MIRA INFORM REPORT

 

 

Report Date :

09.12.2013

 

IDENTIFICATION DETAILS

 

Name :

DAENONG CORPORATION

 

 

Formerly Known as: 

Daehan Nongsan Co., Ltd.

 

 

Registered Office :

1, Dowon-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea, Zip Code 363-933

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

15.04.1955

 

 

Com. Reg. No.:

105-81-33940

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Spinning of Cotton

 

 

No. of Employees :

240

 

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 :

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

Company Name

DAENONG CORPORATION

(Korean Company Name : “()대농”)

Registered Address

1, Dowon-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

Zip Code

363-933

Tel

+82-2-2009-4500

Fax

+82-2-2009-4554

E-mail

trade1@daenong21.com

Website

www.daenong21.com

Seoul Office

13th Fl., Seongwon Bldg 141, Samseong-Dong, Gangnam-Gu, Seoul, korea

Trading Address

12th FI., Rich Tower, 141-33, Samseong 2-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2009-4500

Fax

+82-2-2009-4554

Type

Export/Import

Industry

Spinning of Cotton

  Main Business

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

Established (mm/dd/yyyy)

04/15/1955

 

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Fabrics and leather materials(11160000)

Sell

Fibers(11151500)

Sell

Threads(11151600)

Sell

Bedclothes(52121500)

Sell

Cotton yarn(11151702)

 

 

CEO’s

 

Name

Jung Chun-Bo

Address

Suite 301, 23, Dosan-daero, Gangnam-gu, Seoul, Korea

Date of Birth

07/06/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

8,931,010,000

Employees

240

Formation

Co., Ltd by Shares

Bank Details

Shinhan Bank-Sales 1 Dept.

Corporate Registered No.

110111-0138572

Business Registered No.

105-81-33940

Permit & Licenses

Int’l Trade No.: 670296

Shareholder Position

Name

Shares

%

SHINYOUNG CO., LTD.(110111-0618178)

1,571,000

87.95

OTHERS

215,202

12.05

TOTAL

1,786,202

100.00

Company History

04/15/1955 Incorporated as Daehan Nongsan Co., Ltd.

07/01/1973 Changed company name to the present name

01/14/1991 Listed at Korea Stock Exchange

12/30/1997 Started Corporate Clearing Procedure

09/04/1998 Approved of Corporate Clearing Plan

04/27/2002 Delisted from Korea Stock Exchange

05/02/2005 Moved to the present HQ address from 33-1, Mapo-dong, Mapo-gu, Seoul, Korea

12/28/2005 Split off the subject company, and established Shinyoung Daenong Co., Ltd.

04/15/2009 Decreased capital to 8,931,010,000 KRW from 89,310,100,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Jung Chun-Bo

Male

Korean

1955.07.06

Director

Mr.

Choi Kwang-Cheol

Male

Korean

1971.12.23

Director

Mr.

Park Gye-Sung

Male

Korean

1961.08.20

Director

Mr.

Park Sang-Hyup

Male

Korean

1961.07.01

Director

Mr.

Ahn Byung-Jin

Male

Korean

1964.05.

Auditor

Mr.

Kim Sung-Hwan

Male

Korean

1964.06.08

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2013

113,958,111,200

116,216,539,108

8,877,221,484

2012

157,822,119,481

122,131,057,537

-24,931,655,195

2011

179,409,519,388

147,686,854,132

-14,881,325,661

2010

145,590,969,744

135,837,973,786

2,361,105,555

2009

119,478,390,050

118,518,768,622

13,336,702,823

2008

89,014,415,794

205,124,523,433

14,740,918,689

 

 

Financial Description

 

Authorized Capital(KRW)

125,000,000,000

Paid-Up Capital(KRW)

8,931,010,000

Total Issued Shares

1,786,202

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

116,216,539,108

122,131,057,537

147,686,854,132

Current Assets

65,590,939,584

68,172,931,815

75,145,414,365

-Quick Assets

33,834,533,492

36,925,765,670

34,591,308,456

-Inventories

31,756,406,092

31,247,166,145

40,554,105,909

Fixed Assets

50,625,599,524

53,958,125,722

72,541,439,767

-Investment

24,046,141,807

25,707,946,752

43,289,955,782

-Tangibles

23,849,935,585

25,554,781,695

28,225,723,244

-Intangibles

30,372,048

40,041,387

70,976,665

-Others

2,699,150,084

2,655,355,888

954,784,076

Total Liabilities

46,758,115,563

62,734,865,094

61,283,667,260

Current Liabilities

43,087,141,950

58,712,250,267

53,543,145,203

Fixed Liabilities

3,670,973,613

4,022,614,827

7,740,522,057

Capital Stock

8,931,010,000

8,931,010,000

8,931,010,000

Capital Surplus

9,950,145,226

9,950,145,226

9,950,145,226

Profit Surplus

45,247,975,705

36,370,754,221

61,540,954,892

Capital Adjustment

-201,234,040

-138,804,040

-65,504,040

Others

5,530,526,654

4,283,087,036

6,046,580,794

Total Equity

69,458,423,545

59,396,192,443

86,403,186,872

Liab. & Shareholder’s Equity

116,216,539,108

122,131,057,537

147,686,854,132

 

