MIRA INFORM REPORT

 

 

Report Date :

11.01.2013

 

IDENTIFICATION DETAILS

 

Name :

HWASEUNG NETWORKS CO., LTD.

 

 

Registered Office :

11th Fl., Jangcheon Bldg. 1287-21, Yeonsan 5-dong, Yeonje-gu, Busan, Korea

611-839

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

06.07.2006

 

 

Com. Reg. No.:

607-81-77653

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Non-Specialized Goods

 

 

No. of Employees :

95

 

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

(31.03.2011)

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

HWASEUNG NETWORKS CO., LTD.

(Korean Company Name : “()화승네트웍스”)

Registered Address

1287-21, Yeonsan 5-dong, Yeonje-gu, Busan, Korea

Building

11th Fl., Jangcheon Bldg.

Zip Code

611-839

Tel

+82-51-850-0100

Fax

+82-51-850-0101

E-mail

stkim@hsnetw.com

Website

www.hsnetw.co.kr

Trading Address

19Fl., Gangnam Bldg., 1321, Seocho-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-850-0100

Fax

+82-2-850-0103

Type

Export/Import

Industry

Wholesale of Non-Specialized Goods

  Main Business

Automotive Parts, Tour Services, Insurance Brokerage Services, Logistics Services, International Trading Services, Purchasing Services, Industrial Rubber Products

Established (mm/dd/yyyy)

07/06/2006

The Subject Company occupies the premises of registered HQ address by leasing base.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Tour arrangement services(90121501)

Sell

Travel agencies(90121502)

Sell

Transport arrangements(78141500)

Sell

International trade services(80151600)

Sell

Freight forwarders services(78141501)

 

 

CEO’s

 

Name

Bae Tae-Kyun

Address

Suite 203-204, 1661, Banyeo-dong, Haeundae-gu, Busan, Korea

Date of Birth

09/20/1948

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 


Profiles

 

Capital (KRW)

35,159,790,000

Employees

95

Formation

Co., Ltd by shares

A Company of HWASEUNG GROUP

Bank Details

Korea Exchange Bank

Busan Bank

Hana Bank

Corporate Registered No.

180111-0560995

Business Registered No.

607-81-77653

Permit & Licenses

Int’l Trade No.: 12186341

Shareholder Position

Name

Shares

%

HS INDUSTRIES CO., LTD.(180111-0004323)

1,585,617

18.58

HWASEUNG CORPORATION(180111-0003383)

333,333

3.91

HYUN JI-HO

1,443,150

16.91

HS T&C CORPORATION(180111-0015825)

918,950

10.77

HWASEUNG EXWILL CO., LTD.(180111-0588442)

918,950

10.77

BENEX 2009 PRIVATE EQUITY INVESTMENT 1 HO

3,333,333

39.06

TOTAL

8,533,333

100.00

(*)The list is based as of 12/31/2011.

Company History

07/06/2006 Incorporated as the present name

06/18/2009 Increased capital to 26,000,000,000 KRW from 7,621,000,000 KRW

12/18/2009 increased the authorized shares to 50,000,000 shares from 20,000,000 shares

12/29/2009 Increased capital to 42,666,665,000 KRW from 26,000,000,000 KRW

07/10/2012 Decreased capital to 26,000,000,000 KRW from 42,666,665,000 KRW

12/27/2012 Increased capital to 35,159,790,000 KRW from 26,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Bae Tae-Kyun

Male

Korean

03/26/2010

Co-President & CEO

Mr.

Kang Sam-Nam

Male

Korean

01/01/2010

Director

Mr.

Hyun Ji-Ho

Male

Korean

02/02/2009

Director

Mr.

Lee Wan-Man

Male

Korean

02/02/2009

Director

Mr.

Choi Yo-Hwui

Male

Korean

03/13/2009

Auditor

Mr.

