MIRA INFORM REPORT

 

 

Report Date :

28.03.2013

 

IDENTIFICATION DETAILS

 

Name :

KUKJE MACHINERY CO., LTD.

 

 

Registered Office :

11-1, Yangsu-ri, Okcheon-eup, Okcheon-gun, Chungcheongbuk-do, Korea 373-802

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

12.03.1968

 

 

Com. Reg. No.:

129-81-00751

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Agricultural and Forestry Machinery

 

 

No. of Employees :

385

 

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 :

Usually 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

(31.03.2011)

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

KUKJE MACHINERY CO., LTD.

(Korean Company Name : “국제종합기계()”)

Registered Address

11-1, Yangsu-ri, Okcheon-eup, Okcheon-gun, Chungcheongbuk-do, Korea

Zip Code

373-802

Tel

+82-43-732-1151

Fax

+82-43-732-1162

E-mail

sam.kim@dongkuk.com;jungkyun.park@dongkuk.com

Website

www.kukje21.co.kr

Trading Address

11-1, Yangsu-ri, Okcheon-eup, Okcheon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-732-1151

Fax

+82-43-732-1162

Type

Export/Import

Industry

Manufacture of Agricultural and Forestry Machinery

  Main Business

Combine, Tractor, Engine, Golf Car

Established (mm/dd/yyyy)

03/12/1968

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Diesel engines(26101504)

Sell

Agricultural tractors(25101901)

Sell

Golf carts(25101904)

Sell

Combine harvesters(21101704)

Sell

Transplanters(21101602)

Sell

Agricultural machinery for soil preparation(21101500)

Sell

Lawnmowers(27112014)

Sell

Specialized and recreational vehicles(25101900)

Sell

Cultivators(21101503)

 

 

CEO’s

 

Name

Nam Young-Joon

Address

Suite 1-1104, 441-2, Poil-dong, Uiwang-si, Gyeonggi-do, Korea

Date of Birth

04/01/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

137,000,000,000

Employees

385

Formation

Co., Ltd by shares

A Company of DONGKUK STEEL MILL GROUP

Bank Details

SC First Bank of Korea-Sewoon Branch

Hana Bank

Korea Development Bank

Corporate Registered No.

131111-0000635

Business Registered No.

129-81-00751

Permit & Licenses

10/1995 ISO 9001

10/08/2001 EM

07/2002 GD

05/01/2007 ISO 9001 by Lioyd

11/19/2008 ISO 14001 by Lioyd

 

Int’l Trade No.: 790059

Shareholder Position

Name

Shares

%

UNION COATING CO., LTD.(134811-0082462)

27,000,000

100.00

TOTAL

27,000,000

100.00

Company History

03/12/1968 Incorporated as HANKUK AGRICULTURAL MACHINERY CO., LTD.

03/1978 Changed company name to the present name

04/30/2003 Moved to the present HQ address from 517-7, Sangdaewon 1-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

12/24/2003 Increased capital to 122,000,000,000 KRW from 120,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Nam Young-Joon

Male

Korean

12/16/2011

Director

Mr.

Na Byung-Soo

Male

Korean

03/21/2012

Director

Mr.

Hong Jae-Duck

Male

Korean

01/18/2010

Auditor

Mr.

Park Kyu-Hong

Male

Korean

01/24/2013

Supervisor

Mr.

Jang Ki-Ryong

Male

Korean

01/22/2009

Supervisor

Mr.

Hyun Sung-Duck

Male

Korean

12/16/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

169,931,896,974

175,652,308,521

-19,935,071,669

(*)2010

171,135,543,559

194,733,638,526

-21,077,897,672

2009

199,813,993,877

219,479,077,706

-3,817,791,777

2008

200,421,282,690

208,150,014,652

391,459,483

2007

218,312,579,355

200,135,719,870

1,081,469,758

2006

206,265,439,320

198,157,474,769

890,355,031

2005

199,934,445,957

197,671,557,458

2,699,987,238

2004

184,224,025,733

 211,122,947,246

3,516,983,975

2003

142,154,156,254

208,179,436,860

-31,942,768,917

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

 

Financial Description

 

Authorized Capital(KRW)

300,000,000,000

Paid-Up Capital(KRW)

135,000,000,000

Total Issued Shares

27,400,000(Common : 27,000,000 / Preferable : 400,000)

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

175,652,308,521

194,733,638,526

 

Current Assets

94,541,537,528

108,774,529,482

 

Cash & Cash Equivalents

149,493,430

514,129,489

 

Current Financial Instruments

293,606,248

1,575,474,937

 

Trade Receivables

47,938,747,525

65,316,470,945

 

Other Receivables

881,757,830

1,654,836,592

 

Other Financial Assets

8,820,000

10,000

 

Inventories

42,828,176,253

39,339,727,961

 

Other Current Assets

2,440,936,242

373,879,558

 

Non-Current Assets

81,110,770,993

85,959,109,044

 

Non-Current Financial Instruments

4,000,000

4,000,000

 

Long-Term Trade Receivables

2,869,864,432

2,021,734,549

 

Other Receivables

216,726,327

333,673,147

 

Other Financial Assets

33,750,000

42,485,000

 

Tangibles

74,799,374,607

77,916,475,751

 

Intangibles

1,934,742,875

3,175,918,718

 

Investment_Real Estates

1,252,312,752

1,284,788,342

 

Investment_Subsidiaries

-

715,976,759

 

Other Non-Current Assets

-

464,056,778

 

Total Liabilities

169,527,009,111

173,146,138,063

 

Current Liabilities

80,762,711,788

140,644,818,218

 

Trade Payables

37,972,745,485

59,873,433,045

 

Short-Term Borrowings

39,991,330,417

76,289,934,149

 

