MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

KUMHO P&B CHEMICALS INC.

 

 

Registered Office :

218, Yeosusandan 2-Ro, Yeosu-Si, Jeollanam-Do 555-280

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

10.07.2000

 

 

Com. Reg. No.:

417-81-21425

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

·         Manufacture of Basic Organic Petrochemicals.

·         Wholesale of Other Chemical Materials and Chemical Products

 

 

No. of Employees :

294

 

 

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 :

Exist

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

KUMHO P&B CHEMICALS INC.

Registered Address

218, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea

(Old Address System : 319, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea)

Building

 

Zip Code

555-280

Tel

+82-61-688-3500

Fax

+82-61-688-3505

E-mail

yjk@kpb.co.kr

Website

www.kpb.co.kr

Trading Address

8th Fl., Signature Towers East Bldg., 100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea

(Old Address System : 8th Fl., Signature Towers East Bldg., 99, Supyo-dong, Jung-gu, Seoul, Korea)

Tel

+82-2-6961-3425

Fax

+82-2-6961-3490

Other Address-2nd Factory

46-53, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-688-3700

Fax

 

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Phenol, Acetone, Bisphenol-A, MIBK, Epoxy, AMS

  Sub Business

Wholesale of Other Chemical Materials and Chemical Products

Established (mm/dd/yyyy)

07/10/2000

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Phenols or its substitutes or derivatives(12191503)

Sell

Epoxy(13111001)

Sell

Ethers or its substitutes(12352112)

Sell

Organic derivatives and substituted compounds(12352100)

 

 

CEO’s

 

Name

Moon Dong-Joon

Address

 

Date of Birth

10/20/1954

Title

Vice President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

143,712,000,000

Employees

294

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

A Company of Kumho Asiana Group

Bank Details

Woori Bank-HQ Office

Corporate Registered No.

206211-0018313

Business Registered No.

417-81-21425

Permit & Licenses

Int’l Trade No.: 985534

Shareholder Position

Name

Shares

%

KUMHO PETROCHEMICAL CO., LTD.(110111-0205975)

22,476,000

78.20

NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.(JAPAN)

6,266,400

21.80

TOTAL

28,742,400

100.00

Company History

07/10/2000 Incorporated as the present name

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

Vice President & CEO

Mr.

Moon Dong-Joon

Male

Korean

1954.10.20

Director

Mr.

Park Chan-Koo

Male

Korean

1948.08.13

Director

Mr.

Kim Sung-Chae

Male

Korean

1952.05.20

Director

Mr.

Ooyama Hiroyuki

Male

Japanese

1959.11.

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2014

853,599,624,691

854,961,704,683

-2,264,520,526

(*)2013

1,036,775,649,033

820,771,825,847

-28,963,414,120

(*)2012

1,124,250,692,966

761,079,509,758

4,443,836,103

(*)2011

1,265,073,181,562

725,643,813,439

125,957,332,314

2010

1,099,176,097,199

642,113,204,865

142,681,062,907

2009

784,396,229,889

620,074,023,442

13,527,586,693

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

 

 

Financial Description

 

Authorized Capital(KRW)

220,000,000,000

Paid-Up Capital(KRW)

143,712,000,000

Total Issued Shares

28,742,400

 

Balance Sheet

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

854,961,704,683

820,771,825,847

761,079,509,758

Current Assets

298,539,311,625

290,771,625,013

293,344,120,883

Inventories

84,954,558,178

93,656,470,684

113,988,584,741

Trade Receivables

154,151,371,762

143,090,924,646

127,835,440,669

Other Receivables

12,635,703,393

15,559,216,567

12,950,967,507

Income Taxes

95,728,210

853,002,740

-

Cash & Cash Equivalents

45,188,942,169

36,452,529,507

36,501,967,712

Other Current Assets

1,513,007,913

1,159,480,869

2,067,160,254

Non-Current Assets

556,422,393,058

530,000,200,834

467,735,388,875

Tangibles

461,973,271,200

439,265,240,909

384,304,912,629

Intangibles

4,137,459,099

4,563,707,077

3,256,320,951

Investment_Related Companies

32,261,780,725

32,261,780,725

32,261,780,725

Deferred Income Tax Assets

13,494,431,161

14,730,416,390

7,006,315,124

Marketable Financial Instruments

38,407,500,000

33,004,600,000

33,426,773,000

Other Receivables

6,147,950,873

6,174,455,733

7,479,286,446

Total Liabilities

422,175,687,131

396,583,517,683

315,676,984,017

Current Liabilities

228,268,333,595

210,953,559,500

230,203,554,702

Trade Payables

69,489,869,770

72,054,037,602

76,670,397,959

Other Payables

40,062,697,021

37,386,071,322

38,850,174,120

Accrued Income Tax

 