Park Dong-Ho

Male

Korean

03/13/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

828,033,866,636

266,355,906,573

4,016,057,979

2010

603,638,084,144

182,557,476,839

-12,864,913,077

2009

356,368,619,354

126,800,132,246

-1,801,717,832

2008

284,364,913,800

59,782,305,076

173,277,638

2007

164,705,428,546

33,131,862,930

2,123,661,545

2006

19,219,611,908

19,870,497,601

512,399,518

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

35,159,790,000

Total Issued Shares

7,031,958

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

266,355,906,573

182,557,476,839

126,800,132,246

Current Assets

232,742,354,301

146,271,017,149

95,514,193,149

-Quick Assets

182,362,359,049

132,345,536,136

82,965,823,683

-Inventories

50,379,995,252

13,925,481,013

12,548,369,466

Fixed Assets

33,613,552,272

36,286,459,690

31,285,939,097

-Investment

30,972,219,471

33,385,054,175

30,384,386,184

-Tangibles

802,716,946

283,059,285

230,146,913

-Intangibles

269,423,418

302,225,000

1,200,000

-Others

1,569,192,437

2,316,121,230

670,206,000

Total Liabilities

211,280,804,232

128,451,779,944

65,109,650,899

Current Liabilities

209,161,311,012

127,201,283,228

59,276,747,084

Fixed Liabilities

2,119,493,220

1,250,496,716

5,832,903,815

Capital Stock

42,666,665,000

42,666,665,000

42,666,665,000

Capital Surplus

17,129,782,744

17,129,782,744

17,129,782,744

Profit Surplus

-9,049,507,043

-12,465,565,082

-999,347,935

Capital Adjustment

4,328,161,640

6,774,814,233

894,685,668

Total Equity

55,075,102,341

54,105,696,895

61,690,481,347

Liab. & Shareholder’s Equity

266,355,906,573

182,557,476,839

126,800,132,246

 

Current Liabilities

209,161,311,012

127,201,283,228

59,276,747,084

Trade Payables

153,457,425,587

70,958,177,922

48,520,456,637

Short-Term Borrowings

40,000,000,000

45,263,661,143

8,482,706,480

Account Payables

1,723,713,979

1,227,701,723

1,284,206,061

Advance Receipts

719,998,180

2,117,002,153

559,874,425

Withholdings

74,647,418

977,758,320

296,473,780

Accrued Expenses

303,987,052

72,880,913

60,711,629

Guarantee Deposit Withhold

5,552,860,112

-

-

Accrued Income Tax

2,831,731,613

1,953,578,661

-

Deferred Income Tax

-

136,616,952

72,318,072

Current Portion of Debentures

4,500,000,000

4,500,000,000

-

Fixed Liabilities

2,119,493,220

1,250,496,716

5,832,903,815

Debentures

- 

- 

4,500,000,000

Provision for Severance & Retirement

2,950,296,490

1,820,187,960

1,396,234,460

Deferred Income Tax Credit

- 

- 

350,012,754

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

828,033,866,636

603,638,084,144

356,368,619,354

Cost of Sold Goods

790,839,554,899

568,387,418,866

333,525,217,073

Gross Profit

37,194,311,737

35,250,665,278

22,843,402,281

Selling & Admin. Expenses

17,481,556,947

14,481,509,904

12,898,010,083

Operating Income

19,712,754,790

20,769,155,374

9,945,392,198

Non-Operating Income

13,465,272,086

7,203,394,150

5,341,287,152

Non-Operating Expenses

27,790,966,735

38,725,182,213

16,928,237,850

Income Before Taxes

5,387,060,141

-10,752,632,689

-1,641,558,500

Income Taxes Expenses

1,371,002,162

2,112,280,388

160,159,332

Net Income

4,016,057,979

-12,864,913,077

-1,801,717,832

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

9,167,861,472

-3,356,238,748

-23,323,270,192

-Net Income

4,016,057,979

-12,864,913,077

-1,801,717,832

-Exp. without Cash Outflow

15,924,012,353

27,142,781,984

3,629,610,805

-Revenue without Cash Inflows

-1,591,857,164

-541,740,372

-1,204,399,073

-Changes in Asset/ & Liability

-9,180,351,696

-17,092,367,283

-23,946,764,092

Cash Flows from Investing

261,010,995

-36,641,380,750

-25,695,099,612

-Cash Inflow from Investing

2,015,233,590

9,187,040,314

1,141,700,800

-Cash Outflows for Investing

-1,754,222,595

-45,828,421,064

-26,836,800,412

Cash Flows from Financing

-5,863,661,083

36,180,954,723

54,295,037,217

-Cash Inflows from Financing

3,000,000,000

76,643,816,758

99,655,480,802

-Cash Outflows from Financing

-8,863,661,083

-40,462,862,035

-45,360,443,585

Increase/Decrease in Cash

3,565,211,384

-3,816,664,775

5,276,667,413

Cash at the Beginning of Year

2,945,559,912

6,762,224,687

1,485,557,274

Cash at the End of Year

6,510,771,296

2,945,559,912

6,762,224,687

 

