MIRA INFORM REPORT

 

 

Report Date :

04.02.2014

 

IDENTIFICATION DETAILS

 

Name :

HANKUK GLASS INDUSTRIES INC.

 

 

Registered Office :

33, Seorin-dong, Jongno-gu, Seoul, Korea, 15th Fl., Yeongpung Bldg., 110-752

 

 

Country :

Korea (South)

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

25.03.1957

 

 

Com. Reg. No.:

116-81-00115

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Plate Glass

 

 

No. of Employees :

305

 

 

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

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

KOREA (SOUTH) - 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 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges 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 half of GDP.

 

Source : CIA

 


Basic Information

 

Basic

 

Company Name

HANKUK GLASS INDUSTRIES INC.

Registered Address

33, Seorin-dong, Jongno-gu, Seoul, Korea

Building

15th Fl., Yeongpung Bldg.

Zip Code

110-752

Tel

+82-2-3706-9114

Fax

+82-2-3706-9363

E-mail

ehjang@hanglas.co.kr;jlmoon@hanglas.co.kr

Website

www.hanglas.co.kr

Trading Address

15th Fl., Yeongpung Bldg., 33, Seorin-dong, Jongno-gu, Seoul, Korea

Tel

+82-2-3706-9114

Fax

+82-2-3706-9363

Other Address-Busan Factory

345, Ilgwang-myeon, Gijang-gun, Busan, Korea

Tel

+82-51-720-4214

Fax

+82-51-721-5697

Other Address-Gunsan Factory

77, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63 -460-4251

Fax

+82-63-462-2151

Other Address-Daejeon Sales Office

20-1, Yongjeon-dong, Dong-gu, Daejeon, Korea

Tel

+82-42-623-4539

Fax

 

Type

Export/Import

Industry

Manufacture of Plate Glass

  Main Business

Flat Glass, Pair Glass, Automotive Safety Glass, Specialty Glass

  Sub Business

 

Established (mm/dd/yyyy)

03/25/1957

The Subject owns the premises of Busan Factory and Gunsan Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Glass products(30171700)

Sell

Float glass(30171708)

Sell

Safety glass(30171707)

 

CEO’s

 

Name

Lee Nam-Geun

Address

Suite 126-907, 38, Mokdongseo-ro, Yangcheon-gu, Seoul, Korea

Date of Birth

09/08/1950

Title

President & CEO

Sex

Male

Nationality

Korean

Profiles

 

Capital (KRW)

69,882,185,000

Employees

305

Formation

Listed Company (Korea stock Exchange : 002000) as of 06/27/1969

Foreign Direct Investment Corporation

Bank Details

Korea Development Bank-HQ Office

Corporate Registered No.

110111-0027345

Business Registered No.

116-81-00115

Permit & Licenses

Int’l Trade No.: 984676

Shareholder Position

Name

Shares

%

SOFIAG

4,481,748

42.54

NAI

3,474,738

32.98

SGGF

155,000

1.47

LEE SE-WOONG

634,781

6.03

OTHERS

1,788,160

16.97

TOTAL

10,534,427

100.00

Company History

03/25/1957 Incorporated as the present name

04/1971 Registered as a Foreign Direct Investment Corporation

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

De Ni Meus

Belgium

1966.03.30

-.Universite catholique de Louvain-la-Neuve - Belgium

-.Managing Director of Saint-Gobain Glass Mexico, Cuautla, Mexico. (Flat Glass)

President & CEO

Mr.

Lee Nam-Geun                

Korean

1950.09.08

Seoul National University, Korea

Director

Mr.

Usah Soibi

French

1969.08

Ecole Superieur de Physique et

  Chimie Industrielles de Paris, Engineer

-.President of Flat Glass Sector

  Asia-Pacific Region

Director

Mr.

Jan Piere Floris

French

1948.07.09

Saint-Gobain

Director

Mr.

Habie Himeno

French

1964.01

Instituto de Empresa, Economics M.A

Outside Director

Mr.

Philip Ttiro

French

1959.07

-Graduated from ESSEC

-Heidrick & Struggles Seoul Office Managing Partner

-Korn/Ferry International Seoul Office Senior Client Partner

Outside Director

Mr.

Choi Young-Ik

Korean

1963.06.04

Washington University, USA

Auditor

Mr.

Chae Won-Seok

Korean

1954.12.

