MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

KUMHO P&B CHEMICALS INC

 

 

Registered Office :

319, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea (New Address System : 218, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea)

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.07.2000

 

 

Com. Reg. No.:

417-81-21425

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals

 

 

No. of Employees :

294

 

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 :

Slow but correct

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

 

Basic

Company Name                       KUMHO P&B CHEMICALS INC.

                                                (Korean Company Name : “금호피앤비화학(주)”)

Registered Address                  319, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea

(New Address System :            218, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea)

Zip Code                                555-280

Tel                                         +82-61-688-3500

Fax                                        +82-61-688-3505

E-mail                                    yjk@kpb.co.kr

Website                                 www.kpb.co.kr

Trading Address                       8th Fl., Signature Towers East Bldg., 99, Supyo-dong, Jung-gu, Seoul, Korea

(New Address System :           100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea)

Tel                                         +82-2-6961-3425

Fax                                        +82-2-6961-3490

Other Address-2nd Factory       46-53, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea

Tel                                         +82-61-688-3700

Fax                                       

Type                                      Export/Import

Industry                                  Manufacture of Basic Organic Petrochemicals

 Main Business                       Phenol, Acetone, Bisphenol-A, MIBK, Epoxy, AMS

 Sub Business                        Wholesale of Other Chemical Materials and Chemical Products

Established (mm/dd/yyyy)       07/10/2000

 

 

Detailed Products

 

Activity                                   Detailed Products (UNSPSC)

Sell                                        Phenols or its substitutes or derivatives(12191503)

Sell                                        Epoxy(13111001)

Sell                                        Ethers or its substitutes(12352112)

Sell                                        Organic derivatives and substituted compounds(12352100)

 

 

CEO’s

 

Name                                     Moon Dong-Joon

Address                                

Date of Birth                           10/20/1954

Title                                       Vice President & CEO

Sex                                       Male

Nationality                              Korean

 

Profiles

 

Capital (KRW)                        143,712,000,000

Employees                             294

Formation                                Co., Ltd by Shares

            Foreign Direct Investment Corporation

                                             A Company of Kumho Asiana       Group

Bank Details                           Woori Bank-HQ Office

Corporate Registered No.         206211-0018313

Business Registered No.         417-81-21425

Permit & Licenses                  Int’l Trade No.: 985534

 

 

Corporate report

 

Permit & Licenses

Int’l Trade No.: 985534

Shareholder Position

Name

Shares

%

KUMHO PETROCHEMICAL CO., LTD.(110111-0205975)

22,476,000

78.20

NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.(JAPAN)

6,266,400

21.80

TOTAL

28,742,400

100.00

Company History

07/10/2000 Incorporated as the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description                       Title      Name                      Sex         Nationality        Date of Birth

Vice President & CEO             Mr.       Moon Dong-Joon      Male        Korean             1954.10.20

Director                                  Mr.       Park Chan-Koo        Male        Korean             1948.08.13

Director                                  Mr.       Kim Sung-Chae       Male        Korean             1952.05.20

Director                                  Mr.       Szuki Yassi             Male        Japanese         1959.11.

 

Financials

 

Year / Unit : KRW                   Sales                               Assets                             Net Income

(*)03/2013                              300,168,414,941               828,953,981,318               -721,769,868

(*)2012                                   1,124,250,692,966            761,079,509,758               4,443,836,103

(*)2011                                   1,265,073,181,562            725,643,813,439               125,957,332,314

2010                                      1,099,176,097,199            642,113,204,865               142,681,062,907

2009                                      784,396,229,889               620,074,023,442               13,527,586,693

 

 

Financial Description

 

