MIRA INFORM REPORT

 

 

Report Date :

21.02.2014

 

IDENTIFICATION DETAILS

 

Name :

KOREA UNITED PHARM INC.

 

 

Registered Office :

25-23, Nojanggongdan-gil, Jeondong-myeon, Sejong-si, Korea

 

 

Country :

Korea (South)

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

03.12.1987

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture, Marketing, & Sales Distribution of Pharmaceuticals and Other Healthcare Products

 

 

No. of Employees :

645

 

 

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 :

No complaints

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, 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

KOREA UNITED PHARM INC.

Registered Address

25-23, Nojanggongdan-gil, Jeondong-myeon, Sejong-si, Korea

(Old Address System :404-10, Nojang-ri, Jeondong-myeon, Yeongi-gun, Chungcheongnam-do, Korea)

Zip Code

339-841

Tel

+82-41-862-5030

Fax

+82-41-862-5070

E-mail

trade@kup.co.kr

Website

www.kup.co.kr

Trading Address

22, Nonhyeon-ro 121-gil, Gangnam-gu, Seoul, Korea

(Old Address System :154-8, Nonhyeon 1-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-512-9982

Fax

+82-2-512-0144

Other Address-Sumyun Factory

153 Budong-ri, Su-myun, Yeongi-gun, Chungcheongnam-do, Korea

Tel

+82-41-862-8586

Fax

+82-41-862-8582

Other Address-2nd Factory

404-16, Nojang-ri, Jeondong-myeon, Yeongi-gun, Chungcheongnam-do, Korea

Tel

+82-41-862-6856

Fax

+82-41-862-5082

Type

Export/Import

Industry

Manufacture, Marketing, & Sales Distribution of Pharmaceuticals and Other Healthcare Products

  Main Business

Manufacture of Medicinal Medicaments

  Sub Business

Anticancer Drug, Vitamin Compound, Antibiotics, Homtamin Ginseng, Alcafen Cough, Augmex, Clauza

Established (mm/dd/yyyy)

12/03/1987

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cough and cold and antiallergy products(51161800)

Sell

Antidepressants(51141600)

Sell

Vitamin supplements(51191905)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

Sell

Drugs used for respiratory tract disorders(51161700)

Sell

Antibiotics(51101500)

Sell

Vitamin supplements(51191905)

Sell

Antifungal drugs(51101800)

Sell

Formulas and products for nutritional support(42231800)

Sell

Drugs and Pharmaceutical Products(51000000)

 


CEO’s

 

Name

Kang Duk-Young

Date of Birth

05/18/1947

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

7,742,462,000

Employees

645

Formation

Listed Company(Korea Stock Exchange : 033270) as of 10/23/2007

Venture Business

A Company of KOREA UNITED PHARMA BUSINESS GROUP

Bank Details

Industrial Bank of Korea-Samseong Nam Branch

Woori Bank

Shinhan Bank

Corporate Registered No.

134211-0002769

Business Registered No.

307-81-05244

Permit & Licenses

1992 KGMP

10/14/2005 ISO 14001

11/01/2005 ISO 9001

 

Int’l Trade No.: 423326

Shareholder Position

Name

Shares

%

KANG DUK-YOUNG

5,722,089

36.95

KANG WON-HO

520,200

3.36

UNITED CULTURAL FOUNDATION(114622-0038296)

102,000

0.66

NATIONAL PENSION SERVICE(110171-0007134)

804,800

5.20

TRUSTON ASSET MANAGEMENT CO., LTD.(110111-1531519)

