MIRA INFORM REPORT

 

 

Report Date :

09.08.2014

 

IDENTIFICATION DETAILS

 

Name :

KOLON PLASTICS, INC.

 

 

Registered Office :

64, Gongdan 3-gil, Gimcheon-si, Gyeongsangbuk-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

15.03.1996

 

 

Com. Reg. No.:

510-81-05710

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Resin and Other Plastic Materials

 

 

No. of Employees

210

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

 

Source : CIA


Basic Information

 

Basic

 

Company Name

KOLON PLASTICS, INC.

(Trade Name : KPL)

(Korean Company Name : “코오롱플라스틱()”)

Registered Address

64, Gongdan 3-gil, Gimcheon-si, Gyeongsangbuk-do, Korea

(Old Address System : 1018, Eungmyeong-dong, Kimcheon-si, Gyeongsangbuk-do, Korea)

Building

 

Zip Code

740-180

Tel

+82-54-420-8351

Fax

+82-54-420-8360

E-mail

webmaster@kolonplastics.com

Website

www.kolonplastics.com

Trading Address

10th Fl., Kolon Tower Annex, 13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea

(Old Address System : 10th Fl., Kolon Tower Annex, 1-22, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea)

Tel

+82-2-3677-3602~9 +82-2-3677-3581~93

Fax

+82-2-3677-3558 +82-2-3677-3556

Other Address

9, Oedap 6-gil, Sangju-si, Gyeongsangbuk-do, Korea

Tel

+82-54-533-4023

Fax

+82-54-533-4028

Other Address

46, Jeondae-ro 16beon-gil, Pogok-eup, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea

Tel

+82-31-329-0639

Fax

+82-31-329-0674

Type

Export/Import

Industry

Manufacture of Synthetic Resin and Other Plastic Materials

  Main Business

Polyoxymethylene Resin

  Sub Business

 

Established (mm/dd/yyyy)

03/15/1996

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyacetal(13111030)

Sell

Nylon(13111010)

 

CEO’s

 

Name

Chang Hee-Koo

Address

-

Date of Birth

02/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

20,300,000,000

Employees

210

Formation

Listed Company(Korea Stock Exchange : 138490) as of 06/15/2011

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank-Kimchen Branch

Korea Development Bank

Corporate Registered No.

171311-0003504

Business Registered No.

510-81-05710

Permit & Licenses

03/03/2004 ISO 14001

 

Int’l Trade No.: 13052780

Shareholder Position

Name

Shares

%

KOLON INDUSTRIES INC.(135311-0013606)

20,300,000

70.00

OTHERS

8,700,000

30.00

TOTAL

29,000,000

100.00

Company History

03/15/1996 Incorporated as KTP CO., LTD.

04/26/1998 Registered as a Foreign Direct Investment Corporation

03/09/2005 Increased capital to 63,000,000,000 KRW from 58,500,000,000 KRW

06/02/2008 Changed company name to the present name from taking over Plastic Business Division from KOLON CORPORATION(110111-0030528)

06/02/2008 Decreased capital to 20,300,000,000 KRW from 63,000,000,000 KRW

12/29/2010 Increased the authorized shares to 100,000,000 shares from 16,000,000 Shares

02/01/2011 Spin off the par value to 1,000 KRW from 5,000 KRW

09/30/2012 Acquired KSI CO., LTD.(171411-0010789)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Chang Hee-Koo

Korean

1959.02.

Seoul National University, Korea

Executive Director

Mr.

Kim Jong-Moon

Korean

1961.03.

Sungkyunkwan University, Korea

Executive Director

Mr.

Seo Jin-Cheol

Korean

1965.08.

Chunnam National University, Korea

Outside Director

Mr.

Kim Seung-Il

Korean

1952.12.

Seoul National University, Korea

Auditor

Mr.

Kang Shin-Mok

Korean

1956.09.

Korea University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

59,404,397,291

213,284,048,498

-3,253,689,851

(*)2013

222,784,416,084

220,176,092,738

-2,898,848,378

(*)2012

230,187,953,140

208,979,642,378

8,913,599,015

(*)2011

209,195,000,717

195,514,531,412

11,381,354,303

2010

166,087,528,006

81,876,704,778

9,024,110,733

2009

123,445,642,197

67,536,331,706

7,929,596,876

2008

84,612,938,289

58,929,867,374

2,166,455,940

2007

45,161,375,044

39,442,059,595

4,015,335,581

2006

41,170,508,946

39,679,827,625

-250,981,038

2005

38,879,348,808

45,078,135,067

(-)418,099,100

2004

40,417,001,663

51,525,745,406

544,696,736

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

29,000,000,000

Total Issues Shares

29,000,000

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

213,284,048,498

220,176,092,738

208,979,642,378

Current Assets

91,069,683,956

97,118,608,030

84,128,575,090

Cash & Cash Equivalents

9,245,135,152

6,646,767,648

6,644,048,525

Trade Receivables & Other Receivables

29,258,907,444

29,539,800,418

25,063,448,151

Inventories

51,396,065,405

59,503,729,010

51,432,762,665

Other Current Assets

1,011,107,985

1,271,202,414

988,315,749

Deferred Income Tax Credit

158,467,970

157,108,540

 

