MIRA INFORM REPORT

 

 

Report Date :

29.10.2013

 

IDENTIFICATION DETAILS

 

Name :

HOMECAST CO., LTD. 

 

 

Registered Office :

Homecast Co Ltd Bldg., 36 Garakbon-Dong, Songpa-Gu Seoul, 138801 Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

27.04.2000

 

 

Legal Form :

Public Parent

 

 

Line of Business :

Manufacturer of Set Top Boxes (STBs)

 

 

No. of Employees :

91

 

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 :

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 – 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

Company Name and Address

 

Homecast Co., Ltd. 

 

 

 

Homecast Co Ltd Bldg.

, 36, Garakbon-Dong, Songpa-Gu

 

Seoul, 138801

Korea, Republic of

 

 

Tel:

82-2-34008300

Fax:

82-2-34008383

 

 www.homecast.net

Employees:

91

Company Type:

Public Parent

Corporate Family:

2 Companies

Traded:

KOSDAQ:

064240

Incorporation Date:

27-Apr-2000

Auditor:

Jungjin Accounting Corp.

Financials in:

 USD (Mil)

Fiscal Year End:

31-Dec-2012

Reporting Currency:

South Korean Won

Annual Sales:

87.4  1

Net Income:

(2.4)

Total Assets:

68.1  2

Market Value:

38.6

 

(11-Oct-2013)

 

 

Business Description

 

HOMECAST CO.,LTD. is a Korea-based company specialized in the manufacture of set top boxes (STBs). The Company mainly engaged in the provision of digital STBs and STB components. The company provides its products under the brand name of HOMECAST. The Company distributes its products within domestic market and to overseas markets, including India, China, Japan, Middle East, Africa, Europe and Oceania countries. For the six months ended 30 June 2013, homecast Co., Ltd. revenues decreased 45% to W28.03B. Net loss increased from W1.02B to W2.06B. Revenues reflect LED Electric Bulb segment decrease of 30% to W511.3M, America segment decrease of 53% to W10.2B, South Korea segment decrease of 87% to W1.46B, Europe segment decrease of 30% to W4.52B. Higher net loss reflects Settopbox segment loss increase from W924.5M to W3.63B.

 

 

Industry

 

Industry

Communications Equipment Manufacturing

ANZSIC 2006:

2422 - Communication Equipment Manufacturing

ISIC Rev 4:

2630 - Manufacture of communication equipment

NACE Rev 2:

2630 - Manufacture of communication equipment

NAICS 2012:

33422 - Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

UK SIC 2007:

26309 - Manufacture of communication equipment (other than telegraph and telephone apparatus and equipment)

US SIC 1987:

3663 - Radio and Television Broadcasting and Communications Equipment

 

 

Key Executives

 

Name

Title

Bo Seon Lee

Chief Executive Officer, Director

Hwan Man Jung

Internal Auditor

Gye Yeol Oh

Assistant Managing Director

Seung Min Jung

Non-Executive Independent Director

Deok Ui Kim

Director

 

 

Significant Developments

 

Topic

#*

Most Recent Headline

Date

Business Deals

1

Homecast Co Ltd Signs Contract with DV

27-Mar-2013

Equity Financing / Related

1

Homecast Co Ltd to Dispose Treasury Shares

4-Jan-2013

Equity Investments

4

Homecast Co Ltd Announces Changes in Shareholding Structure

28-Jan-2013

Dividends

1

Homecast Co Ltd Declares Annual Cash Dividend for FY 2012

6-Mar-2013

 

* Number of significant developments within the last 12 months

 

 

News

 

Title

Date

Homecast Co Ltd Declares Annual Cash Dividend for FY 2012
Reuters UK (77 Words)

6-Mar-2013

 

 

Financial Summary

 

As of 30-Jun-2013

Key Ratios

Company

Industry

Current Ratio (MRQ)

2.10

3.07

Quick Ratio (MRQ)

1.57

2.60

Debt to Equity (MRQ)

0.22

0.27

Sales 5 Year Growth

-1.01

14.13

 

 

Stock Snapshot

 

Traded: KOSDAQ: 064240

 

As of 11-Oct-2013

   Financials in: KRW

 

Recent Price

2,800.00

 

EPS

-185.55

52 Week High

6,910.00

 

Price/Sales

0.42

52 Week Low

2,165.00

 

Dividend Rate

50.00

Avg. Volume (mil)

0.13

 

Price/Book

0.68

Market Value (mil)

41,323.25

 

Beta

1.57

 

 

Price % Change

Rel S&P 500%

4 Week

5.46%

3.87%

13 Week

5.66%

-2.42%

52 Week

1.45%

-3.15%

Year to Date

-30.52%

-31.47%

 

 

 

 

 

 

 

 

 

1 - Profit & Loss Item Exchange Rate: USD 1 = KRW 1126.849 
2 - Balance Sheet Item Exchange Rate: USD 1 = KRW 1066.4

 

 

Corporate Overview

 

Location
Homecast Co Ltd Bldg.
, 36, Garakbon-Dong, Songpa-Gu
Seoul, 138801
Korea, Republic of

 

Tel:

82-2-34008300

Fax:

82-2-34008383

 

www.homecast.net

Quote Symbol - Exchange

064240 - KOSDAQ

Sales KRW(mil):

98,534.7

Assets KRW(mil):

72,617.6

Employees:

91

Fiscal Year End:

31-Dec-2012

 

Industry:

Communications Equipment

Incorporation Date:

27-Apr-2000

Company Type:

Public Parent

Quoted Status:

Quoted

 

Chief Executive Officer, Director:

Bo Seon Lee

 

 

Industry Codes

 

ANZSIC 2006 Codes:

2422

-

Communication Equipment Manufacturing

 

ISIC Rev 4 Codes:

2630

-

Manufacture of communication equipment

 

NACE Rev 2 Codes:

2630

-

Manufacture of communication equipment

 

NAICS 2012 Codes:

33422

-

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

 

US SIC 1987:

3663

-

Radio and Television Broadcasting and Communications Equipment

 

UK SIC 2007:

26309

-

Manufacture of communication equipment (other than telegraph and telephone apparatus and equipment)

 

Business Description

 

HOMECAST CO.,LTD. is a Korea-based company specialized in the manufacture of set top boxes (STBs). The Company mainly engaged in the provision of digital STBs and STB components. The company provides its products under the brand name of HOMECAST. The Company distributes its products within domestic market and to overseas markets, including India, China, Japan, Middle East, Africa, Europe and Oceania countries. For the six months ended 30 June 2013, homecast Co., Ltd. revenues decreased 45% to W28.03B. Net loss increased from W1.02B to W2.06B. Revenues reflect LED Electric Bulb segment decrease of 30% to W511.3M, America segment decrease of 53% to W10.2B, South Korea segment decrease of 87% to W1.46B, Europe segment decrease of 30% to W4.52B. Higher net loss reflects Settopbox segment loss increase from W924.5M to W3.63B.

 

More Business Descriptions

 

Manufacture of set top boxes

Radio and Television Broadcasting and Wireless Communications Equipment Mfg

 

 

Financial Data

 

Financials in:

KRW(mil)

 

Revenue:

98,534.7

Net Income:

-2,757.1

Assets:

72,617.6

Long Term Debt:

1,118.3

 

Total Liabilities:

15,395.2

 

Working Capital:

12.7

 

 

 

Date of Financial Data:

31-Dec-2012

 

1 Year Growth

-39.9%

NA

-27.8%

 

 

Market Data

 

Quote Symbol:

064240

Exchange:

KOSDAQ

Currency:

KRW

Stock Price:

2,800.0

Stock Price Date:

10-11-2013

52 Week Price Change %:

1.5

Market Value (mil):

41,323,248.0

 

SEDOL:

6623906

ISIN:

KR7064240005

 

Equity and Dept Distribution:

'00-'06 financials reflect non-consolidated data. '07 financial reflects consolidated data. 04/04, the Company changed name from eM Technics Co., Ltd. 02/04, Scrip Issue, 0.5 new shares for every 1 share held. 07/01, 10-for-1 stock split. '06 is CLA.

 

 

Key Corporate Relationships

Auditor:

Jungjin Accounting Corp.

 

Auditor:

Jungjin Accounting Corp., PWC LLP

 

 

 

 

 

Corporate Structure News

 

Total Corporate Family Members: 2 



 

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

homecast Co., Ltd.

