|
Report Date : |
05.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
DAEWON CHEMICAL CO., LTD. |
|
|
|
|
Formerly Known as: |
DAEWON Chemical
Industrial Company |
|
|
|
|
Registered Office : |
278-19, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea, 13th Fl., Gungdo
Bldg., Zip Code 135-833 |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
23.05.1974 |
|
|
|
|
Com. Reg. No.: |
204-81-36263 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacturer of Plastics Synthetic Leather |
|
|
|
|
No. of Employees : |
222 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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 |
|
Company
Name |
DAEWON CHEMICAL CO., LTD. (Korean Company Name : “대원화성(주)”) |
|
Registered Address |
278-19, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea |
|
Building |
13th
Fl., Gungdo Bldg. |
|
Zip Code |
135-833 |
|
Tel |
+82-31-372-3992 |
|
Fax |
+82-31-372-3995 |
|
E-mail |
|
|
Website |
|
|
Trading Address-Osan Factory |
496, Yoisammi-Dong, Osan-si, Gyeonggi-do, Korea |
|
Tel |
+82-31-372-3992 |
|
Fax |
+82-31-372-3995 |
|
Other Address-Busan Office |
260-34, An-dong ,Gimhae-si, Gyeongsangnam-do, Korea |
|
Tel |
+82-55-332-8777 |
|
Fax |
+82-55-331-3328 |
|
Type |
Export/Import |
|
Industry |
Manufacture
of Plastics Synthetic Leather |
|
Main Business |
Polyurethane
Synthetic Leather, Wallpaper, DMF Refinery |
|
Sub
Business |
Manufacture
of Wallpaper and Oilpaper |
|
Established (mm/dd/yyyy) |
05/23/1974 |
The Subject owns the
premises of registered Onsan factory(45,023㎡).
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Wallpapers(30161502) |
|
Sell |
Synthetic
or imitation leather(11162307) |
|
Name |
Kang
Dong-Yeop |
|
Date of Birth |
03/01/1969 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
|
Capital (KRW) |
13,726,350,000 |
|||||||||||||||||||||
|
Employees |
222 |
|||||||||||||||||||||
|
Formation |
Listed Company (Korea Stock Exchange:
024890) as of 10/28/1997 |
|||||||||||||||||||||
|
Bank Details |
Woori bank-HQ Sales 2 Dept. Korea Development Bank Shinhan Bank |
|||||||||||||||||||||
|
Corporate Registered No. |
110111-0165393 |
|||||||||||||||||||||
|
Business Registered No. |
204-81-36263 |
|||||||||||||||||||||
|
Permit & Licenses |
03/03/1998 ISO 9001 04/17/2001 ISO 14001 08/02/2006 ISO/TS 16949:2002 AWARD 1990/03 - Won Official Commendation For A
Exemplary Taxpayer-The Minister of Finance 1994/03 - Won Official Commendation For A
Exemplary Taxpayer-The Minister of Finance 1998/12 - Received An Award For Protection
of Environment-The Governor of Kyounggi Province 1999/12 - Received The Second Prize, The
Peace of Industrial Service Merit -The Governor of Kyounggi Province Int’l Trade No.: 524287 |
|||||||||||||||||||||
|
Shareholder Position |
|
|||||||||||||||||||||
|
Company History |
05/23/1974 - Established as DAEWON
Chemical Industrial Company 08/06/1974 Changed company name to the
present name 05/1977 - Completed Osan factory and began
