MIRA INFORM REPORT

 

 

Report Date :

18.04.2013

 

IDENTIFICATION DETAILS

 

Name :

TS CORPORATION

 

 

Registered Office :

6-14, Bukseongdong 1-ga, Jung-gu, Incheon, Korea 400-201

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

06.07.1956

 

 

Com. Reg. No.:

121-81-07309

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Sugar

 

 

No. of Employees :

582

 

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 :

Exist

 

 

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 is currently the world's 12th largest economy. 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. Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

TS CORPORATION

(Korean Company Name : “대한제당()”)

Registered Address

6-14, Bukseongdong 1-ga, Jung-gu, Incheon, Korea

Zip Code

400-201

Tel

+82-32-770-1400

Fax

+82-32-770-1601

E-mail

admin@tsmall.co.kr

Website

www.ts.co.kr

Trading Address

7-23, Sincheon-dong, Songpa-gu, Seoul, Korea (P.O.BOX 331)

Tel

+82-2-410-6000

Fax

+82-2-410-6028

Other Address-Business Office

1229, U 2-dong, Haeundae-gu, Busan, Korea

Tel

+82-51-746-1480

Other Address-Yangju Business Office

18-3, Ugo-ri, Gwangjeok-myeon, Yangju-si, Gyeonggi-do, Korea

Tel

+82-31-837-1300

Other Address-Hongseong Business Office

283-3, Sangha-ri, Hongbuk-myeon, Hongseong-gun, Chungcheongnam-do, Korea

Tel

+82-41-634-8507

Other Address-Daegu Business Office

42-5, Ihyeon-dong, Seo-gu, Daegu, Korea

Tel

+82-53-555-2493

Other Address-Gangwon Business Office

503-1, Dangye-dong, Wonju-si, Gangwon-do, Korea

Tel

+82-33-731-8058

Other Address-Jinju Business Office

62-3, Cheongok-ri, Jinseong-myeon, Jinju-si, Gyeongsangnam-do, Korea

Tel

+82-55-752-0381

Fax

+82-55-752-0382

Other Address-Oksan Factory

359-1, Osan-ri, Oksan-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-269-4368

Fax

+82-43-269-3166

Other Address-Ulsan Factory

480, Yongjam-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-257-4085

Fax

+82-52-257-4090

Type

Export/Import

Industry

Manufacture of Sugar

  Main Business

Sugar, Feed, Food Additives, Food Stuffs

  Sub Business

Manufacture of Prepared Animal Feeds

Established (mm/dd/yyyy)

07/06/1956

The Subject owns the premises of registered HQ address(77,761.80), Seoul Office(5,964.84), Ulsan Factory (77,428.00) and Oksan Factory(44,606.00).

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Natural sugars or sweetening products(50161509)

Sell

Dipping sauces or condiments or spreads or marinades(50171830)

Sell

Edible vegetable and plant oils and fats(50151500)

Sell

Poultry food(10121604)

Sell

Livestock feed(10121500)

Sell

Wine(50202203)

Buy

Feed corn(10121503)

Buy

Organic fertilizers and plant nutrients(10171500)

Buy

Cocoa

Buy

SMP

Buy

Cheese

Buy

Corn for Animal Feed

 

 

CEO’s

 

Name

Sul Yoon-Ho

Address

 

Date of Birth

02/22/1975

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

20,392,490,000

Employees

582

Formation

Listed Company (Korea Stock Exchange : 001790) as of 12/27/1968

A Company of TS Corporation Business Group

Bank Details

Kookmin Bank

Citi Bank, Korea-Jamsil Branch

Korea Exchange Bank

Shinhan Bank-Jamsil Branch

Woori Bank

Korea Development Bank

Hana Bank-Jamsil Station Branch

Corporate Registered No.

120111-0018368

Business Registered No.