Parent

Seoul

Korea, Republic of

Communications Equipment Manufacturing

87.4

91

Homecast Europe GmbH

Subsidiary

Frankfurt Am Main, Hessen

Germany

Electronics Wholesale

 

11

 

 

 

Executive Report

 

 

 

Board of Directors

 

Name

Title

Function

 

Seung Min Jung

 

Non-Executive Independent Director

Director/Board Member

 

Biography:

Jung Seung Min has been serving as Non-Executive Independent Director of homecast Co., Ltd. since March 26, 2010. Jung currently also serves as Associate Professor of Hanshin University, Korea. Previously, Jung also served as Assistant Professor of a Korea-based university. Jung holds a Bachelor's and a Doctorate's degrees in Electrical and Electronics Engineering from Yonsei University, Korea.

 

Age: 45

 

Education:

Yonsei University, PHD (Electrical and Electronics Engineering)
Yonsei University, B (Electrical and Electronics Engineering)

 

Jong Nam Kim

 

Non-Executive Independent Director

Director/Board Member

 

 

Biography:

Kim Jong Nam has been serving as Non-Executive Independent Director of homecast Co., Ltd since March 25, 2005. Currently, Kim is also Professor of Pukyong National University, Korea. Previously, Kim worked for KBS (Korean Broadcasting System). Kim holds a Bachelor's degree in Electronic Engineering from Kumoh National Institute of Technology, Korea and a Master's and a Doctorate's degree from Gwangju Institute of Science and Technology, Korea.

 

Age: 41

 

Education:

Gwangju Institute of Science and Technology, PHD 
Gwangju Institute of Science and Technology, M 
Kumoh National Institute of Technology, B (Electronic Engineering)

 

Deok Ui Kim

 

Director

Director/Board Member

 

 

Age: 47

 

Education:

Dong-A University, B (Business Administration)

 

Bo Seon Lee

 

Chief Executive Officer, Director

Director/Board Member

 

 

Biography:

Lee Bo Seon has been serving as Chief Executive Officer and Director of homecase Co., Ltd since October 11, 2006. Prior to joining the Company, Lee worked for Integra Telecom Co., Ltd. and also served as a research fellow of SAMSUNG ELECTRO MECHANICS Research Institute. Lee holds a Bachelor's degree in Electronics Engineering from Yonsei University, Korea.

 

Age: 46

 

Education:

Yonsei University, B (Electronics Engineering)

 

Chang Gyeong Lee

 

Non-Executive Independent Director

Director/Board Member

 

 

Age: 46

 

Education:

Yonsei University, B (Electronics Engineering)

 

Jong Mun Park

 

Non-Executive Independent Director

Director/Board Member

 

 

Age: 53

 

Education:

Seoul National University, LLB 

 

 

Executives

 

 

Name

Title

Function

 

Bo Seon Lee

 

Chief Executive Officer, Director

Chief Executive Officer

 

Biography:

Lee Bo Seon has been serving as Chief Executive Officer and Director of homecase Co., Ltd since October 11, 2006. Prior to joining the Company, Lee worked for Integra Telecom Co., Ltd. and also served as a research fellow of SAMSUNG ELECTRO MECHANICS Research Institute. Lee holds a Bachelor's degree in Electronics Engineering from Yonsei University, Korea.

 

Age: 46

 

Education:

Yonsei University, B (Electronics Engineering)

 

Gye Yeol Oh

 

Assistant Managing Director

Managing Director

 

 

Biography:

Oh Gye Yeol is Assistant Managing Director of homecast Co., Ltd. Previously, Oh was Division Head of Itronics and a team leader of Haitai Confectionery & Foods Co., LTD.

 

Age: 53

 

Gyeong Yeong Song

 

Assistant Managing Director

Managing Director

 

 

Biography:

Song Gyeong Yeong is Assistant Managing Director of homecast Co., Ltd. Song previously was working for research and development division at Samsung Electronics Co., Ltd. Song holds a Master's degree in Computer Engineering from Wayne State University and a Master's degree in Business Administration from Ajou University.

 

Age: 50

 

Education:

Ajou University, M (Business Administration)
Wayne State University, M (Computer Engineering)

 

Hwan Man Jung

 

Internal Auditor

Accounting Executive

 

 

Age: 60

 

Deok Myeong Lee

 

Internal Auditor

Accounting Executive

 

 

Biography:

Lee Deok Myeong has been serving as Internal Auditor of homecast Co., Ltd since March 21, 2008. Currently, Lee is also serving as Managing Director at NEXUS CHIPS CO.,LTD. Previously, Lee was with Hynix Semiconductor Inc. Lee holds a Bachelor's degree and a Master of Engineering from Yonsei University, Korea.

 

Age: 46

 

Education:

Yonsei University, ME 
Yonsei University, B 

 

Hyeong Tae Won

 

Internal Auditor

Accounting Executive

 

 

Age: 36

 

 

 

Significant Developments

 

Homecast Co Ltd Signs Contract with DV

Mar 27, 2013


Homecast Co Ltd announced that it has signed a contract with DV to provide set top box in Mexico. The contract amount is KRW 3,597,703,200. 

Homecast Co Ltd Declares Annual Cash Dividend for FY 2012

Mar 06, 2013


Homecast Co Ltd announced that it has declared an annual cash dividend of KRW 50 per share of common stock to shareholders of record on December 31, 2012, for the fiscal year 2012. The dividend rate of market price is 1.2% and the total amount of the cash dividend is KRW 697,864,000. The dividend payment date is April 22, 2013. The Company's annual cash dividend for the fiscal year 2011 was KRW 130 per share. 

Homecast Co Ltd Announces Changes in Shareholding Structure

Jan 28, 2013


Homecast Co Ltd announced that Jang Byeong Gwon has acquired 687,615 shares of the Company, equivalent to a 4.65% stake. After the transaction, Jang Byeong Gwon's stake in the Company has increased to 20.26% from 15.61%. 

Homecast Co Ltd Announces Changes in Shareholding Structure

Jan 21, 2013


Homecast Co Ltd announced that Jang Byeong Gwon has acquired 623,898 shares of the Company, equivalent to a 4.23% stake. After the transaction, Jang Byeong Gwon's stake in the Company has increased to 15.61% from 11.38%. 

Homecast Co Ltd Announces Changes in Shareholding Structure

Jan 09, 2013


Homecast Co Ltd announced that Jang Byeong Gwon has acquired 444,877 shares of the Company, equivalent to a 3.01% stake. After the transaction, Jang Byeong Gwon's stake in the Company has increased to 11.38% from 8.37%. 

Homecast Co Ltd to Dispose Treasury Shares

Jan 04, 2013


Homecast Co Ltd announced that it will sell 801,023 shares of its common stock for KRW 3,540,521,660 to secure funds for its operations. 

Homecast Co Ltd Announces Changes in Shareholding Structure

Dec 28, 2012


Homecast Co Ltd announced that Jang Byeong Gwon has acquired 1,235,000 shares of the Company, representing an 8.37% stake. 


Annual Income statement

 

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

 

 

 

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal 
31-Dec-2012

Reclassified Normal 
31-Dec-2012

Restated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Net Sales

70.4

108.9

73.8

126.3

149.5

Revenue

70.4

108.9

73.8

126.3

149.5

    Other Revenue

17.1

39.0

42.5

3.6

5.4

Other Revenue, Total

17.1

39.0

42.5

3.6

5.4

Total Revenue

87.4

147.9

116.4

129.8

154.8

 

 

 

 

 

 

    Cost of Revenue

69.1

115.4

95.0

109.7

123.1

Cost of Revenue, Total

69.1

115.4

95.0

109.7

123.1

Gross Profit

1.3

-6.5

-21.2

16.6

26.4

 

 

 

 

 

 

    Selling/General/Administrative Expense

9.4

12.1

8.9

10.1

9.9

    Labor & Related Expense

3.7

3.7

3.9

2.6

3.6

    Advertising Expense

-

-

-

0.0

0.4

Total Selling/General/Administrative Expenses

13.1

15.8

12.8

12.7

13.9

Research & Development

5.0

4.1

3.5

4.5

4.2

    Depreciation

0.2

0.3

0.4

0.4

0.6

    Amortization of Intangibles

0.7

0.8

0.7

0.6

1.1

Depreciation/Amortization

0.9

1.1

1.1

1.0

1.7

        Investment Income - Operating

-

-

-0.2

-

-

    Interest/Investment Income - Operating

-

-

-0.2

-

-

Interest Expense (Income) - Net Operating Total

-

-

-0.2

-

-

    Impairment-Assets Held for Use

-

-

0.9

-

-

    Impairment-Assets Held for Sale

-

-

0.3

-

-

    Loss (Gain) on Sale of Assets - Operating

-

-

-1.1

-

-

Unusual Expense (Income)