 

Products, Technologies, Services Description

 

Main Products & Services

Automotive Parts, Tour Services, Insurance Brokerage Services, Logistics Services, International Trading Services, Purchasing Services, Industrial Rubber Products

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

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

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

 

HUNG THINH, MAI THAO, DONG NAL, DONG PHU, HOA BINH, PHU RIENG, LINH ANH, BIGMEXCO,MINH TAN, BINH LONG, TAY NINH

Customers

HS MATERIAL CO., LTD.(184511-0014213)

HWASEUNG CORPORATION(180111-0003383)

HS R&A CO., LTD.(184511-0001252)

Competitors

MODE TOUR NETWORK CO., LTD.

RM. 501, BAEKNAM BLDG., 188-3, EULJIRO 1-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-728-8000  FAX:+82-2-2021-7803

 

YOUNG CHEON LOGISTICS CO., LTD.

4TH FL., YEONGCHEON BLDG., 33-2, GONGHANG-DONG, GANGSEO-GU, SEOUL, KOREA

TEL:+82-2-3663-9009 FAX:+82-2-3665-3004

 

AGILITY LTD.

2ND FL., YEOLRIN BLDG., 1666-3, SEOCHO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-539-9411  FAX:+82-2-539-2071

 

AIRSTAR INTERNATIONAL CO., LTD.

2ND FL., SEOYEONG BLDG., 367-9, SEOGYO-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-333-3933  FAX:+82-2-323-5700

 

 


Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

HS INDUSTRIES CO., LTD.(180111-0004323)

HS R&A CO., LTD.(184511-0001252)

HS MATERIAL CO., LTD.(184511-0014213)

HS CLIMATE CONTROL INDUSTRIES CO., LTD.(124311-0012841)

HWASEUNG CORPORATION(180111-0003383)

(25.43% held by the subject company)

 

HWASEUNG EXWILL CO., LTD.(180111-0588442)

HS T&C CORPORATION(180111-0015825)

HWASEUNG NETWORKS CO., LTD.(180111-0560995)

Affiliates-Overseas

HSI AUTOMOTIVES LTD(INDIA)

HWASEUNG MOTOR PARTS(TAECHANG) CO., LTD.(CHINA)

HWASEUNG SPECIAL RUBBER(TAECHANG) CO., LTD.(CHINA)

HWAYOUNG MOTOR PARTS(TAECHANG) CO., LTD.(CHINA)

HWASEUNG VINA CO.,LTD(VIETNAM)

HS AUTOMOTIVE ALABAMA. INC(USA)

HWASEUNG MATERIAL INDIA PRIVATE LIMITED (INDIA)

BEIJING HECHENG R&A VEHICLE PARTS CO.,LTD(CHINA)

HS VIETNAM CHEMICAL CO., LTD(VIETNAM)

HS VUNG TAU CO., LTD(VIETNAM)

HSLS RUBBER INDUSTRIES SDN.BHD.(MALAYSIA)

HWASEUNG HONG KONG CO., LTD.(HONG KONG)

JANGCHEON JEHWA DAIRYEN CO., LTD.(CHINA)

HS VIETNAM NETWORKS CO.,LTD(VIETNAM)

HWASEUNG(SHANGHAI) INT,L TRADE CO,.LTD.(CHINA)

HWASEUNG NETWORKS AMERICA CORP(USA)

(30.06% held by the subject company)

Subsidiary

HWASEUNG NETWORKS(INDIA)

(100.0% held by the subject company)

Corporate Ownership

HS R&A CO., LTD.(184511-0001252)

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to East Europe, Middle East, Asia, North America, and South America.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.87.50

Euro

1

Rs.71.32

 

 

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.