MIRA INFORM REPORT

 

 

Report Date :

05.08.2013

 

IDENTIFICATION DETAILS

 

Name :

DONG KWANG PHARM CO., LTD.

 

 

Registered Office :

60, Myeong-dong 1-ga, Jung-gu, Seoul, Korea 100-021

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

02.11.1970

 

 

Com. Reg. No.:

201-81-31347

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Finished Medicaments

 

 

No. of Employees :

415

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

DONG KWANG PHARM CO., LTD.

(Korean Company Name : “동광제약()”)

Registered Address

60, Myeong-dong 1-ga, Jung-gu, Seoul, Korea

Zip Code

100-021

Tel

+82-2-776-7641~2

Fax

+82-2-777-4874

E-mail

webmaster@dkpco.co.kr

Website

www.dkpco.co.kr

Trading Address

60, Myeong-dong 1-ga, Jung-gu, Seoul, Korea

Tel

+82-2-776-7641~2

Fax

+82-2-777-4874

Other Address

439-1, Mogok-dong, Pyeongtaek-si, Gyeonggi-do, Korea

Tel

+82-31-665-9761

Fax

+82-31-665-9766

Type

Export

Industry

Manufacture of Finished Medicaments

  Main Business

Pharmaceuticals, Chemicals, Cosmetics

Established (mm/dd/yyyy)

11/02/1970

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Drugs used for respiratory tract disorders(51161700)

Sell

Antacids and antiflatulents(51171500)

Sell

Mirtazapine(51141604)

Sell

Dietary supplements and nutritional therapy products(51191900)

Sell

Antidiarrheals(51171700)

Sell

Dental drugs(51212100)

Sell

Autonomic nervous system drugs(51150000)

Sell

Drugs affecting the gastrointestinal system(51170000)

Sell

Antiasthmatic drugs(51161500)

Sell

Cough and cold and antiallergy products(51161800)

Buy

Cefixime(51101599)

Buy

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Buy

Non narcotic analgesics and antipyretics(51142000)

Buy

Oils(12181600)

Buy

Norfloxacin(51101546)

Buy

Ibuprofen(51142106)

Buy

Mefenamic acid(51142012)

Buy

Gliclazide(51181509)

Buy

Antiulcer and related gastrointestinal GI drugs(51171900)

 

 


CEO’s

 

Name

Yu Byung-Kil

Address

179-20, Sinyeong-dong, Jongno-gu, Seoul, Korea

Date of Birth

06/29/1942

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,450,000,000

Employees

415

Formation

Co., Ltd by Shares

Bank Details

Citi Bank-Daewoo center Branch

Corporate Registered No.

110111-0037708

Business Registered No.

201-81-31347

Permit & Licenses

07/2012 CE Mark

 

Int’l Trade No.: 610672

Shareholder Position

Name

Shares

%

CORYO INVESTMENT CORPORATION(110111-0005903) & OTHERS(2)

690,000

100.00

TOTAL

690,000

100.00

Company History

08/1962 Established as DONG KWANG PHARM Research Co.(Sole Proprietorship)

11/02/1970 Incorporated as DONG KWANG PHARM CO., LTD.(“동광약품()”)

02/22/1973 changed company name to Gaeyang Mulsan Co., Ltd.

01/1992 Changed company name to the present name

11/2011 Awarded US$ 3 Million Export Top Prize

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Yu Byung-Kil

Male

Korean

03/22/2002

Director

Mr.

Hong Soon-Young

Male

Korean

10/08/2001

Director

Mr.

Kim Jin-Sung

Male

Korean

06/17/2002

Director

Mr.

Kim Eui-Soo

Male

Korean

10/01/2005

Director

Mr.

Lee Soon-Gyo

Male

Korean

02/28/2008

Auditor

Mr.

Lim Jong-Ho

Male

Korean

03/27/2000

Supervisor

Mr.

Han Cheol-Gyun

Male

Korean

02/28/2008

Supervisor

Mr.

Kim Young-Hwan

Male

Korean

10/14/2011

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

78,386,394,711

126,501,465,690

12,297,149,956

2011

76,264,949,263

112,135,945,367

2,597,339,771

2010

75,658,025,443

109,873,723,210

4,008,534,401

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

3,450,000,000

Total Issued Shares

690,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

126,501,465,690

112,135,945,367

109,873,723,210

Current Assets

31,722,495,901

29,169,331,752

33,142,424,298

-Quick Assets

23,625,412,463

20,643,017,506

27,692,777,512

-Inventories

8,097,083,438

8,526,314,246

5,449,646,786

Fixed Assets

94,778,969,789

82,966,613,615

76,731,298,912

-Investment

34,924,638,524

22,581,192,194

16,816,250,454

-Tangibles

57,499,391,582

55,631,298,462

55,384,641,864

-Intangibles

1,349,991,734

1,327,864,606

1,131,589,341

-Others

1,004,947,949

3,426,258,353

3,398,817,253

Total Liabilities

86,219,850,923

81,094,817,322

81,429,934,936

Current Liabilities

58,839,090,542

55,974,043,802

54,992,655,807

Fixed Liabilities

27,380,760,381

25,120,773,520

26,437,279,129

Capital Stock

3,450,000,000

3,450,000,000

3,450,000,000

Capital Surplus

 

