MIRA INFORM REPORT

 

 

Report Date :

07.03.2013

 

IDENTIFICATION DETAILS

 

Name :

HOSUNG MACHINERY INDUSTRIAL CO., LTD.

 

 

Registered Office :

1256-11, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, 2Da-113, Sihwa Industrial Complex, Korea - 429-923

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.06.1987

 

 

Com. Reg. No.:

133-81-22429

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Metal Cutting and Compressing Machines

 

 

No. of Employees :

31

 

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 – 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

HOSUNG MACHINERY INDUSTRIAL CO., LTD.

(Korean Company Name : “호성기계공업()”)

Registered Address

1256-11, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Building

2Da-113, Sihwa Industrial Complex

Zip Code

429-923

Tel

+82-31-499-2400~4

Fax

+82-31-499-2405

E-mail

ykk0594@naver.com

Website

www.hosungpress.com

Trading Address

1256-9, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-499-2400~4

Fax

+82-31-499-2405

Type

Export

Industry

Manufacture of Metal Cutting and Compressing Machines

  Main Business

Forging Press, Billet Shear Press, C Type Trimming Press

Established (mm/dd/yyyy)

06/30/1987

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Hydraulic presses(27121500)

Sell

Hydraulic tools(27126100)

Sell

Bending machines(23101504)

Sell

Forging presses(23161504)

Sell

Workshop presses(23171622)

Buy

Drills(23153301)

Buy

Welders(23171508)

Buy

Circuit breakers(39121601)

Buy

Grinders(27111905)

Buy

Holding and clamping tools(27112100)

Buy

Form tools or toolbits(23153303)

 

CEO’s

 

Name

Jeong Jae-Seok

Address

Suite 1401-501, 329, Sinjeong-dong, Yangcheon-gu, Seoul, Korea

Date of Birth

03/17/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

500,000,000

Employees

31

Formation

Co., Ltd by Shares

Bank Details

Citibank, Korea-Cheolsan Dong Branch

Industrial Bank of Korea

Corporate Registered No.

1349110-002575

Business Registered No.

133-81-22429

Permit & Licenses

Int’l Trade No.: 11135074

Shareholder Position

Name

Shares

%

JEONG JAE-SEOK

52,500

52.50

JEONG JONG-HO

47,500

47.50

TOTAL

100,000

100.00

Company History

05/1985 Established as HOSUNG MACHINERY CO.

06/30/1987 Incorporated as the present name

12/2005 Awarded US$ 1 Million Export Top Prize

04/26/2007 Increased the authorized shares to 200,000 shares from 80,000 shares

04/27/2007 Increased capital to 500,000,000 KRW from 300,000,000 KRW

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Jeong Jae-Seok

Male

Korean

03/31/2005

Director

Mr.

Jung Jong-Ho

Male

Korean

03/23/2009

Director

M/S.

Jeon Su-Ran

Female

Korean

10/31/2011

Auditor

M/S.

Bae Bok-Rye

Female

Korean

04/24/1995

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

16,136,750,153

22,028,298,523

882,072,287

2010

7,842,912,812

15,429,274,782

246,532,102

2009

4,352,419,530

12,545,933,077

151,169,146

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000

Paid-Up Capital(KRW)

500,000,000

Total Issued Shares

100,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

22,028,298,523

15,429,274,782

12,545,933,077

Current Assets

8,678,327,895

5,682,459,279

2,945,664,989

-Quick Assets

7,380,487,289

3,377,245,063

1,749,761,649

-Inventories

1,297,840,606

2,305,214,216

1,195,903,340

Fixed Assets

13,349,970,628

9,746,815,503

9,600,268,088

-Investment

138,000,000

231,000,000

75,500,000

-Tangibles

13,206,028,228

9,509,873,103

9,519,825,688

-Intangibles

5,942,400

5,942,400

4,942,400

Total Liabilities

16,968,609,793

11,251,658,339

8,514,848,736

Current Liabilities

9,115,693,657

6,645,332,140

3,578,332,201

Fixed Liabilities

7,852,916,136

4,606,326,199

4,936,516,535

Capital Stock

500,000,000

500,000,000

500,000,000

Capital Surplus

 

 

 