Other Payables

2,490,220,639

3,759,983,297

 

Other Current Liabilities

260,980,885

662,638,901

 

Provisions

47,434,362

58,828,826

 

Non-Current Liabilities

88,764,297,323

32,501,319,845

 

Long-Term Borrowings

70,141,994,549

10,775,700,000

 

Confirmed Salaries

11,867,522,699

15,708,262,867

 

Deferred Income Tax Credit

3,527,322,258

3,527,322,258

 

Other Payables

1,484,064,942

1,102,502,542

 

Provisions

1,743,392,875

1,387,532,178

 

Capital Stock

135,000,000,000

135,000,000,000

 

Profit Surplus

-134,603,469,284

-119,141,268,231

 

Others

5,728,768,694

5,728,768,694

 

Total Equity

6,125,299,410

21,587,500,463

 

Liab. & Shareholder’s Equity

175,652,308,521

194,733,638,526

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

169,931,896,974

171,135,543,559

 

Cost of Sold Goods

146,972,537,623

151,351,646,248

 

Gross Profit

22,959,359,351

19,783,897,311

 

Selling & Admin. Expenses

25,675,434,203

32,999,108,803

 

Other Operating Income

2,664,239,518

3,040,093,076

 

Other Operating Expenses

1,399,712,492

3,135,413,979

 

Operating Income

-1,451,547,826

-13,310,532,395

 

Profits from investment on Related Companies

15,327,976,759

-

 

Finance Income

5,909,620,808

669,895,500

 

Finance Expenses

9,065,167,892

8,437,260,777

 

Income Before Taxes

-19,935,071,669

-21,077,897,672

 

Income Taxes Expenses

-

-

 

Net Income

-19,935,071,669

-21,077,897,672

 

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

-12,577,491,118

19,910,713,979

 

Cash Flows from Operating

-4,928,858,720

27,891,176,113

 

Interests Received

217,080,450

28,862,952

 

Interests Paid

-7,865,346,418

-8,365,021,916

 

Income Taxes

-366,430

355,696,830

 

Cash Flows from Investing

-15,917,041,674

-4,485,535,831

 

Cash Inflow from Investing

4,228,669,462

3,251,862,240

 

Cash Outflows for Investing

-20,145,711,136

-7,737,398,071

 

Cash Flows from Financing

28,129,896,733

-15,119,994,313

 

Cash Inflows from Financing

311,940,026,009

173,075,778,091

 

Cash Outflows from Financing

-283,810,129,276

-188,195,772,404

 

Increase/Decrease in Cash

-364,636,059

305,183,835

 

Cash at the Beginning of Year

514,129,489

208,945,654

 

Cash at the End of Year

149,493,430

514,129,489

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Tractor

Combine Harvester

Rice Transplater

Cultivator

Power Tiller

Diesel Engine

 

 

Trade Partners & Competitors

 

Competitors

DAEDONG INDUSTRIAL CO., LTD(191111-0000104)

TONGYANGMOOLSAN CO., LTD(110111-0032899)

LS CABLE LTD.(110111-0003965)

KAMCO CO., LTD.(134511-0039120)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DONGKUK STEEL MILL CO., LTD.(110111-0031338)

UNION STEEL CO., LTD.(110111-0041501)

UNION COATING COMPANY LIMITED(134811-0082462)

INTERGIS CO., LTD.(Ex. DONGKUK TRANSPORTATION CO., LTD, 180111-0001973)

KUKJE TRANSPORTATION CO., LTD.(180111-0020345)

DK UIL CO.,LTD(110111-0320955)

FERRUM INFRA(110111-4199330)

ILSHIN U& VENTURE INVESTMENT ASSOCIATION

DONGKUK CORPORATION

BUSAN PORT PIER4 CO., LTD.(180111-0290047)

DK S& CO.,LTD.(110111-3435660)

DK UTECH CO.,LTD.(115611-0020526)

DKUNC CO., LTD.(110111-1462524)

Affiliates-Overseas

BRANSON MASHINERY LLC.

UNION STEEL CHINA

DK UTECH (TIANJIN) CO., LTD.

DK UIL (H.K.) LTD.

DK UIL (TIANJIN) ELECTRONICS CO., LTD.

IC&IG INVESTIMENTOS BR S.A.

CEARA STEEL S.A.

DKS & CORPORATION

UNION STEEL MEXICO,S.A. DE C.V

DK UIL VIETNAM CO., LTD.

CSP

IC&IG HOLDING (NL) B.V.

DONGKUK INTERNATIONAL, INC(USA)

Subsidiary

BRANSON MACHINERY LLC

(100% held by the subject company)

 

KUKJE GYUNGJEON MACHINERY CO., LTD.(CHINA)

(51.0% held by the subject company)

Corporate Ownership

DONGKUK STEEL MILL CO., LTD.(110111-0031338)

UNION COATING CO., LTD.(134811-0082462)

Major Shareholders

UNION COATING CO., LTD.(134811-0082462)

Cooperative Enterprise

BRANSON TRACTOR

SOTRAC

EMME EMME

MODERN AGRICULTURE

DOJIN GROUP

HUALIAN MACHINERY

XINGUANG

GLOBAL TRACTOR & EQUIPMENT

COMECA

MARTYNS

SUTOU

MOROOKA

COSMO

ASSHI

 

The Subject is supported from Yanmar-Japan on the technical cooperation.

 

-Insured Company

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

 

 

Sales by Region

 (Activity & Markets)

 

The Subject exports to USA, Portugal, Italy, China, Australia, Spain, Ireland and Japan.

 

 

Court Action

 

There is 1 case filed as Defendant(s)/ Debtor(s)/ Respondent(s).

 

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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