Authorized Capital(KRW)         220,000,000,000

Paid-Up Capital(KRW)             143,712,000,000

Total Issued Shares                28,742,400

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

828,953,981,318

761,079,509,758

725,643,813,439

Current Assets

342,369,125,580

293,344,120,883

327,083,546,191

Inventories

93,808,667,416

113,988,584,741

87,740,437,131

Trade Receivables

184,266,278,934

127,835,440,669

167,321,408,364

Other Receivables

11,663,356,781

12,950,967,507

11,684,022,897

Cash & Cash Equivalents

50,943,485,573

36,501,967,712

59,220,425,183

Other Current Assets

1,687,336,876

2,067,160,254

1,117,252,616

Non-Current Assets

486,584,855,738

467,735,388,875

398,560,267,248

Tangibles

402,531,481,182

384,304,912,629

329,029,291,689

Intangibles

5,073,652,958

3,256,320,951

3,367,410,003

Investment_Related Companies

32,261,780,725

32,261,780,725

32,261,780,725

Deferred Income Tax Assets

6,530,942,559

7,006,315,124

7,780,685,326

Marketable Financial Instruments

32,701,771,800

33,426,773,000

25,210,850,000

Other Receivables

7,485,226,514

7,479,286,446

910,249,505

Total Liabilities

379,310,973,678

315,676,984,017

301,694,288,673

Current Liabilities

293,031,466,523

230,203,554,702

288,856,809,868

Trade Payables

115,938,263,844

76,670,397,959

93,073,056,410

Other Payables

54,522,511,074

38,850,174,120

51,345,769,772

Accrued Income Tax

1,342,284,512

398,130,707

25,987,788,383

Short-Term Borrowings

120,984,436,615

114,277,696,856

118,395,678,529

Other Current Liabilities

243,970,478

7,155,060

54,516,774

Non-Current Liabilities

86,279,507,155

85,473,429,315

12,837,478,805

Long-Term Trade Payables & Other Payables

1,633,753,899

1,560,327,720

1,590,183,794

Long-Term Borrowings

74,824,129,215

76,063,327,862

7,000,000,000

Provision for Severance & Retirement

9,821,624,041

7,849,773,733

4,247,295,011

Capital Stock

143,712,000,000

143,712,000,000

143,712,000,000

Capital Surplus

3,758,593,776

3,758,593,776

3,758,593,776

Others

-

-4,871,019,426

-24,162,323,328

Profit Surplus

302,172,413,864

302,802,951,391

300,641,254,318

Total Equity

449,643,007,640

445,402,525,741

423,949,524,766

Liab. & Shareholder’s Equity

828,953,981,318

761,079,509,758

725,643,813,439

Income Statement

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

300,168,414,941

1,124,250,692,966

1,265,073,181,562

Cost of Sold Goods

287,178,511,573

1,089,123,243,430

1,066,926,685,659

Gross Profit

12,989,903,368

35,127,449,536

198,146,495,903

Selling & Admin. Expenses

4,802,855,341

20,328,702,857

20,713,839,736

Operating Income

8,187,048,027

14,798,746,679

177,432,656,167

Other Income

2,231,009,156

5,775,049,898

10,209,946,239

Other Expenses

8,594,069,196

26,042,447,275

12,250,640,197

Finance Income

687,931,149

12,160,175,695

7,313,072,305

Finance Expenses

3,229,657,666

4,778,091,736

13,601,977,924

Income Before Taxes

-717,738,530

1,913,433,261

169,103,056,590

Income Taxes Expenses

4,031,338

-2,530,402,842

43,145,724,276

Net Income

-721,769,868

4,443,836,103

125,957,332,314

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

39,816,730,971

4,243,625,709

175,629,253,513

Cash Flows from Operating

41,428,315,028

35,620,007,886

222,962,912,174

Net Income

-721,769,868

4,443,836,103

125,957,332,314

Adjustment

19,774,625,808

56,433,310,003

97,084,910,250

Changes in Asset/ & Liability

22,375,459,088

-25,257,138,220

-79,330,390

Interests Paid

-1,540,130,202

-5,128,388,005

-8,015,924,832

Interests Received

97,305,635

1,093,960,773

1,429,273,151

Income Taxes

-168,759,490

-27,341,954,945

-40,747,006,980

Cash Flows from Investing

-28,869,214,494

-93,043,132,101

-62,821,801,450

Cash Flows from Financing

3,409,230,220

66,086,270,036

-71,223,909,089

Increase/Decrease in Cash

14,356,746,697

-22,713,236,356

41,583,542,974

Cash at the Beginning of Year

36,501,967,712

59,220,425,183

17,644,712,356

Cash at the End of Year

50,943,485,573

36,501,967,712

59,220,425,183

 

 

Products, Technologies, Services Description

 

Main Products & Services

Phenol, Acetone, Bisphenol-A, MIBK, Epoxy, AMS

 

Brand Name : KER

 

 

Trade Partners & Competitors

 

Suppliers

SUMITOMO(JAPAN)

SAMSUNG FINE CHEMICALS CO., LTD.(181211-0000013)

YEOCHUN NCC CO., LTD.(110111-1839096)

 

Corporate report

 

Competitors

KOLON INDUSTRIES, INC.

10TH FL., KOLON TOWER, 1-23, BYEORYANG-DONG, GWACHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-2-3677-3515  FAX:+82-2-3677-3539

 

WOOJIN COPOLYMER CO., LTD.

