-gu, Seoul, Korea

Date of Birth

09/08/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

69,882,185,000

Employees

427

Formation

Listed Company (Korea stock Exchange : 002000) as of 06/27/1969

Foreign Direct Investment Corporation

Bank Details

Korea Development Bank-HQ Office

Corporate Registered No.

110111-0027345

Business Registered No.

116-81-00115

Permit & Licenses

Int’l Trade No.: 984676

Shareholder Position

Name

Shares

%

SOFIAG

4,481,748

42.54

NAI

3,474,738

32.98

SGGF

155,000

1.47

LEE SE-WOONG

634,781

6.03

OTHERS

1,788,160

16.97

TOTAL

10,534,427

100.00

Company History

03/25/1957 Incorporated as the present name

04/1971 Registered as a Foreign Direct Investment Corporation

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

De Ni Meus

Belgium

1966.03.30

-.Universite catholique de Louvain-la-Neuve - Belgium

-.Managing Director of Saint-Gobain Glass Mexico, Cuautla, Mexico. (Flat Glass)

President & CEO

Mr.

Lee Nam-Geun                

Korean

1950.09.08

Seoul National University, Korea

Director

Mr.

Usah Soibi

French

1969.08

Ecole Superieur de Physique et

  Chimie Industrielles de Paris, Engineer

-.President of Flat Glass Sector

  Asia-Pacific Region

Director

Mr.

Jan Piere Floris

French

1948.07.09

-

Director

Mr.

Immanuel Norman

French

1971.03.19

-.Ecole Polytechnique

Outside Director

Mr.

Philip Ttiro

French

1959.07

-Graduated from ESSEC

-Heidrick & Struggles Seoul Office Managing Partner

-Korn/Ferry International Seoul Office Senior Client Partner

Outside Director

Mr.

Choi Young-Ik

Korean

1963.06.04

Washington University, USA

Auditor

Mr.

Chae Won-Seok

Korean

1954년 12월

George Washington University, USA

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2011

126,186,369,444

556,763,290,074

-48,788,026,037

(*)2011

354,479,707,478

652,963,045,453

22,018,101,468

(*)2010

353,017,520,957

654,782,811,523

25,902,141,596

2009

309,822,051,222

600,719,614,799

(-)20,095,103,232

2008

292,656,073,346

675,782,377,349

(-)11,113,718,884

2007

277,062,714,570

670,584,494,901

(-)20,378,650,026

2006

251,831,658,380

699,197,875,716

(-)537,068,788

2005

280,231,652,564

710,696,709,754

1,949,742,825

2004

 315,908,369,459

 729,615,173,663

 18,135,325,537

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

120,000,000,000

Paid-Up Capital(KRW)

69,882,185,000

Total Issues Shares

10,534,427(Common : 10,079,660 / Preferable ; 454,767)

