MIRA INFORM REPORT

 

 

Report Date :

11.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DONGWHA ENTERPRISE CO., LTD.

 

 

Registered Office :

150-14, Gajwa 1-dong, Seo-gu, Incheon

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.01.2003

 

 

Com. Reg. No.:

137-81-56538

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Densified and Reconstituted Wood

 

 

No. of Employees :

426

 

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

 

Company Name

DONGWHA ENTERPRISE CO., LTD.

Registered Address

150-14, Gajwa 1-dong, Seo-gu, Incheon, Korea

Zip Code

404-810

Tel

+82-32-580-5161~4

Fax

+82-32-577-0056

 

 

Trading Address

150-14, Gajwa 1-dong, Seo-gu, Incheon, Korea

Tel

+82-32-580-5161~4

Fax

+82-32-577-0056

Other Address-Yoido Branch

53-2, Yeouinaru-ro, Yeongdeungpo-gu, Seoul, Korea

 

 

Other Address-Asan Branch

186-3, Munbang-ri, Inju-myeon, Asan-si, Chungcheongnam-do, Korea

Tel

 

Fax

 

Other Address-Pangyo Branch

Rm.701, 140, Unjung-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

 

 

Type

Export/Import

Industry

Manufacture of Densified and Reconstituted Wood

  Main Business

Particle Board, Medium Density Fiberboard, Formalin

  Sub Business

Manufacture of Other Basic Organic Chemicals

Established (mm/dd/yyyy)

10/01/2003

 

 

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 106-701, 747, Suseo-dong, Gangnam-gu, Seoul, Korea

Date of Birth

07/09/1965

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

8,962,990,000

Employees

426

Formation

Co., Ltd by Shares

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

Bank Details

Woori Bank

Shinhan Bank

Korea Development Bank

Corporate Registered No.

120111-0327933

Business Registered No.

137-81-56538

Permit & Licenses

Int’l Trade No.: 14113356

Shareholder Position

Name

Shares

%

DONGWHA HOLDINGS CO., LTD.(120111-0004218)

17,925,980

100.00

TOTAL

17,925,980

100.00

Company History

10/01/2003 Incorporated as the present name after Split off from DONGWHA HOLDINGS CO., LTD.(120111-0004218)

01/01/2009 Acquired DONGWHA CHEMICAL CO., LTD.

01/01/2010 Acquired DONGWHA CEZAIN CO., LTD.(110111-3484766) and DONGWHA RESOURCES CO., LTD.(110111-0634348), and split off MFB/Chemical Business

01/04/2010 Spin off,  and newly established DONGWHA GREENCHEM CO., LTD.(120111-0519225)

01/02/2012 Acquired DONGWHA GREENCHEM CO., LTD.(120111-0519225)

01/02/2012 Increased capital to 8,962,990,000 KRW from 7,162,990,000 KRW

12/17/2012 Acquired Housing Business from DONGWHA SFC HOUSING CO., LTD.(110111-3453133)

10/04/2013 The Subject has been split off, and merged into DONGWHA M PARK CO., LTD.(120111-0411893) and DONGWHA HOLDINGS CO., LTD.(120111-0004218) respectively, and disorganized.

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Kim Hong-Jin

Male

Korean

08/31/2010

Co-President & CEO

Mr.

Lee Byung-Eon

Male

Korean

08/12/2011

Director

Mr.

Lee Si-Joon

Male

Korean

01/18/2012

Auditor

Mr.

Lee Byung-Chan

Male

Korean

07/20/2012

Supervisor of HQ Office

Mr.

Seo Jae-Jin

Male

Korean

11/07/2005

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

255,475,702,517

558,421,313,829

10,757,299,014

2011

219,718,348,143

419,324,101,064

6,106,086,278

2010

215,235,123,267

371,133,545,750

7,672,105,780

2009

169,453,558,098

251,809,670,230

7,252,979,217

2008

169,874,939,918

238,452,906,455

3,751,654,287

2007

187,316,955,902

221,907,195,418

-821,203,081

2006

197,835,004,925

241,001,243,910

2,160,360,306

 

 

Financial Description

 

Authorized Capital(KRW)

60,000,000,000

Paid-Up Capital(KRW)

