MIRA INFORM REPORT

 

 

Report Date :

28.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DAENONG CORPORATION

 

 

Registered Office :

1, Dowon-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea 363-933

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

15.04.1955

 

 

Com. Reg. No.:

105-81-33940

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Cotton of Spinning

 

 

No. of Employees :

252

 

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 :

Unknown

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

DAENONG CORPORATION

(Korean Company Name : “()대농”)

Registered Address

1, Dowon-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

Zip Code

363-933

Tel

+82-2-2009-4500

Fax

+82-2-2009-4554

E-mail

trade1@daenong21.com

Website

www.daenong21.com

Trading Address

12th FI., Rich Tower, 141-33, Samseong 2-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2009-4500

Fax

+82-2-2009-4554

Type

Export/Import

Industry

Cotton of Spinning

  Main Business

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

Established (mm/dd/yyyy)

04/15/1955

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Fabrics and leather materials(11160000)

Sell

Fibers(11151500)

Sell

Threads(11151600)

Sell

Bedclothes(52121500)

Sell

Cotton yarn(11151702)

 

 

CEO’s

 

Name

Jung Chun-Bo

Address

Suite 301, 23, Dosan-daero, Gangnam-gu, Seoul, Korea

Date of Birth

07/06/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

8,931,010,000

Employees

252

Formation

Co., Ltd by Shares

Bank Details

Shinhan Bank-Sales 1 Dept.

Corporate Registered No.

110111-0138572

Business Registered No.

105-81-33940

Permit & Licenses

Int’l Trade No.: 670296

Shareholder Position

Name

Shares

%

SHINYOUNG CO., LTD.(110111-0618178)

1,571,000

87.95

OTHERS

215,202

12.05

TOTAL

1,786,202

100.00

Company History

04/15/1955 Incorporated as Daehan Nongsan Co., Ltd.

07/01/1973 Changed company name to the present name

01/14/1991 Listed at Korea Stock Exchange

12/30/1997 Started Corporate Clearing Procedure

09/04/1998 Approved of Corporate Clearing Plan

04/27/2002 Delisted from Korea Stock Exchange

05/02/2005 Moved to the present HQ address from 33-1, Mapo-dong, Mapo-gu, Seoul, Korea

12/28/2005 Split off the subject company, and established Shinyoung Daenong Co., Ltd.

04/15/2009 Decreased capital to 8,931,010,000 KRW from 89,310,100,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Jung Chun-Bo

Male

Korean

1955.07.06

Director

Mr.

Choi Kwang-Cheol

Male

Korean

1971.12.23

Director

Mr.

Park Gye-Sung

Male

Korean

1961.08.20

Director

Mr.

Park Sang-Hyup

Male

Korean

1961.07.01

Director

Mr.

Ahn Byung-Jin

Male

Korean

1964.05.

Auditor

Mr.

Kim Sung-Hwan

Male

Korean

1964.06.08

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2012

117,179,076,566

135,577,713,657

-13,187,133,734

2011

179,409,519,388

147,686,854,132

-14,881,325,661

2010

145,590,969,744

135,837,973,786

2,361,105,555

2009

119,478,390,050

118,518,768,622

13,336,702,823

2008

89,014,415,794

205,124,523,433

14,740,918,689

 

 


Financial Description

 

Authorized Capital(KRW)

125,000,000,000

Paid-Up Capital(KRW)

8,931,010,000

Total Issued Shares

1,786,202

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

135,577,713,657

147,686,854,132

135,837,973,786

Current Assets

70,624,063,799

75,145,414,365

64,901,510,682

-Quick Assets

36,757,669,452

34,591,308,456

44,443,396,247

-Inventories

33,866,394,347

40,554,105,909

20,458,114,435

Fixed Assets

64,953,649,858

72,541,439,767

70,936,463,104

-Investment

37,759,137,184

43,289,955,782

39,388,800,316

-Tangibles

26,249,518,570

28,225,723,244

30,616,076,339

-Intangibles

43,264,500

70,976,665

18,139,469

-Others

901,729,604

954,784,076

913,446,980

Total Liabilities

62,657,505,612

61,283,667,260

36,418,813,819

Current Liabilities

57,356,756,053

53,543,145,203

28,559,316,069

Fixed Liabilities

5,300,749,559

7,740,522,057

7,859,497,750

Capital Stock

8,931,010,000

8,931,010,000

8,931,010,000

Capital Surplus

9,950,145,226

9,950,145,226

9,950,145,226

Profit Surplus

48,353,821,158

61,540,954,892

76,422,280,553

Capital Adjustment

5,685,231,661

5,981,076,754

4,115,724,188

Total Equity

72,920,208,045

86,403,186,872

99,419,159,967

Liab. & Shareholder’s Equity

135,577,713,657

147,686,854,132

135,837,973,786

 

