MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

HWAIL PHARM. CO., LTD.

 

 

Registered Office :

904-7, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea 445-937

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

18.11.1980

 

 

Com. Reg. No.:

124-81-27624

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Medicinal Chemicals and Antibiotics

 

 

No. of Employees :

98

 

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

HWAIL PHARM. CO., LTD.

(English Name : HWAIL PHARMACEUTICAL CO., LTD.)

(Korean Company Name : “화일약품()”)

Registered Address

904-7, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

Zip Code

445-937

Tel

+82-31-353-4101

Fax

+82-31-353-9219

E-mail

hwail@hwail.co.kr; james@hwail.com

Website

www.hwail.com

Trading Address

5FL., C-Korea Bio Park, 694-1, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

Tel

+82-2-512-2592

Fax

+82-2-511-6954

Other Address

454-3, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-4042

Fax

+82-31-491-4045

Type

Export/Import

Industry

Manufacture of Medicinal Chemicals and Antibiotics

  Main Business

Pharmaceutical Raw Materials, Analgesics, Food Additives

Established (mm/dd/yyyy)

11/18/1980

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Formulas and products for nutritional support(42231800)

Sell

Herbal drugs(51212000)

Sell

Shelf stable vegetables(50101540)

Sell

Cereal flour(50221102)

Sell

Mushrooms or fungi(50101541)

 

 

CEO’s

 

Name

Lee Jung-Kyu

Date of Birth

09/17/1947

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

5,870,846,000

Employees

98

Formation

Listed Company (KOSDAQ:061250) as of 04/17/2002

Bank Details

Citibank, Korea-Yeoksam Station Branch

Korea Exchange Bank-Dogokro Branch

Hana Bank-Jeki Dong Branch

Industrial Bank of Korea-Seocho Nam Branch

Shinhan Bank

Corporate Registered No.

134411-0000719

Business Registered No.

124-81-27624

Permit & Licenses

Int’l Trade No.: 542269

Shareholder Position

Name

Shares

%

LEE JUNG-KYU

2,229,970

18.99

PARK PHIL-JOON

2,319,889

19.76

TREASURY STOCK

888,057

7.56

OTHERS

6,303,776

53.69

TOTAL

11,741,692

100.00

Company History

05/1974 Established as JEIL PHARM. CO.

11/18/1980 Incorporated as the present name

06/2001 Designated as a Promising SME by Gyeonggi Province, Korea

10/2001 Completed BGMP Facilties

04/17/2002 Listed at KOSDAQ Market

08/2008 Acquired Eco P&F Co., Ltd.(110111-3951848)

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Jung-Kyu

Korean

1947. 09. 17

Myungji University, Korea

Vice President & CEO

Mr.

Park Phil-Joon

Korean

1960. 09. 22

-

Auditor

Mr.

Jung Soon-Hee

Korean

1950. 03. 04

-

Sr. Executive Director

Mr.

Jung Young-Cheol

Korean

1956. 02. 01

Gyungbuk National University, Korea

Outside Director

Mr.