121-81-07309

Permit & Licenses

08/1999 ISO 9001

Acquired HACCP in all factories

 

Int’l Trade No.: 741682

Shareholder Position

Name

Shares

%

SUL YOON-HO

1,739,992

21.33

PARK SUN-YOUNG

1,058,190

12.97

SUL HYE-JUNG

711,376

8.72

TRUSTON ASSET MANAGEMENT CO., LTD.(110111-1531519)

545,280

6.68

SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)

446,370

5.47

TREASURY STOCK

852,310

10.45

OTHERS

2,803,478

34.37

TOTAL

8,156,996

100.00

Company History

07/2006 50th Anniversary of TS Corporation

04/2005 Approval of IND (Clinical trial phase III for Aropotin)

09/2003 Received the Order of Industrial Service Merit (Gold Tower) from Korean Government

01/2002 ERP activated for Innovative Management and Global Standardization

09/2000 Unveiled company vision ‘Beyond Happiness’

08/1999 ISO 9001 certification granted

05/1998 Received the Industrial Service Award from Inchon Metropolitan City for peaceful labor management and practice

11/1998 Received the Order of Industrial Service Merit (Stone Tower) from Korean government

10/1997 Established Beijing Popeye’s Food Ltd.

12/1996 Received the Industrial Service Award from Korean government

10/1996 Completed livestock feed plant in Tian Jin, China

02/1995 Established Tian Jin Rainbow Feed Corp. in China

03/1995 Received the Order of Industrial Service Merit (Silver Tower) for its faithful tax payment

04/1995 Changed company name to TS Corporation

04/1994 Established the branch office in Tokyo

03/1992 Established Taihan Sugar Ltd. In Hong kong

02/1991 Established the branch office in New York

02/1991 Completed sugar premix plant in Oksan

10/1991 Constructed new head office building in Chamsil, Seoul

04/1989 Completed specialized feed plant in Kwangju

12/1989 Completed chemical plant in Ulsan

07/1988 Completed livestock feed plant in Ulsan

02/1986 Established Research and Development Center

12/1981 Awarded the Order of Industrial Merit Trophy for achieving annual export sales of US $100Millions

12/1981 Received the Order of Industrial Service Merit (Bronze Tower) from Korean Government

12/1980 Received the Order of Industrial Award from Korean Government

08/1979 Completed sugar refinery in Inchon

05/1979 Completed livestock feed plant in Inchon

08/1969 Changed the company name to Taihan Sugar Industrial Co., Ltd.

07/1956 Incorporated as Daedong Sugar Co., Ltd. with capitals of 2.5 Million won

 

 


Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Vice Chairman & CEO

Mr.

Sul Yoon-Ho

Korean

1975.02.22

Claremont Graduate University

President & CEO

Mr.

Lee Myung-Sik

Korean

1953.11. 9

Yonsei University, Korea

Vice President

Mr.

Ko Duck-Hee

Korean

1954.12.31

Kunkook University, Korea

Sr. Executive Director

Mr.

Kim Young-Kwon

Korean

1958.06.21

Yonsei University, Korea

Outside Director

Mr.

Lee Sang-Wook

Korean

1951.11.01

Yonsei University, Korea

Outside Director

Mr.

Lee Moo-Sung

Korean

1945.03.08

Seoul National University, Korea

Auditor

Mr.

Shin Dong-Hwa

Korean

1944.03.14

Yonsei University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

1,322,819,319,000

996,785,392,000

25,036,247,000

(*)2011

1,243,820,378,000

1,020,285,652,000

6,349,464,000

(*)2010

1,167,501,357,000

934,679,057,000

7,599,959,000

2009

1,111,543,571,000

910,820,699,000

21,470,994,000

2008

1,178,605,850,290

899,205,171,444

4,706,800,000

2007

1,008,092,654,634

589,009,177,898

12,270,699,473

2006

940,941,328,334

556,300,698,069

14,236,474,292

2005

847,895,804,924

522,509,085,613

14,153,462,161

2004

803,433,566,973

511,530,013,450

13,973,350,400

2003

725,731,448,759

512,325,759,187

6,028,372,517

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

 

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

20,392,490,000

Total Issues Shares

8,156,996 (Common: 7,508,720/ Preferable: 648,276)

 


 

Balance Sheet

 

