MIRA INFORM REPORT

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KYUNG DONG PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

535-3, Daeyang-ri, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea 445-931

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

12.02.1976

 

 

Com. Reg. No.:

124-81-35518

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Finished Medicaments

 

 

No. of Employees :

453

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

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

KYUNG DONG PHARMACEUTICAL CO., LTD.

Registered Address

535-3, Daeyang-ri, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea

Zip Code

445-931

Tel

+82-31-352-0990

Fax

+82-31-352-0991

E-mail

moses@kdpharma.co.kr

Website

www.kdpharma.co.kr

Trading Address

9-11, Yangjae 1-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-576-6121

Fax

+82-2-577-5195

Type

Export/Import

Industry

Manufacture of Finished Medicaments

  Main Business

Anti-Hypertensive Agent, GI Tract Regulator Antiulcerants, Anti-microbials, Circulatory Agents, Non-steroidal Anti-inflammatory Drugs, Psychoneural Agent, Anti-spasmodics, Hepatitis Agent

Established (mm/dd/yyyy)

02/12/1976

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Antimycotics(41106201)

Sell

Diuretics(51191500)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

Sell

Non narcotic analgesics and antipyretics(51142000)

Sell

Antidiabetic agents and hyperglycemic agents(51181500)

Sell

Drugs affecting the gastrointestinal system(51170000)

Buy

Amides or imides(12352111)

Buy

Centrally acting skeletal muscle relaxants(51151900)

Buy

Anti oxidants(12162200)

Buy

Drugs used for gallbladder disease(51172000)

Buy

Terbinafine hydrochloride(51101818)

Buy

Vitamin supplements(51191905)

Buy

Neomycin(51101513)

Buy

Centella asiatica extract(51212002)

Buy

Organic acids or its substitutes(12352106)

Buy

Methocarbamol(51151904)

Buy

Acyclovir(51102301)

Buy

Biochemicals(12352200)

Buy

Amino acids or its derivatives(12352209)

Buy

Chemicals including Bio Chemicals and Gas Materials(12000000)

 

 

 

CEO’s

 

Name

Ryu Deok-Hee

Date of Birth

05/20/1938

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

13,575,000,000

Employees

453

Formation

Listed Company (KOSDAQ : 011040) as of 12/18/1992

Bank Details

Industrial Bank of Korea-Daechi Station Branch

Corporate Registered No.

120111-0003765

Business Registered No.

124-81-35518

Permit & Licenses

Int’l Trade No.: 590754

Shareholder Position

Name

Shares

%

RYU DEOK-HEE

1,323,000

9.75

RYU KI-SUNG

709,368

5.23

KYUNG DONG SONGCHUN FOUNDATION(110222-0006104)

663,750

4.89

TREASURY STOCK

1,465,873

10.80

OTHERS

9,413,009

69.34

TOTAL

13,575,000

100.00

Company History

09/1975 Established as YOOIL Sangsa Co.(Sole Proprietorship)

02/12/1976 Incorporated as the present name

11/2001 Awarded US$1 Million Export Top Prize

11/30/2007 Awarded US$ 3 Million Export top Prize

11/2011 Awarded US$ 5 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

Ryu Deok-Hee

Korean

1938. 05. 20

Sungkyunkwan University, Korea

President & CEO

Mr.

Lee Byeong-Seok

Korean

1953. 12. 28

Sungkyunkwan University, Korea

Vice President & CEO

Mr.

Ryu Ki-Sung

Korean

1982. 06. 21

Gangnam University, Korea

Sr. Executive Director

Mr.

Nam Ki-Cheol

Korean

1957. 10. 11

Kyung Dong College, Korea

Outside Director

Mr.

Lee Soon-Bo

Korean

1944. 06. 04

Prof., of Sungkyunkwan University, Korea

Outside Director

Mr.

Cha Dong-Ok

Korean

1955. 12. 16

Prof., of Sungkyunkwan University, Korea

Auditor

Mr.

Lee Jae-Bok

Korean

1940. 01. 06

Sungkyunkwan University, Korea

Auditor

Mr.

Chung Sang-Wook

Korean

1949. 11. 29

Chungang University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

92,626,155,822

189,850,810,351

16,524,812,289

(*)2011

127,481,498,458

185,585,286,709

20,243,397,618

(*)2010

124,208,804,478

170,978,576,471

19,164,049,976

2009

104,209,578,276

159,958,722,100

13,475,481,524

2008

81,300,438,387

122,925,203,001

11,434,908,292

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

 

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

13,575,000,000

Total Issues Shares

13,575,000

 

