MIRA INFORM REPORT

 

 

Report Date :

23.04.2014

 

IDENTIFICATION DETAILS

 

Name :

EHWHA GLOTECH CO., LTD.

 

 

Registered Office :

705, Haean-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.11.1985

 

 

Com. Reg. No.:

134-81-05461

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Industrial Machinery for Washing, Dyeing, Finishing and Processing Industrial Machinery of Fibers

 

 

No. of Employees :

114

 

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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 Information

 

Basic

 

Company Name

EHWHA GLOTECH CO., LTD.

Registered Address

705, Haean-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

Building

Rm. 407, Gyeonggi Techno Park

Zip Code

426-901

Tel

+82-31-491-4191

Fax

+82-31-491-4194

E-mail

ehwha@ehwhaglotech.com;foxone@ehwhaglotech.com;

uk0203@ehwhaglotech.com;thjtwlove@nate.com

Website

www.ehwhaglotech.com

Trading Address

Rm. 407, Gyeonggi Techno Park, 705, Haean-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

(Old Address System : Rm. 407, Gyeonggi Techno Park, 1271-11, Sa 3-dong, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea)

Tel

+82-31-491-4191

Fax

+82-31-491-4194

Other Address-Factory

408-41, Hanjin-ri, Songak-myeon, Dangjin-gun, Chungcheongnam-do, Korea

Tel

+82-41-358-4490

Fax

+82-41-358-4496

Type

Export/Import

Industry

Manufacturer of Industrial Machinery for Washing, Dyeing, Finishing and Processing Industrial Machinery of Fibers

  Main Business

Tenter (Drying & Heat, Setting Tenter)

Established (mm/dd/yyyy)

11/25/1985

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Textile processing machinery and accessories(23121500)

Sell

Textile working machinery and equipment and accessories(23121600)

Sell

Air filters(40161505)

Sell

Switches and controls and relays and accessories(39121500)

Buy

Pipe(40142100)

Buy

Deburring equipment(23171605)

Buy

Iron plate(30102203)

Buy

Drivetrain systems(25173800)

Buy

Inverters(32121705)

 

CEO’s

 

Name

Chung Byung-Sik

Address

Suite 102-702, 58, Gamgol 2-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

Date of Birth

03/14/1939

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

1,460,000,000

Employees

114

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Nonghyup Bank

Corporate Registered No.

130111-0009159

Business Registered No.

134-81-05461

Permit & Licenses

10/2008 ISO 9001

 

Int’l Trade No.: 500964

Shareholder Position

Name

Shares

%

CHUNG BYUNG-SIK

69,000

47.26

CHUNG JOONG-HAN

24,000

16.44

OTHERS(5)

53,000

36.30

TOTAL

146,000

100.00

Company History

11/25/1985 Incorporated as EHWHA MACHINERY MFG. CO., LTD.

11/2001 Awarded US$10 Million Export Top Prize

11/2003 Awarded US$20 Million Export Top Prize

11/2007 Awarded US$30 million Export Top Prize

12/06/2007 Changed company name to the present name

12/25/2009 Increased capital to 1,460,000,000 KRW from 1,000,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Chung Byung-Sik

Male

Korean

12/25/2009

Director

M/S.

Kang Shin-Eok

Female

Korean

03/19/2013

Director

Mr.

Chung Joong-Han

Male

Korean

04/01/2004

Auditor

M/S.

Lee Young-Sun

Female

Korean

03/19/2013

Supervisor of HQ Office

Mr.

Kang Sung-Joo

Male

Korean

06/15/2009

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

48,695,742,103

23,140,236,836

486,635,167

2011

48,084,802,540

26,791,945,381

1,149,511,653

2010

51,075,420,426

24,632,165,498

1,127,612,487

2009

39,123,888,260

25,183,188,924

1,019,159,549

2008

24,485,887,211

20,149,537,070

-2,174,252,660

2007

31,009,755,480

19,846,007,280

6,057,656,944

2006

29,353,970,547

14,489,198,161

-6,312,784,018

2005

24,039,078,650

20,666,263,034

-650,710,033

2004

25,959,682,016

22,374,658,280

-477,356,937

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

1,460,000,000

Total Issues Shares

146,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

23,140,236,836

26,791,945,381

24,632,165,498

Current Assets

11,799,825,019

14,569,629,816

12,443,372,726

-Quick Assets

8,827,522,544

12,480,214,408

8,305,105,980

-Inventories

2,972,302,475

2,089,415,408

4,138,266,746

Fixed Assets

11,340,411,817

12,222,315,565

12,188,792,772

-Investment

99,624,000

472,552,000

351,212,000

-Tangibles

10,531,676,958

10,651,848,941

10,918,570,279

-Intangibles

501,652,414

803,874,179

547,451,566

-Others

207,458,445

294,040,445

371,558,927

Total Liabilities

13,221,293,160

17,305,734,868

16,295,466,638

Current Liabilities

10,981,613,406

14,605,832,548

12,281,021,384

Fixed Liabilities

2,239,679,754

2,699,902,320

4,014,445,254

Capital Stock

1,460,000,000

1,460,000,000

1,460,000,000

Capital Surplus

 

