MIRA INFORM REPORT

 

 

Report Date :

23.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DONGKUK R&S CO., LTD.

 

 

Registered Office :

411-1, Ugye-ri, Sangdong-myeon, Gimhae-si, Gyeongsangnam-do, Korea 621-812

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

01.01.2004

 

 

Com. Reg. No.:

615-81-35770

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Structural Refractory Ceramic Products

 

 

No. of Employees :

81

 

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

DONGKUK R&S CO., LTD.

(English Company Name : DONGKUK REFRACTORIES & STEEL CO., LTD.)

Registered Address

411-1, Ugye-ri, Sangdong-myeon, Gimhae-si, Gyeongsangnam-do, Korea

Zip Code

621-812

Tel

+82-55-323-6589~90

Fax

+82-55-323-6117

E-mail

kbs@dkref.co.kr;swcho@dkref.co.kr

Website

www.dkref.co.kr

Trading Address

4FL., Hyewon Bldg., 154-68, Oncheon-dong, Dongnae-gu, Busan, Korea

Tel

+82-51-550-5010

Fax

+82-51-558-4058

Other Address-Masan Factory

92, Yulti-ri, Jinjeon-myeon, Masan-si, Gyeongsangnam-do, Korea

Tel

+82-55-271-3450~3

Fax

+82-55-271-4644

Other Address-Busan Factory

1642-5, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-831-1450~2

Fax

+82-51-831-0488

Other Address-Namyang Factory

63-1, Sachang-ri, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea

Tel

+82-31-366-6680~3

Fax

+82-31-366-6684

Other Address-Pohang Factory

1352-3, Mundeok-ri, Ocheon-eup, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel

+82-54-278-9871~2

Fax

+82-54-278-9873

Type

Export/Import

Industry

Manufacture of Structural Refractory Ceramic Products

  Main Business

Refractory, Ceramic, Pipe, HGI

  Sub Business

Wholesale of Basic Metals

Established (mm/dd/yyyy)

01/01/2004

The Subject owns the premises of registered HQ address, Masan Factory, Namyang Factory and Pohang Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ferrites(32121703)

Sell

Refractories(31370000)

 

CEO’s

 

Name

Lee On-Young

Date of Birth

10/22/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

18,400,000,000

Employees

81

Formation

Listed Company (KOSDAQ : 075970) as of 2/13/2004

A Company of DONGKUK INDUSTRIES GROUP

Bank Details

Industrial Bank of Korea

Korea Development Bank

Woori Bank

Korea Exchange Bank

Busan Bank

Corporate Registered No.

195511-0069249

Business Registered No.

615-81-35770

Permit & Licenses

11/1999 ISO 9001:2000

11/2003 14001:2004

05/2009 KS Mark

 

Int’l Trade No.: 12170838

Shareholder Position

Name

Shares

%

CHANG SE-HEE

2,226,274

12.10

DONGKUK S&C CO., LTD.(110111-2276784)

4,122,052

22.40

DAEWON STEEL CO., LTD.(120111-0123711)

1,326,175

7.21

BULIWON FOUNDATION(114222-0005772)

880,028

4.78

LEE KEUM-JA

929,304

5.05

CHANG SANG-GEON

786,993

4.28

KIM MYUNG-JA

525,908

2.86

CHANG HYE-WON

387,903

2.11

CHANG HYE-KYUNG

350,302

1.90

CHANG SE-HAN

158,054

0.86

OTHERS

6,707,007

36.45

TOTAL

18,400,000

100.00

Company History

09/21/2012 Sold out the Pohang Factory(Steel Business)

1352-3, Mundeok-ri, Ocheon-eup, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel:+82-54-278-9871~2 Fax:+82-54-278-9873

01/2008 Changed company name to DONGKUK REFRACTORIES & STEEL CO., LTD.from DONGKUK REFRACTORIES CO., LTD

09/2007 Begin the steel business (Namyang factory)

03/25/2005 Changed English company name to DONGKUK REFRACTORIES CO., LTD. from DONGKUK REFRACTORY CO., LTD.

09/2004 Established Yingkou New East Refactories Co., Ltd

02/2004 Listed KOSDAQ

01/2004 Changed company name to Dongkuk ref co., ltd after spin off from DONGKUK INDUSTRIES COMPANY(110111-0085583)

12/2003 Separate from Dongkuk ind co.,ltd with a rationalization of enterprise

11/2003 Attained 14001:2004

06/2000 Constructed Busan factory for ferrite.

11/1999 Attained ISO 9001:2000

03/1998 Merged with Dongkuk Ind Co., Ltd

02/1996 Constructed kimhae factory for basic unshaped refractroies

10/1987 Constructed ferrite plant in Masan factory.

08/1987 Contracted exclusive license production agreement with TODA KOGYO (JAPAN) for hard ferrite material.

11/1986 Established Technical research Institute

07/1985 Contracted exclusive license production agreement with ASAHI GLASS CO.,LTD(JAPAN) for refractories.