Non-Current Assets

122,214,364,542

123,057,484,708

124,851,067,288

Long-Term Trade Receivables & Other Receivables

1,340,441,356

1,182,061,984

1,099,571,103

Marketable Financial Instruments

1,194,314,979

1,194,314,979

1,194,314,979

Non-Current Financial Instruments

2,000,000

2,000,000

2,000,000

Investment_Related Companies

1,071,265,325

1,071,265,325

1,071,265,325

Tangibles

115,271,995,293

116,302,745,989

118,013,279,457

Investment_Real Estates

 

 

162,513,939

Intangibles

3,334,347,589

3,305,096,431

3,308,122,485

Total Liabilities

127,561,429,802

131,049,464,242

115,111,828,410

Current Liabilities

92,483,183,724

96,037,892,020

107,537,346,383

Trade Payables & Other Payables

30,154,959,068

32,773,005,630

33,159,195,103

Short-Term Borrowings

61,837,616,214

63,128,339,021

73,646,163,002

Other Current Liabilities

490,608,442

136,547,369

242,054,244

Deferred Income Tax Credit

 

 

489,934,034

Non-Current Liabilities

35,078,246,078

35,011,572,222

7,574,482,027

Long-Term Trade Payables & Other Payables

 

434,660,616

528,000,000

Long-Term Borrowings

32,000,000,000

32,000,000,000

5,000,000,000

Confirmed Salaries

3,078,246,078

2,576,911,606

1,943,978,174

Deferred Income Tax Credit

 

 

102,503,853

Capital Stock

29,000,000,000

29,000,000,000

29,000,000,000

Capital Surplus

27,775,136,689

27,775,136,689

27,775,136,689

Profit Surplus

28,947,482,007

32,351,491,807

37,092,677,279

Total Equity

85,722,618,696

89,126,628,496

93,867,813,968

Liab. & Shareholder’s Equity

213,284,048,498

220,176,092,738

208,979,642,378

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

59,404,397,291

222,784,416,084

230,187,953,140

Cost of Sold Goods

56,403,556,137

203,457,908,302

204,659,372,074

Gross Profit

3,000,841,154

19,326,507,782

25,528,581,066

Selling & Admin. Expenses

5,312,294,659

17,817,982,750

15,219,064,099

Operating Income

-2,311,453,505

1,508,525,032

10,309,516,967

Other Income

636,922,474

2,364,776,490

1,991,630,936

Other Expenses

651,704,353

1,906,251,323

1,485,833,575

Finance Income

9,806,995

30,403,101

28,471,194

Finance Expenses

937,261,462

3,214,454,374

3,361,305,733

Profits from Acquisition

 

 

2,329,988,589

Income Before Taxes

-3,253,689,851

-1,217,001,074

9,812,468,378

Income Taxes Expenses

 

1,681,847,304

898,869,363

Net Income

-3,253,689,851

-2,898,848,378

8,913,599,015

 

Cash Flows

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

5,504,815,200

-5,745,051,367

-8,520,326,944

Net Income

-3,253,689,851

-2,898,848,378

8,913,599,015

Adjustment

4,348,273,997

16,347,272,595

12,324,056,684

Changes in Asset/ & Liability

4,411,590,484

-16,872,741,034

-28,138,345,173

Income Taxes

-1,359,430

-2,320,734,550

-1,619,637,470

Cash Flows from Investing

-668,631,377

-6,097,303,111

-15,240,818,856

Cash Flows from Financing

-2,208,878,284

11,844,973,126

25,593,440,072

Increase/Decrease in Cash

2,627,305,539

2,618,648

1,832,294,272

Cash at the Beginning of Year

6,646,767,648

6,644,048,525

4,860,915,716

Cash at the End of Year

-28,938,035

100,475

-49,161,463

 


 

Products, Technologies, Services Description

 

Main Products & Services

POM Copolymer Resin, PA6(Nylon6) Resin, PA66(Nylon66) Resin, PBT Resin PEL Resin, PET Copolymer Resin

 

Brand Name : KOCETAL®, KOPA®, SPESIN®, KOPEL®, KOPET® , SPELLOY®, KOLEFIN®, NOPLA®, ViTRET®

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

KOLON INDUSTRIES INC.(110111-0030528)

Customers

 

Competitors

DONGSUNG CHEMICAL CO., LTD.