-

-

0.0

-

-

    Other Operating Expense

-

-

0.3

-

-

    Other, Net

-

-

-0.5

-

-

Other Operating Expenses, Total

-

-

-0.2

-

-

Total Operating Expense

88.1

136.3

112.0

128.0

142.8

 

 

 

 

 

 

Operating Income

-0.6

11.5

4.4

1.9

12.0

 

 

 

 

 

 

        Interest Expense - Non-Operating

-0.3

-1.0

-1.0

-1.2

-0.9

    Interest Expense, Net Non-Operating

-0.3

-1.0

-1.0

-1.2

-0.9

        Interest Income - Non-Operating

0.1

0.3

0.1

0.3

0.2

        Investment Income - Non-Operating

-3.1

-0.3

0.3

-3.7

0.2

    Interest/Investment Income - Non-Operating

-3.0

0.0

0.5

-3.4

0.4

Interest Income (Expense) - Net Non-Operating Total

-3.3

-1.0

-0.5

-4.6

-0.5

Gain (Loss) on Sale of Assets

-0.1

0.0

-

-

-0.2

    Other Non-Operating Income (Expense)

0.1

0.1

-

-0.1

-1.7

Other, Net

0.1

0.1

-

-0.1

-1.7

Income Before Tax

-4.0

10.7

3.9

-2.8

9.7

 

 

 

 

 

 

Total Income Tax

-1.2

3.1

0.3

1.0

1.6

Income After Tax

-2.8

7.5

3.6

-3.8

8.1

 

 

 

 

 

 

    Minority Interest

0.3

0.2

0.4

-

-

Net Income Before Extraord Items

-2.4

7.7

4.0

-3.8

8.1

Net Income

-2.4

7.7

4.0

-3.8

8.1

 

 

 

 

 

 

Income Available to Common Excl Extraord Items

-2.4

7.7

4.0

-3.8

8.1

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

-2.4

7.7

4.0

-3.8

8.1

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

14.3

13.5

12.6

11.3

11.4

Basic EPS Excl Extraord Items

-0.17

0.57

0.32

-0.34

0.71

Basic/Primary EPS Incl Extraord Items

-0.17

0.57

0.32

-0.34

0.71

Dilution Adjustment

0.0

0.0

0.0

0.0

0.0

Diluted Net Income

-2.4

7.7

4.0

-3.8

8.1

Diluted Weighted Average Shares

14.3

13.5

13.3

11.3

12.4

Diluted EPS Excl Extraord Items

-0.17

0.57

0.30

-0.34

0.65

Diluted EPS Incl Extraord Items

-0.17

0.57

0.30

-0.34

0.65

Dividends per Share - Common Stock Primary Issue

0.04

0.12

0.00

0.00

0.09

Gross Dividends - Common Stock

0.6

1.7

0.0

0.0

1.0

Interest Expense, Supplemental

0.3

1.0

1.0

1.2

0.9

Depreciation, Supplemental

0.5

0.8

1.0

1.0

1.4

Total Special Items

0.1

0.0

0.0

-

0.2

Normalized Income Before Tax

-3.8

10.7

3.8

-2.8

9.9

 

 

 

 

 

 

Effect of Special Items on Income Taxes

0.0

0.0

0.0

-

0.0

Inc Tax Ex Impact of Sp Items

-1.1

3.1

0.3

1.0

1.7

Normalized Income After Tax

-2.7

7.5

3.6

-3.8

8.2

 

 

 

 

 

 

Normalized Inc. Avail to Com.

-2.4

7.7

4.0

-3.8

8.2

 

 

 

 

 

 

Basic Normalized EPS

-0.16

0.57

0.32

-0.34

0.72

Diluted Normalized EPS

-0.16

0.57

0.30

-0.34

0.67

Amort of Intangibles, Supplemental

0.7

0.8

0.7

0.6

1.1

Rental Expenses

0.1

0.1

0.1

0.0

0.1

Advertising Expense, Supplemental

-

-

-

0.0

0.4

Research & Development Exp, Supplemental

5.0

4.1

3.6

4.6

4.2

Normalized EBIT

-0.6

11.5

4.2

1.9

12.0

Normalized EBITDA

0.6

13.1

6.0

3.6

14.5

 

 

Annual Balance Sheet

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal 
31-Dec-2012

Reclassified Normal 
31-Dec-2012

Restated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate

1066.400024

1152

1134.9

1164.475

1259.55

Auditor

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Equivalents

8.2

22.1

17.1

11.2

18.9

    Short Term Investments

0.1

0.2

1.0

0.6

1.1

Cash and Short Term Investments

8.3

22.3

18.1

11.8

20.1

        Accounts Receivable - Trade, Gross

23.0

29.4

24.1

16.5

11.7

        Provision for Doubtful Accounts

-1.8

-1.6

-1.3

-0.6

-0.2

    Trade Accounts Receivable - Net

21.3

27.9

22.8

16.0

11.6

    Other Receivables

1.2

0.4

0.5

0.8

1.2

Total Receivables, Net

22.5

28.3

23.3

16.8

12.7

    Inventories - Finished Goods

1.5

2.5

2.7

0.5

2.7

    Inventories - Work In Progress

0.0

0.2

0.1

0.1

0.2

    Inventories - Raw Materials

7.2

7.0

10.5

9.6

8.0

    Inventories - Other

0.3

0.2

0.5

0.1

2.0

Total Inventory

8.9

9.9

14.0

10.3

12.8

Prepaid Expenses

0.0

0.1

0.0

0.0

0.1

    Deferred Income Tax - Current Asset

-

-

-

0.5

0.8

    Other Current Assets

-

0.6

0.5

0.3

0.4

Other Current Assets, Total

-

0.6

0.5

0.8

1.2

Total Current Assets

39.7

61.1

55.9

39.8

47.0

 

 

 

 

 

 

        Buildings

5.6

5.2

5.3

7.3

5.4

        Land/Improvements

15.9

14.7

15.0

10.0

4.2

        Machinery/Equipment

-

-

-

7.2

6.8

        Construction in Progress

-

0.0

0.0

0.0

-

        Other Property/Plant/Equipment

8.5

8.2

8.1

-

-

    Property/Plant/Equipment - Gross

30.0

28.2

28.4

24.6

16.4

    Accumulated Depreciation

-8.9

-8.0

-7.5

-6.3

-4.9

Property/Plant/Equipment - Net

21.1

20.1

20.9

18.3

11.5

Goodwill, Net

0.9

1.2

1.6

-

-

Intangibles, Net

2.9

3.3

3.9

2.9

2.5

    LT Investment - Affiliate Companies

-

-

-

4.0

1.1

    LT Investments - Other

2.8

1.5

1.4

2.1

2.9

Long Term Investments

2.8

1.5

1.4

6.1

4.1

Note Receivable - Long Term

-

-

-

0.2

0.3

    Deferred Income Tax - Long Term Asset

0.5

-

0.2

1.1

0.7

    Other Long Term Assets

0.1

0.1

0.3

0.3

0.3

Other Long Term Assets, Total

0.6

0.1

0.5

1.4

0.9

Total Assets

68.1

87.3

84.2

68.7

66.2

 

 

 

 

 

 

Accounts Payable

4.1

10.7

11.3

10.8

6.5

Accrued Expenses

0.3

0.7

1.0

0.2

1.0

Notes Payable/Short Term Debt

6.1

9.6

11.5

4.3

5.2

Current Portion - Long Term Debt/Capital Leases

-

1.4

7.6

1.7

0.9

    Customer Advances

0.5

1.9

1.1

1.0

0.9

    Security Deposits

-

-

-

0.0

-

    Income Taxes Payable

-

1.9

0.2

-

1.5

    Other Payables

2.4

3.4

3.2

4.4

1.8

    Other Current Liabilities

0.1

0.1

0.2

0.0

0.1

Other Current liabilities, Total

3.0

7.2

4.7

5.5

4.2

Total Current Liabilities

13.4

29.6

36.0

22.6

17.9

 

