MIRA INFORM REPORT

 

 

Report Date :

03.10.2013

 

IDENTIFICATION DETAILS

 

Name :

HWASEUNG NETWORKS CO., LTD.

 

 

Registered Office :

1287-21, Yeonsan 5-dong, Yeonje-gu, Busan, 11th Fl., Jangcheon Bldg., Zip Code 611-839

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

06.07.2006

 

 

Com. Reg. No.:

607-81-77653

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesaler of Non-Specialized Goods such as Automotive Parts, Tour Services, Insurance Brokerage Services, Logistics Services, International Trading Services, Purchasing Services, Industrial Rubber Products

 

 

No. of Employees :

100

 

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 :

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

 

Company Name

HWASEUNG NETWORKS CO., LTD.

(Korean Company Name : “()화승네트웍스”)

Registered Address

1287-21, Yeonsan 5-dong, Yeonje-gu, Busan, Korea

(New Address System : 1079, Jungang-daero, Yeonje-gu, Busan, Korea)

Building

11th Fl., Jangcheon Bldg.

Zip Code

611-839

Tel

+82-51-850-0100

Fax

+82-51-850-0101

E-mail

stkim@hsnetw.com

Website

www.hsnetw.co.kr

Trading Address

19Fl., Gangnam Bldg., 1321, Seocho-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-850-0100

Fax

+82-2-850-0103

Type

Export/Import

Industry

Wholesale of Non-Specialized Goods

  Main Business

Automotive Parts, Tour Services, Insurance Brokerage Services, Logistics Services, International Trading Services, Purchasing Services, Industrial Rubber Products

Established (mm/dd/yyyy)

07/06/2006

The Subject Company occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Tour arrangement services(90121501)

Sell

Travel agencies(90121502)

Sell

Transport arrangements(78141500)

Sell

International trade services(80151600)

Sell

Freight forwarders services(78141501)

 

 

CEO’s

 

Name

Bae Tae-Kyun

Address

Suite 203-204, 1661, Banyeo-dong, Haeundae-gu, Busan, Korea

Date of Birth

09/20/1948

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 


Profiles

 

Capital (KRW)

35,159,790,000

Employees

100

Formation

Co., Ltd by shares

A Company of HWASEUNG GROUP

Bank Details

Korea Exchange Bank

Busan Bank

Hana Bank

Corporate Registered No.

180111-0560995

Business Registered No.

607-81-77653

Permit & Licenses

Int’l Trade No.: 12186341

Shareholder Position

Name

Shares

%

HS INDUSTRIES CO., LTD.(180111-0004323)

2,144,229

30.49

HWASEUNG CORPORATION(180111-0003383)

450,766

6.41

HS T&C CORPORATION(180111-0015825)

3,194,267

45.43

HWASEUNG EXWILL CO., LTD.(180111-0588442)

1,242,696

17.67

TOTAL

7,031,958

100.00

Company History

07/06/2006 Incorporated as the present name

06/18/2009 Increased capital to 26,000,000,000 KRW from 7,621,000,000 KRW

12/18/2009 increased the authorized shares to 50,000,000 shares from 20,000,000 shares

12/29/2009 Increased capital to 42,666,665,000 KRW from 26,000,000,000 KRW

07/10/2012 Decreased capital to 26,000,000,000 KRW from 42,666,665,000 KRW

12/27/2012 Increased capital to 35,159,790,000 KRW from 26,000,000,000 KRW

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Bae Tae-Kyun

Male

Korean

03/26/2010

Co-President & CEO

Mr.

Kang Sam-Nam

Male

Korean

01/01/2010

Director

Mr.

Hyun Ji-Ho

Male

Korean

02/02/2009

Director

Mr.

Lee Wan-Man

Male

Korean

02/02/2009

Director

Mr.

Choi Yo-Hwui

Male

Korean

03/13/2009

Auditor

Mr.