497,970

3.22

OTHERS

7,837,865

50.62

TOTAL

15,484,924

100.00

Company History

08/23/2007 Designated as a Venture Business again

10/23/2007 Listed at Korea Stock Exchange after unlisted from KOSDAQ Market

08/23/2007 Designated as a Venture Business

2004 Signed a Contract of Establishing EIMC United Pharma Co. in Egypt

2004 Designated as a "Advanced Technology Center”, Certified by Ministry of Commerce, Industry and Energy

2002 Designated Homtamin-S as “World Class Product”, Certified by Ministry of Commerce, Industry and Energy

2002 Acknowledged as “Noble Intellectual of This First Half Year”

2001 Completed United Douglas Pharm. Inc. in Alabama

2001 Awarded the “Presidential Tower” for U$10Millions in Export

2001 Awarded “the Presidential Industrial Service Medal” on the Annual Taxation Day

2000 Designated as a “Superior Technology Company”

2000 Awarded the Best Grand Prize from Chungnam, Korea

2000 Completed Korea United Pharm Int'l Inc. in Bihn Duong, Vietnam

1999 Awarded a Trophy for U$5Millions in Export

Awarded the Most Honorable Grand Prize from Chungnam, Korea

1998 Awarded a Grand Prize for Venture Enterprise

Designated as a “Promising Export Small and Medium Enterprise”

1997 Awarded a Grand Prize for Small and Medium Enterprise

Awarded a Prize from the Ministry of Health and Welfare of Korea (Awarded the Management Grand Prix in Chungnam, Korea

1996 Received a “The Management Grand Prix” from the Korean Government of Chungnam Province

10/29/1999 Listed at KOSDAQ

1998 Established United Douglas Pharm.Inc. in Alabama , U.S.A.

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

President & CEO

Mr.

Kang Duk-Young

Korean

1947.05.18

Hankuk University of Foreign Studies, Korea

Sr. Executive Director

Mr.

Kim Hyung-Rae

Korean

1954.12.03

Chungang University

Sr. Executive Director

M/S.

Kim Gwui-Ja

Korean

1957.03.15

Chungang University, Korea

Sr. Executive Director

Mr.

Jung Won-Tae

Korean

1962.07.08

Chungang University, Korea

Outside Director

Mr.

Cho Jang-Yeon

Korean

1952.08.18

Prof., of Hankuk University of Foreign Studies, Korea

Outside Director

Mr.

Lee Yeon-Taik

Korean

1957.01.12

Prof., of Hanyang University, Korea

Outside Director

Mr.

Kwon Park

Korean

1943.04.

Seoul National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2013

101,269,016,455

191,839,344,573

9,247,720,767

(*)2012

134,816,215,763

187,869,271,075

16,795,304,159

(*)2011

145,445,761,605

169,921,672,440

20,725,520,752

(*)2010

134,958,313,450

143,995,608,991

16,676,813,754

2009

119,084,235,076

122,501,507,465

14,199,565,873

2008

94,700,345,648

87,923,923,116

8,874,395,597

2007

59,695,984,469

77,027,800,347

5,575,526,344

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

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

7,742,462,000

Total Issues Shares

15,484,924

 