George Washington University, USA

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2013

170,775,463,831

502,111,371,461

-30,045,850,005

(*)2012

258,488,834,123

536,571,911,820

-74,306,420,209

(*)2011

354,479,707,478

652,963,045,453

22,018,101,468

(*)2010

353,017,520,957

654,782,811,523

25,902,141,596

2009

309,822,051,222

600,719,614,799

-20,095,103,232

2008

292,656,073,346

675,782,377,349

-11,113,718,884

2007

277,062,714,570

670,584,494,901

-20,378,650,026

2006

251,831,658,380

699,197,875,716

-537,068,788

2005

280,231,652,564

710,696,709,754

1,949,742,825

2004

 315,908,369,459

 729,615,173,663

 18,135,325,537

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

 

Financial Description

 

Authorized Capital(KRW)

120,000,000,000

Paid-Up Capital(KRW)

69,882,185,000

Total Issues Shares

10,534,427(Common : 10,079,660 / Preferable ; 454,767)

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

502,111,371,461

536,571,911,820

652,963,045,453

Current Assets

109,605,813,855

152,689,195,449

235,428,855,600

Cash & Cash Equivalents

16,042,364,032

65,231,076,430

112,352,053,873

Trade Receivables

25,640,739,752

28,928,879,806

36,341,736,223

Current Financial Instruments

1,486,306,349

3,080,057,359

2,677,108,938

Derivatives

555,569

2,129,624

128,708,706

Inventories

64,990,609,335

53,278,908,024

79,069,965,506

Other Current Assets

1,445,238,818

2,168,144,206

4,859,282,354

Non-Current Assets

382,990,550,625

383,882,716,371

417,534,189,853

Marketable Financial Instruments

2,004,838,352

1,568,270,220

1,743,278,717

Investment_Related Companies

166,486,571,927

162,548,506,960

191,553,653,901

Tangibles

200,631,970,868

209,397,997,314

219,086,103,778

Intangibles

2,151,074,431

2,261,243,891

2,458,114,670

Non-Current Financial Instruments

2,219,963,596

2,283,774,892

2,622,188,714

Non-Current Non-Financial Instruments

85,960,778

91,199,792

70,850,073

Deferred Income Assets

9,410,170,673

5,731,723,302

0

Non-Current Assets to be Sold

9,515,006,981

0

0

Total Liabilities

83,983,385,813

89,012,972,811

121,954,963,759

Current Liabilities

64,193,317,518

67,966,011,748

97,540,041,090

Trade Payables

21,529,963,175

24,462,021,118

44,317,075,397

Other Current Financial Debts

40,291,253,334

35,060,032,067

39,485,127,499

Accrued Income Tax

0

0

3,256,269,078

Derivatives

259,805,135

118,244,582

112,013,912

Other Current Liabilities

2,112,295,874

8,325,713,981

10,369,555,204

Non-Current Liabilities

19,790,068,295

21,046,961,063

24,414,922,669

Provision for Severance & Retirement

5,527,897,118

6,334,922,509

4,594,198,680

Other Long-Term Salaries

1,179,392,827

1,319,456,902

1,469,773,949

Non-Current Finance Liabilities

11,026,438,245

11,099,878,467

10,851,271,866

Other Provisions

2,056,340,105

2,292,703,185

2,142,245,211

Deferred Income Tax Credit

0

0

5,357,432,963

Capital Stock

69,882,185,000

69,882,185,000

69,882,185,000

Capital Surplus

71,305,322,633

71,305,322,633

71,305,322,633

Profit Surplus

-34,512,557,416

-4,741,080,912

78,296,462,926

Others

311,453,035,431

311,112,512,288

311,524,111,135

Total Equity

418,127,985,648

447,558,939,009

531,008,081,694

Liab. & Shareholder’s Equity

502,111,371,461

536,571,911,820

652,963,045,453

 

Income Statement

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

170,775,463,831

258,488,834,123

354,479,707,478

Cost of Sold Goods

157,171,058,988

265,897,797,449

288,985,525,970

Gross Profit

13,604,404,843

-7,408,963,326

65,494,181,508

Selling & Admin. Expenses

38,673,698,652

42,781,906,188

42,934,301,074

Operating Income

-25,069,293,809

-50,190,869,514

22,559,880,434

Other Non-Operating Income

7,211,952,410

12,562,394,173

7,384,349,108

Other Non-Operating Expenses

19,283,407,291

2,251,210,841

5,405,871,319

Profits from Investment on Related Companies

0

41,015,842,593

0

Profits from Tangible Assets

0

7,126,985,782

0

Finance Income

3,395,058,048

5,277,354,581

7,057,478,845

Finance Expenses

479,393,141

811,234,104

1,123,829,409

Income Before Taxes

-34,225,083,783

-83,556,394,080

30,472,007,659

Income Taxes Expenses

-4,179,233,778

-9,249,973,871

8,453,906,191

Net Income

-30,045,850,005

-74,306,420,209

22,018,101,468

 

Cash Flows

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-39,637,310,801

-26,733,428,547

7,411,200,670

Net Income

-34,225,083,783

-83,556,394,080

30,472,007,659

Adjustment

21,800,730,097

49,997,690,920

5,515,667,548

Changes in Asset/ & Liability

-30,656,179,374

7,127,639,757

-24,803,568,328

Interests Received

590,968,686

1,377,917,716

3,280,955,777

Dividends Received

2,536,044,997

3,359,247,165

3,086,607,462

Income Taxes

316,208,576

-5,039,530,025

-10,140,469,448

Cash Flows from Investing

-9,551,401,597

-12,200,629,621

-8,031,310,503

Cash Flows from Financing

0

-8,186,919,275

-8,186,919,275

Increase/Decrease in Cash

-49,188,712,398

-47,120,977,443

-8,807,029,108

Cash at the Beginning of Year

65,231,076,430

112,352,053,873

121,159,082,981

Cash at the End of Year

16,042,364,032

65,231,076,430

112,352,053,873

 