operation 1983 - Developed "ULTRA-PORE",
breathable water proof coated fabric 1987 - Entered into technical cooperation
with Toyo Polymer of Japan 1989 - Installed wet process line from
Italy and finishing facilities 1991- Developed artificial leather for
high quality athletic footwear, began supplying to Nike, Adidas and other
brands 12/1994 - Completed automated warehouse at
Osan factory 09/1995 - Established R&D Center in
Osan factory 10/1997 - Listed on Korea Stock Exchange. 03/1998 - Acquired ISO 9001. (The first
certification in the Synthetic leather & wallpaper industry in Korea) 12/1998 - Established Guangzhou Sales
branch Office 04/2001 - Acquired ISO 14000 08/08/2001 Moved to the present HQ address
from 823, Yeoksam-dong ,Gangnam-gu, Seoul, Korea 01/2002 - President Dong-Yeop, Kang took
office as CEO 11/2002 - Developed “High-Lock”, began
supplying to Hynudai Motor Company 12/2003 - Acquired ISO 14001. (The first
certification in the Synthetic leather & wallpaper industry in Korea) 08/2006 - Acquired ISO/TS 16949:2002 06/12/2007 Participated and Invested in
Lucky ship Project in Canada |
|
Job
Description |
Title |
Name |
Sex |
Date of
Birth |
Education |
|
President
& CEO |
Mr. |
Kang Dong-Yeop |
Korean |
1969.03.01 |
Yonsei University, Korea |
|
Director |
Mr. |
Kang Soo-Chang |
Korean |
1943.01.16 |
Yonsei University, Korea |
|
Director |
Mr. |
Park Dong-Hyuck |
Korean |
1942.10.12 |
Yonsei University, Korea |
|
Auditor |
Mr. |
Hur Hoon-Jong |
Korean |
1955.02.20 |
Daegu Commercial High, Korea |
|
Outside
Director |
Mr. |
Ju Young-Eun |
Korean |
1941.08.24 |
Yonsei University, Korea |
|
Outside
Director |
Mr. |
Kim Seung-Hern |
Korean |
1943.04.13 |
Korea University, Korea |
|
Year / Unit
: KRW |
Sales |
Assets |
Net Income |
|
26,258,119,293 |
110,119,420,985 |
38,052,650 |
|
|
(*)2012 |
117,040,163,370 |
106,152,833,364 |
-1,648,794,572 |
|
(*)2011 |
115,754,238,035 |
102,432,491,732 |
-11,171,783,648 |
|
(*)2010 |
108,692,038,782 |
112,131,012,802 |
-4,842,894,143 |
|
2009 |
91,582,201,328 |
107,080,255,699 |
-3,026,564,454 |
|
2008 |
92,952,226,930 |
106,919,829,244 |
-7,818,416,065 |
(*)Figures are based
on the K-IFRS Accounting System.
|
Authorized Capital(KRW) |
50,000,000,000 |
|
Paid-Up Capital(KRW) |
13,726,350,000 |
|
Total Issued Shares |
2,745,270 |
Balance
Sheet
|
|||
|
Unit : Korean Won |
01/01/2013~03/31/2013 |
As of
12/31/2012 |
As of
12/31/2011 |
|
Total Assets |
110,119,420,985 |
106,152,833,364 |
102,432,491,732 |
|
Current
Assets |
49,350,934,739 |
45,464,450,723 |
43,042,666,970 |
|
Cash & Cash Equivalents |
713,398,825 |
1,423,019,953 |
1,100,785,921 |
|
Trade Receivables |
32,113,713,903 |
28,402,315,561 |
26,985,478,285 |
|
Other Receivables |
633,053,126 |
355,495,323 |
695,120,616 |
|
Other Current Financial
Instruments |
1,231,195,000 |
1,317,195,000 |
1,037,245,000 |
|
Inventories |
14,174,565,092 |
13,830,467,320 |
13,103,942,413 |
|
