MIRA INFORM REPORT

 

 

Report Date :

20.07.2013

 

IDENTIFICATION DETAILS

 

Name :

GLOBAL BATTERY CO., LTD.

 

 

Registered Office :

6th Fl., Sebang Bldg. 708-8, Yeoksam 2-dong, Gangnam-gu, Seoul, Korea 135-919

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.09.1952

 

 

Com. Reg. No.:

220-81-00490

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Accumulators

 

 

No. of Employees :

820

 

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 :

Good

Payment Behaviour :

Regular

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 Information

 

Company Name

GLOBAL BATTERY CO., LTD.

(Korean Company Name : “세방전지()”)

Registered Address

708-8, Yeoksam 2-dong, Gangnam-gu, Seoul, Korea

Building

6th Fl., Sebang Bldg.

Zip Code

135-919

Tel

+82-2-3451-6201

Fax

+82-2-3451-6301

E-mail

antony@gbattery.com;yhs@gbattery.com;hikaru@gbattery.com;donchoi@gbattery.com

Website

www.gbattery.com

Trading Address

6th Fl., Sebang Bldg., 708-8, Yeoksam 2-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-3451-6201

Fax

+82-2-3451-6301

Other Address-Gwangju Factory

500-4, Hanam-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-62-601-6100

Fax

+82-62-951-4126

Other Address-Chang-won Factory

601-9, Namsan-dong, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-279-9700

Fax

+82-55-282-2658

Other Address-Daegu Branch

3rd Fl., KARICO Bldg., 123-1, Sincheon 3-dong, Dong-gu, Daegu, Korea

Tel

+82-53-746-9201~3

Fax

+82-53-746-9204

Other Address-Daejeon Branch

3rd Fl., Unam Bldg., 62-1, Ojeong-dong, Daedeok-gu, Daejeon, Korea

Tel

+82-42-632-8841

Fax

 

Other Address-Gwangju Branch

603-4, Gwangcheon-dong, Seo-gu, Gwangju, Korea

Tel

+82-62-365-9969

Fax

 

Other Address-Busan Branch

Rm. 301, Leaders Bldg., 313-3, Daecheong-ri, Jangyu-myeon, Gimhae-si, Gyeongsangnam-do, Korea

Tel

+82-55-314-6515

Fax

+82-55-314-6514

Other Address-Gyoenggi Branch

827-6, Gwanyang 2-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

Tel

+82-31-436-3200

Fax

+82-31-436-3353

Type

Export/Import

Industry

Manufacture of Accumulators

  Main Business

Automotive Batteries, Industrial Batteries, Motorcycle Batteries, Battery

  Sub Business

 

Established (mm/dd/yyyy)

09/10/1952

The Subject owns the premises of Gwangju Factory and Chang-won Factory.

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Vehicle batteries(26111703)

Sell

Batteries and cells and accessories(26111700)

 

 

CEO’s

 

Name

Lee Sang-Woong

Date of Birth

12/12/1958

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

7,000,000,000

Employees

820

Formation

Listed Company (Korea Stock Exchange : 004490) as of 11/29/1987

Foreign Direct Investment Corporation

A Company of Sebang Group

Bank Details

Shinhan Bank-Tehran Ro Branch

Citibank Korea

Corporate Registered No.

110111-0202765

Business Registered No.

220-81-00490

Permit & Licenses

03/1967 KS Mark

12/1968 KS Mark

02/1970 Ks Mark

11/1974 KS Mark

11/1989 JIS

07/1993 ISO 9002 by DNS

04/1994 ISO 9001 by DNS

05/1994 ISO 9001 by DNS

10/1995 KS Mark

09/2004 ISO 14001

10/2007 KS Mark

 

Int’l Trade No.: 777027

Shareholder Position

Name

Shares

%

SEBANG CO., LTD.(180111-0015932)

5,312,352

37.95

NATIONAL PENSION SERVICE(110171-0007134)

996,778

7.12

LEE SANG-HEE

123,550

0.88

OTHERS

7,567,320

54.05

TOTAL

14,000,000

100.00

Company History

09/1952 Founded as R&D center of the Korea Navy

01/1965 KS certified as the first in Korean battery industry

01/1965 Secured technical tie-up with GS Battery in Japan

04/1975 Capital invested from Yuasa Battery in Japan

11/1983 KS certified for entire line of products

07/1988 Secured technical tie-up with Hagen in Germany

11/1989 Opened KwangJu plant for automotive battery

10/1992 Secured technical tie-up with SAFT in France

01/1993 ISO 9002 certified as the first in Asian battery industry

04/1994 ChangWon plant and KwangJu plant ISO 9001 certified by DNV QA

11/1994 Opened the 2nd KwangJu plant

10/1997 KwangJu plant QS 9000 certified by DNV QA

11/2000 KwangJu plant ISO 14001 certified by DNV QA

12/2003 KwangJu Plant ISO/TS 16949 certified by KFQ

09/2005 New name to Sebang Global Battery Co., Ltd

08/2007 Awarded the new technology certification of nickel hydride battery (NET)

03/2008 Achieved the environment mark certification of nickel hydride battery

08/2008 Granted the KS certification of nickel hydride battery

12/2008 awarded US$300 Million Export Top Prize

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman

Mr.

