MIRA INFORM REPORT

 

 

Report Date :

23.08.2014

 

IDENTIFICATION DETAILS

 

Name :

TAIHAN FIBEROPTICS CO., LTD.

 

 

Registered Office :

49, Jangjagol-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea, 20B-4L Bonwol Industrial Complex, 425-833

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

09.02.1974

 

 

Com. Reg. No.:

123-81-03459

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Optical Lens and Elements.

 

 

No of Employees :

186

 

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

 

Company Name

TAIHAN FIBEROPTICS CO., LTD.

(Korean Company Name : “대한광통신(주)”)

Registered Address

49, Jangjagol-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Building

20B-4L Bonwol Industrial Complex

Zip Code

425-833

Tel

+82-31-489-5114

Fax

+82-31-489-5173

Website

www.tfo.co.kr

Trading Address

20B-4L Bonwol Industrial Complex, 49, Jangjagol-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

(Old Address System : 20B-4L Bonwol Industrial Complex, 603-4, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea)

Tel

+82-31-489-5113

Fax

+82-31-489-5173

Other Address-Anyang Branch

23FL., G Square, 1039, Beomgye-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

Tel

+82-31-489-5173

Fax

+82-31-491-1555

Other Address

194-15, Hoehyeon-dong 1-ga, Jung-gu, Seoul, Korea

Tel

+82-2-316-9247

Type

Export/Import

Industry

Manufacture of Optical Lens and Elements

  Main Business

Optical Fiber

  Sub Business

Research and Experimental Development On Medical Sciences and Pharmacy

Established (mm/dd/yyyy)

09/02/1974

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Glass fibers(11151512)

 

 

CEO’s

 

Name

Kim Young-Kwan

Date of Birth

07/07/1965

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

23,481,036,500

Employees

186

Formation

Listed Company (KOSDAQ : 010170) as of 11/07/1994

Foreign Direct Investment Corporation

A Company of TAIHAN ELECTRIC WIRE GROUP

Bank Details

Shinhan Bank-Anyang Branch

Corporate Registered No.

134111-0003545

Business Registered No.

123-81-03459

Permit & Licenses

04/2004 ISO 9001

11/2009 NET

 

Int’l Trade No.: 301314

Shareholder Position

Name

Shares

%

QCP PROJECT PRIVATE EQUITY FUND 6(110113-0017029)

18,074,678

38.49

SUL YOON-SEOK

1,902,932

4.05

YANG GUI-AE

2,037,336

4.34

SUL YOON-SUNG

664,944

1.42

OTHERS

24,282,183

51.71

TOTAL

46,962,073

100.00

Company History

09/02/1974 Incorporated as Taihan Factory Co., Ltd.

07/20/2000 Changed company name to OPTOMAGIC CO., LTD.

07/31/2007 Moved to the present HQ address

12/19/2011 Acquired Optic Business from TAIHAN ELECTRIC WIRE CO., LTD.(110111-0035835)

03/23/2012 Changed company name to the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kim Young-Kwan

Male

Korean

1965.07.07

Director

Mr.

Sohn Kwan-Ho

Male

Korean

1948.04.

Executive Director

Mr.

Kim Sung-Jin

Male

Korean

1961.10.

Outside Director

Mr.

Jung Keun-Mo

Male

Korean

1939.12.

Outside Director

Mr.

Yoo Seung-Ho

Male

Korean

1959.10.

Auditor

Mr.

You Tae-Kil

Male

Korean

1949.12.

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

22,308,293,635

172,169,445,732

-3,730,206,669

(*)2013

106,410,075,467

183,762,057,777

-33,882,532,071

(*)2012

101,728,662,281

212,142,160,577

-4,473,477,241

2011

66,721,071,208

189,292,271,015

-556,637,018

2010

58,904,322,845

189,292,271,015

-13,839,725,012

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

23,481,036,500

Total Issued Shares

46,962,073

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

172,169,445,732

183,762,057,777

212,142,160,577

Current Assets

46,577,310,336

52,597,087,879

60,313,023,977

Cash & Cash Equivalents

4,744,979,065

1,200,120,637

2,544,226,737

Trade Receivables

21,782,702,985

27,767,283,234

23,366,779,250

Other Receivables

2,432,879,442

5,433,739,225

12,406,914,535

Advance Payments

479,412,252

464,112,656

463,543,017

Prepaid Expenses

90,904,172

146,113,083

345,923,315

Non-Current Assets to be Sold

 

