MIRA INFORM REPORT

 

 

Report Date :

01.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KUM YANG CO., LTD.

 

 

Registered Office :

951-1, Gamjeon-dong, Sasang-gu, Busan, Korea 617-805

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

17.11.1955

 

 

Com. Reg. No.:

606-81-04711

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of All Other Chemical Products

 

 

No. of Employees :

77

 

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 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

KUM YANG CO., LTD.

(Korean Company Name : “()금양”)

Registered Address

951-1, Gamjeon-dong, Sasang-gu, Busan, Korea

Zip Code

617-805

Tel

+82-51-316-5881~5

Fax

+82-51-325-5887

E-mail

kysale@kyc.co.kr;poisoner@kyc.co.kr;dcryu@kyc.co.kr;dcryu@kyc.co.kr

Website

www.kyc.co.kr

Trading Address

Rm. 1201, Korea Trade Tower, 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-563-5907

Fax

+8 -2-553-9078

Type

Export

Industry

Manufacture of All Other Chemical Products n.e.c.

  Main Business

Chemical Blowing Agent, Plasticizer, Master Batch

Established (mm/dd/yyyy)

11/17/1955

The Subject owns the premises of registered HQ address(15,443).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polymer masterbatches(12171701)

Sell

Foaming agents(12161903)

Sell

Cracking catalysts(12161604)

 

 

CEO’s

 

Name

Ryu Kwang-Jy

Date of Birth

05/25/1966

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

19,676,654,000

Employees

77

Formation

Listed Company (Korea Stock Exchange : 001570) as of 12/17/1976

Venture Business

Bank Details

Shinhan Bank-Bujeon Dong Branch

Korea Development Bank

Busan Bank

Kookmin Bank

Hana Bank

Corporate Registered No.

180111-0003101

Business Registered No.

606-81-04711

Permit & Licenses

01/01/2000 ISO 9002

08/01/2000 ISO 14001

 

Int’l Trade No.: 700087

Shareholder Position

Name

Shares

%

RYU KWANG-JY

14,011,387

35.60

TREASURY STOCK

5,744,151

14.60

OTHERS

19,597,770

49.80

TOTAL

39,353,308

100.00

Company History

11/17/1955 Incorporated as KUM BUK CHEMICAL INDUSTRIES CO., LTD.

07/15/1978 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Education/Career

President & CEO

Mr.

Ryu Kwang-Jy

Korean

1966.05.25

Korea University

Director

Mr.

Seung In-Ho

Korean

1959.05

Dangook University, Korea

Outside Director

Mr.

Yoon Kwang-Woon

Korean

1949.09.03

Chungang University

Outside Director

Mr.

Ahn Duck-Kun

Korean

1967.02.28

Seogang University, Korea

Auditor

Mr.

Kim Jeong-Ku

Korean

1966.10.21

Samil Accounting Company

Auditor

Mr.