Balance Sheet

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

189,850,810,351

185,585,286,709

170,978,576,471

Current Assets

100,994,684,495

98,108,202,537

81,975,090,666

Cash & Cash Equivalents

12,776,885,338

23,768,777,433

18,059,422,655

Current Financial Instruments

48,206,962,125

38,706,962,125

31,045,216,200

Trade Receivables

18,071,731,497

15,894,957,214

15,093,662,941

Other Receivables

3,382,309,694

4,110,047,814

2,046,120,077

Other Current Assets

322,082,346

94,255,898

26,060,617

Inventories

18,234,713,495

15,533,202,053

15,704,608,176

Non-Current Assets

88,856,125,856

87,477,084,172

89,003,485,805

Non-Current Financial Instruments

7,852,003,182

6,752,373,532

6,812,755,664

Investment_Subsidiaries

3,543,251,684

2,469,291,684

2,469,291,684

Investment_Real Estates

29,376,072,390

29,912,943,030

29,956,705,499

Tangibles

44,511,225,861

44,760,298,200

46,272,452,179

Intangibles

3,060,192,399

3,153,339,055

3,122,537,611

Long-Term Guarantee Deposits

419,112,842

405,727,726

349,283,190

Other Non-Current Assets

94,267,498

23,110,945

20,459,978

Total Liabilities

27,886,295,880

35,104,026,241

32,198,242,151

Current Liabilities

22,726,531,808

29,956,974,389

27,029,452,678

Trade Payables

5,491,620,957

4,741,321,087

4,034,037,731

Other Payables

6,513,980,466

6,309,640,540

5,553,770,207

Short-Term Borrowings

5,292,328,212

10,122,005,300

10,051,040,942

Accrued Income Tax

1,998,661,777

4,544,767,976

3,836,884,451

Provisions for Refund

961,506,953

1,099,541,551

968,465,857

Other Current Liabilities

2,468,433,443

3,139,697,935

2,585,253,490

Non-Current Liabilities

5,159,764,072

5,147,051,852

5,168,789,473

Other Non-Current Liabilities

2,077,193,859

2,304,439,981

2,553,434,620

Provision for Severance & Retirement

1,575,749,702

1,268,941,593

680,701,050

Deferred Income Tax Credit

1,340,369,067

1,345,291,000

1,710,737,797

Other Non-Current Financial Debts

166,451,444

228,379,278

223,916,006

Capital Stock

13,575,000,000

13,575,000,000

13,575,000,000

Capital Surplus

7,497,029,610

7,497,029,610

7,730,348,830

Others

-21,423,156,714

-21,423,156,714

-20,609,351,209

Installments

1,196,742,575

354,712,841

291,790,775

Profit Surplus

161,118,899,000

150,477,674,731

137,792,545,924

Total Equity

161,964,514,471

150,481,260,468

138,780,334,320

Liab. & Shareholder’s Equity

189,850,810,351

185,585,286,709

170,978,576,471

 

Income Statement

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

92,626,155,822

127,481,498,458

124,208,804,478

Cost of Sold Goods

36,959,570,720

49,571,375,278

58,979,046,887

Gross Profit

55,666,585,102

77,910,123,180

65,229,757,591

R&D

2,456,542,493

4,085,277,033

4,204,535,875

Selling & Admin. Expenses

32,548,790,504

44,443,811,987

38,606,822,239

Other Operating Income

20,661,252,105

29,381,034,160

22,418,399,477

Other Operating Expenses

382,359,732

100,258,047

1,839,015,133

Operating Income

1,271,404,232

2,456,036,509

1,338,618,904

Finance Income

2,304,932,403

3,051,745,755

2,882,349,340

Finance Expenses

669,955,479

2,563,431,753

506,618,601

Income Before Taxes

21,407,184,529

27,513,569,700

25,294,526,445

Income Taxes Expenses

4,882,372,240

7,270,172,082

6,130,476,469

Net Income

16,524,812,289

20,243,397,618

19,164,049,976

 

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

9,632,050,853

26,057,977,968

19,425,592,840

Net Income

16,524,812,289

20,243,397,618

19,164,049,976

Adjustment

784,050,663

12,565,543,371

8,232,745,852

Income Taxes

-7,676,812,099

-6,750,963,021

-7,971,202,988

Cash Flows from Investing

-13,803,501,631

-13,526,626,252

-3,732,131,147

Cash Flows from Financing

-6,820,911,265

-6,822,200,070

-10,437,712,655

Increase/Decrease in Cash

-10,991,892,095

5,709,354,778

5,255,164,124

Cash at the Beginning of Year

23,768,777,433

18,059,422,655

12,804,258,531

Cash at the End of Year

12,776,885,338

23,768,777,433

18,059,422,655

 

 

Products, Technologies, Services Description

 

Main Products & Services

Anti-Hypertensive Agent, GI Tract Regulator Antiulcerants, Anti-microbials, Circulatory Agents, Non-steroidal Anti-inflammatory Drugs, Psychoneural Agent, Anti-spasmodics, Hepatitis Agent

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

DAEWOONG PHARMA CO., LTD.(134811-0075342)

223-23, SANGDAEWON 1-DONG, JUNGWON-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-741-7700~4  FAX:+82-31-749-5535

 

ILDONG PHARMACEUTICAL CO., LTD(110111-0012776)

60, YANGJAE 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-526-3114  FAX:+82-2-526-3030

 

DONGWHA PHARM IND CO., LTD.(110111-0043870)

5, SUNHWA-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2021-9300  FAX:+82-2-776-7873

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

BUZRUN CO., LTD.(110111-1329584)

(67.0% held by the subject company)

 

RYUIL INTERNATIONAL,INC(USA)

(100.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

8,421

          9,408

 

Domestic

84,205

       118,073

 

Total

92,626

       127,481

 

The Subject deals with the companies in China, India, Japan, Pakistan, Phi8lippines, Vietnam and UAE.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

2012DA 72476

Supreme Court

NHIC

The Subject Company

Claim for Compensation from Damages

7,732,979,620

2nd round is proceeding.

 

 

News Clipping

 

Not Available

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.78

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.