MIRA INFORM REPORT

 

 

Report Date :

01.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DONG WHA PHARM CO., LTD.

 

 

Registered Office :

5, Sunhwa-dong, Jung-gu, Seoul, Korea 100-130

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

25.09.1897

 

 

Com. Reg. No.:

110-81-00102

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Finished Medicaments

 

 

No. of Employees :

766

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 Information

 

Basic

 

Company Name

DONG WHA PHARM CO., LTD.

Registered Address

5, Sunhwa-dong, Jung-gu, Seoul, Korea

Zip Code

100-130

Tel

+82-2-2021-9300

Fax

+82-2-757-4677

E-mail

dongwha@dong-wha.co.kr

Website

www.dong-wha.co.kr

Trading Address

5, Sunhwa-dong, Jung-gu, Seoul, Korea

(New Address System : 14, Seosomun-ro 9-gil, Jung-gu, Seoul, Korea)

Tel

+82-2-2021-9300

Fax

+82-2-757-4677

Type

Export/Import

Industry

Manufacture of Finished Medicaments

  Main Business

Stomachic Digestives, Antibiotics, Pharmaceutical Raw Materials, Cosmetics

Established (mm/dd/yyyy)

09/25/1897

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cough and cold and antiallergy products(51161800)

Sell

Vitamin supplements(51191905)

Sell

Dietary supplements and nutritional therapy products(51191900)

Sell

Antibiotics(51101500)

Sell

Hematolic drugs(51130000)

Sell

Non narcotic analgesics and antipyretics(51142000)

Sell

Drugs and Pharmaceutical Products(51000000)

Buy

Acetaminophen(51142001)

Buy

Biochemicals(12352200)

Buy

Herbal drugs(51212000)

Buy

Spices or extracts(50171550)

Buy

Organic derivatives and substituted compounds(12352100)

Buy

Amoxycillin(51101511)

 

 

CEO’s

 

Name

Yoon Doh-Joon

Address

 

Date of Birth

02/02/1952

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

27,931,470,000

Employees

766

Formation

Listed Company (Korea Stock Exchange : 000020) as of 03/24/1976

Bank Details

Hana Bank

Corporate Registered No.

110111-0043870

Business Registered No.

110-81-00102

Permit & Licenses

Int’l Trade No.: 790932

Shareholder Position

Name

Shares

%

YOON DOH-JOON

1,433,085

5.13

DONG WHA G&P CORPORATION(110111-0009343)

4,252,370

15.22

GASONG FOUNDATION(110122-0045922)

1,685,425

6.03

SEO YONG-KYO

1,768,587

6.33

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

1,515,164

5.42

OTHERS

17,276,839

61.85

TOTAL

27,931,470

100.00

Company History

09/25/1897 Established as DONG WHA YAK BANG

09/25/1931 Incorporated as DONG WHA YAK BANG CO., LTD.

02/12/1962 Changed company name to DONG WHA PHARM IND. CO., LTD.

05/29/2009 Changed company name to the present name

07/02/2009 Split off the par value to 1,000 KRW from 5,000 KRW

05/29/2009 Changed financial closing date to December 31 from March 31

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Educationj

Chairman & CEO

Mr.

Yoon Doh-Joon

Korean

1952.02.02

Kyunghee University, Korea

Vice Chairman & CEO

Mr.

Park Je-Hwa

Korean

1951.07.

Korea University, Korea

Outside Director

Mr.

Kim Moon-Cheol

Korean

1959.07.

Korea University, Korea

Outside Director

Mr.

Shim Woo-Young

Korean

1958.01.

Korea University, Korea

Outside Director

Mr.

Ye Jong-Seok

Korean

1953.12.

Indiana University, USA

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2013

114,319,097,163

329,073,408,017

5,278,174,214

(*)2012

223,371,996,543

324,284,672,388

1,311,240,916

(*)2011

234,561,984,465

339,431,477,173

17,679,223,071

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

 

 

Financial Description

 

Authorized Capital(KRW)

110,000,000,000

Paid-Up Capital(KRW)

27,931,470,000

Total Issued Shares

27,931,470

 

Balance Sheet

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

329,073,408,017

324,284,672,388

339,431,477,173

Current Assets

129,973,753,621

121,235,711,816

132,321,355,237

Cash & Cash Equivalents

29,721,767,342

18,119,216,288

35,134,386,590

Current Financial Instruments

3,020,000,000

16,020,000,000

1,920,000,000

Trade Receivables

55,194,805,353

50,361,110,772

58,337,353,919

Other Receivables

7,091,131,319

4,619,429,890

4,340,259,242

Other Current Assets

506,525,454

521,511,873

426,647,100

Inventories

34,439,524,153

31,594,442,993

32,162,708,386

Non-Current Assets

199,099,654,396

203,048,960,572

207,110,121,936

Non-Current Financial Instruments

5,207,796,173

5,310,369,623

5,237,102,873

Investment_Related Companies

9,547,571,286

9,025,329,996

7,719,680,176

Tangibles

179,891,387,113

183,871,644,027

188,283,834,049

Intangibles

3,809,769,870

4,194,706,973

5,222,594,885

Other Receivables

643,089,953

646,909,953

646,909,953

Deferred Income Tax Assets

40,001

 