Unit : Thousand Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

996,785,392

1,020,285,652

934,679,057

Current Assets

418,696,910

454,198,066

393,069,492

Cash & Cash Equivalents

65,726,063

96,952,477

83,408,785

Inventories

207,534,001

211,767,286

142,552,637

Trade Receivables & Other Receivables

124,328,916

117,714,886

110,176,060

Current Financial Instruments

21,107,930

27,763,417

56,932,010

Non-Current Assets

578,088,482

566,087,586

541,609,565

Long-Term Trade Receivables & Other Receivables

3,137,282

2,769,341

2,651,074

Tangibles

204,241,941

198,917,267

189,832,154

Investment_Real Estates

111,463,944

111,651,385

111,785,785

Intangibles

7,201,678

6,955,630

6,853,339

Investment_Subsidiaries

233,489,968

227,839,225

218,572,875

Non-Current Financial Instruments

18,424,569

17,825,638

11,785,238

Non-Current Non-Financial Instruments

129,100

129,100

129,100

Total Liabilities

565,195,960

608,477,006

520,196,627

Current Liabilities

308,920,916

322,544,095

314,826,879

Trade Payables & Other Payables

95,932,382

121,009,380

85,815,688

Short-Term Borrowings

139,273,588

150,761,547

143,628,852

Current Portion of Long-Term Borrowings

66,478,698

50,198,801

81,086,308

Accrued Income Tax

4,674,257

181,240

1,376,660

Other Current Financial Debts

2,561,991

393,127

2,919,371

Non-Current Liabilities

256,275,044

285,932,911

205,369,748

Long-Term Trade Payables & Other Payables

6,473,425

6,469,746

6,472,818

Long-Term Borrowings

193,971,433

227,788,805

148,443,895

Provision for Severance & Retirement

14,755,834

11,625,431

9,539,667

Deferred Income Tax Credit

39,952,852

39,260,833

39,070,988

Other Non-Current Financial Debts

58,500

788,096

1,842,380

Non-Current Provisions

1,063,000

 

 

Capital Stock

20,392,490

20,392,490

20,392,490

Capital Surplus

14,707,540

14,707,540

14,714,100

Profit Surplus

217,672,544

198,189,162

197,305,010

Others

178,816,858

178,519,454

182,070,830

Total Equity

431,589,432

411,808,646

414,482,430

Liab. & Shareholder’s Equity

996,785,392

1,020,285,652

934,679,057

 

 

Income Statement

 

Unit : Thousand Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

1,322,819,319

1,243,820,378

1,167,501,357

Cost of Sold Goods

1,181,609,261

1,129,415,787

1,061,395,084

Gross Profit

141,210,058

114,404,591

106,106,273

Selling & Admin. Expenses

101,336,255

88,642,296

88,775,464

Operating Income

39,873,803

25,762,295

17,330,809

Other Income

27,242,148

23,603,139

26,360,393

Other Loss

22,996,088

28,212,247

21,680,323

Finance Income

5,258,382

5,538,503

6,088,003

Finance Expenses

17,924,919

17,579,089

17,288,203

Income Before Taxes

31,453,326

9,112,601

10,810,679

Income Taxes Expenses

6,417,079

2,763,137

3,210,720

Net Income

25,036,247

6,349,464

7,599,959

 

 

Cash Flows

 

Unit : Thousand Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

11,435,533

-21,263,131

22,297,091

Net Income

25,036,247

6,349,464

7,599,959

Adjustment

-710,068

-12,940,701

28,521,846

Dividends Received

1,349,449

1,055,350

1,151,111

Interests Paid

-17,750,565

-18,156,626

-17,468,004

Interests Received

4,037,386

5,685,735

5,096,353

Income Taxes

-526,916

-3,256,353

-2,604,174

Cash Flows from Investing

-17,897,565

-5,887,546

-90,737,847

Cash Flows from Financing

-24,752,294

40,678,588

14,201,990

Increase/Decrease in Cash

-31,226,414

13,543,692

-54,202,782

Cash at the Beginning of Year

96,952,477

83,408,785

137,611,567

Cash at the End of Year

65,726,063

96,952,477

83,408,785

 

 


Products, Technologies, Services Description

 

Main Products & Services

Sugar & Foodstuffs

Animal Feed

Chemicals

Bio Business

 

Brand Name: Foodream, Rainbow Animal Feed

 

 

Trade Partners & Competitors

 

Customers

HANYEADEU CO. LTD (134511-0031259)

Competitors

CJ CHEILJEDANG CORPORATION(110111-3748253)

500, NAMDAEMUNNO 5-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-726-8114 FAX:+82-2-726-8319

 

SAMYANG CORPORATION(110111-0026181)

263, YEONJI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-740-7114  FAX:+82-2-743-7720

