MIRA INFORM REPORT

 

 

Report Date :

06.04.2014

 

IDENTIFICATION DETAILS

 

Name :

DAE RYUNG CORPORATION

 

 

Registered Office :

2194, Jinui-ro, Chilgok-myeon, Uiryeong-gun, Gyeongsangnam-do, Korea, Zip Code 636-832

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.12.2004

 

 

Com. Reg. No.:

615-81-40837

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

·         Manufacturer of Rolled, Drawn and Folded Products of Copper

·         Manufacturer and supplier for the Copper alloy tube & pipe as well as all kinds of finned tube including copper high finned tube.

 

Subject product range includes:-

 

Copper and Copper alloy products

·         Copper tube & pipe(C1220)

·         Brass tube & pipe(C2600, C2700, C44300, C68700)

·         Cu-Ni tube & pipe(C70600, C71500)

·         Copper & Copper alloy finned tube(High & Low)

·         Round & Hex bar and Bus bar

 

 

Fin Tube

·         Low Fin Tube

·         Cooper High Fin Tube

·         High Frequency Welded Fin Tube

·         Middle Fin Tube

·         Spiral & Corrugated Fin Tube

·         Inner Grooved Tube

·         Floral Tube

 

Aluminum Finned Tube

·         For Air Cooled Heat Exchanger, Air Cooled Condenser, Air Heater in field of Oil Refinery, Petrochemical Industry, Offshore and Power plants

 

 

No. of Employees

81

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP.

 

Source : CIA

 

 

 


Basic

 

Company Name

DAE RYUNG CORPORATION

(Korean Company Name : “()대륭”)

Registered Address

2194, Jinui-ro, Chilgok-myeon, Uiryeong-gun, Gyeongsangnam-do, Korea

(Old Address System : 5, Dosan-ri, Chilgok-myeon, Uiryeong-gun, Gyeongsangnam-do, Korea)

Zip Code

636-832

Tel

+82-55-582-9410

Fax

+82-55-582-9413

E-mail

sales@daeryungco.com

Website

www.daeryungco.com

Trading Address

Rm.708, Kolon Digital Tower, 25, Seongsuil-ro 4-gil, Seongdong-gu, Seoul, Korea

(Old Address System : Rm.708, Kolon Digital Tower, 308-4, 2-ga, Seongsu-dong, Seongdong-gu, Seoul, Korea)

Tel

+82-2-461-7768  +82-2-2115-8989

Fax

+82-2-461-7703  +82-2-2115-8988

Type

Export/Import

Industry

Manufacturer of Rolled, Drawn and Folded Products of Copper

  Main Business

Copper Tube, Finned Tube, Alloy Tube

Established (mm/dd/yyyy)

12/21/2004

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Copper tubing(31231302)

Sell

Copper pipe(40142110)

 

 

CEO’s

 

Name

Shin Suk-Kyun

Address

Suite 102-1407, 708-1, Seongsu-dong 1-ga, Seongdong-gu, Seoul, Korea

Date of Birth

06/23/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,400,000,000

Employees

81

Formation

Co., Ltd by shares

Bank Details

Korea Exchange Bank-Seongsu Station Branch

Industrial Bank of Korea

Kookmin Bank

Corporate Registered No.

195511-0076096

Business Registered No.

615-81-40837

Permit & Licenses

12/2006 ISO 9001

 

Int’l Trade No.: 11870298

Shareholder Position

Name

Shares

%

SHIN SUK-KYUN

84,000

60.00

SHIN BYUNG-SUB

28,000

20.00

JEON IM-JO

28,000

20.00

TOTAL

140,000

100.00

Company History

12/21/2004 Incorporated as the present name

09/05/2007 Increased capital to 600,000,000 KRW from 400,000,000 KRW

03/30/2007 Moved to 1475-10, Yunoe-ri, Beopsu-myeon, Haman-gun, Gyeongsangnam-do, Korea from 784-1, Gangju-ri, Beopsu-myeon, Haman-gun, Gyeongsangnam-do, Korea