 

 

 

 

 

    Long Term Debt

1.0

0.1

1.5

9.3

11.9

Total Long Term Debt

1.0

0.1

1.5

9.3

11.9

Total Debt

7.1

11.1

20.6

15.3

18.1

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

-

0.7

-

-

-

Deferred Income Tax

-

0.7

-

-

-

Minority Interest

-0.4

0.0

0.2

-

-

    Pension Benefits - Underfunded

0.3

0.3

0.3

0.4

0.3

Other Liabilities, Total

0.3

0.3

0.3

0.4

0.3

Total Liabilities

14.4

30.8

38.0

32.3

30.2

 

 

 

 

 

 

    Common Stock

7.2

6.6

5.8

5.5

4.5

Common Stock

7.2

6.6

5.8

5.5

4.5

Additional Paid-In Capital

18.5

17.1

14.5

13.7

10.7

Retained Earnings (Accumulated Deficit)

31.0

32.8

25.8

17.3

20.7

Treasury Stock - Common

-3.2

-

-

-

-

Unrealized Gain (Loss)

0.0

0.0

0.0

-0.1

-0.1

    Translation Adjustment

0.3

0.2

0.1

0.2

0.2

    Other Equity

-0.1

-0.1

-0.1

-0.1

0.0

    Other Comprehensive Income

0.0

-

0.0

-

-

Other Equity, Total

0.2

0.0

0.0

0.0

0.2

Total Equity

53.7

56.6

46.2

36.4

36.1

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

68.1

87.3

84.2

68.7

66.2

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

14.0

14.8

12.6

12.3

11.0

Total Common Shares Outstanding

14.0

14.8

12.6

12.3

11.0

Treasury Shares - Common Stock Primary Issue

0.8

0.0

0.0

0.0

0.0

Employees

98

101

98

105

124

Number of Common Shareholders

-

-

3,820

4,758

2,649

Deferred Revenue - Current

0.5

1.9

1.1

1.0

0.9

Total Long Term Debt, Supplemental

-

1.5

-

5.0

1.3

Long Term Debt Maturing within 1 Year

-

1.4

-

1.7

0.4

Long Term Debt Maturing in Year 2

-

0.1

-

1.7

0.4

Long Term Debt Maturing in Year 3

-

0.0

-

1.5

0.4

Long Term Debt Maturing in Year 4

-

-

-

-

0.2

Long Term Debt Maturing in 2-3 Years

-

0.1

-

3.3

0.7

Long Term Debt Maturing in 4-5 Years

-

-

-

-

0.2

Long Term Debt Matur. in Year 6 & Beyond

-

0.0

-

0.0

0.0

Total Operating Leases, Supplemental

0.1

-

-

-

0.0

Operating Lease Payments Due in Year 1

0.1

-

-

-

0.0

Operating Lease Payments Due in Year 2

0.1

-

-

-

-

Operating Lease Payments Due in Year 3

0.0

-

-

-

-

Operating Lease Pymts. Due in 2-3 Years

0.1

-

-

-

-

Oper. Lse. Pymts. Due in Year 6 & Beyond

0.0

-

-

-

0.0

 

 

Annual Cash Flows

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal 
31-Dec-2012

Updated Normal 
31-Dec-2011

Restated Normal 
31-Dec-2011

Reclassified Normal 
31-Dec-2010

Updated Normal 
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income/Starting Line

-2.8

7.5

3.6

-3.8

8.1

    Depreciation

0.5

0.8

1.0

1.0

1.4

Depreciation/Depletion

0.5

0.8

1.0

1.0

1.4

    Amortization of Intangibles

0.7

0.8

0.7

0.6

1.1

Amortization

0.7

0.8

0.7

0.6

1.1

Deferred Taxes

-

1.0

0.0

0.1

-0.1

    Unusual Items

1.6

1.1

-0.2

1.9

4.8

    Equity in Net Earnings (Loss)

-

-

-

0.5

0.1

    Other Non-Cash Items

0.1

4.3

2.4

1.1

3.3

Non-Cash Items

1.7

5.4

2.2

3.5

8.1

    Accounts Receivable

7.4

-5.8

0.8

-2.2

1.6

    Inventories

1.3

3.7

-2.0

0.6

-4.4

    Prepaid Expenses

0.0

0.0

0.1

0.0

-0.1

    Accounts Payable

-8.2

-0.1

-4.0

5.9

-0.2

    Accrued Expenses

-0.4

-0.4

-0.1

0.0

-0.7

    Taxes Payable

-1.9

1.7

0.2

-1.5

1.6

    Other Liabilities

-2.0

0.3

-1.0

0.0

0.0

    Other Assets & Liabilities, Net

0.0

0.0

-

-

-

    Other Operating Cash Flow

-0.2

-3.9

-1.1

-

-

Changes in Working Capital

-3.9

-4.4

-7.0

2.8

-2.2

Cash from Operating Activities

-3.8

11.1

0.5

4.2

16.4

 

 

 

 

 

 

    Purchase of Fixed Assets

-0.1

-0.3

-0.3

-6.6

-1.0

    Purchase/Acquisition of Intangibles

-1.0

-0.5

-1.8

-1.2

-1.6

Capital Expenditures

-1.1

-0.9

-2.1

-7.8

-2.6

    Sale of Fixed Assets

0.1

0.0

4.3

-

0.3

    Sale/Maturity of Investment

-

-

1.3

0.5

0.3

    Investment, Net

0.2

0.8

0.2

-

-

    Purchase of Investments

-1.4

-0.2

-0.3

-3.3

-0.5

    Sale of Intangible Assets

0.2

-

-

-

-

    Other Investing Cash Flow

-1.0

0.3

0.4

1.0

-2.9

Other Investing Cash Flow Items, Total

-1.9

1.0

6.0

-1.7

-2.8

Cash from Investing Activities

-3.0

0.1

3.9

-9.6

-5.4

 

 

 

 

 

 

    Other Financing Cash Flow

-0.1

0.1

0.0

-

0.8

Financing Cash Flow Items

-0.1

0.1

0.0

-

0.8

    Cash Dividends Paid - Common

-1.7

-

-

-0.9

-

Total Cash Dividends Paid

-1.7

-

-

-0.9

-

        Repurchase/Retirement of Common

-3.0

-

-

-

-0.8

    Common Stock, Net

-3.0

-

-

-

-0.8

    Warrants Converted

-

3.8

0.6

1.6

-

Issuance (Retirement) of Stock, Net

-3.0

3.8

0.6

1.6

-0.8

        Short Term Debt Issued

-

-

-

3.9

13.4

        Short Term Debt Reduction

-

-

-

-5.2

-9.6

    Short Term Debt, Net

-2.6

-1.8

1.1

-1.3

3.8

        Long Term Debt Issued

1.1

-

-

3.6

12.6

        Long Term Debt Reduction

-1.6

-7.8

-2.6

-6.0

-7.6

    Long Term Debt, Net

-0.5

-7.8

-2.6

-2.3

4.9

Issuance (Retirement) of Debt, Net

-3.1

-9.6

-1.5

-3.6

8.7

Cash from Financing Activities

-8.0

-5.7

-0.9

-2.8

8.7

 

 

 

 

 

 

Net Change in Cash

-14.8

5.4

3.5

-8.1

19.6

 

 

 

 

 

 

Net Cash - Beginning Balance

22.6

17.5

13.3

18.3

2.1

Net Cash - Ending Balance

7.8

23.0

16.8

10.2

21.7

Cash Interest Paid

0.3

1.0

1.0

-

-

Cash Taxes Paid

-

2.1

0.2

-

-

 

 

 ANNUAL INCOME STATEMENT

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal 
31-Dec-2012

Reclassified Normal 
31-Dec-2012

Restated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

PricewaterhouseCoopers LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Finished Goods Revenues

68.5

104.4

67.6

125.4

149.5

    Merchandise Sales

1.8

4.5

6.3

0.9

0.0

    Other Revenue

17.1

39.0

42.5

3.6

5.4

    Adj. for Revenues

0.0

0.0

0.0

-

-

Total Revenue

87.4

147.9

116.4

129.8

154.8

 

 

 

 

 

 