-

398,130,707

Short-Term Borrowings

118,265,843,764

101,293,386,294

114,277,696,856

Other Current Liabilities

449,923,040

216,395,578

7,155,060

Derivatives

-

3,668,704

-

Non-Current Liabilities

193,907,353,536

185,629,958,183

85,473,429,315

Long-Term Trade Payables & Other Payables

1,338,912,859

1,215,478,743

1,560,327,720

Long-Term Borrowings

179,284,995,895

176,972,552,046

76,063,327,862

Provision for Severance & Retirement

13,283,444,782

7,441,927,394

7,849,773,733

Capital Stock

143,712,000,000

143,712,000,000

143,712,000,000

Capital Surplus

3,758,593,776

3,758,593,776

3,758,593,776

Others

12,878,502,000

1,182,411,047

-4,871,019,426

Profit Surplus

272,436,921,776

275,535,303,341

302,802,951,391

Total Equity

432,786,017,552

424,188,308,164

445,402,525,741

Liab. & Shareholder’s Equity

854,961,704,683

820,771,825,847

761,079,509,758

 

Income Statement

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

853,599,624,691

1,036,775,649,033

1,124,250,692,966

Cost of Sold Goods

846,093,381,808

1,041,104,612,505

1,097,231,140,121

Gross Profit

7,506,242,883

-4,328,963,472

27,019,552,845

Selling & Admin. Expenses

11,308,200,778

15,825,975,494

12,220,806,166

Operating Income

-3,801,957,895

-20,154,938,966

14,798,746,679

Other Income

10,998,270,563

11,470,162,647

5,775,049,898

Other Expenses

7,343,460,435

25,665,687,950

26,042,447,275

Finance Income

4,237,478,428

5,321,162,480

12,160,175,695

Finance Expenses

8,178,358,422

8,645,104,580

4,778,091,736

Income Before Taxes

-4,088,027,761

-37,674,406,369

1,913,433,261

Income Taxes Expenses

-1,823,507,235

-8,710,992,249

-2,530,402,842

Net Income

-2,264,520,526

-28,963,414,120

4,443,836,103

 

Cash Flows

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

32,692,940,309

5,859,628,116

4,243,625,709

Cash Flows from Operating

38,967,128,313

14,356,952,638

35,620,007,886

Net Income

-2,264,520,526

-28,963,414,120

4,443,836,103

Adjustment

34,788,114,268

53,635,773,412

56,433,310,003

Changes in Asset/ & Liability

6,443,534,571

-10,315,406,654

-25,257,138,220

Interests Paid

-7,562,687,755

-7,225,389,304

-5,128,388,005

Interests Received

535,438,629

1,487,654,332

1,093,960,773

Income Taxes

753,061,122

-2,759,589,550

-27,341,954,945

Cash Flows from Investing

-41,916,468,682

-94,137,644,625

-93,043,132,101

Cash Flows from Financing

17,746,629,764

88,240,565,264

66,086,270,036

Increase/Decrease in Cash

8,523,101,391

-37,451,245

-22,713,236,356

Cash at the Beginning of Year

36,452,529,507

36,501,967,712

59,220,425,183

Cash at the End of Year

45,188,942,169

36,452,529,507

36,501,967,712

 

 

Products, Technologies, Services Description

 

Main Products & Services

Phenol, Acetone, Bisphenol-A, MIBK, Epoxy, AMS

Brand Name : KER

 

 

Trade Partners & Competitors

 

Suppliers

SUMITOMO(JAPAN)

SAMSUNG FINE CHEMICALS CO., LTD.(181211-0000013)

YEOCHUN NCC CO., LTD.(110111-1839096)

Customers

 

Competitors

KOLON INDUSTRIES, INC.

10TH FL., KOLON TOWER, 1-23, BYEORYANG-DONG, GWACHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-2-3677-3515  FAX:+82-2-3677-3539

 

WOOJIN COPOLYMER CO., LTD.

1DA-409, SIHWA INDUSTRIAL COMPLEX, 1252-10, JEONGWANG 3-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-1921  FAX:+82-31-499-1925

 

KANGNAM CHEMICAL CO., LTD.