472, SINPYEONG 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-200-4500  FAX:+82-51-204-5636

 

KYUNG WON NEW MATERIALS INC.

329-1, BOCHE-RI, MIYANG-MYEON, ANSEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-677-7411~5  FAX:+82-31-677-7410

 

JINDO CHEMICAL CO., LTD.

1MA-210, SIHWA INDUSTRIAL COMPLEX, 1352, JEONGWANG-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-9933  FAX:+82-31-499-9937

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

KOLON PHARMACEUTICAL CO., LTD.(110111-0256259)

KOLON CORPORATION(110111-0030528)

KTP INDUSTRIES INC.(171311-0003504)

KOLON GLOTECH INC. (110111-0524838)

KOLON FASHION CORPORATION(110111-2127292)

NEOVIEWKOLON CO., LTD (134211-0040660)

KF&T INDUSTRIES INC.(230111-0091824)

KOLON PLASTICS INC.(171311-0003504)

KOLON LIFE SCIENCE CO., LTD.(110111-1948277)

CELLVIC DEVELOPMENT CORPORATION(131111-0031292)

CRYOTECH CO., LTD.(191211-0010226)

KOLON FASHION MATERIAL INC.(135311-0011139)

KOLON EVERAY CO., LTD.(176011-0054417)

FNC KOLON CORP.(110111-0003973)

CAMBRIDGE MEMBERS CO., LTD.(134111-0000517)

KOLONWELLCARE CO., LTD.(110111-2930299)

SWEET MEAL CO., LTD.(110111-2925604)

SURPLUS GLOBAL, INC.(110111-1921140)

KOLON MOTORS CO., LTD.(131111-0209708)

KOLON ENGINEERING & CONSTRUCTION CO., LTD.(110111-0036502)

KOLON CONSTRUCTION & CONSULTING CO., LTD.(170111-0230756)

I PACIFIC PARTNERS INC.(110111-1902786)

KOLON I' NETWORKS CORP.(110111-0712350)

DEOK PYEONG LAND CO., LTD.(134411-0024149)

KOLON ENVIRONMENTAL SERVICE CO., LTD.(135311-0005893)

GREEN NARAE INC(161511-0078133)

KESCO LANDSCAPE CO., LTD.(135311-0009572)

KOLON BENIT CO., LTD.(135311-0003920)

MAUNA OCEAN DEVELOPMENT CO., LTD.(171211-0045128)

EFMC (ENVIRONMENTAL FACILITIES MANAGEMENT CORPORATION 110111-1458739 )

ENVY SYSTEM INC.(110111-1028798)

GREEN HWASUN INC.(160111-0199459)

GREEN GYEONGSAN INC.(160111-0203622)

GREEN SUNCHANG INC.(160111-0134942)

ON ORGANICNANO ELECTROIC SYSEMS INC.(200111-0255228)

KOREA EPLATFORM CO., LTD.(110111-2008921)

Affiliates-Overseas

PT. KOLON INA

KOLON USA INC.

TISSUEGENE INC.

QINGDAO KOLON GLOTECH INC.

KOLON NANJING CO., LTD.

ZHANGJIAGANG KOLON GLOTECH INC.

PT. KOLON LANGGENG

BEIJING KOLON GLOTECH, INC.

KOLON GP CHEMICAL (SUZHOU) CO., LTD.

KOLON INT'L(H.K) LTD.

KOLON IMPERIAL GRAPHICS PLC.

IMPERIAL GRAPHICS GROUP SERVICES LTD.

IMPERIAL GRAPHICS PRODUCTS LTD.

KOLON(U.K) LTD.

BEIJING MI JO DESIGN CO., LTD.

KOLON GLOTECH U.S.A. CORP.

FNC KOLON SHANGHAI CORP.

FNC KOLON USA CORP.

 

KOLON PLASTICS (BEIJING), INC.

(90.00% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

KOLON CORPORATION(110111-0030528)

KOLON INDUSTRIES INC.(135311-0013606)

Major Shareholders

KOLON INDUSTRIES INC.(135311-0013606)

Cooperative Enterprise

-Insured Company

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

SAMSUNG LIFE INSURANCE CO., LTD.(110111-0005953)

 

-Technical support from

TORAY INDUSTRIES, INC.(JAPAN)

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

--

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.55

UK Pound

1

Rs.103.50

Euro

1

Rs.82.41

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

DPT

 

               

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.