1DA-409, SIHWA INDUSTRIAL COMPLEX, 1252-10, JEONGWANG 3-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-1921  FAX:+82-31-499-1925

 

KANGNAM CHEMICAL CO., LTD.

9TH FL., GANGNAM BLDG., 1355-21, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3415-8000  FAX:+82-2-3473-3262

 

 

RELATED PARTIES

(Subsidiaries, Joint-Venture & Affiliates

 

Affiliates

 

KUMHO TIRE CO., LTD.(110111-2810590)

KUMHO POLYCHEM CO., LTD.(110111-0400533)

KUMHO PETROCHEMICAL CO., LTD.(110111-0205975)

KUMHO INDUSTRIAL CO., LTD.(110111-0134877)

DAEWOO ENGINEERING & CONSTRUCTION CO., LTD.(110111-2137895)

KUMHO LIFE INSURANCE CO., LTD.(200111-0014608)

KUMHO RENT-A-CAR. INC(110111-0513253)

KUMHO MITSUI CHEMICALS, INC.(110111-0612980)

KUMHO RESORT CO., LTD.(134511-0105856)

KOREA ROAD MANAGEMENT CO., LTD.(200111-0072416)

ASIANA AIRLINES INC.(110111-0562804)

KOREA EXPRESS CO., LTD(110111-0006167)

KOREA INTEGRATED FREIGHT TERMINAL CO., LTD(110111-0853576)

JUNG-BU INTEGRATED FREIGHT TERMINAL CO., LTD.(110111-3284158)

KUMHO TRADING CO., CO., LTD.(110111-2079641)

SEOUL EXPRESS BUS TERMINAL CO., LTD.(110111-0187644)

KUMHO TERMINAL CO., LTD.(200111-0231418)

AIR BUSAN CO., LTD.(180111-0605121)

SONGNISAN EXPRESS CO., LTD.(150111-0000286)

PUSAN EAST CONTAINER TERMINAL CO., LTD.(180111-0101252)

PECT NEW CONTAINER TERMINAL CO., LTD.(180111-0449579)

GWANGYANG WEST CONTAINER TERMINAL CO., LTD.(110111-3547514)

THE KOREA EXPRESS TERMINAL CO., LTD.(110111-1726227)

DONG SEOK LOGISTICS CO., LTD.(144711-0009135)

TERMINAL OPERATING CO., LTD OF MASAN PORT-PIER 4(194211-0035362)

PUSAN GAMMAN CONTAINER TERMINAL CO., LTD(180111-0560234)

KOREA EXPRESS BUSAN NEWPORT DISTRIPARK(194111-0012403)

ULSAN PORT OPERATING CO., LTD.(230111-0057769)

INCHEON SOUTH TERMINAL OPERATION COMPANY(120111-0426305)

KE-CATI LOGISTICS CO., LTD(204611-0024273)

CNK WORLD LOGISTICS CO., LTD(110111-3638496)

ASIANAIDT, INC.(110111-0801848)

ASIANA ABACUS , INC.(110111-3010925)

KOREA EXPRESS INFORMATION TECHNOLOGY CO., LTD.(110111-2230417)

ASIANA AIRPORT DEVELOPMENT CO., LTD.(110111-1412496)

INCHEON AIRPORT ENERGY CO., LTD.(110111-1415408)

KUMHO ASIANA MAIN TOWER CO., LTD.(110111-3207712)

CHUNGJU BORAMAE CO., LTD.(110111-3348524)

BUGOK ENVIRONMENT CO., LTD.(135211-0016488)

GK FIXED LINK CORP(180111-0443224)

TAE-CHEON DEVELOPMENT CO., LTD.(110111-1252644)

PRUGIO SERVICE CO., LTD.(110111-1675276)

KUMHO STEEL TECH CO., LTD.(154311-0016706)

ILSAN GRAND BRIDGE CORP.(110111-2576192)

SOUTHWEST COAST LEISURE COMPANY(205511-0024878)

GREEN ANSEONG ENVIRO CO., LTD(110111-3780833)

KUMHO SONGDO HOTEL CO., LTD.(120111-0451998)

AAS AIRPORT SERVICES. INC(110111-0562713)

KUMHO ENVIROTECH CO., LTD.(110111-1799703)

KUMHO AUTOLEASE, INC.(110111-3626970)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2013

2012

2011

Export

80,698

302,849

386,340

Domestic

219,470

821,402

878,733

Total

300,168

1,124,251

1,265,073

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 64.69

UK Pound

1

Rs. 100.80

Euro

1

Rs. 86.30

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.