Products, Technologies, Services Description

 

Main Products & Services

Flat Glass

Automotive Glass

Specialty Glass

 

Brand Name : HANGLAS

 

Trade Partners & Competitors

 

Competitors

KOREA AUTOGLASS CORPORATION

1B, JEONUI INDUSTRIAL COMPLEX, 613, SINJEONG-RI, JEONUI-MYEON, YEONGI-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-860-5000~9  FAX:+82-41-860-5030

 

DONG-KUK GLASS INDUSTRY CO., LTD.

10-14, YANGJAE 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-576-3855  FAX:+82-2-573-3891

 

KEUM SUNG GLASS TECH CO., LTD.

594-1, SINJIN-RI, GWANGCHEON-EUP, HONGSEONG-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-641-6263  FAX:+82-41-641-6267

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANKUK SECKURIT LIMITED(120111-0008294)

(49.94% held by the subject company)

55 SORYONG-DONG, GUNSAN, JEOLLABUK-DO, KOREA

TEL:+82-63-469-2315 FAX:+82-63-469-2324

 

HANKUK HANLSO CO., LTD.(120111-0164351)

(100.00% held by the subject company)

585-14 GAJWA-DONG, SEO-GU, INCHEON, KOREA

TEL : +82-32-580-0371 FAX:+82-32-580-0319

 

CHEIL GLASS INDUSTRY CO., LTD.(120111-0019267)

(30.00% held by the subject company)

Overseas Office

SAINT-GOBAIN HANGLAS NANJING INC.

(50.00% held by the subject company)

XISHANQIAO ZHONGHUAMENWAI NANJING 210041 CHINA

TEL:+(025) 2406635 FAX:+(025) 2407422

 

SAINT-GOBAIN SEKURIT HANGLAS POLSKA SP.ZO.O

(12.00% held by the subject company)

UL. SZKLARSKA 27 68-205 ZARY, POLAND

TEL:+48-32-295-3330 FAX:+48-32-295-3399

 

KUNSHAN YONGXIN GLASSWARE CO., LTD.

222 KUNTAI ROAD, KUNSHAN CITY, JIANGSU PROVINCE, CHINA

TEL:+86-520-766-1077 FAX:+86-520-766-4219

 

SAINT-GOBAIN HANGLAS SEKURIT (SHANGHAI) CO., LTD.

(50.00% held by the subject company)

NO.18 WENJING ROAD, MINHANG ECON. & TECH. DEVELP. ZONE SHANGHAI, CHINA

TEL:+86-21-6463-0016 FAX:+86-21-6463-0061

 

SAINT-GOBAIN HANGLAS CLFG QINGDAO INC.

201, LIAOHE RD, 266500, ECONOMIC & TECHNICAL DEVELOPMENT ZONE QINGDAO , SHANDONG PROVINCE, CHINA

TEL:+86-532-690-9923 FAX:+86-532-690-8866

 

SAINT-GOBAIN HANGLAS (SHANHAI) CONSULTING CO., LTD.

(50.00% held by the subject company)

RM. 1717, OCEAN TOWER, 550, YAN AN DONG RD. HUANG PU SHANGHAI, 20001, CHINA

TEL:+86-21-63611076 FAX:+86-21-63603779

 

SAINT-GOBAIN HANGLAS (JAPAN) KK

3-7, KOJIMACHI, CHIYODA-KU, TOKYO, 102-0083, JAPAN

TEL:+81-3-52750889 FAX:+86-3-52750913

 

YONGXIN GLASS

(60.0% held by the subject company)

Subsidiary

HANKUK HANISO CO., LTD.(120111-0164351)

(100.00% held by the subject company)

585-14 GAJWA-DONG, SEO-GU, INCHEON, KOREA

TEL : +82-32-580-0371 FAX:+82-32-580-0319

 

KUNSHAN YONGXIN GLASSWARE CO., LTD.

222 KUNTAI ROAD, KUNSHAN CITY, JIANGSU PROVINCE, CHINA

TEL:+86-520-766-1077 FAX:+86-520-766-4219

Corporate Ownership

COMPAGNIE DE SAINT-GOBAIN

SOFIAG

Cooperative Enterprise

-Technical Support from

PILKINGTON PLC(UK)

BOC TECH LTD AIRCO, YNC

RESEARCH FRONTIERS INC.

PPG INDUSTRIES INC.

SAINT-GOBAIN VITRAGE S.A

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2013

2012

2011

Export

6,582

8,845

14,020

Domestic

237,087

342,006

449,849

Total

243,669

350,851

463,869

The Subject deals with the companies in China and Japan.

 

 

News Clipping

 

Not Available

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.69

UK Pound

1

Rs.102.97

Euro

1

Rs.84.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.