Current Liabilities

43,087,141,950

58,712,250,267

53,543,145,203

Trade Payables

8,955,384,727

6,211,490,673

9,516,791,841

Short-Term Borrowings

30,093,518,044

41,633,665,522

39,553,190,223

Account Payables

2,159,590,898

3,001,208,343

2,111,038,891

Advance Receipts

25,881,148

5,523,103,254

139,362,961

Withholdings

54,273,990

17,479,006

36,752,810

Accrued Expenses

548,493,145

658,636,805

519,341,813

Current Portion of Long-Term Debts

1,249,999,998

1,666,666,664

1,666,666,664

Fixed Liabilities

3,670,973,613

4,022,614,827

7,740,522,057

Long-Term Borrowings

416,666,666

1,249,999,998

2,916,666,662

Leasehold Deposit Received

274,200,000

274,200,000

274,200,000

Provision for Severance & Retirement

4,159,583,710

3,805,764,560

3,957,669,260

Deferred Income Tax Credit

-

-

803,976,325

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

113,958,111,200

157,822,119,481

179,409,519,388

Cost of Sold Goods

106,667,788,963

161,750,070,566

171,312,468,812

Gross Profit

7,290,322,237

-3,927,951,085

8,097,050,576

Selling & Admin. Expenses

5,672,274,075

7,571,778,524

11,609,119,086

Operating Income

1,618,048,162

-11,499,729,609

-3,512,068,510

Non-Operating Income

14,425,539,854

5,001,612,357

5,570,207,886

Non-Operating Expenses

6,561,761,479

19,674,300,118

17,950,139,904

Income Before Taxes

9,481,826,537

-26,172,417,370

-15,892,000,528

Income Taxes Expenses

604,605,053

-1,240,762,175

-1,010,674,867

Net Income

8,877,221,484

-24,931,655,195

-14,881,325,661

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

4,690,702,125

1,617,847,404

-21,866,522,948

-Net Income

8,877,221,484

-24,931,655,195

-14,881,325,661

-Exp. without Cash Outflow

6,045,037,566

20,161,393,864

17,163,872,180

-Revenue without Cash Inflows

-12,605,950,923

-1,707,277,600

-786,000,446

-Changes in Asset/ & Liability

2,374,393,998

8,095,386,335

-23,363,069,021

Cash Flows from Investing

5,816,120,110

-104,131,509

-8,833,884,708

-Cash Inflow from Investing

9,152,774,520

1,739,307,191

6,633,828,330

-Cash Outflows for Investing

-3,336,654,410

-1,843,438,700

-15,467,713,038

Cash Flows from Financing

-12,852,577,476

1,423,663,541

20,693,239,636

-Cash Inflows from Financing

55,676,582,750

90,003,659,199

80,054,831,596

-Cash Outflows from Financing

-68,529,160,226

-88,579,995,658

-59,361,591,960

Increase/Decrease in Cash

-2,345,755,241

2,937,379,436

-10,007,168,020

Cash at the Beginning of Year

10,245,144,641

7,307,765,205

17,314,933,225

Cash at the End of Year

7,899,389,400

10,245,144,641

7,307,765,205

 

 

Products, Technologies, Services Description

 

Main Products & Services

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

 

 

Trade Partners & Competitors

 

Competitors

TAE KWANG INDUSTRIAL CO., LTD.(110111-0185276)

ILSHIN SPINNING CO.,LTD.(110111-0041717)

CHONBANG CO.,LTD.(110111-0005664)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAENONG TEXTILE CO., LTD.(110111-3878266)

(80.0% held by the subject company)

Overseas Office

PT. POPULAR DAENONG INDONESIA

(60.0% held by the subject company)

 

PT. DAENONG GLOBAL

(99.0% held by the subject company)

Subsidiary

QINGDAO DAENONG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HWANHAE DAENONG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2013

2012

2011

Export

25,420

133,422

160,031

Domestic

14,019

24,400

19,378

Total

39,439

157,822

179,409

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

---


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.67

UK Pound

1

Rs.100.65

Euro

1

Rs.84.25

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.