 

606,817,885

Held-to-Maturity Financial Assets

100,000,000

100,000,000

 

Inventories

16,946,432,420

17,485,719,044

20,578,819,238

Non-Current Assets

125,592,135,396

131,164,969,898

151,829,136,600

Other Receivables

2,096,476,670

2,563,420,064

601,376,900

Marketable Financial Instruments

25,295,361,086

28,715,361,086

44,940,000,000

Held-to-Maturity Financial Assets

 

 

100,000,000

Tangibles

95,925,599,109

97,597,991,765

103,846,983,407

Intangibles

241,239,719

241,301,219

240,132,719

Investment_Real Estates

2,033,458,812

2,046,895,764

2,100,643,574

Total Liabilities

76,873,390,625

82,068,196,001

101,119,181,795

Current Liabilities

50,953,049,606

56,535,820,931

74,907,554,413

Trade Payables

12,566,982,779

17,282,340,643

13,317,308,987

Other Current Financial Debts

30,962,205,573

29,478,145,090

45,658,543,409

Other Payables

6,542,910,181

7,427,849,878

7,727,241,755

Advance Receipts

139,952,676

358,551,273

833,327,938

Unearned Income

 

 

34,478,885

Other Current Financial Debts

 

1,064,266,184

6,135,563,870

Other Current Liabilities

 

691,849,079

1,020,719,331

Accrued Income Tax

740,998,397

232,818,784

180,370,238

Non-Current Liabilities

25,920,341,019

25,532,375,070

26,211,627,382

Other Non-Current Financial Debts

521,941,744

521,941,744

2,538,934,586

Non-Current Debentures

18,219,645,675

17,869,278,982

16,556,169,361

Finance Lease Debts

 

 

1,064,266,210

Provision for Severance & Retirement

1,932,064,677

1,894,465,421

1,322,203,659

Deferred Income Tax Credit

5,246,688,923

5,246,688,923

4,730,053,566

Capital Stock

23,481,036,500

23,481,036,500

16,981,036,500

Capital Surplus

76,043,242,014

77,907,604,951

68,500,195,951

Capital Adjustment

2,117,823,766

2,117,823,766

2,117,823,766

Others

-2,667,600,000

 

-8,594,246,569

Profit Surplus

-3,678,447,173

-1,812,603,441

32,018,169,134

Total Equity

95,296,055,107

101,693,861,776

111,022,978,782

Liab. & Shareholder’s Equity

172,169,445,732

183,762,057,777

212,142,160,577

 

 

Income Statement

 

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

22,308,293,635

106,410,075,467

101,728,662,281

Cost of Sold Goods

20,825,321,781

95,288,858,662

83,618,685,792

Gross Profit

1,482,971,854

11,121,216,805

18,109,976,489

Selling & Admin. Expenses

2,765,119,956

10,336,329,256

9,870,109,580

Operating Income

-1,282,148,102

784,887,549

8,239,866,909

Non-Operating Profits

-1,016,613,310

-35,878,448,902

-9,385,475,761

Other Income

1,175,125,780

2,912,469,395

2,046,412,020

Other Expenses

-1,274,355,575

-6,411,767,117

-2,819,291,136

Finance Income

1,053,185

103,290,677

1,086,052,822

Finance Expenses

-918,436,700

-32,482,441,857

-9,698,649,467

Income Before Taxes

-2,298,761,412

-35,093,561,353

-1,145,608,852

Income Taxes Expenses

1,431,445,257

-1,320,429,256

-433,011,754

Income from Continuous Business

-3,730,206,669

-33,773,132,097

-712,597,098

Income from Stopped Business

 

-109,399,974

-3,760,880,143

Net Income

-3,730,206,669

-33,882,532,071

-4,473,477,241

 

 