Profit Surplus

1,584,172,257

702,099,970

555,567,868

Capital Adjustment

2,975,516,473

2,975,516,473

2,975,516,473

Total Equity

5,059,688,730

4,177,616,443

4,031,084,341

Liab. & Shareholder’s Equity

22,028,298,523

15,429,274,782

12,545,933,077

 

Current Liabilities

9,115,693,657

6,645,332,140

3,578,332,201

Trade Payables

5,768,843,121

2,867,875,772

1,546,842,545

Account Payables

296,938,445

802,606,945

7,601,480

Withholdings

36,569,370

17,098,950

11,122,820

VAT Withhold

 

 

4,084,942

Advance Receipts

1,298,970,000

1,483,634,245

73,228,370

Short-Term Borrowings

880,000,000

880,000,000

1,560,000,000

Accrued Income Tax

73,197,013

15,717,870

22,173,800

Accrued Expenses

38,009,708

25,760,358

136,878,244

Current Portion of Long-Term Debts

723,166,000

552,638,000

216,400,000

Fixed Liabilities

7,852,916,136

4,606,326,199

4,936,516,535

Long-Term Borrowings

7,451,249,000

4,272,002,000

4,618,000,000

Provision for Severance & Retirement

409,338,274

342,216,667

327,217,448

 

Income Statement

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

16,136,750,153

7,842,912,812

4,352,419,530

Cost of Sold Goods

13,678,226,854

6,353,235,557

3,367,403,476

Gross Profit

2,458,523,299

1,489,677,255

985,016,054

Selling & Admin. Expenses

1,252,771,135

989,676,441

735,111,309

Operating Income

1,205,752,164

500,000,814

249,904,745

Non-Operating Income

106,100,468

92,152,772

172,742,072

Non-Operating Expenses

342,730,762

318,382,294

246,782,541

Income Before Taxes

969,121,870

273,771,292

175,864,276

Income Taxes Expenses

87,049,583

27,239,190

24,695,130

Net Income

882,072,287

246,532,102

151,169,146

 

Cash Flows

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

2,914,628,059

2,689,337,124

551,770,227

-Net Income

882,072,287

246,532,102

151,169,146

-Exp. without Cash Outflow

1,290,864,229

1,099,429,317

605,068,617

-Revenue without Cash Inflows

-999,000

-9,697,695

-99,999,000

-Changes in Asset/ & Liability

742,690,543

1,353,073,400

-104,468,536

Cash Flows from Investing

-5,909,056,504

-2,280,955,587

-3,466,406,428

-Cash Inflow from Investing

3,021,400,199

2,488,303,182

1,372,834,870

-Cash Outflows for Investing

-8,930,456,703

-4,769,258,769

-4,839,241,298

Cash Flows from Financing

3,349,775,000

-789,760,000

3,383,600,000

-Cash Inflows from Financing

4,280,000,000

450,000,000

3,900,000,000

-Cash Outflows from Financing

-930,225,000

-1,239,760,000

-516,400,000

Increase/Decrease in Cash

355,346,555

-381,378,463

468,963,799

Cash at the Beginning of Year

200,082,401

581,460,864

112,497,065

Cash at the End of Year

555,428,956

200,082,401

581,460,864

 

Products, Technologies, Services Description

 

Main Products & Services

Forging Press, Billet Shear Press, C Type Trimming Press

 

Trade Partners & Competitors

 

Competitors

DONGHAE MACHINERY MANUFACTURING CO., LTD.

11B-7L, MADO INDUSTRIAL COMPLEX, 676-4, SSANGSONG-RI, MADO-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-355-8540~3  FAX:+82-31-355-8547

 

MYUNG JIN MACHINERY CO., LTD.

3DA-623, SIHWA INDUSTRIAL COMPLEX, 1283-10, JEONGWANG 1-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-498-4530  FAX:+82-31-499-4538

 

WONSHIN MACHINERY CO., LTD.

4DA-109-1, SIHWA INDUSTRIAL COMPLEX, 660-18, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-431-6161  FAX:+82-31-431-6177

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

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

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

Sales by Region (Activity & Markets)

 

The Subject exports to India.

 

Court Action

 

No.

 

News Clipping

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.70

UK Pound

1

Rs.82.78

Euro

1

Rs.71.42

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.