Park Young-Hwan

Korean

1949. 08. 15

Myungji University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2011

68,265,644,983

110,004,116,477

3,586,916,261

(*)2011

78,097,350,738

98,791,213,472

4,676,324,958

(*)2010

76,067,646,494

107,660,060,440

4,274,517,444

2009

72,112,584,287

85,321,200,059

4,289,385,137

2008

61,371,591,549

71,890,758,102

5,148,234,554

2007

60,287,772,247

57,760,360,949

4,929,631,959

2006

54,900,919,914

56,401,487,368

4,509,130,859

2005

52,921,707,173

46,115,581,223

4,733,147,756

2004

49,767,669,954

40,824,313,435

4,008,977,573

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

5,870,846,000

Total Issues Shares

11,741,692

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

110,004,116,477

98,791,213,472

107,660,060,440

Current Assets

74,094,762,653

67,156,884,478

79,055,578,214

Cash & Cash Equivalents

4,122,544,458

3,036,556,738

3,371,898,961

Current Financial Instruments

590,279,252

3,453,392,535

5,003,507,254

Trade Receivables

41,212,478,340

33,190,249,342

34,314,359,697

Other Current Receivables

5,276,718,545

4,694,650,350

1,151,520,674

Inventories

22,459,196,043

22,288,523,875

25,735,151,134

Non-Current Assets to be Sold

0

0

7,686,144,576

Current Non-Financial Instruments

433,546,015

493,511,638

1,792,995,918

Non-Current Assets

35,909,353,824

31,634,328,994

28,604,482,226

Non-Current Financial Instruments

1,948,271,472

1,473,343,833

3,081,824,793

Long-Term Trade Receivables

0

11,079,471

48,143,200

Other Non-Current Receivables

679,012,771

669,101,752

22,208,000

Investment_Subsidiaries

1,000,000,000

1,000,000,000

1,000,000,000

Tangibles

27,530,400,149

23,671,699,642

23,662,894,728

Investment_Real Estates

4,058,613,944

4,100,165,623

0

Intangibles

693,055,488

708,938,673

789,411,505

Total Liabilities

36,249,492,613

29,302,009,657

40,829,339,495

Current Liabilities

27,740,995,539

20,507,545,786

33,751,180,803

Trade Payables

5,227,711,785

3,947,582,916

6,143,418,558

Other Current Payables

1,255,515,522

1,342,779,134

678,432,423

Short-Term Borrowings

19,658,424,694

11,525,984,854

10,434,362,690

Current Portion of Long-Term Debts

666,700,000

1,000,000,000

1,140,077,008

Current Portion of Bond With Warrant

0

0

9,338,859,603

Accrued Income Tax

721,999,998

2,455,594,400

881,743,029

Other Current Finance Liabilities

0

0

0

Non-Current Assets to be Sold

0

0

607,000,000

Other Current Non-Finance Liabilities

210,643,540

235,604,482

4,527,287,492

Non-Current Liabilities

8,508,497,074

8,794,463,871

7,078,158,692

Other Non-Current Payables

1,855,163,492

1,792,887,815

0

Long-Term Borrowings

4,934,132,251

5,350,832,251

3,980,539,064

Provision for Severance & Retirement

0

0

0

Deferred Income Tax Credit

1,719,201,331

1,650,743,805

3,097,619,628

Capital Stock

5,870,846,000

5,603,003,500

5,587,834,000

Capital Surplus

12,067,048,044

10,497,640,637

10,404,739,038

Profit Surplus

59,552,379,656

56,997,258,395

53,378,222,337

Others

-3,735,649,836

-3,608,698,717

-2,540,074,430

Total Equity

73,754,623,864

69,489,203,815

66,830,720,945

Liab. & Shareholder’s Equity

110,004,116,477

98,791,213,472

107,660,060,440

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

68,265,644,983

78,097,350,738

76,067,646,494

Cost of Sold Goods

56,601,586,072

63,929,252,713

62,443,752,233

Gross Profit

11,664,058,911

14,168,098,025

13,623,894,261

Selling & Admin. Expenses

5,979,389,552

7,457,630,296

7,647,833,375

Other Operating Income

180,917,810

1,490,975,535

716,912,554

Other Operating Expenses

359,301,248

700,657,418

304,429,500

Operating Income

5,506,285,921

7,500,785,846

6,388,543,940

Finance Income

350,683,144

449,702,895

312,276,027

Finance Expenses

691,310,799

1,628,519,102

1,199,947,004

Income Before Taxes

5,165,658,266

6,321,969,639

5,500,872,963

Income Taxes Expenses

1,578,742,005

1,645,644,681

1,226,355,519

Net Income

3,586,916,261

4,676,324,958

4,274,517,444

 

 

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

-3,606,895,251

7,848,263,321

1,147,719,155

Net Income

3,586,916,261

4,676,324,958

4,274,517,444

Adjustment

-3,635,167,733

5,316,014,554

-1,532,253,575

Interests Received

346,377,606

345,110,413

223,360,588

Interests Paid

-658,426,908

-979,506,703

-655,383,537

Dividends Received

191,183

2,235,329

1,693,645

Income Taxes

-3,246,785,660

-1,511,915,230

-1,164,215,410

Cash Flows from Investing

-3,370,100,684

1,476,841,048

-4,210,585,802

Cash Flows from Financing

8,050,637,768

-9,672,058,078

3,860,757,046

Increase/Decrease in Cash

3,036,556,738

3,371,898,961

2,625,602,993

Cash at the Beginning of Year

12,345,887

11,611,486

-51,594,431

Cash at the End of Year

4,122,544,458

3,036,556,738

3,371,898,961

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pharmaceutical Raw Materials, Analgesics, Food Additives

-Acemetacin

-Oxatomide

-Phloro Glucin

-Talniflumate

-Triflusal

-Gallamine Triethyl Iodide

-Alibendol Erdostein

-Others

 

Automobile

 

Brand Name : LVSP, TNFL, ACCL, TRPR, LTBF

Annual Production Capacity

(Unit: Kg)

Item

06/2011

2010

2009

LVSP

2,500

3,094

3,094

TNFL

7,500

15,000

15,000

ACCL

10,000

3,500

3,500

PLOG

875

1,750

1,750

 

 

Trade Partners & Competitors

 

Suppliers

WAFRAPHARMA LABORATORIES LTD.

HYUNDAI MOTOR COMPANY(110111-0085450)

Customers

Major Pharmaceutical Manufacturing Companies

 

SEPEHR DIESEL KAVEH AUTOMOTIVE

Competitors

DAEBONGLSCO.,LTD(124311-0016976)

122B-9L, NAMDONG INDUSTRIAL COMPLEX, 692-8, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-817-8800~7 FAX:+82-32-817-8808

 

ESTECHPHARMA CO., LTD(135111-0047782)

34-10B, BARAN LOCAL INDUSTRIAL COMPLEX, 1407-9, HAGIL-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-831-4800  FAX:+82-31-831-4801

 

HANMIFINECHEMICAL CO.,LTD.(131111-0005106)

1248-8, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-2541  FAX:+82-31-499-2540

 

DAEWOONG BIO INC.(131112-0004827)

906-5, SANGSIN-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-353-5271~3  FAX:+82-31-353-5626

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ECO P&F CO., LTD.(110111-3951848)

(19.74% held by the subject company)

776-12, YEOKSAM-DONG, GANGNAM-GU, SEOUL, KOREA

Subsidiary

HWAIL INTERNATIONAL CO., LTD.(110111-4313162)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

GREEN NON-LIFE INSURANCE CO., LTD(110111-0007082)

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to China and India, and it imports from USA, Japan and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

 

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.