MIRA INFORM REPORT

 

 

Report Date :

12.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DONGSUNG HIGHCHEM CO., LTD.

 

 

Formerly Known As :

HOSUNG CHEMEX CO., LTD.

 

 

Registered Office :

943-19, Daechi 2-dong, Gangnam-gu, Seoul, Korea, 9th FI., Sinan Bldg., Zip Code 135-845

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

23.08.1978

 

 

Com. Reg. No.:

220-81-25695

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Basic Organic Petrochemicals

 

 

No. of Employees :

196

 

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

(31.03.2012)

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

 

Company Name

DONGSUNG HIGHCHEM CO., LTD.

(Ex. Company Name : HOSUNG CHEMEX CO., LTD.)

(Trade Name : DSHC)

(Korean Company Name : “()동성하이켐”)

Registered Address

943-19, Daechi 2-dong, Gangnam-gu, Seoul, Korea

Building

9th FI., Sinan Bldg.

Zip Code

135-845

Tel

+82-2-3450-4200

Fax

+82-2-553-5922

E-mail

webmaster@i-chemex.com

Website

www.i-chemex.com 

Trading Address

9th FI., Sinan Bldg., 943-19, Daechi 2-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-3450-4200

Fax

+82-2-553-5922

Other Address-Ulsan Plant

1-31, Gilcheon-ri, Sangbuk-myeon, Ulju-gun, Ulsan, Korea

Tel

+82-52-264-2066

Fax

+82-52-264-2069

Other Address-Yeosu Plant

1023, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-685-5351

Fax

+82-61-685-5355

Other Address-Hwaseong Plant

732-6, Yangno-ri, Bibong-myeon, Hwaseong-si, Gyeonggi-do, Korea

Tel

+82-31-355-0856

Fax

+82-31-355-0859

Type

Export

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Performance Solvents, Monomer, Organic Peroxides, Polyurethans, Thermoplastic Polyurethane, Medical Treatment Tool, Coating

Established (mm/dd/yyyy)

08/23/1978

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Chemistry reagents or solutions(41116105)

Sell

Thermoplastic plastics(13102000)

Sell

Casting and splinting supplies(42241500)

Sell

Films(13111200)

Buy

Thermal insulation(30141500)

Buy

Organic peroxides(12352120)

 

CEO’s

 

Name

Yang Seok-Mo

Address

 

Date of Birth

04/25/1956

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

70,637,910,000

Employees

196

Formation

Listed Company (KOSDAQ : 013450) as of 06/11/1999

A Company of DONGSUNG HOLDINGS CO., LTD.

Bank Details

Shinhan Bank-Sunnung Branch

Citibank, Korea-Sunnung Branch

Corporate Registered No.

110111-0237928

Business Registered No.

220-81-25695

Permit & Licenses

11/2003 ISO 9001

11/2003 ISO 14001

 

Int’l Trade No.: 11660479

Shareholder Position

Name

Shares

%

DONGSUNG HOLDINGS CO., LTD.(180111-0633031)

5,182,920

36.69

BAIK JUNG-HO

2,096,759

14.84

SHIN YOUNG INVESTMENT MANAGEMENT CO., LTD.(110111-1304148)

1,609,523

11.39

TREASURY STOCK

500,000

3.54

OTHERS

4,738,380

33.54

TOTAL

14,127,582

100.00

Company History

08/23/1978 Incorporated as Hosung Petrochemical Co., ltd.

01/01/1998 Acquired Jungwoo Industries Co., Ltd.

07/31/1999 Moved to the present HQ address from 705-18, Yeoksam-dong, Gangnam-gu, Seoul, Korea

11/1999 Changed company name to the present name

07/01/200 Acquired Dongsung Resorcves Development Co., Ltd.

04/15/2009 The Subject spin off the parts of not main business, and that parts are merged into DONGSUNG HOLDINGS CO.,LTD.(180111-0633031)

09/24/2009 Changed company name to the present name

03/12/2010 Moved to the present HQ address from 18th Fl., Samhwa Bldg., 144-17, Samseong 2-dong, Gangnam-gu, Seoul, Korea

 

 

 


Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman

Mr.

Baik Jung-Ho

Korean

1958.09.03

Yonsei University, Korea

President & CEO

Mr.

Yang Seok-Mo

Korean

1956.04.25

-

Vice Chairman

Mr.

Park Won-Se

Korean

1953.06.21

-

Outside Director

Mr.

Lee Chul-Soo

Korean

1958.03.19

Seoul National University, Korea

Auditor

Mr.

