MIRA INFORM REPORT

 

 

Report Date :

28.11.2013

 

IDENTIFICATION DETAILS

 

Name :

DONGWHA ENTERPRISE CO., LTD.

 

 

Formerly Known As :

DONGWHA HOLDINGS CO., LTD

 

 

Registered Office :

28, Gajeong-ro 97beon-gil, Seo-gu, Incheon, Korea, Zip Code 404-810

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

02.04.1948

 

 

Com. Reg. No.:

137-81-02333

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Densified and Reconstituted Wood

 

 

No. of Employees :

99

 

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 :

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

Basic

 

Company Name

DONGWHA ENTERPRISE CO., LTD.

(Ex. Company Name : DONGWHA HOLDINGS CO., LTD., “동화홀딩스()”)

(Korean Company Name : “동화기업()”)

Registered Address

28, Gajeong-ro 97beon-gil, Seo-gu, Incheon, Korea

Zip Code

404-810

Tel

+82-32-580-5164

Fax

+82-32-577-0056

E-mail

jrlee@dongwha-mh.com

Website

www.dongwha.co.kr

Trading Address

7th Fl., Wonchang Bldg., 26-3, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-2122-0653  +82-2-2122-0589

Fax

+82-2-782-9713

Type

Export/Import

Industry

Manufacture of Densified and Reconstituted Wood

  Main Business

Particle Board, Medium Density Fiberboard, Formalin

Established (mm/dd/yyyy)

04/02/1948

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Flooring(30161700)

Sell

Wallboard(30161501)

Sell

Particleboard(11121611)

Sell

Access flooring(30161717)

Sell

Windows(30171600)

Sell

Doors(30171500)

Sell

Plywood(11121609)

Buy

Wood(11121600)

 

 

CEO’s

 

Name

Kim Hong-Jin

Address

Suite b111-307, 15, Gwangpyeong-ro 10-gil, Gangnam-gu, Seoul, Korea

Date of Birth

07/09/’1965

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

7,678,378,000

Employees

99

Formation

Listed Company (KOSDAQ : 025900) as of 07/31/1995

Foreign Direct Investment Corporation

A Company of DONGWHA HOLDINGS CO., LTD.(120111-0004218)

Bank Details

Korea Exchange Bank

Hana Bank

Corporate Registered No.

120111-0004218

Business Registered No.

137-81-02333

Permit & Licenses

03/05/2001 KS Mark

07/01/2001 ISO 9002 by SGS

Shareholder Position

Name

Shares

%

DONGWHA INTERNATIONAL CO. LIMITED

6,342,911

41.30

SEUNG MYUNG-HO

1,213,665

7.90

SEUNG EUN-HO

1,335,171

8.69

OTHERS

6,465,009

42.10

TOTAL

15,356,756

100.00

Company History

04/02/1948 Incorporated as DONGWHA TOGUN CO., LTD.

01/1953 Changed company name to DONGWHA HEUNGUP CO., LTD.

07/1953 Changed company name to DONGWHA ENTERPRISE CO., LTD.

09/30/2003 Changed company name to DONGWHA HOLDINGS CO., LTD.

03/2009 Moved to the present HQ address from 178-26, Gajwa-dong, Seo-gu, Incheon, Korea

08/13/2013 Decided to changed company name to DONGWHA ENTERPRISE CO., LTD.

10/01/2013 Changed company name to DONGWHA ENTERPRISE CO., LTD., again

10/01/2013 Moved to the present HQ address from 150-14, Gajwa 1-dong, Seo-gu, Incheon, Korea

10/04/2013 Acquired DONGWHA ENTERPRISE CO., LTD.(Wood Business), and transferred Used Cars Business to DONGWHA A&B HOLDINGS CO., LTD.(110111-5243342), newly established.

10/04/2013 Decreased capital to 7,678,378,000 KRW from 10,057,817,000 KRW

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Kim Hong-Jin

Korean

1965.07.09

-

Director

Mr.

Seung Myung-Ho

Korean

1956.01.17

Korea University, Korea

Chairman

Mr.

Seung Eun-Ho

Korean

1942.02.22

Yonsei University, Korea

Director

Mr.

Kim Hong-Jin

Korean

1965.07.09

-

Director

Mr.

Lee Byung-Chan

Korean

1961.11.15

 

Outside Director

Mr.