Lee Eui-Soon

Korean

1923.06.12

Foreign Language University in Japan

Vice Chairman & CEO

Mr.

Lee Sang-Woong

Korean

1958.12.12

Seogang University, Korea

Sr. Executive & CEO

Mr.

Lim Dong-Joon

Korean

1960.02

Changwon University, Korea

Director

Mr.

Yoda Makoto

Japanese

1950.01.24

Present President of GS Yuasa Power Supply

Outside Director/ Auditor

Mr.

Kim Jae-Sun

Korean

1948.11

Yonsei University, Korea

Outside Director

Mr.

Jung Chang-Soo

Korean

1957.04

Kyunghee University, Korea

Auditor

Mr.

Seo Young-Kil

Korean

1945.03

Korea University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2013

208,297,667,257

789,294,019,466

17,408,110,925

(*)2012

846,330,248,435

772,556,142,262

97,869,278,606

(*)2011

953,871,594,678

712,634,498,379

105,374,945,854

(*)2010

790,200,173,691

593,934,630,277

85,826,884,296

2009

627,174,255,866

428,991,487,635

70,289,574,494

2008

624,588,851,164

358,862,223,342

75,368,845,987

2007

496,287,206,324

316,751,081,071

18,808,672,221

2006

319,529,859,554

262,981,942,994

11,903,121,305

2005

290,142,246,871

250,195,482,138

13,893,753,311

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

 

 

Financial Description

 

Authorized Capital(KRW)

19,600,000,000

Paid-Up Capital(KRW)