    Cost of Finished Goods Sold

50.9

77.7

55.8

105.0

118.5

    Cost of Merchandises Sold

3.0

4.4

5.6

0.9

0.0

    Cost of Other Goods Sold

15.2

33.3

33.7

3.8

4.5

    Adj. for Costs of Goods & Services Sold

0.0

-

0.0

-

-

    Salaries & Wages

3.2

3.3

3.2

2.0

3.0

    Retirement & Severance Benefits

0.2

0.1

0.4

0.3

0.2

    Stock-Based Compensation

-

-

-

0.0

0.1

    Employee Benefits

0.3

0.3

0.3

0.3

0.4

    Travel Expenses

-

-

-

0.4

0.7

    Communication Expense

-

-

-

0.0

0.1

    Utility Expenses

-

-

-

0.0

0.0

    Taxes & Dues

0.1

0.1

0.3

0.1

0.7

    Supply Expense

-

-

-

0.0

0.0

    Publication Expense

-

-

-

0.0

0.0

    Office Supplies Expense

-

-

-

0.0

0.0

    Rental Expense

0.1

0.1

0.1

0.0

0.1

    Building Maintenance Expense

-

-

-

0.1

0.1

    Repair & Maintenance Expense

-

-

-

0.0

0.0

    Vehicle Maintenance Expense

-

-

-

0.0

0.1

    Insurance Premiums

-

-

-

0.0

0.1

    Commissions

6.5

8.3

4.8

6.7

5.1

    Freight Expense

-

-

-

0.0

0.2

    Entertainment

-

-

-

0.1

0.1

    Marketing Expense

-

-

-

-

0.0

    Advertising Expenses

-

-

-

0.0

0.4

    R & D Expense

5.0

4.1

3.5

4.5

4.2

    Education & Training

-

-

-

0.0

0.0

    Other Exporting Related Expense

0.6

0.9

0.5

0.7

1.2

    Overseas Market Development Cost

0.2

0.1

0.2

0.4

0.5

    Overseas Branch Maintenance Expense

0.0

0.2

0.2

0.2

0.0

    Sample Expense

-

-

-

0.0

0.1

    After Sales Service Repair Expense

0.8

0.8

0.4

0.8

0.6

    Expense of Allow. for DA

0.3

0.3

0.6

0.4

-

    Event Expenses

-

-

-

0.0

0.0

    Depreciation

0.2

0.3

0.4

0.4

0.6

    Amort. of Intangibless

0.7

0.8

0.7

0.6

1.1

    Other Selling & Administrative Expense

0.9

1.3

1.5

-

0.0

    Adj. for Selling & Administrative Exp.

-

0.0

0.0

-

-

    Gain-Disposal of FA Avail. for Sale

-

-

-0.2

-

-

    G-Excess Withdrawal, FA Avail. for Sale

-

-

0.0

-

-

    Gain on Disposal of PPE

-

-

-1.1

-

-

    Government Subsidy Income

-

-

-0.1

-

-

    Reversal of Allow. for DA

-

-

-0.1

-

-

    Miscellaneous Income

-

-

-0.3

-

-

    Adj. for Other Operating Income

-

-

0.0

-

-

    Impmt Loss-FA Avail. for Sale

-

-

0.3

-

-

    Impmt Loss of Development Cost

-

-

0.9

-

-

    Loss on Disposal of PPE

-

-

0.0

-

-

    Other Allow. for DA

-

-

0.2

-

-

    Donations Paid

-

-

0.0

-

-

    Miscellaneous Loss

-

-

0.1

-

-

    Adj. for Other Operating Expense

-

-

0.0

-

-

Total Operating Expense

88.1

136.3

112.0

128.0

142.8

 

 

 

 

 

 

    Interest Income

0.1

0.3

0.1

0.3

0.2

    Gain on Currency Futures Transaction

-

0.1

0.2

0.6

-

    Gain on Foreign Currency Translation

0.5

0.5

0.3

0.1

0.7

    Gain on Foreign Currency Transaction

1.4

3.5

3.0

5.7

11.9

    Gain-Disposal of Sec. Available-Sale

-

-

-

0.0

0.0

    Gain on Disposal of PPE

0.0

0.0

-

-

0.0

    Government Subsidy Income

-

0.0

-

-

-

    Rec. of Allow. for DA

0.0

0.1

-

0.0

0.1

    Miscellaneous Income

0.1

0.3

-

0.1

0.8

    Adj for Other Non-Operating Income

0.0

-

-

-

-

    Interest Expense

-0.3

-1.0

-1.0

-1.2

-0.9

    Impmt Loss-Fincl Instrm Avail. for Sale

-0.1

-0.1

-

-1.2

-

    Imp. Loss on Sec. Held-to-Maturities

-0.2

-

-

-

-

    Loss-Reduction of Intangible Assets

-

-

-

-0.3

-1.9

    Impmt Loss on Development Cost

-0.6

-0.3

-

-

-

    Impmt Loss of Goodwill

-0.4

-0.4

-

-

-

    Loss on Foreign Currency Translation

-0.8

-0.4

-0.2

-0.4

-0.7

    Loss on Foreign Currency Transaction

-2.8

-3.2

-2.9

-7.5

-7.1

    Loss on Currency Futures Transaction

-0.1

-

-

-

-

    Loss-Derivatives Transaction

-

-

-

-

-2.5

    Loss on Disposal of PPE

-0.1

0.0

-

-

-0.2

    Loss on Disposal of Intangibless

-0.1

-

-

-

-

    Loss-Redemption of Debentures

-

-

-

-0.1

-2.4

    Donations

-

-

-

-

0.0

    Bad Debt Expense

-

-

-

-

0.0

    Other Allow. for DA

0.0

0.0

-

-

-

    Miscellaneous Loss

-0.1

-0.3

-

-0.1

0.0

    Adj for Other Non-Operating Expense

0.0

0.0

-

-

-

    Losses on Valuation of Equity Method Sec

-

-

-

-0.5

-0.1

Net Income Before Taxes

-4.0

10.7

3.9

-2.8

9.7

 

 

 

 

 

 

Prov. for Income Taxes

-1.2

3.1

0.3

1.0

1.6

Net Income After Taxes

-2.8

7.5

3.6

-3.8

8.1

 

 

 

 

 

 

    Minority Interest

0.3

0.2

0.4

-

-

Net Income Before Extra. Items

-2.4

7.7

4.0

-3.8

8.1

Net Income

-2.4

7.7

4.0

-3.8

8.1

 

 

 

 

 

 

Income Available to Com Excl ExtraOrd

-2.4

7.7

4.0

-3.8

8.1

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

-2.4

7.7

4.0

-3.8

8.1

 

 

 

 

 

 

Basic Weighted Average Shares

14.3

13.5

12.6

11.3

11.4

Basic EPS Excluding ExtraOrdinary Items

-0.17

0.57

0.32

-0.34

0.71

Basic EPS Including ExtraOrdinary Items

-0.17

0.57

0.32

-0.34

0.71

Dilution Adjustment

0.0

0.0

0.0

0.0

0.0

Diluted Net Income

-2.4

7.7

4.0

-3.8

8.1

Diluted Weighted Average Share

14.3

13.5

13.3

11.3

12.4

Diluted EPS Excluding ExtraOrd Items

-0.17

0.57

0.30

-0.34

0.65

Diluted EPS Including ExtraOrd Items

-0.17

0.57

0.30

-0.34

0.65

DPS-Ordinary Shares

0.04

0.12

0.00

0.00

0.09

Gross Dividends - Common Stock

0.6

1.7

0.0

0.0

1.0

Normalized Income Before Taxes

-3.8

10.7

3.8

-2.8

9.9

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

-1.1

3.1

0.3

1.0

1.7

Normalized Income After Taxes

-2.7

7.5

3.6

-3.8

8.2

 

 

 

 

 

 

Normalized Inc. Avail to Com.