Lee Kang-Soo

Korean

1967.09

Yonsei University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

85,279,339,469

127,229,019,288

2,932,208,069

(*)2011

100,918,699,262

124,086,391,998

2,436,780,120

(*)2010

90,724,087,239

104,994,772,301

1,511,752,065

2009

67,389,205,385

96,227,231,370

1,483,631,960

2008

55,441,463,748

84,853,281,928

3,250,965,564

2007

47,096,071,631

52,267,245,881

25,268,327

2006

44,724,117,122

43,517,284,394

520,234,970

2005

51,474,876,450

42,982,532,071

6,099,463,938

2004

42,855,816,549

42,006,212,928

227,054,698

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

19,676,654,000

Total Issued Shares

39,353,308

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

127,229,019,288

124,086,391,998

104,994,772,301

Current Assets

46,973,482,868

50,168,792,675

38,543,665,757

Cash & Cash Equivalents

5,228,725,992

10,098,518,179

6,963,146,316

Current Financial Instruments

5,955,000,000

7,240,000,000

5,370,000,000

Trade Receivables

26,985,393,168

24,644,593,330

19,487,054,834

Advance Payments

163,858,553

548,547,483

681,345,190

Prepaid Expenses

15,961,981

26,609,977

27,988,302

Deferred Income Tax Assets

0

0

55,123,730

Other Receivables

553,719,888

726,399,223

375,567,297

Inventories

8,070,823,286

6,884,124,483

5,583,440,088

Non-Current Assets

80,255,536,420

73,917,599,323

66,451,106,544

Long-Term Trade Receivables

603,803,298

587,185,936

561,458,579

Non-Current Financial Instruments

533,201,378

59,291,378

587,411,378

Marketable Financial Instruments

405,412,050

374,324,106

568,223,712

Investment_Related Companies

54,567,359,744

48,819,941,950

41,304,691,586

Other Receivables

682,850,216

647,235,216

675,490,476

Tangibles

23,441,018,613

23,407,729,616

22,731,939,692

Intangibles

878,671

878,671

878,671

Other Non-Current Assets

21,012,450

21,012,450

21,012,450

Total Liabilities

82,267,208,343

81,062,141,393

62,922,439,246

Current Liabilities

68,636,462,574

70,798,827,968

48,486,637,285

Trade Payables

13,552,336,450

11,292,215,824

6,680,145,574

Short-Term Borrowings

51,896,287,174

51,677,655,152

35,221,460,968

Current Portion of Long-Term Debts

1,000,000,000

5,995,147,709

5,000,000,000

Deferred Income Tax Credit

141,578,378

143,290,600

0

Advance Receipts

364,651,201

87,291,423

321,462,703

Withholdings

50,783,323

72,248,118

57,640,344

Other Payables

1,630,826,048

1,530,979,142

1,205,927,696

Non-Current Liabilities

13,630,745,769

10,263,313,425

14,435,801,961

Debentures

8,193,237,745

3,995,895,354

9,983,007,095

Long-Term Borrowings

750,000,000

2,000,000,000

0

Provision for Severance & Retirement

668,897,592

225,809,117

421,185,495

Deferred Income Tax Credit

4,018,610,432

4,041,608,954

4,031,609,371

Capital Stock

19,676,654,000

19,676,654,000

19,676,654,000

Capital Surplus

244,674,433

244,674,433

244,674,433

Installments

14,777,395,668

14,777,395,668

14,777,395,668

Others

-3,549,766,560

-3,549,766,560

-2,822,062,360

Profit Surplus

13,812,853,404

11,875,293,064

10,195,671,314

Total Equity

44,961,810,945

43,024,250,605

42,072,333,055

Liab. & Shareholder’s Equity

127,229,019,288

124,086,391,998

104,994,772,301

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

85,279,339,469

100,918,699,262

90,724,087,239

Cost of Sold Goods

73,949,650,648

87,166,520,382

79,068,564,244

Gross Profit

11,329,688,821

13,752,178,880

11,655,522,995

Selling & Admin. Expenses

5,791,128,649

7,625,602,312

7,462,432,909

Other Operating Income

32,606,635

69,447,416

138,141,374

Other Operating Expenses

11,773,300

60,014,740

363,578,397

Operating Income

5,559,393,507

6,136,009,244

3,967,653,063

Finance Income

1,519,616,197

1,976,930,193

2,097,894,853

Finance Expenses

-3,894,766,324

-5,431,495,710

-4,589,127,530

Income Before Taxes

3,184,243,380

2,681,443,727

1,476,420,386

Income Taxes Expenses

252,035,311

244,663,607

-35,331,679

Net Income

2,932,208,069

2,436,780,120

1,511,752,065

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

2,973,488,105

1,114,958,400

1,757,738,571

Net Income

2,932,208,069

2,436,780,120

1,511,752,065

Adjustment

3,362,587,955

4,601,627,037

3,867,462,208

Changes in Asset/ & Liability

-488,928,387

-2,773,137,137

-1,236,799,783

Income Taxes

-253,747,533

-46,249,277

0

Interests Received

316,186,300

269,935,956

419,132,264

Interests Paid

-2,894,818,299

-3,373,998,299

-2,803,808,183

Cash Flows from Investing

-5,383,940,466

-9,889,331,917

-6,291,353,823

Cash Flows from Financing

-2,458,825,526

11,934,288,645

5,172,269,549

Increase/Decrease in Cash

-4,869,792,187

3,135,371,863

625,362,070

Cash at the Beginning of Year

10,098,518,179

6,963,146,316

6,337,784,246

Cash at the End of Year

5,228,725,992

10,098,518,179

6,963,146,316

 

Products, Technologies, Services Description

 

Main Products & Services

Chemical Blowing Agent, Plasticizer, Master Batch

 

Brand Name CELLCOM

 

 

Trade Partners & Competitors

 

Customers

PVC, PE, EVA manufacturers

Competitors

DONGGU IND. CO., LTD.

350-1, MAJANG-RI, GWANGTAN-MYEON, PAJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-948-5381  FAX:+82-31-948-5387

 

YOO KWANG CHEMICAL CO., LTD.

190-1, YUSAN-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-386-3101  FAX:+82-55-386-3221

 

ORION POLYTECH CO., LTD.

RM. 208, WORLD MERIDIAN 1-CHA, 60-24, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-2113-7550  FAX:+82-2-2113-7553

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ILOVESCHOOL JAPAN

(50.0% held by the subject company)

Subsidiary

KUMYANG CHEMICALS HONG KONG LTD.

(100.0% held by the subject company)

 

K&J CHEMICAL CO., LTD.

(70.0% held by the subject company)

 

KUMYANG CHEMICAL SHANGHAI CO., LTD.

(100.0% held by the subject company)

 

KUMYANG(LIANYUNGANG) CHEMICAL CO., LTD.

(100.0% held by the subject company)

 

KUMYANG USA INC.

(100.0% held by the subject company)

 

KUMYANG AMERICA LTD.

(100.0% held by the subject company)

 

HAN DONG MAO YI

(100.0% held by the subject company)

 

KUMYANG CHEMICALS HONG KONG LTD.

(100.0% held by the subject company)

 

KUMYANG NEIMENGGU CHEMICAL CO., LTD.

(100.0% held by the subject company)

 

KUNMING KUMYANG CHEMICAL CO., LTD.

(31.7% held by the subject company, 68.3% held by KUMYANG CHEMICALS HONG KONG LTD.)

 

 

Sales by Region

 (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

57,537

68,753

62,372

Domestic

27,742

32,166

28,352

Total

85,279

100,919

90,724

The subject deals with the companies in Asia, USA and European countries.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

Mitsui O.S.K Lines Ltd

The Subject Company /

Kumyang Chemicals  (Shanghai) Co., Ltd. / Shanghai Yunhong    Transportation Co., Ltd.

MOL

USD 45,000,000.00

Proceeding

 

 

DELMASS SAS

The Subject Company / Kumyang Chemicals  (Shanghai) Co., Ltd.

Claim for Compensation from Damages of Container Firing

USD 16,561.25

SGD 137,776.43

Rejected

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.84.22

Euro

1

Rs.72.23

 

 

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.