Cho Jung-Won

Korean

1947.12.10

Kyunghee University, Korea

Outside Director

Mr.

Lee Sang-Geun

Korean

1935.07.29

-

Auditor

Mr.

Jung Seung-Hwan

Korean

1946.07.08

Sungkyunkwan University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2013

14,978,647,507

346,960,965,011

1,702,600,826

2012

20,803,346,251

337,060,077,099

717,662,246

2011

16,838,871,451

337,202,023,609

-6,643,463,716

2010

23,926,480,144

297,018,407,744

3,564,587,210

2009

25,537,940,394

283,228,785,478

6,739,722,819

2008

22,538,700,874

289,339,262,994

1,254,588,635

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

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

7,678,378,000

Total Issued Shares

15,356,756

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

346,960,965,011

337,060,077,099

337,202,023,609

Current Assets

112,529,301,575

9,872,272,500

5,087,599,067

Cash & Cash Equivalents

483,452,976

1,068,477,637

21,009,040

Current Financial Instruments

253,613,398

 

294,856,778

Trade Receivables & Other Receivables

9,814,598,924

8,800,636,406

4,755,531,329

Deferred Income Tax Assets

155,580

274,800

1,177,440

Other Finance Assets

 

 

 

Other Current Assets

80,853,770

2,883,657

15,024,480

Assets Group to be allocated for Owners

101,896,626,927

 

 

Non-Current Assets

234,431,663,436

327,187,804,599

332,114,424,542

Non-Current Financial Instruments

49,743,380

303,356,778

5,500,000

Marketable Financial Instruments

142,545,991

142,545,991

142,545,991

Investment_Related Companies

194,220,660,776

295,104,873,891

309,015,233,488

Tangibles

16,320,681,968

7,319,330,608

6,791,428,073

Investment_Real Estates

4,109,776,000

4,109,776,000

 

Intangibles

5,720,854,521

6,398,770,531

1,406,654,540

Other Finance Assets

13,867,400,800

13,809,150,800

14,753,062,450

Total Liabilities

119,296,352,871

111,098,065,785

112,014,128,303

Current Liabilities

108,014,903,669

66,782,819,274

62,161,086,544

Trade Payables & Other Payables

3,156,001,048

1,291,750,105

932,589,227

Short-Term Borrowings

93,012,322,581

64,326,228,882

59,991,000,000

Liabilities Group to be allocated for Owners

11,290,136,202

 

 