Income Taxes |
7,528,577 |
6,294,917 |
4,585,110 |
|
Other Current Assets |
477,480,216 |
129,662,649 |
115,509,625 |
|
Non-Current
Assets |
60,768,486,246 |
60,688,382,641 |
59,389,824,762 |
|
Non-Current Receivables |
7,083,146,664 |
6,821,836,664 |
9,669,056,824 |
|
Non-Current Financial Instruments |
292,615,000 |
253,410,000 |
142,475,000 |
|
Investment_Subsidiaries |
5,431,500,000 |
5,431,500,000 |
- |
|
Investment_Related Companies |
665,007,764 |
665,007,764 |
687,729,224 |
|
Tangibles |
45,353,551,683 |
45,462,364,135 |
48,819,925,792 |
|
Intangibles |
1,900,014,655 |
2,011,613,598 |
15,714,432 |
|
Other Non-Current Assets |
42,650,480 |
42,650,480 |
54,923,490 |
|
Total
Liabilities |
71,013,981,547 |
67,082,523,980 |
62,298,836,328 |
|
Current
Liabilities |
57,052,075,472 |
50,097,711,454 |
51,020,810,688 |
|
Trade Payables |
11,202,668,710 |
12,185,076,692 |
12,544,695,149 |
|
Other Current Payables |
2,379,407,713 |
2,865,799,409 |
3,101,798,710 |
|
Short-Term Borrowings |
43,098,686,256 |
34,740,366,310 |
35,210,961,893 |
|
Other Current Liabilities |
371,312,793 |
306,469,043 |
163,354,936 |
|
Non-Current
Liabilities |
13,961,906,075 |
16,984,812,526 |
11,278,025,640 |
|
Long-Term Borrowings |
1,749,993,000 |
4,999,992,000 |
6,085,000,000 |
|
Provision
for Severance & Retirement |
1,818,180,180 |
1,704,312,996 |
1,506,579,928 |
|
Provisions |
18,913,384 |
18,913,384 |
24,422,951 |
|
Deferred
Income Tax Credit |
3,672,332,918 |
3,667,388,680 |
3,662,022,761 |
|
Bond
With Warrant |
6,702,486,593 |
6,594,205,466 |
|
|
Capital
Stock |
15,564,773,500 |
15,564,773,500 |
15,564,773,500 |
|
Capital Surplus |
16,523,820,841 |
16,523,820,841 |
16,115,140,101 |
|
Others |
-3,528,313,700 |
-3,528,313,700 |
-3,528,313,700 |
|
Profit Surplus |
10,545,158,797 |
10,510,028,743 |
11,982,055,503 |
|
Total Equity |
39,105,439,438 |
39,070,309,384 |
40,133,655,404 |
|
Liab. & Shareholder’s Equity |
110,119,420,985 |
106,152,833,364 |
102,432,491,732 |
Income
Statement
|
|||
|
Unit : Korean Won |
01/01/2013~03/31/2013 |
As of
12/31/2012 |
As of
12/31/2011 |
|
Sales |
26,258,119,293 |
117,040,163,370 |
115,754,238,035 |
|
Cost of Sold Goods |
23,108,138,529 |
103,281,937,041 |
104,519,641,895 |
|
Gross Profit |
3,149,980,764 |
13,758,226,329 |
11,234,596,140 |
|
Selling & Admin. Expenses |
2,277,736,607 |
10,901,241,625 |
12,112,916,099 |
|
Operating Income |
872,244,157 |
2,856,984,704 |
-878,319,959 |
|
Other Operating Income |
820,918,662 |
2,537,569,447 |
3,342,993,096 |
|
Other Operating Expenses |
877,841,939 |
4,087,709,439 |
3,345,438,245 |
|
Finance Income |
117,081,769 |
583,809,650 |
972,914,375 |
|
Finance Expenses |
888,581,439 |
3,676,488,070 |
2,979,443,620 |
|
Profits from Related Companies |
0 |
22,721,460 |
-8,594,755,982 |
|
Income Before Taxes |
43,821,210 |
-1,808,555,168 |
-11,482,050,335 |
|
Income Taxes Expenses |
5,768,560 |
-159,760,596 |
-310,266,687 |
|
Net Income |
38,052,650 |