 

1,951,379,878

Profit Surplus

-11,526,352,796

-23,625,949,377

-28,174,669,026

Capital Adjustment

48,357,967,563

51,217,077,422

51,217,077,422

Total Equity

40,281,614,767

31,041,128,045

28,443,788,274

Liab. & Shareholder’s Equity

126,501,465,690

112,135,945,367

109,873,723,210

 

Current Liabilities

58,839,090,542

55,974,043,802

54,992,655,807

Trade Payables

12,109,465,278

12,460,399,450

13,620,184,354

Short-Term Borrowings

30,906,543,342

30,867,555,421

29,698,845,818

Account Payables

3,806,960,496

3,236,699,109

3,286,780,390

Withholdings

4,229,038,191

3,817,290,643

3,824,780,553

Advance Receipts

33,939,990

273,554,310

120,935,960

Accrued Expenses

2,218,925,982

1,525,387,759

1,498,456,437

Accrued Income Tax

2,690,426,626

47,158,797

641,903,790

Provisions for Refund

316,912,638

512,097,983

729,449,359

Current Portion of Long-Term Debts

2,526,877,999

3,000,800,000

1,375,000,000

Current Portion of Deferred Income Tax Credit

-

233,100,330

196,319,146

Fixed Liabilities

27,380,760,381

25,120,773,520

26,437,279,129

Long-Term Borrowings

3,446,537,657

999,200,000

2,000,000,000

Leasehold Deposit Received

12,673,386,120

12,763,509,910

12,921,415,970

Provision for Severance & Retirement

9,250,256,520

8,090,658,100

7,461,501,170

Non-Current Portion of Deferred Income Tax Credit

5,779,551,723

6,553,558,962

6,773,022,761

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

78,386,394,711

76,264,949,263

75,658,025,443

Cost of Sold Goods

37,452,671,658

32,979,417,091

28,806,690,183

Gross Profit

40,933,723,053

43,285,532,172

46,851,335,260

Selling & Admin. Expenses

37,657,293,799

38,938,687,824

39,650,149,586

Operating Income

3,276,429,254

4,346,844,348

7,201,185,674

Non-Operating Income

15,437,365,628

1,181,725,883

567,990,430

Non-Operating Expenses

2,751,749,634

2,747,074,268

3,207,223,274

Income Before Taxes

15,962,045,248

2,781,495,963

4,561,952,830

Income Taxes Expenses

3,664,895,292

184,156,192

553,418,429

Net Income

12,297,149,956

2,597,339,771

4,008,534,401

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

3,368,780,446

2,723,228,109

4,296,070,436

-Net Income

12,297,149,956

2,597,339,771

4,008,534,401

-Exp. without Cash Outflow

4,135,654,755

3,721,917,064

4,046,265,625

-Revenue without Cash Inflows

-14,804,796,426

-761,240,740

-

-Changes in Asset/ & Liability

1,740,772,161

-2,834,787,986

-3,758,729,590

Cash Flows from Investing

-2,679,063,399

-6,920,831,014

-1,824,844,681

-Cash Inflow from Investing

2,508,938,410

537,335,555

845,920,645

-Cash Outflows for Investing

-5,188,001,809

-7,458,166,569

-2,670,765,326

Cash Flows from Financing

2,077,111,860

1,759,097,163

-271,602,047

-Cash Inflows from Financing

50,308,202,143

11,207,997,720

19,263,137,529

-Cash Outflows from Financing

-48,231,090,283

-9,448,900,557

-19,534,739,576

Increase/Decrease in Cash

2,766,828,907

-2,438,505,742

2,199,623,708

Cash at the Beginning of Year

596,071,303

3,034,577,045

834,953,337

Cash at the End of Year

3,362,900,210

596,071,303

3,034,577,045

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pharmaceuticals, Chemicals, Cosmetics

 

 

Trade Partners & Competitors

 

Customers

DALIM CORPRATION(110111-0998661)

Competitors

JEIL PHARMACEUTICAL CO., LTD.(110111-0026652)

745-5, BANPO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-549-7451  FAX:+82-2-549-7478

 

BORYUNG PHARM CO., LTD.(110111-0012560)

15TH FL., BORYEONG BLDG., 66-21, WONNAM-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-708-8000  FAX:+82-2-742-6362

 

KWANGDONG PHARMACEUTICAL CO., LTD(110111-0152134)

4TH FL., GASAN BLDG., 1577-4, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-6006-7777  FAX:+82-2-6006-702

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CORYO INVESTMENT CORPORATION(110111-0005903)

(80.28% held by the subject company)

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to Myanmar, Vietnam and Hong Kong.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.80

UK Pound

1

Rs.91.95

Euro

1

Rs.80.36

 

 

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.