Other Current Financial Debts

412,007,841

473,012,492

960,351,200

Other Current Liabilities

144,435,997

691,827,795

277,146,117

Non-Current Liabilities

11,281,449,202

44,315,246,511

49,853,041,759

Long-Term Borrowings

9,857,000,000

42,465,945,449

48,500,290,060

Provision for Severance & Retirement

1,399,953,093

1,362,347,662

618,349,949

Other Non-Current Provisions

11,904,256

11,904,256

21,337,449

Other Non-Current Financial Debts

12,591,853

475,049,144

713,064,301

Capital Stock

10,057,817,000

10,057,817,000

10,057,817,000

Capital Surplus

-26,315,361,121

-26,315,361,121

-26,780,289,907

Profit Surplus

243,922,156,261

242,219,555,435

241,910,368,213

Total Equity

227,664,612,140

225,962,011,314

225,187,895,306

Liab. & Shareholder’s Equity

346,960,965,011

337,060,077,099

337,202,023,609

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

14,978,647,507

20,803,346,251

16,838,871,451

Cost of Sold Goods

14,978,647,507

20,803,346,251

16,838,871,451

Selling & Admin. Expenses

11,297,064,082

17,092,488,581

12,396,245,429

Operating Income

3,681,583,425

3,710,857,670

4,442,626,022

Finance Income

920,408,069

3,863,111,039

445,267,471

Finance Expenses

3,414,388,690

6,569,905,338

7,056,275,309

Other Income

1,547,639,336

2,088,247,973

2,224,760,868

Other Expenses

803,578,454

1,426,448,166

1,966,531,355

Other Profits from Related Companies

- 

320,878,302

-4,520,464,057

Income Before Taxes

1,931,663,686

1,986,741,480

-6,430,616,360

Income Before Taxes

- 

-1,269,079,234

212,847,356

Income from Continuous Business

1,931,663,686

- 

- 

Income from Stopped Business

-229,062,860

- 

- 

Net Income

1,702,600,826

717,662,246

-6,643,463,716

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

2,426,249,212

-2,143,140,206

-2,275,322,973

Net Income

1,702,600,826

717,662,246

-6,643,463,716

Adjustment

3,494,705,547

3,266,466,888

8,754,694,936

Interests Received

416,065,555

502,346,018

33,297,426

Interests Paid

-3,187,241,936

-5,346,405,118

-4,419,861,076

Income Taxes

119,220

-1,283,210,240

9,457

Cash Flows from Investing

-9,642,436,092

9,041,129,853

-46,257,269,976

Cash Flows from Financing

6,631,162,219

-5,850,521,050

48,464,112,870

Increase/Decrease in Cash

-585,024,661

1,047,468,597

-68,480,079

Cash at the Beginning of Year

1,068,477,637

21,009,040

89,489,119

Cash at the End of Year

483,452,976

1,068,477,637

21,009,040

 

Products, Technologies, Services Description

 

Main Products & Services

Non-Financial Holding Companies

 

 

Trade Partners & Competitors

 

Competitors

HANSOL HOMEDECO CO., LTD.(110111-0825624)

27TH FL., KOREA SPECIALTY CONTRACTOR CENTER, 395-70, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-3284-3812~4  TEL:+82-2-3284-3838~9

 

UNID CO.,LTD.(110111-0275069)

17TH FL., ORIENTAL CHEMICAL INDUSTRIES BLDG., 50, SOGONG-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-3709-9500  FAX:+82-2-774-7591

 

SUNCHANG CORPORATION(110111-0027593)

6-32, BUKSEONG-DONG 1-GA, JUNG-GU, INCHEON, KOREA

TEL:+82-32-770-3000  FAX:+82-32-763-3171

 


Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGWHA CORPORATION(120111-0327933)

(100.0% held by the subject company)

 

DAESUNG WOOD IND.CO.,LTD.(120111-0018524)

(58.0% held by the subject company)

 

DONGWHA NATURE FLOORING CO.,LTD.(120111-0411827)

(100.0% held by the subject company)

 

DONGWHA DEVELOPER CO., LTD.(120111-0411893)

(100.0% held by the subject company)

 

EUNIQUE CO., LTD.(110111-1255614)

(100.0% held by the subject company)

 

DONGWHA SFC HOUSING CO., LTD.(110111-3453133)

(50.0% held by the subject company)

 

WON CHANG TRADING.CO., LTD.(110111-1053126)

(100.0% held by the subject company)

 

ELITEDOOR CO.,LTD.(120111-0202507)

(20.0% held by the subject company)

 

DONGWHA AUTOCARE CO., LTD.(120111-0497405)

(100.0% held by the subject company)

 

DONGWHA YELLO HAT CO., LTD.(110111-4102185)

(100.0% held by the subject company)

Overseas Office

DONGWHA HONG KONG INTERNATIONAL

SUITE 2006, THE CENTER,99 QUEEN’S ROAD, CENTRAL,HONG KONG

TEL: +852-2542-2093

 

DONGWHA USA

7000 SW HAMPTON ST. STE 205, TIGARD, OR 97223 USA

TEL: +1-503-620-1071

 

VRG DONGWHA

2TH FL., RIVER VIEW BUILDING, 7A THAI VAN LUNG STREET, DISTRICT 1, HCMC, VIETNAM

TEL: +84-8-910-3966

 

DONGWHA FIBREBOARD SDN. BHD.

LEVEL 17, MENARA BOUSTEAD PENANG, NO. 39, JALAN SULTAN AHMAD SHAH, 10050 PENANG, MALAYSIA

TEL: +60-4- 818 2323

 

DONGWHA PATINNA NZ

P.O.BOX 189 GORE,301 PIONEER HIGHWAY,4RD GORE, NEW ZEALAND

TEL:+ 64-3-209-3133

 

TASCO

300 BORDERICK ROAD, LARA, VICTORIA 3212, AUSTRALIA

TEL:+ +61-3-5275-0660

 

TASFOR

300 BORDERICK ROAD, LARA, VICTORIA 3212, AUSTRALIA

TEL: +61-3-5275-0660

 

 

Sales by Region

(Activity & Markets)

 

The Subject imports from Australia, China, USA and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.36

UK Pound

1

Rs.101.11

Euro

1

Rs.84.68

 

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%)

 

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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.