-1,648,794,572 |
-11,171,783,648 |
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 |
-5,223,079,662 |
-1,472,210,723 |
-157,745,332 |
|
Net Income |
38,052,650 |
-1,648,794,572 |
-11,171,783,648 |
|
Adjustment |
1,530,890,109 |
5,870,863,954 |
12,258,663,653 |
|
Changes in Asset/ & Liability |
-6,130,849,026 |
-2,736,660,309 |
1,129,510,567 |
|
Interests Received |
108,804,503 |
581,572,549 |
590,700,580 |
|
Interests Paid |
-768,744,238 |
-3,537,482,538 |
-2,998,641,504 |
|
Income Taxes |
-1,233,660 |
-1,709,807 |
33,805,020 |
|
Cash
Flows from Investing |
-299,853,856 |
-4,110,521,161 |
-4,003,733,542 |
|
Cash
Flows from Financing |
4,812,300,946 |
5,908,334,417 |
2,434,128,928 |
|
Increase/Decrease
in Cash |
709,621,128 |
322,234,032 |
-1,727,203,762 |
|
Cash at
the Beginning of Year |
1,423,019,953 |
1,100,785,921 |
2,827,989,683 |
|
Cash at
the End of Year |
713,398,825 |
1,423,019,953 |
1,100,785,921 |
|
Main Products & Services |
The Subject Company is a PU synthetic
leather supplier of its wet type PU items for shoes & balls such as for
NIKE, ADDIDAS, WILSON, SPALDING and so on, and also wallpaper. - Synthetic Leather - Wallpaper - Solvent(D.M.F) Refining Brand Name: Art-Lite, Ace-Buck, High-Lock,
Encarta, Unio, D&D, 4U |
|
Customers |
NIKE, ADIDAS, REEBOK, WILSON, SPALDING DID CO., LTD. YUE YUEN FOOTWEAR CO., LTD KOLON INDUSTRIES INC (110111-0030528) |
|
Competitors |
-SYNTHETIC LEATHER DCKSUNG CO.,LTD (134111-0000096) BAIKSAN CO.,LTD (114711-0003729) DAEWOO INTERNATIONAL CORPORATION (110111-2137358) KOLON INDUSTRIES INC (110111-0030528) -SOLVENT(D.M.F) REFINING HANONE FINE CHEMICAL CO.,LTD
(110111-0515712 ) KOLON INDUSTRIES INC (110111-0030528) - WALLPAPER DAE DONG WALL PAPER CO.,
LTD(180111-0024975) LG CHEM LTD (110111-2207995) SEOULWALLPAPER CO., LTD(115411-0002742) GAENARI INC(110111-2529373) |
(Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates |
DID CO., LTD.(KOREA) PHARM CLEAN ENERGY CO., LTD.(KOREA) (24.28% held by
the subject company) CELTRION CO., LTD. (0.2% held by the subject company) |
|
Overseas Office |
CHINA BRANCH #1217 SOUTH TOWER, GUANZHOU WORLD TRADE
CENTER COMPLEX, HUANSHI DONG-LU, GUANZHOU, P.R.C TEL : +86-20-8760-9609 FAX : +86-20-8760-9615 E-MAIL : DAEWONGZ@GDVNET.COM TAIWAN BRANCH 11F-8, NO.77, SHIZHENG N. 1ST ROAD,
TAICHUNG CITY 407, TAIWAN R.O.C. TEL : +886-4-2251-3490 / FAX :
+886-4-2251-4039 E-MAIL : TED.GOO@DAEWON21.CO.KR |
|
Joint Venture |
YOUNGPA WONRYUNG WALLPAPER CO., LTD.(CHINA) (40.0% held by the subject company) |
|
Subsidiary |
DAEWON CHEMICAL.VINA.CO., LTD. (100.0% held by the subject company) DAEWON INTERNATIONAL AMERICA CORP. (100.0% held by the subject company) DAEWON SHANGHAI CO., LTD.(CHINA) (100.0% held by the subject company) |
(Activity & Markets)
The Subject exports to China, Taiwan and USA.
No.
--
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.64 |
|
UK Pound |
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.