-2.4

7.7

4.0

-3.8

8.2

 

 

 

 

 

 

Basic Normalized EPS

-0.16

0.57

0.32

-0.34

0.72

Diluted Normalized EPS

-0.16

0.57

0.30

-0.34

0.67

Interest Expense, Supplemental

0.3

1.0

1.0

1.2

0.9

Depreciation, Supplemental

0.5

0.8

1.0

1.0

1.4

Amort of Intangibles, Suppleme

0.7

0.8

0.7

0.6

1.1

Rental Expense, Supplemental

0.1

0.1

0.1

0.0

0.1

Advertising Expense, Supplemental

-

-

-

0.0

0.4

R&D Expense, Supplemental

5.0

4.1

3.6

4.6

4.2

 

 

Annual Balance Sheet

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal 
31-Dec-2012

Reclassified Normal 
31-Dec-2012

Restated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate

1066.400024

1152

1134.9

1164.475

1259.55

Auditor

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

PricewaterhouseCoopers LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Cash Equivalents

8.2

22.1

17.1

11.2

18.9

    Current Fincl Instrm

0.1

0.2

1.0

0.6

1.1

    Secs. Avail.-for-Sale

-

-

-

-

0.0

    Current Derivative Assets

-

0.6

0.4

0.3

0.4

    Trade Receivable, Gross

23.0

29.4

24.1

16.5

11.7

    Allow. for DA for Trade Receivable

-1.8

-1.6

-1.3

-0.6

-0.2

    Adj. for Trade Receivable

0.0

0.0

0.0

-

-

    Account Receivable

0.6

0.4

0.3

0.3

0.6

    Allow. for DA for Other Receivable

-

-

-

0.0

-

    Current Loans

0.6

0.0

0.1

0.1

0.4

    Accrued Income

0.0

0.0

0.0

0.0

0.0

    Receivable of Corporate Tax Refund

0.0

0.0

0.1

0.3

0.1

    Advance Payments

0.3

0.2

0.5

0.1

1.5

    Prepaid Expense

0.0

0.1

0.0

0.0

0.1

    Other Current Assets

-

-

0.1

-

-

    Deferred Income Taxes-Debit, Current

-

-

-

0.5

0.8

    Merchandises

0.1

0.1

0.3

-

-

    Finished Goods

1.4

2.3

2.4

0.5

2.7

    Allow. for Loss-Valt of Finished Goods

-

-

-

0.0

-

    Semi-finished Goods

0.0

0.2

0.1

0.1

0.2

    Raw Materials

7.2

7.0

10.5

10.6

8.0

    Allow. for Loss on Valt of Raw Materials

-

-

-

-1.0

-

    Goods in Transit

-

-

0.1

-

0.5

    Adj. for Inventories

0.0

0.0

0.0

-

-

Total Current Assets

39.7

61.1

55.9

39.8

47.0

 

 

 

 

 

 

    Securities Available for Sale

2.5

1.1

1.2

1.6

2.5

    Securities Held to Maturities

-

0.2

0.2

0.2

0.2

    Non-Current Fincl Instrm

0.3

0.2

-

0.4

0.2

    Long-term Loans

-

-

-

0.1

-

    LT Loan to Employees

-

-

-

0.0

0.3

    Inv. Securities Under Equity Method

-

-

-

4.0

1.1

    Guarantee Deposits, Non-Current Assets

0.1

0.1

0.3

0.3

0.3

    Non-Current Deferred Income Taxes Assets

0.5

-

0.2

1.1

0.7

    Lands

15.9

14.7

15.0

10.0

4.2

    Buildings

5.6

5.2

5.3

7.3

5.4

    Buildings-Depreciation

-1.0

-0.8

-0.7

-0.8

-0.6

    Tools

-

-

-

4.5

4.2

    Depr-Tool/Equip

-

-

-

-3.3

-2.4

    Transport Equip.

-

-

-

0.2

0.1

    Deprec-Transport

-

-

-

0.0

0.0

    Machinery

-

-

-

0.0

0.0

    Depreciation for Machinery

-

-

-

0.0

0.0

    Misc. Fixtures

-

-

-

2.3

2.4

    Deprec-Fixtures

-

-

-

-2.0

-1.8

    Install Equip

-

-

-

0.2

0.1

    Deprec-Install E

-

-

-

-0.1

0.0

    Other Property Plant & Equipment

8.5

8.2

8.1

-

-

    Other Tangibles-Depreciation

-7.9

-7.3

-6.8

-

-

    Construction in Progress

-

0.0

0.0

0.0

-

    Adj. for Property, Plant & Equipment

-

0.0

0.0

-

-

    Software, Intangible

-

-

-

-

0.0

    Industrial Property Rights

0.0

0.2

0.3

0.0

0.1

    Development Costs

2.6

2.9

3.4

2.9

2.4

    Membership Rights

0.3

0.2

0.2

-

-

    Other Intangibless

0.0

0.0

0.0

-

-

    Goodwill

0.9

1.2

1.6

-

-

    Adj. for Intangibless

0.0

0.0

0.0

-

-

Total Assets

68.1

87.3

84.2

68.7

66.2

 

 

 

 

 

 

    Current Trade Payable

4.1

10.7

11.3

10.8

6.5

    Other Payable

2.4

3.4

3.2

4.4

1.8

    Income Taxes Payable

-

1.9

0.2

-

1.5

    Accrued Expense

0.3

0.7

1.0

0.2

1.0

    Advance from Customers, Current

0.5

1.9

1.1

1.0

0.9

    Withheld

0.1

0.1

0.2

0.0

0.1

    Security Deposit-Lease

-

-

-

0.0

-

    Current Borrowings

6.1

9.6

11.5

4.3

5.2

    Convertible Bonds, Current

-

-

-

-

0.5

    Current Portion of Long-term Debt

-

1.4

1.4

1.7

0.4

    Current Portion of Bonds

-

-

6.2

-

-

Total Current Liabilities

13.4

29.6

36.0

22.6

17.9

 

 

 

 

 

 

    Bonds With Stock Warrants, LT Liability

1.0

-

-

-

5.5

    Bonds

-

-

-

6.0

5.6

    Non-Current Borrowings

-

0.1

1.5

3.3

0.9

Total Long Term Debt

1.0

0.1

1.5

9.3

11.9

 

 

 

 

 

 

    Deferred Income Taxes, LT Liabilities

-

0.7

-

-

-

    Retirement & Severance Benefits, Non-Cur

0.3

0.3

0.3

1.4

0.3

    Deposit-Retirement Insurance

-

-

-

-1.0

-

    Minority Interests

-0.4

0.0

0.2

-

-

Total Liabilities

14.4

30.8

38.0

32.3

30.2

 

 

 

 

 

 

    Capital Stock

7.2

6.6

5.8

5.5

4.5

    Additional Paid in Capital

17.4

16.1

13.6

12.8

10.1

    Consideration for Conversion Rights

0.4

0.4

0.4

0.4

0.4

    Consideration for Stock Warrants

0.1

0.0

0.0

0.0

-0.1

    Other Capital Surplus

0.1

0.0

0.0

-

-

    Gains on Disposal of Treasury Stock

0.0

0.0

0.0

0.0

0.0

    Adj. for Capital Surplus

0.0

-

-

-

-

    Legal Reserve

1.1

0.9

0.9

0.8

0.7

    Resv for R&D

4.5

-

-

-

-

    Retained Earning Carried Forward

25.4

32.0

25.0

16.4

20.0

    Adj. for Retained Earnings

0.0

0.0

0.0

-

-

    Treasury Stock

-3.2

-

-

-

-

    Gain on Valuation of Securities Availabl

0.0

0.0

-

-

-

    Losses on Valuation of Securities Availa

-

-

0.0

0.0

0.0

    Negative Capital Change-Equity Method

-

-

-

-0.1

-0.1

    Overseas Business Translation Credit

0.3

0.2

0.1

0.2

0.2

    Adj.-Accum. Other Comprehensive Income

0.0

-

0.0

-

-

    Stock Options

0.5

0.5

0.5

0.4

0.3

    Stock Warrants

-0.2

-0.2

-0.2

-

-

    Other Capital Adjustment

-

-

-

-0.2

-

    Adj. for Capital Adj.