11/1984 Attained Korea Industrial Standard Mark License ( KS ) No. 3685, 3686, 3687, 3688

06/1984 Constructed fine ceramics factory.

08/1983 Attained Korea Industrial Standard Mark Licence ( KS ) No.3179, 3180

06/1983 Changwon ceramic co., ltd renamed changwon co.ltd.

09/1975 Constructed Masan factory.

09/1974 Foundation of Chang won ceramic co., ltd

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee On-Young

Korean

1949.10.22

Yonsei University, Korea

Director

Mr.

Chang Se-Hee

Korean

1968.03.12

Korea university, Korea

Director

Mr.

Nam Ki-Sung

Korean

1960.08.

Dongah University, Korea

Outside Director

Mr.

Nam Jang-Soo

Korean

1949.01.

Seoul National University, Korea

Outside Director

Mr.

Hwang Jin-Ha

Korean

1966.01.

Seoul National University, Korea

Executive Director

Mr.

Lee Gang-Hak

Korean

1953.09.23

Yonsei University, Korea

Auditor

Mr.

Lee Dong-Sik

Korean

1928.12.06

Busan National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2012

56,644,717,764

141,246,181,579

892,076,273

2012

122,220,583,458

141,505,792,299

255,667,252

2011

117,853,100,963

169,277,794,438

3,058,698,593

2010

169,520,764,727

153,496,727,807

5,400,515,773

2009

160,190,338,199

154,423,925,921

1,442,255,133

2008

145,260,349,725

145,169,002,353

5,586,684,083

2007

66,969,735,970

97,778,618,515

3,096,945,968

2006

49,102,280,524

58,821,846,345

2,842,681,581

2005

48,289,911,648

47,950,386,662

2,024,102,678

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

 

 

Financial Description

 

Authorized Capital(KRW)

55,200,000,000

Paid-Up Capital(KRW)

18,400,000,000

Total Issued Shares

18,400,000

 

Balance Sheet

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

141,246,181,579

141,505,792,299

169,277,794,438

Current Assets

51,027,223,156

50,605,577,192

65,679,232,545

Cash & Cash Equivalents

285,459,305

1,237,209,244

813,050,826

Current Financial Instruments

360,000,000

360,000,000

190,000,000

Trade Receivables

32,094,136,252

29,639,978,869

31,257,048,992

Other Receivables

32,233,919

49,155,842

22,819,445

Advance Payments

564,185,664

295,062,038

522,949,000

Inventories

17,616,208,590

18,652,956,475

32,702,177,084

Current Non-Financial Instruments

74,999,426

371,214,724

171,187,198

Non-Current Assets

90,218,958,423

90,900,215,107

103,598,561,893

Non-Current Financial Instruments

235,134,000

187,434,000

92,034,000

Marketable Financial Instruments

7,000,000

7,000,000

7,000,000

Investment_Related Companies

31,806,261,947

31,806,261,947

31,806,261,947

Tangibles

56,249,166,276

56,958,760,842

69,663,775,390

Intangibles

511,146,102

511,146,102

499,084,331

Held-to-maturity investments

351,475,000

352,915,000

574,065,000

Other Non-Current Assets

1,058,775,098

1,076,697,216

956,341,225

Total Liabilities

71,365,279,324

71,044,966,317

97,419,545,877

Current Liabilities

29,416,689,082

49,126,502,695

81,253,994,444

Trade Payables & Other Payables

10,039,536,896

9,919,191,254

8,844,710,899

Account Payables

1,553,449,401

1,636,199,170

1,402,996,855

Advance Receipts

275,148,067

406,160,494

1,728,109,515

Withholdings

109,973,296

83,863,336

101,610,936

Guarantee Deposit Withhold

10,000,000

10,000,000

10,000,000

Accrued Expenses

370,901,856

476,610,112

762,149,167

Short-Term Borrowings

10,715,566,810

31,117,343,538

58,452,818,414

Current Portion of Long-Term Debts

5,257,421,700

4,514,843,400

8,921,583,508

Accrued Income Tax

295,323,767

　

720,386,490

Other Current Non-Financial Debts

789,367,289

962,291,391

309,628,660

Non-Current Liabilities

41,948,590,242

21,918,463,622

16,165,551,433

Long-Term Borrowings

29,100,000,000

9,300,000,000

2,914,783,493

Leasehold Deposit Received

6,700,787,488

6,536,977,006

7,175,624,673

Provision for Severance & Retirement

437,041,896

276,692,248

70,660,815

Deferred Income Tax Credit

5,710,760,858

5,804,794,368

6,004,482,452

Capital Stock

18,400,000,000

18,400,000,000

18,400,000,000

Capital Surplus

17,660,065,630

17,660,065,630

17,660,065,630

Others

13,573,583,779

13,573,583,779

13,750,284,793

Profit Surplus

20,247,252,846

20,827,176,573

22,047,898,138

Total Equity

69,880,902,255

70,460,825,982

71,858,248,561

Liab. & Shareholder’s Equity

141,246,181,579

141,505,792,299

169,277,794,438

 