8,962,990,000

Total Issued Shares

17,925,980

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

558,421,313,829

419,324,101,064

371,133,545,750

Current Assets

89,678,675,146

68,111,542,689

57,124,623,519

Cash & Cash Equivalents

4,056,915,840

13,937,782,470

588,862,648

Trade Receivables & Other Receivables

42,668,383,059

32,484,736,611

32,333,327,516

Inventories

39,310,664,364

20,899,387,091

23,596,148,367

Other Receivables-Construction

2,735,784,582

-

143,977,962

Other Current Assets

906,927,301

789,636,517

462,307,026

Non-Current Assets

468,742,638,683

351,212,558,375

314,008,922,231

Non-Current Financial Instruments

3,000,000

3,000,000

3,000,000

Long-Term Trade Receivables & Other Receivables

- 

- 

6,000,000

Marketable Financial Instruments

274,757,380

23,000,000

523,000,000

Investment_Subsidiaries

21,974,718,444

21,974,718,444

6,732,881,658

Tangibles

429,192,407,139

311,469,379,911

288,902,840,508

Investment_Real Estates

8,727,312,000

8,727,312,000

8,727,312,000

Operating Rights

6,606,467,565

6,606,467,565

6,606,467,565

Intangibles

1,579,815,420

2,217,601,600

2,246,199,285

Other Financial Assets

384,160,735

191,078,855

261,221,215

Total Liabilities

269,121,351,034

193,545,636,801

149,281,160,981

Current Liabilities

131,250,366,408

87,118,445,760

80,565,964,784

Trade Payables & Other Payables

55,498,243,734

35,306,313,472

27,429,583,322

Other Payables-Construction

285,594,663

-

-

Short-Term Borrowings

72,488,359,806

47,302,590,000

50,386,490,000

Deferred Income Tax Credit

887,782,947

1,633,654,528

291,740,705

Other Current Financial Debts

711,940,295

598,923,637

-

Other Current Liabilities

1,378,444,963

2,276,964,123

2,458,150,757

Non-Current Liabilities

137,870,984,626

106,427,191,041

68,715,196,197

Long-Term Trade Payables & Other Payables

75,920,065,000

54,353,381,358

14,456,380,000

Provision for Severance & Retirement

5,190,283,602

2,250,536,328

3,279,239,427

Deferred Income Tax Credit

55,012,829,410

46,181,649,519

45,949,330,883

Other Non-Current Financial Debts

1,138,594,472

3,296,488,358

3,995,041,004

Provision

609,212,142

345,135,478

-

Other Non-Current Liabilities

-

-

1,035,204,883

Capital Stock

8,962,990,000

7,162,990,000

7,162,990,000

Capital Surplus

97,570,160,782

46,010,953,060

46,971,912,146

Profit Surplus

182,766,812,013

172,604,521,203

167,717,482,623

Total Equity

289,299,962,795

225,778,464,263

221,852,384,769

Liab. & Shareholder’s Equity

558,421,313,829

419,324,101,064

371,133,545,750

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

255,475,702,517

219,718,348,143

215,235,123,267

Cost of Sold Goods

-210,954,226,301

-182,025,403,908

-181,961,137,119

Gross Profit

44,521,476,216

37,692,944,235

33,273,986,148

Selling Expenses

-12,295,334,597

-12,752,948,968

-12,429,565,003

Admin. Expenses

-15,901,782,306

-13,842,716,817

-11,146,634,440

R&D

-1,225,496,961

-

 

Other Income

 

 

5,278,294,910

Other Expenses

 

 

-2,366,622,098

Operating Income

15,098,862,352

11,097,278,450

12,609,459,517

Finance Income

1,741,751,605

160,324,796

1,000,081,468

Finance Expenses

-5,553,480,587

-4,988,649,542

-3,865,394,862

Non-Operating Income

6,662,157,470

5,576,424,972

 

Non-Operating Expenses

-3,439,984,019

-2,548,327,036

 

Income Before Taxes

14,509,306,821

9,297,051,640

9,744,146,123

Income Taxes Expenses

-3,752,007,807

-3,190,965,362

-2,072,040,343

Net Income

10,757,299,014

6,106,086,278

7,672,105,780

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

15,582,577,372

16,097,718,734

-9,430,229,230

Net Income

10,757,299,014

6,106,086,278

7,672,105,780

-Exp. without Cash Outflow

20,290,960,294

16,827,870,851

14,926,649,406

-Revenue without Cash Inflows

-4,857,874,354

-3,560,094,482

-3,480,753,687

Changes in Asset/ & Liability

-403,875,278

1,866,060,296

-22,568,101,878

Interests Received

127,315,353

304,302,758

-

Interests Paid

-5,339,252,906

-4,173,608,029

-2,934,628,713

Income Taxes

-4,991,994,751

-1,272,898,937

-3,045,500,138

Cash Flows from Investing

-58,568,506,239

-38,803,404,309

-15,000,527,178

Cash Inflow from Investing

12,765,617,488

2,933,465,081

1,545,470,484

Cash Outflows for Investing

-71,334,123,727

-41,736,869,390

-16,545,997,662

Cash Flows from Financing

33,106,010,000

36,275,479,395

19,591,570,000

Cash Inflows from Financing

205,309,600,000

197,443,599,395

155,545,122,500

Cash Outflows from Financing

-172,203,590,000

-161,168,120,000

-135,953,552,500

Increase/Decrease in Cash

-9,879,918,867

13,569,793,820

-4,839,186,408

Cash at the Beginning of Year

13,937,782,470

588,862,648

5,428,049,056

Cash at the End of Year

4,056,915,840

13,937,782,469

588,862,648

 

 

Products, Technologies, Services Description

 

Main Products & Services

Particle Board, Medium Density Fiberboard, Formalin

Detailed Products Spec.

 

Technologies Acquired

 

 

 

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-Domestic

DONGWHA HOLDINGS CO., LTD.(120111-0004218)

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

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

DONGWHA LOGISTICS CO., LTD.9120111-0411893)

EUNIQUE CO., LTD.(110111-1255614)

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

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

ELITEDOOR CO.,LTD.(120111-0202507)

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

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

Affiliates-Overseas

DONGWHA INTERNATIONAL CO.,LTD

VRG DONGWHA JOINT STOCK COMPANY

DONGWHA FIBREBOARD SDN., BHD.

DONGWA MDF MALAYSIA

DONGWHA MALAYSIA HOLDINGS

DONGWHA CHEMICAL MALAYSIA

DONGWHA PANTINA NZ LTD.

DONGWHA TIMBER PTY LTD.

VRG DONGWHA JOINT STOCK COMPANY

Subsidiary

DONGWHA VINA CO., LTD.(HONG KONG)

(80.0% held by the Subject company)

Corporate Ownership

DONGWHA INTERNATIONAL CO. LIMITED (Ex.: MH HOLDINGS CO., LTD.)

DONGWHA HOLDINGS CO., LTD.(120111-0004218)

Major Shareholders

DONGWHA HOLDINGS CO., LTD.(120111-0004218)

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.99.02

Euro

1

Rs.83.87

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.