Balance Sheet

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

191,839,344,573

187,869,271,075

169,921,672,440

Current Assets

92,107,952,739

92,921,345,039

88,100,872,003

Cash & Cash Equivalents

22,899,550,891

16,770,046,526

17,868,865,709

Current Financial Instruments

518,997,270

9,355,945,101

384,556,516

Trade Receivables & Other Receivables

38,667,034,711

36,746,445,153

46,929,565,415

Advance Payments

1,606,850,962

48,051,077

101,227,315

Prepaid Expenses

127,614,707

179,415,555

318,174,360

Inventories

28,287,904,198

29,821,441,627

22,498,482,688

Non-Current Assets

99,731,391,834

94,947,926,036

81,820,800,437

Other Financial Assets

1,372,997,841

1,161,000,000

857,000,000

Long-Term Trade Receivables & Other Receivables

8,490,923,340

8,490,547,550

3,354,406,167

Marketable Financial Instruments

955,456,364

892,516,364

1,304,395,394

Investment_Related Companies

5,701,407,474

6,205,407,474

5,671,147,474

Investment_Subsidiaries

486,740,474

456,661,309

565,376,423

Prepaid Expenses

478,522,964

504,783,379

539,797,255

Investment_Real Estates

15,493,369,182

15,421,223,057

14,432,392,886

Tangibles

64,378,335,467

59,507,154,408

53,423,140,215

Intangibles

2,373,638,728

2,308,632,495

1,673,144,623

Total Liabilities

50,120,381,079

53,830,617,721

56,811,356,208

Current Liabilities

29,976,866,513

34,575,140,978

38,431,198,714

Trade Payables & Other Payables

16,929,130,263

19,284,906,499

17,914,040,051

Short-Term Borrowings

2,478,128,657

6,738,164,565

15,694,875,465

Current Portion of Long-Term Debts

8,983,200,000

5,803,200,000

2,519,020,000

Other Current Liabilities

722,005,233

678,324,634

682,966,776

Accrued Income Tax

864,402,360

2,070,545,280

1,620,296,422

Non-Current Liabilities

20,143,514,566

19,255,476,743

18,380,157,494

Long-Term Borrowings

11,957,600,000

10,690,000,000

9,143,880,000

Long-Term Trade Payables & Other Payables

480,000,000

240,000,000

309,425,000

National Subsidies

356,148,424

261,834,168

221,782,501

Provisions

3,963,636,038

4,244,755,426

5,962,330,666

Deferred Income Tax Credit

3,386,130,104

3,818,887,149

2,742,739,327

Capital Stock

7,742,462,000

7,742,462,000

7,742,462,000

Capital Surplus

16,639,347,013

16,639,347,013

15,733,109,994

Others

955,673,620

668,430,040

-4,199,341,346

Installments

43,177,612

39,640,939

53,427,741

Profit Surplus

116,338,303,249

108,948,773,362

93,780,657,843

Total Equity

141,718,963,494

134,038,653,354

113,110,316,232

Liab. & Shareholder’s Equity

191,839,344,573

187,869,271,075

169,921,672,440

 

Income Statement

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

101,269,016,455

134,816,215,763

145,445,761,605

Cost of Sold Goods

47,063,940,712

59,427,212,854

56,028,501,783

Gross Profit

54,205,075,743

75,389,002,909

89,417,259,822

Selling & Admin. Expenses

42,039,477,968

55,146,523,217

60,881,147,164

Operating Income

12,165,597,775

20,242,479,692

28,536,112,658

Other Non-Operating Profits

-49,649,642

699,746,242

-5,409,833,095

Other Income

1,402,358,942

4,548,005,354

2,929,386,180

Other Expenses

1,468,643,078

3,588,085,445

7,450,952,327

Finance Income

1,215,434,988

1,443,736,602

925,627,272

Finance Expenses

1,198,800,494

1,703,910,269

1,813,894,220

Income Before Taxes

12,115,948,133

20,942,225,934

23,126,279,563

Income Taxes Expenses

2,868,227,366

4,146,921,775

2,400,758,811

Net Income

9,247,720,767

16,795,304,159

20,725,520,752

 

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

9,017,320,161

22,628,960,792

28,075,172,762

Net Income

9,247,720,767

16,795,304,159

20,725,520,752

Adjustment

8,042,901,866

8,644,489,415

12,424,461,408

Changes in Asset/ & Liability

-3,758,772,015

372,241,555

-2,543,508,281

Interests Received

734,535,886

615,617,496

546,008,212

Interests Paid

-741,939,012

-922,561,425

-1,412,459,878

Income Taxes

-4,507,127,331

-2,876,130,408

-1,664,849,451

Cash Flows from Investing

-1,001,018,291

-23,996,896,702

-17,951,218,456

Cash Flows from Financing

-1,761,239,923

314,238,151

353,034,219

Increase/Decrease in Cash

6,129,504,365

-1,053,697,759

10,476,988,525

Cash at the Beginning of Year

16,770,046,526

17,868,865,709

7,397,629,235

Cash at the End of Year

22,899,550,891

16,770,046,526

17,868,865,709

 

Products, Technologies, Services Description

 

Main Products & Services

Life-Saving Drugs such as Antibiotics & Anti-Tumor Agents

Over-the-Counter Drugs (including Vitamins & Korean Ginseng products)

Healthcare Supplements & Food

 