 

 

Profit Surplus

4,304,425,575

3,871,692,412

2,722,180,759

Capital Adjustment

4,154,518,101

4,154,518,101

4,154,518,101

Total Equity

9,918,943,676

9,486,210,513

8,336,698,860

Liab. & Shareholder’s Equity

23,140,236,836

26,791,945,381

24,632,165,498

 

Current Liabilities

10,981,613,406

14,605,832,548

12,281,021,384

Trade Payables

6,666,944,976

9,846,393,328

8,389,183,222

Short-Term Borrowings

1,400,000,000

800,000,000

800,000,000

Account Payables

1,338,021,530

1,776,879,403

1,268,446,656

Advance Receipts

487,794,424

1,135,076,328

1,049,129,701

Accrued Expenses

443,531,539

12,263,237

13,120,829

Accrued Income Taxes

10,123,680

-

-

Withholdings

19,597,257

19,630,252

12,220,976

Current Portion of Long-Term Debts

615,600,000

1,015,590,000

748,920,000

Fixed Liabilities

2,239,679,754

2,699,902,320

4,014,445,254

Long-Term Borrowings

2,123,400,000

2,439,000,000

3,754,590,000

Provision for Severance & Retirement

809,838,170

735,111,836

573,846,360

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

48,695,742,103

48,084,802,540

51,075,420,426

Cost of Sold Goods

38,830,697,130

39,028,539,737

40,308,196,387

Gross Profit

9,865,044,973

9,056,262,803

10,767,224,039

Selling & Admin. Expenses

8,417,937,010

7,888,187,568

9,263,519,614

Operating Income

1,447,107,963

1,168,075,235

1,503,704,425

Non-Operating Income

589,897,473

926,760,583

946,740,956

Non-Operating Expenses

1,538,881,869

945,324,165

1,322,832,894

Income Before Taxes

498,123,567

1,149,511,653

1,127,612,487

Income Taxes Expenses

11,488,400

-

-

Net Income

486,635,167

1,149,511,653

1,127,612,487

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-1,204,044,401

2,696,870,395

-1,561,862,737

-Net Income

486,635,167

1,149,511,653

1,127,612,487

-Exp. without Cash Outflow

1,651,446,374

1,099,391,999

1,455,831,564

-Revenue without Cash Inflows

-49,728,131

-192,209,597

-90,126,386

-Changes in Asset/ & Liability

-3,292,397,811

640,176,340

-4,055,180,402

Cash Flows from Investing

-98,204,964

-751,318,013

-846,222,758

-Cash Inflow from Investing

5,193,694,427

3,510,301,836

4,269,632,914

-Cash Outflows for Investing

-5,291,899,391

-4,261,619,849

-5,115,855,672

Cash Flows from Financing

-574,189,288

-550,961,721

-370,353,076

-Cash Inflows from Financing

17,899,721,281

20,805,149,369

19,394,542,072

-Cash Outflows from Financing

-18,473,910,569

-21,356,111,090

-19,764,895,148

Increase/Decrease in Cash

-1,876,438,653

1,394,590,661

-2,778,438,571

Cash at the Beginning of Year

2,257,902,102

863,311,441

3,641,750,012

Cash at the End of Year

381,463,449

2,257,902,102

863,311,441

 

 


Products, Technologies, Services Description

 

Main Products & Services

Padding mangles

Roller squeezers

Tentering and stentering machines

Tensionless and conveyor dryers

Drying chambers, ovens

Software systems for the knitting industry

 

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides vehicle leasing services to the subject company.

Competitors

SHINIL ENTERPRISE COMPANY

RM. 322, SK HURBGREEN OFFICETEL, 556, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-2273-0581~2  FAX:+82-2-2277-2387

 

CHUNG SONG MACHINERY IND. CO., LTD.

2NA-702, SIHWA INDUSTRIAL COMPLEX, 1259-1, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-431-8595  FAX:+82-31-431-8598

 

NPI LTD.

A-709, GEUMGANG PENTERIUM IT TOWER, 333-7, SANGDAEWON 1-DONG, JUNGWON-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-730-0922  FAX:+82-31-730-0923

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Subsidiary

SOHUNG EHWA MACHINERY INDUSTRIES CO., LTD.(CHINA : (100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

AIG INSURANCE CO., LTD.(110111-4725010)

 

 


Sales by Region

(Activity & Markets)

 

The Subject exports to Bangladesh, China, Egypt(Syria, Morocco), India and Turkey.

 

 

News Clipping

 

Not Available

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.76

 

 

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.