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

556,763,290,074

652,963,045,453

654,782,811,523

Current Assets

173,664,508,134

235,428,855,600

232,381,100,979

Cash & Cash Equivalents

58,060,859,339

112,352,053,873

121,159,082,981

Trade Receivables

33,842,771,251

36,341,736,223

51,449,246,523

Current Financial Instruments

2,555,181,266

2,677,108,938

10,807,377,483

Derivatives

19,403,746

128,708,706

42,007,019

Inventories

77,260,253,388

79,069,965,506

47,498,722,152

Other Current Assets

1,926,039,144

4,859,282,354

1,424,664,821

Non-Current Assets

383,098,781,940

417,534,189,853

422,401,710,544

Marketable Financial Instruments

2,558,848,517

1,743,278,717

19,107,860,161

Investment_Related Companies

162,548,506,960

191,553,653,901

177,562,016,211

Tangibles

213,209,274,828

219,086,103,778

220,506,967,651

Intangibles

2,348,402,789

2,458,114,670

2,489,870,298

Non-Current Financial Instruments

2,369,448,693

2,622,188,714

2,522,864,973

Non-Current Non-Financial Instruments

64,300,153

70,850,073

212,131,250

Total Liabilities

82,781,024,967

121,954,963,759

129,933,845,181

Current Liabilities

62,263,378,455

97,540,041,090

97,389,655,699

Trade Payables

23,149,492,102

44,317,075,397

32,838,076,552

Other Current Financial Debts

34,736,256,927

39,485,127,499

46,758,745,205

Accrued Income Tax

0

3,256,269,078

4,983,318,905

Derivatives

99,520,807

112,013,912

87,417,995

Other Current Liabilities

4,278,108,619

10,369,555,204

12,722,097,042

Non-Current Liabilities

20,517,646,512

24,414,922,669

32,544,189,482

Provision for Severance & Retirement

5,314,465,240

4,594,198,680

0

Other Long-Term Salaries

1,372,416,527

1,469,773,949

9,682,426,666

Non-Current Finance Liabilities

11,136,368,592

10,851,271,866

11,731,286,765

Other Provisions

2,271,522,085

2,142,245,211

3,660,895,421

Deferred Income Tax Credit

422,874,068

5,357,432,963

7,469,580,630

Capital Stock

69,882,185,000

69,882,185,000

69,882,185,000

Capital Surplus

71,305,322,633

71,305,322,633

71,305,322,633

Profit Surplus

20,916,068,114

78,296,462,926

66,014,679,493

Others

311,878,689,360

311,524,111,135

317,646,779,216

Total Equity

473,982,265,107

531,008,081,694

524,848,966,342

Liab. & Shareholder’s Equity

556,763,290,074

652,963,045,453

654,782,811,523

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

126,186,369,444

354,479,707,478

353,017,520,957

Cost of Sold Goods

119,363,233,149

288,985,525,970

275,303,464,370

Gross Profit

6,823,136,295

65,494,181,508

77,714,056,587

Selling & Admin. Expenses

19,431,210,650

46,833,788,280

54,772,784,979

Other Operating Income

9,606,201,688

11,283,836,314

11,031,945,404

Other Operating Expenses

15,269,391,151

5,405,871,319

5,021,213,308

Profits from Investment on Related Companies

31,968,662,593

0

0

Profits from Tangible Assets

7,052,086,672

0

　

Operating Income

-57,292,013,083

24,538,358,223

28,952,003,704

Finance Income

4,362,541,100

7,057,478,845

4,918,646,759

Finance Expenses

440,158,234

1,123,829,409

874,834,210

Income Before Taxes

-53,369,630,217

30,472,007,659

32,995,816,253

Income Taxes Expenses

-4,581,604,180

8,453,906,191

7,093,674,657

Net Income

-48,788,026,037

22,018,101,468

25,902,141,596

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

-43,238,413,914

7,411,200,670

75,152,146,677

Net Income

-53,369,630,217

30,472,007,659

32,995,816,253

Adjustment

35,682,718,058

5,515,667,548

22,253,859,121

Changes in Asset/ & Liability

-26,006,620,284

-24,803,568,328

15,734,450,220

Interests Received

982,417,082

3,280,955,777

3,408,424,340

Dividends Received

3,359,247,165

3,086,607,462

851,241,620

Income Taxes

-3,886,545,718

-10,140,469,448

-91,644,877

Cash Flows from Investing

-2,865,861,345

-8,031,310,503

-55,452,029,171

Cash Flows from Financing

-8,186,919,275

-8,186,919,275

-1,023,509,415

Increase/Decrease in Cash

-54,291,194,534

-8,807,029,108

18,676,608,091

Cash at the Beginning of Year

112,352,053,873

121,159,082,981

102,482,474,890

Cash at the End of Year

58,060,859,339

112,352,053,873

121,159,082,981

 

 

Products, Technologies, Services Description

 

Main Products & Services

Flat Glass

Automotive Glass

Specialty Glass

 

Brand Name : HANGLAS

 

 

Trade Partners & Competitors

 

Competitors

KOREA AUTOGLASS CORPORATION

1B, JEONUI INDUSTRIAL COMPLEX, 613, SINJEONG-RI, JEONUI-MYEON, YEONGI-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-860-5000~9  FAX:+82-41-860-5030

 

DONG-KUK GLASS INDUSTRY CO., LTD.