 

Total Liabilities

98,890,927,513

97,290,002,202

109,807,603,415

Current Liabilities

81,533,301,880

82,599,852,809

87,860,191,825

Trade Payables

27,908,088,530

17,645,468,759

22,057,025,185

Current Portion of Long-Term Debts

6,000,000,000

10,000,000,000

18,500,000,000

Account Payables

11,660,021,043

9,462,244,609

9,917,479,183

Other Current Liabilities

32,043,159,839

41,128,259,689

33,007,682,454

Current Portion of Provisions

3,922,032,468

4,363,879,752

4,378,005,003

Non-Current Liabilities

17,357,625,633

14,690,149,393

21,947,411,590

Other Non-Current Financial Debts

 

 

10,000,000,000

Provision for Severance & Retirement

17,100,475,189

14,424,299,377

11,384,505,572

Other Payables

257,150,444

235,534,079

168,065,010

Deferred Income Tax Credit

 

30,315,937

394,841,008

Capital Stock

27,931,470,000

27,931,470,000

27,931,470,000

Capital Surplus

26,919,757,981

26,919,757,981

26,919,757,981

Other General Accumulated Amounts

2,626,308,816

2,482,174,312

2,020,342,418

Profit Surplus

172,704,943,707

169,661,267,893

172,752,303,359

Total Equity

230,182,480,504

226,994,670,186

229,623,873,758

Liab. & Shareholder’s Equity

329,073,408,017

324,284,672,388

339,431,477,173

 

Income Statement

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

114,319,097,163

223,371,996,543

234,561,984,465

Cost of Sold Goods

62,894,390,671

124,599,322,902

130,150,663,580

Gross Profit

51,424,706,492

98,772,673,641

104,411,320,885

Selling & Admin. Expenses

45,150,680,233

88,769,770,081

82,308,586,712

Operating Income

6,274,026,259

10,002,903,560

22,102,734,173

Other Income

545,248,989

1,047,731,891

2,094,469,070

Other Expenses

1,401,156,230

2,933,265,854

4,088,030,474

Finance Income

551,821,267

1,534,903,930

844,150,545

Finance Expenses

296,993,842

1,222,635,696

1,920,227,885

Income Before Taxes

5,672,946,443

8,429,637,831

19,033,095,429

Income Taxes Expenses

394,772,229

7,118,396,915

1,353,872,358

Net Income

5,278,174,214

1,311,240,916

17,679,223,071

 

Cash Flows

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

8,482,356,305

25,226,760,360

46,244,031,848

Net Income

5,278,174,214

1,311,240,916

17,679,223,071

-Exp. without Cash Outflow

9,572,743,902

25,454,453,573

20,574,319,789

-Revenue without Cash Inflows

-791,500,717

-1,919,307,196

-1,094,344,589

-Changes in Asset/ & Liability

3,420,603,789

-2,306,774,422

14,883,432,436

Interests Received

611,350,958

1,283,045,268

597,921,539

Interests Paid

-244,398,351

-1,085,996,419

-1,769,830,010

Dividends Received

28,481,700

28,481,700

36,819,500

Income Taxes

-9,393,099,190

2,461,616,940

-4,663,509,888

Cash Flows from Investing

9,353,350,806

-20,944,789,923

-9,429,437,738

Cash Flows from Financing

-6,234,498,400

-21,293,123,000

-19,822,157,740

Increase/Decrease in Cash

11,601,208,711

-17,011,152,563

16,992,436,370

Cash at the Beginning of Year

18,119,216,288

35,134,386,590

18,140,995,301

Cash at the End of Year

29,721,767,342

18,119,216,288

35,134,386,590

 

 

Products, Technologies, Services Description

 

Main Products & Services

Stomachic Digestives, Antibiotics, Pharmaceutical Raw Materials, Cosmetics

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

JEIL PHARMACEUTICAL CO., LTD.(110111-0026652)

745-5, BANPO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-549-7451  FAX:+82-2-549-7478

 

BORYUNG PHARM CO., LTD.(110111-0012560)

15TH FL., BORYEONG BLDG., 66-21, WONNAM-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-708-8000  FAX:+82-2-742-6362

 

KWANGDONG PHARMACEUTICAL CO., LTD(110111-0152134)

4TH FL., GASAN BLDG., 1577-4, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-6006-7777  FAX:+82-2-6006-702

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONG WHA G&P CORPORATION(110111-0009343)

(9.91% held by the subject company)

 

DONG WHA DEVELOPMENT CO., LTD.(KOREA)

(33.81% held by the subject company)

 

HEUNG JIN MACHINERY CO., LTD.(130111-0010114)

(29.58% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

National Health Insurance Service

The Subject Company

Claim for Compensation from Damages

1,563

3rd round is proceeding

 

 

News Clipping

 

Not Available.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.78

UK Pound

1

Rs.101.42

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.