Park Young-Jae

Korean

1958.09.12

Yonsei University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

161,544,147,622

122,901,595,050

9,395,146,069

(*)2011

206,288,387,040

90,725,352,434

9,610,042,298

(*)2010

170,730,488,286

78,143,576,365

8,478,619,630

2009

136,778,461,641

58,307,763,374

9,595,187,782

2008

143,601,463,530

81,376,714,714

4,283,136,809

2007

134,559,311,606

84,711,561,872

5,780,265,820

2006

128,854,502,794

82,279,675,997

4,413,715,255

2005

119,452,231,779

77,489,400,901

1,261,606,341

2004

128,467,338,287

80,724,685,283

5,295,256,333

2003

136,778,461,641

58,307,763,374

9,595,187,782

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

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

70,637,910,000

Total Issues Shares

14,127,582

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

122,901,595,050

90,725,352,434

78,143,576,365

Current Assets

87,061,588,919

59,348,314,432

45,794,283,661

Cash & Cash Equivalents

38,221,554,330

23,589,029,118

15,095,658,276

Trade Receivables & Other Receivables

29,946,178,528

23,614,885,021

18,575,297,967

Current Financial Instruments

162,477,817

17,063,012

10,366,089

Other Current Assets

661,436,593

168,670,772

312,320,268

Inventories

18,026,891,651

11,895,901,509

11,798,441,061

Marketable Financial Instruments

43,050,000

62,765,000

2,200,000

Non-Current Assets

35,840,006,131

31,377,038,002

32,349,292,704

Marketable Financial Instruments

2,044,480,000

54,295,000

117,060,000

Tangibles

29,036,448,665

26,334,907,509

27,217,579,637

Intangibles

1,620,200,235

1,485,819,563

1,281,546,398

Investment_Real Estates

0

193,138,671

518,781,947

Other Financial Assets

3,138,877,231

3,308,877,259

3,214,324,722

Total Liabilities

62,406,411,433

37,581,177,586

31,181,884,406

Current Liabilities

32,185,674,824

32,342,258,149

25,374,818,948

Short-Term Borrowings

6,483,706,655

4,292,501,890

1,836,862,530

Current Portion of Long-Term Debts

429,200,000

396,700,000

81,900,000

Trade Payables & Other Payables

23,301,483,489

24,290,841,040

21,173,425,188

Accrued Income Tax

1,396,510,851

1,754,392,363

1,219,115,990

Other Current Liabilities

574,773,829

1,607,822,856

1,063,515,240

Non-Current Liabilities

30,220,736,609

5,238,919,437

5,807,065,458

Debentures

24,802,602,740

-

-

Long-Term Trade Payables & Other Payables

261,005,829

261,005,829

258,208,155

Long-Term Borrowings

2,135,000,000

2,459,400,000

2,856,100,000

Other Non-Current Financial Debts

26,100,000

26,100,000

356,100,000

Confirmed Salaries

1,492,796,817

717,620,337

578,646,573

Deferred Income Tax Credit

1,503,231,223

1,774,793,271

1,758,010,730

Capital Stock

7,063,791,000

7,063,791,000

7,063,791,000

Capital Surplus

6,850,867,541

6,850,867,541

6,850,867,541

Others

36,279,575,944

22,029,575,944

17,479,240,651

Profit Surplus

10,300,949,132

17,199,940,363

15,567,792,767

Total Equity

60,495,183,617

53,144,174,848

46,961,691,959

Liab. & Shareholder’s Equity

122,901,595,050

90,725,352,434

78,143,576,365

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

161,544,147,622

206,288,387,040

170,730,488,286

Cost of Sold Goods

140,535,515,012

183,172,058,580

149,944,248,796

Gross Profit

21,008,632,610

23,116,328,460

20,786,239,490

Operating Profits

-9,564,444,283

-10,943,490,098

-10,273,111,435

Selling & Admin. Expenses

9,714,460,477

11,057,324,673

10,270,173,323

Other Operating Income

561,837,273

745,525,424

725,934,203

Other Operating Expenses

411,821,079

631,690,849

728,872,315

Operating Income

11,444,188,327

12,172,838,362

10,513,128,055

Non-Operating Profits

316,119,825

458,158,431

523,195,551

Finance Income

520,106,175

566,144,861

380,067,518

Finance Expenses

-252,705,049

-175,419,503

-175,407,997

Profits from investment on Related Companies

2,816,110

28,498,358

259,574

Other Non-Operating Income

45,902,589

38,934,715

318,276,456

Income Before Taxes

11,760,308,152

12,630,996,793

11,036,323,606

Income Taxes Expenses

2,365,162,083

3,020,954,495

2,557,703,976

Net Income

9,395,146,069

9,610,042,298

8,478,619,630

 