0.0

-

0.0

-

-

Total Equity

53.7

56.6

46.2

36.4

36.1

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

68.1

87.3

84.2

68.7

66.2

 

 

 

 

 

 

    S/O-Ordinary Shares

14.0

14.8

12.6

12.3

11.0

Total Common Shares Outstanding

14.0

14.8

12.6

12.3

11.0

T/S-Ordinary Shares

0.8

0.0

0.0

0.0

0.0

Deferred Revenue, Current

0.5

1.9

1.1

1.0

0.9

Full-Time Employees

98

101

98

105

124

Number of Common Shareholders

-

-

3,820

4,758

2,649

Long Term Debt Maturing within 1 Year

-

1.4

-

1.7

0.4

Long Term Debt Maturing within 2 Years

-

0.1

-

1.7

0.4

Long Term Debt Maturing within 3 Years

-

0.0

-

1.5

0.4

Long Term Debt Maturing within 4 Years

-

-

-

-

0.2

Total Long Term Debt, Supplemental

-

1.5

-

5.0

1.3

Operating Lease Maturing within 1 Year

0.1

-

-

-

0.0

Operating Lease Payments Due in Year 2

0.1

-

-

-

-

Operating Lease Payments Due in Year 3

0.0

-

-

-

-

Total Operating Leases, Supplemental

0.1

-

-

-

0.0

 

 

Annual Cash Flows

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal 
31-Dec-2012

Updated Normal 
31-Dec-2011

Restated Normal 
31-Dec-2011

Reclassified Normal 
31-Dec-2010

Updated Normal 
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

Jungjin Accounting Corp.

PricewaterhouseCoopers LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income or Loss

-2.8

7.5

3.6

-3.8

8.1

    Depreciation

0.5

0.8

1.0

1.0

1.4

    Amort. of Intangibless

0.7

0.8

0.7

0.6

1.1

    Stock-Based Compensation

0.0

0.0

0.0

0.1

0.1

    Amortization-Discount on Bond Issuance

-

-

-

0.0

0.0

    Amortization of Subscription Warrants

-

-

-

0.1

0.0

    Amort-Convertible Rights Adjustment

-

-

-

0.0

0.2

    Payment for Retirement Allow., ONCI

0.4

0.4

0.8

0.7

0.5

    Expense of Allow. for DA

0.3

0.3

0.6

0.4

0.0

    Expenses of Allow. for Other DA

0.0

0.0

0.2

-

-

    Rec. of Allow. for DA

0.0

-0.1

-0.1

0.0

-0.1

    Finance Income

-0.6

-0.8

-0.7

-

-

    Finance Expense

1.2

1.3

1.2

-

-

    Corporate Taxes Expense

-1.2

3.1

0.3

-

-

    Gains on Foreign Currency Translation

-

-

-

-0.1

-0.7

    Gain on Derivatives Transaction

-

-

-

-0.6

-

    Losses on Foreign Currency Translation

-

-

-

0.4

0.5

    Loss-Derivatives Transaction

-

-

-

-

2.5

    Miscellaneous Loss

0.0

-

0.0

-

-

    Loss on Redemption of Bonds

-

-

-

0.1

2.4

    L-Inventory Scraping

-

-

-

0.0

0.1

    Loss on Disposal of Property, Plant and

0.1

0.0

0.0

-

0.2

    Loss on Sale of Intangibles

0.1

-

-

-

-

    Losses on Valt of Inventories

0.2

0.3

0.1

0.2

0.1

    Impmt Loss on Goodwill

0.4

0.4

-

-

-

    Impmt Loss on Development Cost

0.6

0.3

0.9

-

-

    Loss-Reduction of Intangible Assets

-

-

-

0.3

1.9

    Impmt Loss-Fincl Asset Avail.-for-Sale

0.1

0.1

0.3

1.2

-

    Impmt Loss on Held to Maturity Sec.

0.2

-

-

-

-

    L-Under Equity Method Valuation

-

-

-

0.5

0.1

    Gain on Disposal of Property, Plant and

0.0

0.0

-1.1

-

0.0

    Gain on Disposal of Financial Assets Ava

-

-

-0.2

0.0

0.0

    Gain on Excess Withdrawal of Financial A

-

-

0.0

-

-

    Rec. of Losses on Valt of Inventories

-

0.0

-0.1

0.0

-

    Trade Receivables

7.6

-5.8

0.6

-2.2

1.2

    Accrued Income

0.0

0.0

0.0

0.0

0.0

    Account Receivables

-0.2

-0.1

-0.2

0.3

0.3

    Receivable of Corporate Tax Refunded

0.0

-

0.3

-0.3

-

    Decrease in Other Non-Current Assets

-

-

0.0

-

-

    Inventory

1.3

3.4

-1.6

-0.8

-3.1

    Advance Payments

0.0

0.2

-0.3

1.4

-1.3

    Prepaid Expenses

0.0

0.0

0.0

0.0

0.0

    Prepaid Income Taxes

-

0.0

0.1

-

-0.1

    Deferred Income Taxes Assets

-

0.2

0.0

0.1

-0.1

    Trade Payable

-7.0

-0.5

-2.5

3.6

-0.1

    Other Payable

-1.2

0.3

-1.5

2.3

-0.1

    Guarantee Deposit

-

-

-

0.0

-

    Rental Guarantee Depsits

-

-

0.0

-

-

    Accrued Expenses

-0.4

-0.4

-0.1

0.0

-0.7

    Income Taxes Payable

-1.9

1.7

0.2

-1.5

1.6

    Advance from Customers

-1.4

0.8

0.0

0.7

0.5

    Withholdings

0.0

-0.1

0.1

0.0

0.0

    Payment for Retirement Allow.

-0.4

-0.1

-1.4

-0.5

-0.3

    Plan Assets

-0.2

-0.2

0.4

-0.2

-0.2

    Deferred Income Taxes Liabilities

-

0.8

-

-

-

    Adjustment for Added Expense/Deducted In

0.0

0.0

0.0

-

-

    Adj. for Operating Assets & Liabilities

0.0

0.0

-

-

-

    Cash-Interest Received

0.1

0.3

0.1

-

-

    Cash-Interest Paid

-0.3

-1.0

-1.0

-

-

    Cash-Tax Paid

-

-3.1

-0.2

-

-

Cash From Operating Activities

-3.8

11.1

0.5

4.2

16.4

 

 

 

 

 

 

    Current Finacial Instruments, Net

0.2

0.8

0.2

-

-

    Derivative Assets, Net

0.5

-0.1

0.1

-

-

    Disposal-Securities Available-for-Sale

-

-

0.1

0.0

0.0

    Dec-ST Finl Asset

-

-

-

0.5

0.3

    Disposal of Non-Current Financial Instru

-

-

0.2

-

-

    Disposal of Investments in Joint Venture

-

-

1.0

-

-

    Derivative Assets

-

-

-

0.6

-

    Disposal in Current Loans

0.0

0.2

0.3

0.3

0.1

    Decrease in Non-Current Loans

-

-

0.1

-

-

    Dec-Employ ST Ln

-

-

-

0.3

0.1

    Decrease in Guarantee Deposit

-

0.2

0.1

0.0

0.3

    Disposal-Machienry

-

-

-

-

0.2

    Disp-Tools/Equipmt

-

-

-

-

0.0

    Disposal of Property, Plant and Equipmen

0.1

0.0

4.3

-

-

    Purchase of Non-Current Fincl Instrm

-0.1

-0.2

-0.3

-0.1

-0.1

    Purchase of Equity Method Sec.

-

-

-

-3.0

-

    Purchase of Sec. Available-for-Sale

-1.4

-

-

-0.2

-0.3

    Increase-Securities Held to Maturities

-

-

-

-

-0.2

    Increase in Current Loans

-1.5

0.0

-

-

-0.4

    Increase in Non-Current Loans

-

-

-0.1

-0.2

0.0

    Increase in Guarantee Deposit

0.0

0.0

-0.2

-0.1

-0.2

    Increase-Derevatives

-

-

-

-

-2.8

    Purchase of Land

-

-

-

-5.0

0.0

    Purchase of Buildings

-

-

-

-1.3

-0.1

    Purchase of Office Equipment

-

-

-

0.0

-0.1

    Purchase of Vehicles

-

-

-

-0.2

0.0

    Acq-Tools/Equipmt

-

-

-

0.0

-0.8

    Purchase of Construction in Progress

-

-

-

0.0

-

    Purchase of Tangibles

-0.1

-0.3

-0.3

-

-

    Purchase of Industrial Property Rights

-

-

-

0.0

0.0

    Purchase of Development Costs

-

-

-

-1.2

-1.6

    Purchase of Intangibless

-1.0

-0.5

-1.8

-

-

    Sale of Intangibles

0.2

-

-

-

-

Cash From Investing Activities

-3.0

0.1

3.9

-9.6

-5.4

 

 

 

 

 

 

    Current Borrowings, Net

-2.6

-1.8

1.1

-

-

    Inc-ST Borrowings

-

-

-

3.9

13.4

    Increase-Bond

-

-

-

-

6.4

    Increase-LT Borrowings

-

-

-

3.6

-

    Increase in Bonds with Warrant

1.1

-

-

-

6.2

    Decrease in Bonds

-

-6.3

-

-

-

    Decs in Current Portion of LT Liability

-1.5

-1.5

-1.8

-0.4

-0.4

    Decrease-Bond with Warrants

-

-

-

-5.6

-0.4

    Decrease-Convertible Bond

-

-

-

-

-6.8

    Decrease in Non-Current Borrowings

-0.1

-

-0.7

-

-

    Decrease-ST Borrowings

-

-

-

-5.2

-9.6

    Dividend Paid

-1.7

-

-

-0.9

-

    Increase in Treasury Stocks

-3.0

-

-

-

-0.8

    Exercise of Stock Warrants

-

3.8

0.6

1.6

-

    Bonds Issuance Cost

0.0

-

-

-

-

    Cash Inflow from Other Financing Act.