10-14, YANGJAE 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-576-3855  FAX:+82-2-573-3891

 

KEUM SUNG GLASS TECH CO., LTD.

594-1, SINJIN-RI, GWANGCHEON-EUP, HONGSEONG-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-641-6263  FAX:+82-41-641-6267

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANKUK SECKURIT LIMITED(120111-0008294)

(49.94% held by the subject company)

55 SORYONG-DONG, GUNSAN, JEOLLABUK-DO, KOREA

TEL:+82-63-469-2315 FAX:+82-63-469-2324

 

HANKUK HANLSO CO., LTD.(120111-0164351)

(100.00% held by the subject company)

585-14 GAJWA-DONG, SEO-GU, INCHEON, KOREA

TEL : +82-32-580-0371 FAX:+82-32-580-0319

 

CHEIL GLASS INDUSTRY CO., LTD.(120111-0019267)

(30.00% held by the subject company)

Overseas Office

SAINT-GOBAIN HANGLAS NANJING INC.

(50.00% held by the subject company)

XISHANQIAO ZHONGHUAMENWAI NANJING 210041 CHINA

TEL:+(025) 2406635 FAX:+(025) 2407422

 

SAINT-GOBAIN SEKURIT HANGLAS POLSKA SP.ZO.O

(12.00% held by the subject company)

UL. SZKLARSKA 27 68-205 ZARY, POLAND

TEL:+48-32-295-3330 FAX:+48-32-295-3399

 

KUNSHAN YONGXIN GLASSWARE CO., LTD.

222 KUNTAI ROAD, KUNSHAN CITY, JIANGSU PROVINCE, CHINA

TEL:+86-520-766-1077 FAX:+86-520-766-4219

 

SAINT-GOBAIN HANGLAS SEKURIT (SHANGHAI) CO., LTD.

(50.00% held by the subject company)

NO.18 WENJING ROAD, MINHANG ECON. & TECH. DEVELP. ZONE SHANGHAI, CHINA

TEL:+86-21-6463-0016 FAX:+86-21-6463-0061

 

SAINT-GOBAIN HANGLAS CLFG QINGDAO INC.

201, LIAOHE RD, 266500, ECONOMIC & TECHNICAL DEVELOPMENT ZONE QINGDAO , SHANDONG PROVINCE, CHINA

TEL:+86-532-690-9923 FAX:+86-532-690-8866

 

SAINT-GOBAIN HANGLAS (SHANHAI) CONSULTING CO., LTD.

(50.00% held by the subject company)

RM. 1717, OCEAN TOWER, 550, YAN AN DONG RD. HUANG PU SHANGHAI, 20001, CHINA

TEL:+86-21-63611076 FAX:+86-21-63603779

 

SAINT-GOBAIN HANGLAS (JAPAN) KK

3-7, KOJIMACHI, CHIYODA-KU, TOKYO, 102-0083, JAPAN

TEL:+81-3-52750889 FAX:+86-3-52750913

 

YONGXIN GLASS

(60.0% held by the subject company)

Subsidiary

HANKUK HANLSO CO., LTD.(120111-0164351)

(100.00% held by the subject company)

585-14 GAJWA-DONG, SEO-GU, INCHEON, KOREA

TEL : 82-32-580-0371 FAX:+82-32-580-0319

 

KUNSHAN YONGXIN GLASSWARE CO., LTD.

222 KUNTAI ROAD, KUNSHAN CITY, JIANGSU PROVINCE, CHINA

TEL:+86-520-766-1077 FAX:+86-520-766-4219

Corporate Ownership

COMPAGNIE DE SAINT-GOBAIN

SOFIAG

Cooperative Enterprise

-Technical Support from

PILKINGTON PLC(UK)

BOC TECH LTD AIRCO, YNC

RESEARCH FRONTIERS INC.

PPG INDUSTRIES INC.

SAINT-GOBAIN VITRAGE S.A

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

7,730

21,201

26,028

Domestic

118,456

333,279

326,990

Total

126,186

354,480

353,018

The Subject deals with the companies in China and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.62

UK Pound

1

Rs.83.57

Euro

1

Rs.67.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.