Park Dong-Ho

Male

Korean

03/13/2009

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

848,707,154,887

224,373,352,637

1,407,853,951

2011

828,033,866,636

266,355,906,573

4,016,057,979

2010

603,638,084,144

182,557,476,839

-12,864,913,077

2009

356,368,619,354

126,800,132,246

-1,801,717,832

2008

284,364,913,800

59,782,305,076

173,277,638

2007

164,705,428,546

33,131,862,930

2,123,661,545

2006

19,219,611,908

19,870,497,601

512,399,518

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

35,159,790,000

Total Issued Shares

7,031,958

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

224,373,352,637

266,355,906,573

182,557,476,839

Current Assets

193,276,601,005

232,742,354,301

146,271,017,149

-Quick Assets

143,129,846,844

182,362,359,049

132,345,536,136

-Inventories

50,146,754,161

50,379,995,252

13,925,481,013

Fixed Assets

31,096,751,632

33,613,552,272

36,286,459,690

-Investment

28,355,533,206

30,972,219,471

33,385,054,175

-Tangibles

384,775,173

802,716,946

283,059,285

-Intangibles

208,274,418

269,423,418

302,225,000

-Others

2,148,168,835

1,569,192,437

2,316,121,230

Total Liabilities

174,452,301,900

211,280,804,232

128,451,779,944

Current Liabilities

146,701,976,310

209,161,311,012

127,201,283,228

Fixed Liabilities

27,750,325,590

2,119,493,220

1,250,496,716

Capital Stock

35,159,790,000

42,666,665,000

42,666,665,000

Capital Surplus

18,871,480,197

17,129,782,744

17,129,782,744

Profit Surplus

1,407,853,951

-9,049,507,043

12,465,565,082

Capital Adjustment

-5,518,073,411

4,328,161,640

6,774,814,233

Total Equity

49,921,050,737

55,075,102,341

54,105,696,895

Liab. & Shareholder’s Equity

224,373,352,637

266,355,906,573

182,557,476,839

 

Current Liabilities

146,701,976,310

209,161,311,012

127,201,283,228

Trade Payables

103,539,839,442

153,457,425,587

70,958,177,922

Short-Term Borrowings

30,950,163,228

40,000,000,000

45,263,661,143

Account Payables

1,157,672,607

1,723,713,979

1,227,701,723

Advance Receipts

499,339,699

719,998,180

2,117,002,153

Withholdings

116,723,838

74,647,418

977,758,320

Accrued Expenses

92,367,917

303,987,052

72,880,913

Guarantee Deposit Withhold

4,870,704,500

5,552,860,112

-

Accrued Income Tax

905,493,003

2,831,731,613

1,953,578,661

Deferred Income Tax

4,500,000,000

-

136,616,952

Current Portion of Debentures

-

4,500,000,000

4,500,000,000

Derivatives

69,672,076

-

-

Fixed Liabilities

27,750,325,590

2,119,493,220

1,250,496,716

Long-Term Borrowings

25,500,000,000

-

-

Provision for Severance & Retirement

3,261,401,280

2,950,296,490

1,820,187,960

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

848,707,154,887

828,033,866,636

603,638,084,144

Cost of Sold Goods

807,126,520,159

790,839,554,899

568,387,418,866

Gross Profit

41,580,634,728

37,194,311,737

35,250,665,278

Selling & Admin. Expenses

22,203,455,091

17,481,556,947

14,481,509,904

Operating Income

19,377,179,637

19,712,754,790

20,769,155,374

Non-Operating Income

11,073,256,232

13,465,272,086

7,203,394,150

Non-Operating Expenses

25,353,388,602

27,790,966,735

38,725,182,213

Income Before Taxes

5,097,047,267

5,387,060,141

-10,752,632,689

Income Taxes Expenses

3,689,193,316

1,371,002,162

2,112,280,388

Net Income

1,407,853,951

4,016,057,979

-12,864,913,077

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-13,363,726,760

9,167,861,472

-3,356,238,748

-Net Income

1,407,853,951

4,016,057,979

-12,864,913,077

-Exp. without Cash Outflow

16,048,940,352

15,924,012,353

27,142,781,984

-Revenue without Cash Inflows

-1,745,464,085

-1,591,857,164

-541,740,372

-Changes in Asset/ & Liability

-29,075,056,978

-9,180,351,696

-17,092,367,283

Cash Flows from Investing

2,228,708,609

261,010,995

-36,641,380,750

-Cash Inflow from Investing

4,005,220,000

2,015,233,590

9,187,040,314

-Cash Outflows for Investing

-1,776,511,391

-1,754,222,595

-45,828,421,064

Cash Flows from Financing

10,859,619,510

-5,863,661,083

36,180,954,723

-Cash Inflows from Financing

40,901,157,724

3,000,000,000

76,643,816,758

-Cash Outflows from Financing

-30,041,538,214

-8,863,661,083

-40,462,862,035

Increase/Decrease in Cash

-275,398,641

3,565,211,384

-3,816,664,775

Cash at the Beginning of Year

6,510,771,296

2,945,559,912

6,762,224,687

Cash at the End of Year

6,235,372,655

6,510,771,296

2,945,559,912

 