Current Liabilities

57,356,756,053

53,543,145,203

28,559,316,069

Trade Payables

9,822,868,228

9,516,791,841

8,111,987,389

Short-Term Borrowings

42,937,649,631

39,553,190,223

17,192,258,757

Account Payables

2,708,863,554

2,111,038,891

1,829,635,311

Advance Receipts

251,599,330

139,362,961

231,606,169

Withholdings

1,387,640

36,752,810

44,067,365

Accrued Expenses

384,387,672

519,341,813

382,359,234

Accrued Income Tax

- 

- 

350,735,170

Current Portion of Long-Term Debts

1,249,999,998

1,666,666,664

416,666,674

Fixed Liabilities

5,300,749,559

7,740,522,057

7,859,497,750

Long-Term Borrowings

2,083,333,330

2,916,666,662

4,583,333,326

Leasehold Deposit Received

274,200,000

274,200,000

274,200,000

Provision for Severance & Retirement

3,720,741,940

3,957,669,260

3,212,086,450

Deferred Income Tax Credit

220,217,254

803,976,325

-

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

117,179,076,566

179,409,519,388

145,590,969,744

Cost of Sold Goods

118,797,057,395

171,312,468,812

132,568,613,896

Gross Profit

-1,617,980,829

8,097,050,576

13,022,355,848

Selling & Admin. Expenses

5,820,696,442

11,609,119,086

6,626,032,948

Operating Income

-7,438,677,271

-3,512,068,510

6,396,322,900

Non-Operating Income

1,582,956,472

5,570,207,886

4,825,164,643

Non-Operating Expenses

7,924,935,130

17,950,139,904

9,109,722,225

Income Before Taxes

-13,780,655,929

-15,892,000,528

2,111,765,318

Income Taxes Expenses

-593,522,195

-1,010,674,867

-249,340,237

Net Income

-13,187,133,734

-14,881,325,661

2,361,105,555

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-3,124,257,757

-21,866,522,948

-3,147,126,810

-Net Income

-13,187,133,734

-14,881,325,661

2,361,105,555

-Exp. without Cash Outflow

9,135,738,983

17,163,872,180

9,397,458,162

-Revenue without Cash Inflows

-25,818,894

-786,000,446

-828,142,412

-Changes in Asset/ & Liability

952,955,888

-23,363,069,021

-14,077,548,115

Cash Flows from Investing

-772,642,811

-8,833,884,708

-8,402,154,723

-Cash Inflow from Investing

1,492,377,000

6,633,828,330

5,873,806,154

-Cash Outflows for Investing

-2,265,019,811

-15,467,713,038

-14,275,960,877

Cash Flows from Financing

2,134,459,410

20,693,239,636

10,295,158,049

-Cash Inflows from Financing

64,354,913,037

80,054,831,596

27,487,416,806

-Cash Outflows from Financing

-62,220,453,627

-59,361,591,960

-17,192,258,757

Increase/Decrease in Cash

-1,762,441,158

10,007,168,020

1,254,123,484

Cash at the Beginning of Year

7,307,765,205

17,314,933,225

18,569,056,709

Cash at the End of Year

5,545,324,047

7,307,765,205

17,314,933,225

 

 

Products, Technologies, Services Description

 

Main Products & Services

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

 

Trade Partners & Competitors

 

Competitors

TAE KWANG INDUSTRIAL CO., LTD.(110111-0185276)

ILSHIN SPINNING CO.,LTD.(110111-0041717)

CHONBANG CO.,LTD.(110111-0005664)

 

 

Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAENONG TEXTILE CO., LTD.(110111-3878266)

(80.0% held by the subject company)

Overseas Office

PT. GISTEX POPULAR INDONESIA

(60.0% held by the subject company)

 

PT. DAENONG GLOBAL

(99.0% held by the subject company)

Subsidiary

QINGDAO DAENONG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HWANHAE DAENONG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

 

Sales by Region

 (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

23,694

160,031

132,989

Domestic

17,710

19,378

12,601

Total

41,404

179,409

145,590

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.27

UK Pound

1

Rs.82.49

Euro

1

Rs.69.88

 

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.