-

-

0.1

-

-

    Cash Flow-Foreign Currency Translation

0.0

0.1

-0.1

-

0.8

Cash From Financing Activities

-8.0

-5.7

-0.9

-2.8

8.7

 

 

 

 

 

 

Incs or Decs in Cash & Cash Equivalents

-14.8

5.4

3.5

-8.1

19.6

 

 

 

 

 

 

Net Cash Beginning Balance

22.6

17.5

13.3

18.3

2.1

Net Cash Ending Balance

7.8

23.0

16.8

10.2

21.7

    Cash Interest Paid

0.3

1.0

1.0

-

-

    Cash Taxes Paid

-

2.1

0.2

-

-

 

 

 Financial Health

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

Key Indicators USD (mil)

 

Quarter
Ending
30-Jun-2013

Quarter
Ending
Yr Ago

Annual
Year End
31-Dec-2012

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue1 (?)

16.3

-32.57%

87.4

-39.86%

-15.91%

-1.01%

Research & Development1 (?)

0.7

-21.00%

5.0

24.61%

-1.10%

10.02%

Operating Income1 (?)

0.7

-60.33%

-0.6

-

-

-

Income Available to Common Excl Extraord Items1(?)

0.7

-33.62%

-2.4

-

-

-

Basic EPS Excl Extraord Items1 (?)

0.05

-34.85%

-0.17

-

-

-

Capital Expenditures2 (?)

6.1

1,348.11%

1.1

28.38%

-50.22%

-15.38%

Cash from Operating Activities2 (?)

2.5

-

-3.8

-

-

-

Free Cash Flow (?)

-3.4

-

-5.1

-

-

-

Total Assets3 (?)

67.7

-

68.1

-27.83%

-3.17%

3.09%

Total Liabilities3 (?)

20.2

-

14.4

-56.56%

-25.76%

-9.04%

Total Long Term Debt3 (?)

3.5

-

1.0

794.64%

-53.06%

-6.91%

Employees3 (?)

-

-

98

-2.97%

-2.27%

-3.32%

Total Common Shares Outstanding3 (?)

14.0

-

14.0

-5.43%

4.32%

4.04%

1-ExchangeRate: KRW to USD Average for Period

1122.022568

 

1126.848795

 

 

 

2-ExchangeRate: KRW to USD Average for Period

1103.219597

 

1126.848795

 

 

 

3-ExchangeRate: KRW to USD Period End Date

1147.202838

 

1066.400024

 

 

 

Key Ratios

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Profitability

Gross Margin (?)

1.78%

-5.95%

-28.71%

13.12%

17.67%

Operating Margin (?)

-0.72%

7.81%

3.78%

1.44%

7.78%

Pretax Margin (?)

-4.54%

7.21%

3.32%

-2.16%

6.27%

Net Profit Margin (?)

-2.80%

5.21%

3.43%

-2.92%

5.21%

Financial Strength

Current Ratio (?)

2.96

2.07

1.55

1.76

2.63

Long Term Debt/Equity (?)

0.02

0.00

0.03

0.26

0.33

Total Debt/Equity (?)

0.13

0.20

0.45

0.42

0.50

Management Effectiveness

Return on Assets (?)

-3.62%

8.51%

4.75%

-5.93%

12.18%

Return on Equity (?)

-4.51%

14.51%

9.75%

-11.04%

21.37%

Efficiency

Receivables Turnover (?)

3.48

5.55

5.85

9.31

9.49

Inventory Turnover (?)

7.44

9.39

7.88

9.93

10.05

Asset Turnover (?)

1.14

1.67

1.53

2.03

2.34

Market Valuation USD (mil)

Enterprise Value2 (?)

40.3

.

Enterprise Value/Revenue (TTM) (?)

0.40

Price/Book (MRQ) (?)

0.72

.

Enterprise Value/EBITDA (TTM) (?)

58.92

Market Cap as of 11-Oct-20131 (?)

38.6

.

 

 

1-ExchangeRate: KRW to USD on 11-Oct-2013

1071.663472

 

 

 

2-ExchangeRate: KRW to USD on 30-Jun-2013

1147.202838

 

 

 

 

 

Annual Ratios

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 



 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Financial Strength

Current Ratio (?)

2.96

2.07

1.55

1.76

2.63

Quick/Acid Test Ratio (?)

2.29

1.71

1.15

1.27

1.84

Working Capital1 (?)

26.3

31.5

19.9

17.2

29.1

Long Term Debt/Equity (?)

0.02

0.00

0.03

0.26

0.33

Total Debt/Equity (?)

0.13

0.20

0.45

0.42

0.50

Long Term Debt/Total Capital (?)

0.02

0.00

0.02

0.18

0.22

Total Debt/Total Capital (?)

0.12

0.16

0.31

0.30

0.33

Payout Ratio (?)

-25.97%

20.57%

0.00%

0.00%

12.84%

Effective Tax Rate (?)

-

29.30%

6.66%

-

16.96%

Total Capital1 (?)

60.8

67.7

66.8

51.7

54.2

 

 

 

 

 

 

Efficiency

Asset Turnover (?)

1.14

1.67

1.53

2.03

2.34

Inventory Turnover (?)

7.44

9.39

7.88

9.93

10.05

Days In Inventory (?)

49.04

38.89

46.31

36.75

36.32

Receivables Turnover (?)

3.48

5.55

5.85

9.31

9.49

Days Receivables Outstanding (?)

104.76

65.74

62.37

39.21

38.47

Revenue/Employee2 (?)

942,851

1,408,104

1,209,850

1,355,514

1,091,066

Operating Income/Employee2 (?)

-6,793

109,929

45,672

19,471

84,907

EBITDA/Employee2 (?)

6,441

124,919

64,005

37,061

102,403

 

 

 

 

 

 

Profitability

Gross Margin (?)

1.78%

-5.95%

-28.71%

13.12%

17.67%

Operating Margin (?)

-0.72%

7.81%

3.78%

1.44%

7.78%

EBITDA Margin (?)

0.68%

8.87%

5.29%

2.73%

9.39%

EBIT Margin (?)

-0.72%

7.81%

3.78%

1.44%

7.78%

Pretax Margin (?)

-4.54%

7.21%

3.32%

-2.16%

6.27%

Net Profit Margin (?)

-2.80%

5.21%

3.43%

-2.92%

5.21%

R&D Expense/Revenue (?)

5.68%

2.74%

3.03%

3.49%

2.69%

COGS/Revenue (?)

79.05%

78.01%

81.65%

84.50%

79.47%

SG&A Expense/Revenue (?)

14.96%

10.70%

10.96%

9.77%

8.95%

 

 

 

 

 

 

Management Effectiveness

Return on Assets (?)

-3.62%

8.51%

4.75%

-5.93%

12.18%

Return on Equity (?)

-4.51%

14.51%

9.75%

-11.04%

21.37%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share2 (?)

-0.37

0.67

-0.13

-0.32

1.10

Operating Cash Flow/Share 2 (?)

-0.29

0.72

0.04

0.38

1.31

1-ExchangeRate: KRW to USD Period End Date

1066.400024

1152

1134.9

1164.475

1259.55

2-ExchangeRate: KRW to USD Average for Period

1066.400024

1152

1134.9

1164.475

1259.55

 

Current Market Multiples

Market Cap/Equity (MRQ) (?)

0.76

Enterprise Value/Equity (MRQ) (?)

0.85

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.99.94

Euro

1

Rs.84.88

 

 

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%)