MIRAm INFORM REPORT

 

 

Report Date :

02.09.2013

 

IDENTIFICATION DETAILS

 

Name :

CHEMCROSS INTERNATIONAL INC.

 

 

Registered Office :

99, Supyo-dong, Jung-gu, Seoul, Korea, 7th Fl., Signature Towers East Annex, Zip Code 100-230

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.02.2009

 

 

Com. Reg. No.:

104-86-19203

 

 

Legal Form :

Co., Ltd., by Shares

 

 

Line of Business :

Wholesaler of the basic chemicals for industrial purpose, Online Marketplace

 

 

No. of Employees :

24

 

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

 

South Korea ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

Basic

 

Company Name

CHEMCROSS INTERNATIONAL INC.

(Korean Company Name: “()켐크로스인터내셔널”)

Registered Address

99, Supyo-dong, Jung-gu, Seoul, Korea

Building

7th Fl., Signature Towers East Annex

Zip Code

100-230

Tel

+82-2-6020-0700

Fax

+82-2-6020-0781

E-mail

info@chemcross.com;hosunglee@chemcross.com;recruit@chemcross.com

Website

www.chemcross.com

Trading Address

7th Fl., Signature Towers East Annex, 99, Supyo-dong, Jung-gu, Seoul, Korea

(New Address System : 100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea)

Tel

+82-2-22591299

Fax

+82-2-22591363

Type

Export

Industry

Wholesales of the basic chemicals for industrial purpose, Online Marketplace

  Main Business

Paints, Dyes and Related Chemicals, Fertilizer, Synthetic Rubber, Plastic Materials, Recycling Products, Chemicals

Established (mm/dd/yyyy)

02/10/2009

 

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

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

Sell

World wide web WWW site operation host services(81112105)

Sell

Basic Chemicals

Sell

Plastic Materials

Sell

Chemicals for Paints & Dyes

Sell

Chemicals for Fertilizer

 

 

CEO’s

 

Name

Lee Soo-Chul

Address

Suite 80-402, 201, Apgujeong-ro, Gangnam-gu, Seoul, Korea

Date of Birth

06/24/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

10,600,000,000

Employees

24

Formation

Co., Ltd., by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Citibank, Korea

Korea Exchange Bank

Corporate Registered No.

110111-4041242

Business Registered No.

104-86-19203

Permit & Licenses

Int’l Trade No.: 30653955

(*)Shareholder Position

Name

Shares

%

CHEMCROSS, INC.(USA)

2,120,000

100.00

TOTAL

2,120,000

100.00

Company History

02/10/2009 Incorporated as the present name after taking business from CHEMCROSS INC KOREA BRANCH(110181-0029542)

02/26/2009 Registered as a Foreign Direct Investment Corporation

07/20/2009 Increased the authorized shares to 4,000,000 Shares from 400,000 Shares

07/25/2009 Increased capital to 5,000,000,000 KRW from 500,000,000 KRW

08/01/2009 Acquired Business from CHEMCROSS(KOREA), INC.

11/25/2010 Increased capital to 5,500,000,000 KRW from 5,000,000,000 KRW

11/25/2010 Acquired SOLAR CROSS CO., LTD.

11/25/2010 Acquired Solar Cross Co., Ltd.(110111-3749194)

12/22/2011 Increased capital to 8,500,000,000 KRW from 5,500,000,000 KRW

05/12/2012 Moved to the present HQ address from 4FL., Yonsei Severance Bldg., 84-11, Namdaemunno 5(o)-ga, Jung-gu, Seoul 100-753 Korea

12/27/2012 Increased capital to 10,600,000,000 KRW from 8,500,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Soo-Chul

Male

Korean

03/23/2012

Director

Mr.

Hur Won-Joon

Male

Korean

12/24/2009

Director

Mr.

Fuji Ishoon

Male

Japanese

08/02/2010

Director

Mr.

Jung Bum-Shik

Male

Korean

03/31/2011

Director

Mr.

Ko Jung-Seok

Male

Korean

03/29/2013

Director

Mr.

Shim Il-Bo

Male

Korean

03/23/2012

Auditor

Mr.

Lee ha-Young

Male

Korean

03/29/2013

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

746,014,844,595

41,590,410,142

-974,901,049

2011

684,035,252,303

70,363,543,114

-2,684,862,232

2010

521,060,575,467

56,849,286,215

       247,428,073

2009

195,096,723,520

60,448,893,093

696,590,810

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

10,600,000,000

Total Issues Shares

2,120,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

41,590,410,142

70,363,543,114

56,849,286,215

Current Assets

39,302,958,416

68,499,508,839

55,605,876,121

-Quick Assets

35,092,240,913

  57,884,638,577

31,796,466,854

-Inventories

4,210,717,503

10,614,870,262

23,809,409,267

Fixed Assets

2,287,451,726

1,864,034,275

1,243,410,094

-Investment

497,176,023

478,358,734

534,731,087

-Tangibles

 

 

 

-Intangibles

1,790,275,703

1,385,675,541

708,679,007

Total Liabilities

34,565,180,202

64,431,711,125

50,437,595,994

Current Liabilities

34,223,515,285

58,373,839,469

38,828,929,603

Fixed Liabilities

341,664,917

6,057,871,656

11,608,666,391

Capital Stock

10,600,000,000

8,500,000,000

5,500,000,000

Capital Surplus

32,471,338

32,471,338

32,471,338

Profit Surplus

-3,498,144,398

-2,523,243,349

944,018,883

Capital Adjustment

-109,097,000

-77,396,000

-64,800,000

Total Equity

7,025,229,940

5,931,831,989

6,411,690,221

Liab. & Shareholder’s Equity

41,590,410,142

70,363,543,114

56,849,286,215

 