 

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

-4,154,741,981

10,368,823,031

10,087,913,294

Net Income

9,395,146,069

9,610,042,298

8,478,619,630

Adjustment

4,514,813,834

5,769,567,509

5,162,516,924

Changes in Asset/ & Liability

-15,209,898,718

-2,993,696,480

-677,427,913

Interests Paid

-251,400,909

-172,346,418

172,295,120

Interests Received

391,203,386

559,447,938

791,620,300

Income Taxes

-2,994,605,643

-2,404,191,816

-3,495,120,527

Cash Flows from Investing

-5,879,641,843

-720,031,835

-3,616,293,804

Cash Flows from Financing

24,666,922,362

-1,155,087,794

-1,588,380,055

Increase/Decrease in Cash

14,632,538,538

8,493,703,402

4,883,239,435

Cash at the Beginning of Year

23,589,029,118

15,095,658,276

10,212,575,106

Cash at the End of Year

38,221,554,330

23,589,029,118

15,095,658,276

 

 

Products, Technologies, Services Description

 

Main Products & Services

Performance Solvent

PETROCHEMICAL

-Paraffine

-Naphthene

 

PERFORMANCE SOLVENTS

-Aliphatic

-De-Aromatic

 

FUNCTIONAL SOLVENTS

-De-Aromatic

-Aromatic

-Ketone

-Glycol

-Monomer

 

Organic Peroxide

RADICAL POLYMERIZATION

LDPE/PVC/ABS/PAINT

 

CROSS-LINKING

PE/EVA/RUBBER

 

CURING

UPR

 

REFORMING

PP

 

Polyurethane

Easter

TPU

AD-TPU

 

Paint & Special Coating

Paints for non-ferrous metal

Paints for Plastics

RESIN FOR LCDs

 

 

Trade Partners & Competitors

 

Suppliers

YEOCHUN NCC CO., LTD.(110111-1839096)

LG PETROCHEMICAL CO., LTD.(110111-0226905)

BASF COMPANY LIMITED(110111-0600860)

KOREA PTG CO., LTD.(230111-0060548)

HYUNDAI OIL REFINERY CO., LTD.(110111-0090558)

 

EXXON MOBIL CHEMICAL

EVONIC DEGUSSA

BAYER

ASAHI

Customers

DONGSUNG CHEMICAL CO., LTD.(180111-0007690)

LG CHEM LTD(110111-2207995)

HANWHA L&C CORPORATION(110111-1725930)

Competitors

FUTURE TECHNOLOGIES SYSTEM INC.

RM. 406, JANG YEONG SIL HALL, VENTURE BLDG., 1688-5, SINIL-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-42-931-7680~2  FAX:+82-42-931-7683

 

SEKI ARKEMA CO., LTD.

8B-16L, CHILSEO LOCAL INDUSTRIAL COMPLEX, 79, GYENAE-RI, CHILSEO-MYEON, HAMAN-GUN, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-587-8055  FAX:+82-55-587-8061

 

KEUM JUNG CO., LTD.

852-141, GACHEON-RI, SAMNAM-MYEON, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-264-8586  FAX:+82-52-264-8589

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DONGSUNG HOLDINGS CO., LTD.(180111-0633031)

DONGSUNG CHEMICAL CO., LTD.(180111-0007690)

DONGSUNG MACHINERY CO., LTD.(180111-0192780)

DONGSUNG GREEN TECH CO., LTD.(110111-1249063)

FANTUM GOLF CO., LTD.(131111-0177525)

DONGSUNG CHEMEX CO., LTD.(135511-0179785)

DXD CO., LTD.(180111-0453489)

JOHNSON CONTROLS DONGSUNG AUTOMOTIVE, INC.(180111-0622018)

 

BIOLANE CO., LTD.(110111-2031617)

(40.12% held by the subject company)

 

BIOPOL CO., LTD.(134811-0053041)

(55.43% held by the subject company)

Affiliates-Overseas

QINGDAO DONGSUNG GOLF CO., LTD.(QDS)

PT.DONGSUNG JAKARTA(JDS)

GWANGZOHOU DONGSUNG CHEMICALS CO., LTD.(GDS)

DONGSUNG CHEMICAL VETNAM(VDS)

Cooperative Enterprise

-Insured Company

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

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

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

37,878

35,016

33,744

Domestic

123,666

171,272

136,986

Total

161,544

206,288

170,730

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.81.09

Euro

1

Rs.70.61

 

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%)

 

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.