05/28/2008 Increased the authorized shares to 240,000,000 KRW from 80,000 shares

05/30/2008 Increased capital to 800,000,000 KRW from 600,000,000 KRW

10/28/2008 Increased capital to 1,000,000,000 KRW from 800,000,000 KRW

11/2008 Awarded US$ 20 Million Export Top Prize

07/09/2009 Increased capital to 1,400,000,000 KRW from 1,000,000,000 KRW

06/21/2010 Moved to the present HQ address from 1475-10, Yunoe-ri, Beopsu-myeon, Haman-gun, Gyeongsangnam-do, Korea

08/30/2010 Moved to the present trading address from 2FL., Academy-Tower, 277-17, 2-ga, Seongsu-dong, Seongdong-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Shin Suk-Kyun

Male

Korean

12/21/2004

Director

Mr.

Jeon Im-Jo

Male

Korean

10/27/2008

Director

Mr.

Shin Byung-Seob

Male

Korean

02/01/2010

Auditor

Mr.

Jung Hyun-Cheol

Male

Korean

02/01/2010

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

 

 

 

2012

19,967,757,950

19,287,522,804

10,581,818

2011

16,820,430,345

16,998,788,219

646,633,891

2010

12,711,892,227

14,092,300,644

-534,596,189

2009

21,823,668,810

12,668,972,425

329,940,031

2008

37,652,000,000

5,839,000,000

935,000,000

2007

21,518,000,000

2,814,000,000

179,000,000

2006

9,700,000,000

1,678,000,000

53,000,000

2005

10,391,000,000

1,645,000,000

18,000,000

 

Financial Description

 

Authorized Capital(KRW)

2,400,000,000

Paid-Up Capital(KRW)

1,400,000,000

Total Issued Shares

140,000

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

19,287,522,804

16,998,788,219

14,092,300,644

Current Assets

9,762,546,075

8,074,834,391

4,546,645,509

-Quick Assets

6,078,375,172

3,334,204,720

2,595,081,317

-Inventories

3,684,170,903

4,740,629,671

1,951,564,192

Fixed Assets

9,524,976,729

8,923,953,828

9,545,655,135

-Investment

15,300,000

-

15,000,000

-Tangibles

9,376,069,729

8,811,646,828

9,314,377,135

-Intangibles

133,607,000

112,307,000

216,278,000

Total Liabilities

16,296,466,546

13,972,951,939

11,713,098,255

Current Liabilities

11,809,952,092

9,196,517,989

5,162,774,914

Fixed Liabilities

4,486,514,454

4,776,433,950

6,550,323,341

Capital Stock

1,400,000,000

1,400,000,000

1,400,000,000

Capital Surplus

 

 

 

Profit Surplus

1,591,056,258

1,625,836,280

979,202,389

Capital Adjustment

 

 

 

Total Equity

2,991,056,258

3,025,836,280

2,379,202,389

Liab. & Shareholder’s Equity

19,287,522,804

16,998,788,219

14,092,300,644

 

Current Liabilities

11,809,952,092

9,196,517,989

5,162,774,914

Trade Payables

3,912,816,556

2,901,045,702

835,572,621

Account Payables

84,209,850

227,544,011

119,294,171

Withholdings

32,334,310

15,557,480

18,186,030

Advance Receipts

624,293,660

411,273,811

310,696,399

Short-Term Borrowings

6,206,579,975

4,303,062,894

3,481,894,699

Accrued Expenses

185,817,741

66,958,754

81,130,994

Accrued Income Tax

-

18,985,337

-

Current Portion of Long-Term Debts

763,900,000

752,090,000

316,000,000

Current Portion of Debentures

-

500,000,000

-

Fixed Liabilities

4,486,514,454

4,776,433,950

6,550,323,341

Debentures

450,000,000

-

500,000,000

Long-Term Borrowings

3,703,110,000

4,471,910,000

5,824,000,000

Provision for Severance & Retirement

432,037,151

315,640,550

226,323,341

 