Current Liabilities

34,223,515,285

58,373,839,469

38,828,929,603

Short-Term Borrowings

1,113,944,000

12,846,500,774

4,566,666,600

Trade Payables

32,105,458,291

44,644,295,567

32,433,427,475

Advance Receipts

289,212,106

51,026,409

671,849,011

Withholdings

44,177,598

86,303,647

93,616,998

Account Payables

309,756,127

128,784,893

176,785,977

Accrued Expenses

360,967,163

616,928,179

886,583,542

Fixed Liabilities

341,664,917

6,057,871,656

11,608,666,391

Long-Term Borrowings

-

5,766,500,000

11,389,000,000

Provision for Severance & Retirement

349,878,470

318,628,460

258,654,180

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

746,014,844,595

684,035,252,303

521,060,575,467

Cost of Sold Goods

734,022,621,655

671,736,276,641

506,725,661,698

Gross Profit

11,992,222,940

12,298,975,662

14,334,913,769

Selling & Admin. Expenses

13,650,532,161

15,647,951,019

14,888,496,064

Operating Income

-1,658,309,221

-3,348,975,357

-553,582,295

Non-Operating Income

7,162,799,155

13,829,042,964

12,496,105,961

Non-Operating Expenses

6,733,938,322

13,864,692,022

11,585,682,672

Income Before Taxes

-1,229,448,388

-3,384,624,415

       356,840,994

Income Taxes Expenses

-254,547,339

-699,762,183

       109,412,921

Net Income

-974,901,049

-2,684,862,232

       247,428,073

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

2,001,736,443

9,714,863,268

-15,747,894,977

-Net Income

-974,901,049

-2,684,862,232

247,428,073

-Exp. without Cash Outflow

649,198,631

730,138,055

409,495,022

-Revenue without Cash Inflows

-363,567,967

-43,133,103

-290,007,256

-Changes in Asset/ & Liability

2,691,006,828

11,712,720,548

-16,114,810,816

Cash Flows from Investing

-311,652,927

-114,786,393

  3,061,755,762

-Cash Inflow from Investing

10,454,545

25,290,909

3,390,987,082

-Cash Outflows for Investing

-322,107,472

-140,077,302

-329,231,320

Cash Flows from Financing

-15,355,292,181

4,711,324,334

2,236,470,847

-Cash Inflows from Financing

2,068,299,000

11,225,324,334

 4,603,574,847

-Cash Outflows from Financing

-17,423,591,181

-6,514,000,000

-2,367,104,000

Increase/Decrease in Cash

-13,665,208,665

14,311,401,209

-10,059,450,247

Cash at the Beginning of Year

28,355,437,434

14,044,036,225

24,103,486,472

Cash at the End of Year

14,690,228,769

28,355,437,434

14,044,036,225

 

 

Products, Technologies, Services Description

 

Main Products & Services

Global Chemical B2B Company

 

ChemCross.com is share brokering & consulting division with the trading division.

The broking & consulting division is on-line broking services whereby buyers and sellers of benzene/toluene/xylene/para xylene/styrene monomer etc chemical products. In addition to exchange service, Chemcross offers asia-specific market information and consulting services.

 

The trading division is in business fiber intermediates, vinyls & plasticizers, poly olefins, styrenics, phenol & derivatives, methanol & solvents division.

 

 

Trade Partners & Competitors

 

Competitors

BIZ MRO CO., LTD.

4TH FL., IN-U BLDG., 109-1, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3702-0900  FAX:+82-2-3702-0901

 

CYBER DISTY CO., LTD.

A-501, WOOLIM LION`S VALLEY 1-CHA, 371-28, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-2026-5600  FAX:+82-2-2026-5629

 

ENTOB CORPORATION

RM. 701, ANAM TOWER, 702-10, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2007-0800  FAX:+82-2-2007-0888

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CHEMCROSS INC.

12012 WICKCHESTER LN., SUITE 325 HOUSTON, TX 77079 USA

Overseas Office

CHEMCROSS (SHANGHAI) TRADING INC.

13-16 RM, 24 FLOOR, BANK OF CHINA TOWER, 200 MID. YIN CHENG RD. PU DONG SHANGHAI P.R. CHINA.

TEL:+86-21-6887-2108 FAX:+86-21-6887-2123/6887-2006

 

CHEMCROSS HONGKONG LIMITED

ROOM 1808, 18/F, TOWER II, ADMIRALTY CENTRE, 18 HARCOURT ROAD, ADMIRALTY, HONG KONG

TEL:+852-2528-9899  FAX:+852-2804-1004

 

TOKYO

26-1-101, 2-CHOME, HAZAWA, NERIMA-KU, TOKYO 176-0003 JAPAN

TEL : 81-90-8726-3060 FAX : 81-3-3557-6779

E-MAIL : INFO-JAPAN@CHEMCROSS.COM

 

SINGAPORE

105 CECIL STREET #12-01 THE OCTAGON SINGAPORE 069536

TEL : 65-6223-2911 FAX : 65-6223-0695

E-MAIL : SINGAPORE@CHEMCROSS.COM

 

CHEMCROSS NETHERLANDS

RIJZENDEWEG 48 4634TZ WOENSDRECHT THE NETHERLANDS

TEL:+31-164-616058

Corporate Ownership

CHEMCROSS.COM, INC.

11999 KATY FREEWAY SUITE 625, HOUSTON, TX 77079

TEL:+1-281-596-0011 FAX:+1-281-596-0143

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to China.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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.