 

Products, Technologies, Services Description

 

Main Products & Services

Automotive Parts, Tour Services, Insurance Brokerage Services, Logistics Services, International Trading Services, Purchasing Services, Industrial Rubber Products

 

Trade Partners & Competitors

 

Suppliers

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

DONGBU INSURANCE CO., LTD.(110111-0095285)

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

 

HUNG THINH, MAI THAO, DONG NAL, DONG PHU, HOA BINH, PHU RIENG, LINH ANH, BIGMEXCO,MINH TAN, BINH LONG, TAY NINH

Customers

HS MATERIAL CO., LTD.(184511-0014213)

HWASEUNG CORPORATION(180111-0003383)

HS R&A CO., LTD.(184511-0001252)

Competitors

MODE TOUR NETWORK CO., LTD.

RM. 501, BAEKNAM BLDG., 188-3, EULJIRO 1-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-728-8000  FAX:+82-2-2021-7803

 

YOUNG CHEON LOGISTICS CO., LTD.

4TH FL., YEONGCHEON BLDG., 33-2, GONGHANG-DONG, GANGSEO-GU, SEOUL, KOREA

TEL:+82-2-3663-9009 FAX:+82-2-3665-3004

 

AGILITY LTD.

2ND FL., YEOLRIN BLDG., 1666-3, SEOCHO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-539-9411  FAX:+82-2-539-2071

 

AIRSTAR INTERNATIONAL CO., LTD.

2ND FL., SEOYEONG BLDG., 367-9, SEOGYO-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-333-3933  FAX:+82-2-323-5700

 


 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

HS INDUSTRIES CO., LTD.(180111-0004323)

HS R&A CO., LTD.(184511-0001252)

HS MATERIAL CO., LTD.(184511-0014213)

HS CLIMATE CONTROL INDUSTRIES CO., LTD.(124311-0012841)

HWASEUNG CORPORATION(180111-0003383)

(25.43% held by the subject company)

 

HWASEUNG EXWILL CO., LTD.(180111-0588442)

HS T&C CORPORATION(180111-0015825)

HWASEUNG NETWORKS CO., LTD.(180111-0560995)

Affiliates-Overseas

HSI AUTOMOTIVES LTD(INDIA)

HWASEUNG MOTOR PARTS(TAECHANG) CO., LTD.(CHINA)

HWASEUNG SPECIAL RUBBER(TAECHANG) CO., LTD.(CHINA)

HWAYOUNG MOTOR PARTS(TAECHANG) CO., LTD.(CHINA)

HWASEUNG VINA CO.,LTD(VIETNAM)

HS AUTOMOTIVE ALABAMA. INC(USA)

HWASEUNG MATERIAL INDIA PRIVATE LIMITED (INDIA)

BEIJING HECHENG R&A VEHICLE PARTS CO.,LTD(CHINA)

HS VIETNAM CHEMICAL CO., LTD(VIETNAM)

HS VUNG TAU CO., LTD(VIETNAM)

HSLS RUBBER INDUSTRIES SDN.BHD.(MALAYSIA)

HWASEUNG HONG KONG CO., LTD.(HONG KONG)

JANGCHEON JEHWA DAIRYEN CO., LTD.(CHINA)

HS VIETNAM NETWORKS CO.,LTD(VIETNAM)

HWASEUNG(SHANGHAI) INT,L TRADE CO,.LTD.(CHINA)

 

HWASEUNG NETWORKS AMERICA CORP(USA)

(33.9% held by the subject company)

Subsidiary

HWASEUNG NETWORKS(INDIA)

(100.0% held by the subject company)

Corporate Ownership

HWASEUNG CORPORATION(180111-0003383)

HST&C CORPORATION(180111-0015825)

 


Sales by Region

(Activity & Markets)

 

The Subject exports to East Europe, Middle East, Asia, North America, and South America.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.36

UK Pound

1

Rs.101.20

Euro

1

Rs.84.54

 

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.