7,000,000,000

Total Issues Shares

14,000,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

789,294,019,466

772,556,142,262

712,634,498,379

Current Assets

575,600,566,455

556,759,161,741

524,580,637,244

Cash & Cash Equivalents

64,553,964,778

52,976,623,842

112,735,857,399

Current Financial Instruments

203,000,000,000

232,027,700,514

95,000,000,000

Marketable Financial Instruments

17,111,407

17,028,149

17,742,515

Trade Receivables & Other Receivables

163,799,036,234

161,335,798,558

191,906,818,486

Inventories

133,120,396,342

102,715,535,927

115,014,828,643

Other Current Assets

11,110,057,694

7,686,474,751

9,905,390,201

Non-Current Assets

213,693,453,011

215,796,980,521

188,053,861,135

Non-Current Marketable Financial Instruments

7,899,915,116

7,501,849,218

6,851,195,552

Non-Current Held-to-Maturity Financial Assets

1,500,000,000

2,500,000,000

2,500,000,000

Tangibles

196,947,779,652

198,085,770,648

171,362,128,892

Intangibles

2,903,380,000

2,779,220,000

3,505,377,917

Investment_Real Estates

2,279,179,000

2,279,179,000

2,279,179,000

Other Non-Current Assets

2,163,199,243

2,612,336,707

1,517,354,126

Other Non-Current Assets to be Sold

0

38,624,948

38,625,648

Total Liabilities

192,956,489,449

187,032,790,862

222,215,306,307

Current Liabilities

179,949,147,078

177,567,507,797

207,608,451,041

Trade Payables & Other Payables

89,847,129,757

79,599,630,233

81,980,088,086

Short-Term Borrowings

68,607,805,159

74,800,935,182

93,267,901,666

Current Portion of Long-Term Debts

37,756,800

111,015,900

102,321,000

Provision for Sales Guarantee

70,437,799

90,525,379

163,059,206

Income Taxes

13,631,149,932

15,452,634,520

21,860,742,945

Other Current Liabilities

7,754,867,631

7,512,766,583

10,234,338,138

Non-Current Liabilities

13,007,342,371

9,465,283,065

14,606,855,266

Long-Term Trade Payables & Other Payables

1,084,644,056

1,240,841,376

1,171,229,260

Long-Term Borrowings

549,026,100

485,784,000

596,799,900

Provision for Severance & Retirement

3,383,811,657

0

5,517,755,643

Deferred Income Tax Credit

7,989,860,558

7,738,657,689

7,321,070,463

Capital Stock

7,000,000,000

7,000,000,000

7,000,000,000

Capital Surplus

58,944,253,239

58,944,253,239

58,944,253,239

Others

2,121,875,381

1,827,097,400

1,353,647,341

Profit Surplus

528,271,401,397

517,752,000,761

423,121,291,492

Total Equity

596,337,530,017

585,523,351,400

490,419,192,072

Liab. & Shareholder’s Equity

789,294,019,466

772,556,142,262

712,634,498,379

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

208,297,667,257

846,330,248,435

953,871,594,678

Cost of Sold Goods

171,795,397,477

655,117,533,779

752,482,468,522

Gross Profit

36,502,269,780

191,212,714,656

201,389,126,156

Selling & Admin. Expenses

16,593,205,393

68,067,166,993

68,771,694,265

Operating Income

19,909,064,387

123,145,547,663

132,617,431,891

Other Income

4,097,761,663

4,611,911,728

7,692,140,764

Other Expenses

3,008,631,408

7,126,680,393

9,627,650,281

Finance Income

2,385,015,016

9,445,013,988

8,432,752,160

Finance Expenses

337,982,177

1,700,543,495

2,090,080,043

Income Before Taxes

23,045,227,481

128,375,249,491

137,024,594,491

Income Taxes Expenses

5,637,116,556

30,505,970,885

31,649,648,637

Income from Continuous Business

17,408,110,925

97,869,278,606

105,374,945,854

Income from Stopped Business

0

0

0

Net Income

17,408,110,925

97,869,278,606

105,374,945,854

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-2,082,618,077

145,854,815,398

82,962,268,938

Net Income

17,408,110,925

97,869,278,606

105,374,945,854

Adjustment

-14,490,673,596

77,870,017,891

-2,028,889,924

Interests Received

1,934,518,160

7,898,259,764

6,697,507,737

Dividends Received

70,000,000

70,000,000

70,000,000

Interests Paid

-337,982,177

-1,695,706,495

-2,093,058,043

Income Taxes

-6,666,591,389

-36,157,034,368

-25,058,236,686

Cash Flows from Investing

25,586,028,339

-182,873,208,698

-97,892,021,845

Cash Flows from Financing

-12,459,405,586

-22,602,833,334

8,689,270,035

Increase/Decrease in Cash

11,204,704,580

-59,645,446,173

-6,236,709,111

Cash at the Beginning of Year

53,681,477,797

113,326,923,970

119,563,633,081

Cash at the End of Year

64,886,182,377

53,681,477,797

113,326,923,970

 

 

Products, Technologies, Services Description

 

Main Products & Services

Automotive Batteries, Industrial Batteries, Motorcycle Batteries, Battery

 

Brand Name : Rocket

 

 

Trade Partners & Competitors

 

Suppliers

KOREA ZINC INC.(110111-0168404)

GLOBAL INDUSTRIAL CO., LTD.(134111-0002612)

Customers

HYUNDAI MOTOR CO(110111-0085450)

KIA MOTORS CORPORATION(110111-0037998)

SSANGYONG MOTOR CO., LTD.(110111-0035132)

GM DAEWOO AUTO & TECHNOLOGY COMPANY(120111-0294124)

Competitors

HYUNDAI ENERCELL CO.,LTD.(131111-0003043)

ATLAS BX CO.,LTD.(160111-0003486)

DELKOR CORPORATION(110111-0409030)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SEBANG CO., LTD.(180111-0015932)

SEBANG HI-TECH CO., LTD.(110111-1392060)

HANKOOK SHIPPING CO., LTD.(110111-0029838)

OJU SHIPPING CO., LTD.(11011100131823)

WOOJU SHIPPING CO., LTD.(110111-0198708)

OVERSEAS AIR FREIGHT CO., LTD.(110111-0107139)

BUSAN INTERNATIONAL CONTAINER TERMINAL CO., LTD.(180111-0525858)

KWANGYANG INTERNATIONAL CONTAINER TERMINAL CO., LTD.(204611-0022029)

GLOBAL INDUSTRIAL CO., LTD.(134111-0002612)

GLOBAL EXPRESS CO., LTD.(110111-0007602)

SEBANG NEW PORT LOGISTICS CO., LTD.(180111-0602515)

SEBANG KWANGYANG INTERNATIONAL LOGISTICS CO., LTD.(204611-0025974)

MOKPO DAEBUL PORT OPERATION CO., LTD.(205411-0014376)

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD(110111-0017859)

 

-Technology Support from

EN-CONSULTING

M&G ECO-BATTERY

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

113,701

569,410

490,034

Domestic

99,708

384,462

300,166

Total

213,409

953,872

790,200

The Subject deals with the companies in China, Japan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.91.03

Euro

1

Rs.78.52

 

 

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%)

 

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