9TH FL., GANGNAM BLDG., 1355-21, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3415-8000  FAX:+82-2-3473-3262

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KUMHO TIRE CO., LTD.(110111-2810590)

KUMHO POLYCHEM CO., LTD.(110111-0400533)

KUMHO PETROCHEMICAL CO., LTD.(110111-0205975)

KUMHO INDUSTRIAL CO., LTD.(110111-0134877)

DAEWOO ENGINEERING & CONSTRUCTION CO., LTD.(110111-2137895)

KUMHO LIFE INSURANCE CO., LTD.(200111-0014608)

KUMHO RENT-A-CAR. INC(110111-0513253)

KUMHO MITSUI CHEMICALS, INC.(110111-0612980)

KUMHO RESORT CO., LTD.(134511-0105856)

KOREA ROAD MANAGEMENT CO., LTD.(200111-0072416)

ASIANA AIRLINES INC.(110111-0562804)

KOREA EXPRESS CO., LTD(110111-0006167)

KOREA INTEGRATED FREIGHT TERMINAL CO., LTD(110111-0853576)

JUNG-BU INTEGRATED FREIGHT TERMINAL CO., LTD.(110111-3284158)

KUMHO TRADING CO., CO., LTD.(110111-2079641)

SEOUL EXPRESS BUS TERMINAL CO., LTD.(110111-0187644)

KUMHO TERMINAL CO., LTD.(200111-0231418)

AIR BUSAN CO., LTD.(180111-0605121)

SONGNISAN EXPRESS CO., LTD.(150111-0000286)

PUSAN EAST CONTAINER TERMINAL CO., LTD.(180111-0101252)

PECT NEW CONTAINER TERMINAL CO., LTD.(180111-0449579)

GWANGYANG WEST CONTAINER TERMINAL CO., LTD.(110111-3547514)

THE KOREA EXPRESS TERMINAL CO., LTD.(110111-1726227)

DONG SEOK LOGISTICS CO., LTD.(144711-0009135)

TERMINAL OPERATING CO., LTD OF MASAN PORT-PIER 4(194211-0035362)

PUSAN GAMMAN CONTAINER TERMINAL CO., LTD(180111-0560234)

KOREA EXPRESS BUSAN NEWPORT DISTRIPARK(194111-0012403)

ULSAN PORT OPERATING CO., LTD.(230111-0057769)

INCHEON SOUTH TERMINAL OPERATION COMPANY(120111-0426305)

KE-CATI LOGISTICS CO., LTD(204611-0024273)

CNK WORLD LOGISTICS CO., LTD(110111-3638496)

ASIANAIDT, INC.(110111-0801848)

ASIANA ABACUS , INC.(110111-3010925)

KOREA EXPRESS INFORMATION TECHNOLOGY CO., LTD.(110111-2230417)

ASIANA AIRPORT DEVELOPMENT CO., LTD.(110111-1412496)

INCHEON AIRPORT ENERGY CO., LTD.(110111-1415408)

KUMHO ASIANA MAIN TOWER CO., LTD.(110111-3207712)

CHUNGJU BORAMAE CO., LTD.(110111-3348524)

BUGOK ENVIRONMENT CO., LTD.(135211-0016488)

GK FIXED LINK CORP(180111-0443224)

TAE-CHEON DEVELOPMENT CO., LTD.(110111-1252644)

PRUGIO SERVICE CO., LTD.(110111-1675276)

KUMHO STEEL TECH CO., LTD.(154311-0016706)

ILSAN GRAND BRIDGE CORP.(110111-2576192)

SOUTHWEST COAST LEISURE COMPANY(205511-0024878)

GREEN ANSEONG ENVIRO CO., LTD(110111-3780833)

KUMHO SONGDO HOTEL CO., LTD.(120111-0451998)

AAS AIRPORT SERVICES. INC(110111-0562713)

KUMHO ENVIROTECH CO., LTD.(110111-1799703)

KUMHO AUTOLEASE, INC.(110111-3626970)

Subsidiary

KUMHO TRADING CO., INC.(110111-2079641)

(56.25% held by the subject company)

 

KUMHO RAC CO., LTD.(110111-0513253)

(100.00% held by the subject company)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2013

2012

2011

Export

147,770

302,849

386,340

Domestic

423,807

821,402

878,733

Total

571,577

1,124,251

1,265,073

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

The Subject Company

KUMHO INDUSTRIAL CO.,LTD.(110111-0134877)

Receivables

-

proceeding

 

 

KUMHO INDUSTRIAL CO.,LTD.(110111-0134877)

The Subject Company & Others(2)

Brand Fee

-

proceeding

 

 

News Clipping

 

---------

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.32

UK Pound

1

Rs.98.68

Euro

1

Rs.78.11

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.