 

DAESANG CORPORATION(110111-0327125)

DAESANG BLDG., 96-48, SINSEOL-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2220-9500  FAX:+82-2-2232-3719

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

GYEONGIN TV CO., LTD.(121111-0149021)

(16.86% held by the subject company)

 

TS DEVELOPMENT CO., LTD(110111-0178057)

(39.54% held by the subject company)

 

ART JAIM BIOTEC CO., LTD.     (110111-1899652)

(35.00% held by the subject company)

Overseas Office

LA OFFICE

970W 190TH ST. SUITE 490, TORRANCE CA 90502, USA

TEL :+1-310-329-6468 FAX :+1-310-329-0614

 

TOKYO OFFICE

7TH FLOOR, UCHIKANDA TK BLDG,

5-13 UCHIKANDA 1-CHOME, CHIYODA-KU, TOKYO, JAPAN

TEL :+81-3-5217-3434 FAX :+81-3-3233-1120

 

TS(HONG KONG) CO., LTD.

1104 & 5, TESBURY CENTRE 24-32, QUEEN'S ROAD EAST WANCHAI, HONG KONG

TEL :+852-2865-4266 FAX :+852-2865-3766

Subsidiary

SAMSUNG MUTUAL SAVINGS & FINANCE CO., LTD.(110111-0113475)

(100.0% held by the subject company)

 

TS HAIMARROW CO., LTD(110111-0801492)

(79.53% held by the subject company)

 

GONGJU DEVELOPMENT.CO.LTD(110111-0717590)

(100.0% held by the subject company)

 

TS WOOIN CO., LTD.(110111-0169999)

(92.06% held by the subject company)

 

TS DAIRY PRODUCTS CO., LTD.(150111-0025490)

(50.96% held by the subject company)

 

TS C&I CO., LTD.(110111-1458789)

(99.67% held by the subject company)

 

IC-GEN CORP.(110111-2317562)

(69.99% held by the subject company)

 

TIANJIN RAINBOW FEED CO., LTD

(80.00% held by the subject company)

 

TS(HONG KONG) CO., LTD.

(100.0% held by the subject company)

 

NAMKYUNG CHAEHONG ANIMAL FEED CO., LTD.(CHINA)

(52.38% held by the subject company)

Cooperative Enterprise

-Technical Support

BOCM PAULS-UK

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Thousand KRW

2011

2010

2009

Export

382,678,927

324,462,427

224,068,082

Domestic

1,052,597,143

1,019,986,967

887,475,489

Total

1,435,276,070

1,344,449,394

1,111,543,571

The subject imports Cocoa and other raw materials from Thailand, South Africa, Guatemala and Australia, and exports to Asian Countries including Japan, Hong Kong and China.

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

2008GADAN2487

 

The Subject Company

Cho Jong-Jin

Claim for Guaranteed Debts

59,294

Proceeding

2008GAHAP211

 

The Subject Company

Kwon Jae-Hyun & Others

Claim for Receivables

306,396

Proceeding

2008GADAN14981

 

The Subject Company

Seo Yoon-Ja & Others

Claim for Receivables

42,157

Proceeding

2008GASO233986

 

The Subject Company

Chungjungkei Co., Ltd.(111511-0052343)

Claim for Receivables

15,298

Proceeding

2008GASO4519

 

The Subject Company

Lee Byung-Soon

Claim for Receivables

4,151

Proceeding

2008GADAN1650

 

Choi In-Kyu

The Subject Company

Claim for Deleting the right

31,870

Proceeding

2008GADAN1934

 

Park Soo-Yong

The Subject Company

Conformation on not existing the debts

20,102

Proceeding

2007GAHAP2816

 

Purina Korea, Inc.

The Subject Company

-

284,038

Proceeding

2008GADAN3162

 

Milim Eggland Co., Ltd.

The Subject Company

Conformation on not existing the debts

72,559

Proceeding

2008KADAN1319

 

Lee Byung-Soon

The Subject Company

Cancellation on imposed the provisional seizure

-

Proceeding

2008GADAN67423

 

Jung Man-Young

The Subject Company

Refund on Profit

60,671

Proceeding

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.94

UK Pound

1

Rs.82.76

Euro

1

Rs.71.04

 

 

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%)

 

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.