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

19,967,757,950

16,820,430,345

12,711,892,227

Cost of Sold Goods

17,351,113,209

14,160,953,919

10,780,948,960

Gross Profit

2,616,644,741

2,659,476,426

1,930,943,267

Selling & Admin. Expenses

2,030,825,199

2,041,512,906

1,865,910,193

Operating Income

585,819,542

617,963,520

65,033,074

Non-Operating Income

184,293,113

908,099,579

242,721,201

Non-Operating Expenses

758,304,602

855,262,881

842,350,464

Income Before Taxes

11,808,053

670,800,218

-534,596,189

Income Taxes Expenses

1,226,235

24,166,327

-

Net Income

10,581,818

646,633,891

-534,596,189

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

93,903,039

-512,909,516

1,618,669,881

-Net Income

10,581,818

646,633,891

-534,596,189

-Exp. without Cash Outflow

1,125,647,335

995,604,867

849,140,838

-Revenue without Cash Inflows

-15,520,700

-687,567,259

-1,787,714

-Changes in Asset/ & Liability

-1,026,805,414

-1,467,581,015

1,305,912,946

Cash Flows from Investing

-1,249,793,079

396,041,757

-4,805,140,317

-Cash Inflow from Investing

469,212,661

1,973,302,818

575,343,315

-Cash Outflows for Investing

-1,719,005,740

-1,577,261,061

-5,380,483,632

Cash Flows from Financing

1,096,527,081

-94,831,805

3,238,094,699

-Cash Inflows from Financing

6,335,252,217

3,229,811,786

6,980,172,072

-Cash Outflows from Financing

-5,238,725,136

-3,324,643,591

-3,742,077,373

Increase/Decrease in Cash

-59,362,959

-211,699,564

51,624,263

Cash at the Beginning of Year

261,092,892

472,792,456

421,168,193

Cash at the End of Year

201,729,933

261,092,892

472,792,456

 

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturer and supplier for the Copper alloy tube & pipe and all kinds of finned tube including copper high finned tube.

 

Copper and Copper alloy products

-Copper tube & pipe(C1220)

-Brass tube & pipe(C2600, C2700, C44300, C68700)

-Cu-Ni tube & pipe(C70600, C71500)

-Copper & Copper alloy finned tube(High & Low)

-Round & Hex bar and Bus bar

 

Fin Tube

-Low Fin Tube

-Cooper High Fin Tube

-High Frequency Welded Fin Tube

-Middle Fin Tube

-Spiral & Corrugated Fin Tube

-Inner Grooved Tube

-Floral Tube

 

Aluminum Finned Tube

-For Air Cooled Heat Exchanger, Air Cooled Condenser, Air Heater in field of Oil Refinery, Petrochemical Industry, Offshore and Power plants

 

 

Trade Partners & Competitors

 

Customers

SC ENGINEERING CO., LTD.(110111-0271497)

DOOSAN MECATEC CO., LTD.(110111-0126022)

Competitors

TAEWOO METAL CO., LTD.

5DA-201-11, SIHWA INDUSTRIAL COMPLEX, 664-10, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-498-8145~8  FAX:+82-31-498-8149

 

SAMPO INDUSTRIAL CO., LTD.

2ND FL., SAMPO BLDG., 40-2, OGEUM-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-573-5151  FAX:+82-2-571-5156

 

KUM WHAN INC.

RA-1728, JUNGANG CIRCULATION COMPLEX, 1258, GURO 2-DONG, GURO-GU, SEOUL, KOREA

TEL:+82-2-2617-3073  FAX:+82-2-2684-3071

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAERYUNG C&A CO., LTD.

293, SAENGNIM-RI, SAENGNIM-MYEON, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-329-3700 FAX:+82-55-338-1256

Cooperative Enterprise

-Insured Company

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in China, Japan, Singapore, USA, Middle East and Europe.

 

 

Court Action

 

No.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

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