Antibiotics & Anti-Tumor Agents

Antinflammatory & Antidiabetic Agents

Vitamins & Korean Ginseng Products

 

Trade Partners & Competitors

 

Competitors

JEIL PHARMACEUTICAL CO., LTD.(110111-0026652)

745-5, BANPO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-549-7451  FAX:+82-2-549-7478

 

BORYUNG PHARM CO., LTD.(110111-0012560)

15TH FL., BORYEONG BLDG., 66-21, WONNAM-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-708-8000  FAX:+82-2-742-6362

 

KWANGDONG PHARMACEUTICAL CO., LTD(110111-0152134)

4TH FL., GASAN BLDG., 1577-4, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-6006-7777  FAX:+82-2-6006-702

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA UNITED PHARM GLOBAL INC.(110111-3513680)

(95.00% held by the subject company)

 

UNITED INTERPHRAM CO., LTD.(110111-0408644)

(39.39% held by the subject company)

 

UNITED GST CO., LTD.(110111-3634155)

 

GALELUB MULTILAB CO., LTD.(110111-3739450)

(45.00% held by the subject company)

 

KOREA UNITED BIO-CHEM PHARMACEUTICAL CO., LTD.(164711-0019750)

(49.00% held by the subject company)

Affiliates-Overseas

UNITED DOUGLAS PHARM, INC. (LUVERNE. ALABAMA. USA)

(98.09% held by the subject company)

72, JANE DR, LUVERNE, AL 36049, USA

TEL:+1-334-335-4842 FAX:+1-334-335-2062

CSKIM@KUP.CO.KR

 

KOREA UNITED PHARM. INT'L JSC. (BINH DOUNG, VIETNAM)

(11.0% held by the subject company)

2A DAI LO TU DO BOULVARD, VSIP, THUAN AN DISTRICT, BINH DUONG, VIETNAM   DIST.10, HOCHIMINH CITY, VIETNAM

TEL:+84-650-782-980 FAX:+84-650-782-981

KUP.REP@HCM.VNN.VN

Overseas Branch

U.S.A

13940 DON JULIAN RD, LA PUENTE, CA91746

TEL:+1-626-968-7340 / 1-714-883-4128 FAX:+1-626-336-5465

 

PHILIPPINE

UNIT 1106-A WEST TOWER PHILIPPINE STOCK EXCHANGE CENTER, EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY, MANILA, PHILIPPINES

TEL:+632-634-8984,5 FAX:+632-634-8984,5

CVTEAM@ORGIO.NET

 

VIETNAM

E-TOWN BUILDIONG9.1(9TH FLOOR)364 CONGHOA TANBINH DIST. HOCHIMINH CITY, VIETNAM

TEL:+84-8-812-3915,6 FAX:+84-8-812-3917

KUP.REP@HCM.VNN.VN

 

MYANMAR

ROOM NO.302 IN 3-RD FLOOR OF THE DANATHIHA BUILDING NO.790, BOGYOKE AUNG SAN ROAD, LANMADAW TOWNSHIP, YANGON, MYANMAR

TEL:+95-1-211-824,5 FAX:+95-1-211-820

KUPM@MPTMAIL.NET.MM

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

-Sales Agent

KOREA UNITED PHARM GLOBAL INC.(110111-3513680)

 

-Logistics Service

UNITED INTERPHRAM CO., LTD.(110111-0408644)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

09/2012

2011

2010

Export

16,370,600

18,301,080

18,770,770

Domestic

86,874,119

127,144,682

116,187,543

Total

103,244,719

145,445,762

134,958,313

The subject deals with the companies in Asia, Middle East, South America and Middle America.

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

 

National Health Insurance Corporation

The Subject Company (2 Cases)

 

3,506,937,000

3rd round is proceeding

 

 

National Health Insurance Corporation

The Subject Company (3 Cases)

 

180,706,000

Proceeding

 

 

News Clipping

 

Not Available

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.28

UK Pound

1

Rs.103.84

Euro

1

Rs.85.70

 

 

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.