Income Statement

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

56,644,717,764

122,220,583,458

117,853,100,963

Cost of Sold Goods

49,975,556,083

106,296,141,844

100,820,786,555

Gross Profit

6,669,161,681

15,924,441,614

17,032,314,408

Selling & Admin. Expenses

4,392,734,614

8,405,869,213

8,299,239,932

Operating Income

2,276,427,067

7,518,572,401

8,733,074,476

Other Income

260,101,484

364,097,685

421,005,796

Other Expenses

104,719,980

140,941,688

612,722,753

Finance Income

137,180,049

333,216,971

405,418,491

Finance Expenses

1,473,589,259

3,143,853,094

3,555,719,958

Income Before Taxes

1,095,399,361

4,931,092,275

5,391,056,052

Income Taxes Expenses

203,323,088

920,962,786

1,465,047,588

Income from Continuous Business

892,076,273

4,010,129,489

3,926,008,464

Income from Stopped Business

　

-3,754,462,237

-867,309,871

Net Income

892,076,273

255,667,252

3,058,698,593

 

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

1,884,182,046

23,429,259,613

7,820,098,892

Cash Flows from Operating

1,707,280,796

24,257,816,437

8,838,689,411

Net Income

892,076,273

255,667,252

3,058,698,593

Adjustment

2,554,088,594

8,219,450,935

8,115,979,808

Changes in Asset/ & Liability

-1,738,884,071

15,782,698,250

-2,335,988,990

Income Taxes

176,901,250

-828,556,824

-1,018,590,519

Cash Flows from Investing

-306,897,930

8,451,313,401

-3,618,942,145

Cash Flows from Financing

-2,529,034,055

-31,456,414,596

-4,128,320,771

Increase/Decrease in Cash

-951,749,939

424,158,418

72,835,976

Cash at the Beginning of Year

1,237,209,244

813,050,826

740,214,850

Cash at the End of Year

285,459,305

1,237,209,244

813,050,826

 

 

Products, Technologies, Services Description

 

Main Products & Services

REFRACTORY

Iron steel refractory : Acid, Neutral and Basic shaped refractory /Monolithic refractory

Incinerator refractory : Shaped / Monolithic refractory Nonferrous metals refractory & etc.: Shaped / Monolithic/ Special refractory

 

FINE CERAMICS

Water/Sanitary faucets

High purity Alumina crucible

Ceramics LINING PIPE & ELBOW

 

HGI

Corrosion Resistance HGI

Formability HGI

 

STEEL PIPE

Structural carbon steel

Structural square shape steel(tube)

Product for temporary construction(pipe support, fence, coupling pin, safe rail)

 

Brand Name : PGT-BT,J-18D, MAGGUN, TUNGUN, Ceramic Disk

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Customers

POSCO(174611-0000741)

Competitors

POSCO(174611-0000741)

1, GOEDONG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-220-0114  FAX:+82-54-220-6000

 

JINBANG STEEL KOREA CO., LTD.(171711-0060051)

605, HO-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-289-5700  FAX:+82-54-278-0421

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CHOSUN STEELWIRE CO.,LTD(110111-0008486)

DONGKUK S&C CO., LTD.(110111-2276784)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER CO., LTD.(201111-0023666)

GO DEOK WIND POWER CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNGSEOK DEVELOPMENT CO., LTD.(KOREA)

KUMHWA METAL CO., LTD.(KOREA)

DK WIND POWER CO., LTD.(234111-0045158)

NAMWON WIND POWER CO., LTD.(211311-0005428)

 

DONGKUK INDUSTRIES COMPANY(110111-0085583)

(4.02% held by the subject company)

 

DAEWON STEEL CO., LTD.(120111-0123711)

(19.0% held by the subject company)

 

DK DONGSHIN CO., LTD.(110111-3850959)

(4.44% held by the subject company)

 

DK AMERICA, INC.

23133 HAWTHORNE BLVD. STE.301 TORRANCE, CA 90505, USA

TEL : 1-310-375-2222,  FAX : 1-310-375-2221

 

YOUNGKU SHINDONG REFRACTORIES MATERIALS CO., LTD.(CHINA)

CHIBAK DONGKUK REFRACTORIES MATERIALS CO., LTD.(CHINA)

Subsidiary

DONGYEON S&T CO., LTD.(110111-3401059)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

4,138

3,228

2,167

Domestic

107,714

166,293

158,023

Total

111,852

169,521

160,190

The Subject deals with the companies in China, Taiwan, Indonesia and Japan.

 

 

News Clipping

 

Not Available

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.78

UK Pound

1

Rs.99.66

Euro

1

Rs.84.49

 

 

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%)

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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.