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

3,403,608,783

3,197,104,414

7,320,907,688

Net Income

-3,730,206,669

-33,882,532,071

-4,473,477,241

Adjustment

4,363,554,342

43,142,171,032

17,603,606,491

Changes in Asset/ & Liability

3,623,264,367

-2,634,545,168

-2,981,119,861

Interests Received

3,602,601

88,667,698

596,917,154

Interests Paid

-685,740,214

-2,983,891,404

-2,204,719,802

Income Taxes

-170,865,644

-532,765,673

-1,220,299,053

Cash Flows from Investing

499,847,227

3,840,492,185

-57,829,678,265

Cash Flows from Financing

-373,640,709

-8,391,897,826

28,546,912,740

Increase/Decrease in Cash

3,544,858,428

-1,344,106,100

-22,054,209,083

Cash at the Beginning of Year

1,200,120,637

2,544,226,737

24,598,435,820

Cash at the End of Year

4,744,979,065

1,200,120,637

2,544,226,737

 

 

Products, Technologies, Services Description

 

Main Products & Services

Optical Fiber

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

KOREA ELECTRIC POWER CORPORATION(114671-0001456)

SK TELECOM CO., LTD.(110111-0371346)

KT CORPORATION(110111-1468754)

Competitors

PDK

RM. 526, HANSIN S-MECA, 1359, GWANPYEONG-DONG, YUSEONG-GU, DAEJEON, KOREA

TEL:+82-42-862-6880  FAX:+82-42-862-6881

 

LS MECAPION CO., LTD.

8-4, HORIM-DONG, DALSEO-GU, DAEGU, KOREA

TEL:+82-53-593-0066  FAX:+82-53-591-8614

 

HEIDENHAIN KOREA LTD.

RM. 202, NAMSUNG PLAZA(ACE 9-CHA), 345-30, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-2028-7455  FAX:+82-2-2028-7456

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DK ENC CO., LTD.(110111-3250349)

DAEKYUNG MACHINERY & ENGINEERING CO., LTD.(181211-0002275)

TAIHAN ELECTRIC WIRE CO., LTD.(110111-0035835)

DAE CHUNG CO., LTD.(161511-0002140 )

PAN-GYO 1ST FERCILITIES LAND DEVELOPMENT PFV CO., LTD.(110111-3873000)

TEC&R CO., LTD.(110111-3891177)

TAI HAN BULK TERMINAL CO., LTD.(120111-00074360

KOREA INDUSTRIAL INVESTMENT CORPORATION(110111-0511083)

TAIHAN REACH CO., LTD.(110111-2306531)

TAIHAN SYSTEMS CO., LTD.(170111-0123688)

TEC NETWORKS CO., LTD.(110111-3208025)

TAIHAN ST CO., LTD.(131411-0191529 )

DASAN SOLAR GENERATION CO., LTD.(205311-0004220)

DAIMYUNG TMS CO., LTD.(110111-0803141)

TEC CONSTRUCTION CO., LTD.(110111-0018203)

ALDEX NETWORKS CO., LTD.(124611-0284600)

SJD CO., LTD.(110111-1539349)

TEC MEDIA CO., LTD.(110111-3927625)

NT DEVELOPMENT 1 CO., LTD.(110111-3934703)

DOK-SAN 1ST COMMERCIAL-RESIDENTIAL BUILDING DEVELOPMENT PFV CO., LTD.(110111-3959115)

Affiliates-Overseas

TSC COMPANY,LTD

TAIHAN GLOBAL HOLDINGS

CONGO KOREA TELECOM

TAIHAN GLOBAL LUXEMBOURG INVESTMENTS

BULACE INVESTMENT LIMITED

SILKROAD TELECOM PTE LTD

CHEMIZON(BEIJING),LTD

ALDEX CANADA, INC.

T.E.USA CO., LTD

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2014

2013

2012

Export

11,878

55,149

61,631

Domestic

10,430

51,260

40,098

Total

22,308

106,409

101,729

The Subject exports to South Africa, Asia and China.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.44

UK Pound

1

Rs.100.24

Euro

1

Rs.80.35

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

SMN

 

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.