MIRA INFORM REPORT

 

 

Report Date :

03.01.2014

 

IDENTIFICATION DETAILS

 

Name :

YG-1 CO., LTD.

 

 

Formerly Known As :

YANGGEE 1 TOOLS CO., LTD.

 

 

Registered Office :

68, Cheongcheon 1-dong, Bupyeong-gu, Incheon, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

25.09.1986

 

 

Com. Reg. No.:

122-81-16515

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Saws, Saw Blades and Interchangeable Tools

 

 

No. of Employees :

1,385

 

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 :

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)

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. 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

YG-1 CO., LTD.

(Korean Company Name : “()와이지-)

Registered Address

68, Cheongcheon 1-dong, Bupyeong-gu, Incheon, Korea

Building

 

Zip Code

403-855

Tel

+82-32-526-0909

Fax

+82-32-526-4373

E-mail

yg-1@yg1.co.kr

Website

www.yg1.co.kr

Trading Address

68, Cheongcheon 1-dong, Bupyeong-gu, Incheon, Korea

Tel

+82-32-526-0909

Fax

+82-32-526-4373

Other Address-Ansan Factory

5Ra-403, Sihwa Industrial Complex, 673-15, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-499-9541~5

Fax

+82-31-498-7971

Other Address-Gwangju Factory

621-4, Docheon-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-62-951-9212

Fax

+82-62-951-9222

Other Address-R&D Center

7-7, Songdo-dong, Yeonsu-gu, Incheon, Korea

Tel

+82-32-858-0919~21

Fax

+82-32-858-0922

Type

Export

Industry

Manufacture of Saws, Saw Blades and Interchangeable Tools

  Main Business

End Mill, Drill, Tap, Rotary Burr

  Sub Business

 

Established (mm/dd/yyyy)

09/25/1986

The Subject owns the premises of registered HQ address, Ansan Factory and Gwangju Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Taps or dies(23153305)

Sell

Drills(23153301)

Sell

End mills(27112803)

Sell

Rotary burrs(23153310)

Buy

Tungsten carbide(31191518)

Buy

Steel(11101704)

 

CEO’s

 

Name

Song Ho-Keun

Address

 

Date of Birth

01/15/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

12,006,615,000

Employees

1,385

Formation

Listed Company (KOSDAQ : 019210) as of 08/06/1997

Bank Details

Citibank, Korea

SC First Bank of Korea

Woori Bank

Corporate Registered No.

120111-0038639

Business Registered No.

122-81-16515

Permit & Licenses

06/1993 KS Mark

03/1997 EM Mark

03/31/1997 KS Mark

12/28/1999 ISO 9001 by TUV

07/2001 ISO 14001 by TUV

03/2005 ISO 9001 by DAS

03/2005 ISO 14001 by DAS

 

Int’l Trade No.: 960975

Shareholder Position

Name

Shares

%

SONG HO-KEUN

9,672,178

40.28

ISCAR LTD.

2,400,000

9.99

BARING ASSET MANAGEMENT KOREA LIMITED(110111-0563208)

1,911,367

7.96

SEI ASSET KOREA CO., LTD.(110111-0563208)

695,036

2.89

SHIN SOOK-HEE

205,620

0.86

SONG SI-HAN

336,880

1.40

SONG JI-HAN

327,091

1.36

SONG JU-RI

150,068

0.62

OTHERS

8,314,990

34.63

TOTAL

24,013,230

100.00

Company History

09/25/1986 Incorporated as YANGGEE 1 TOOLS CO., LTD.

10/12/1999 Changed company name to the present name

11/2001 Awarded US$30 Million Export Top Prize

07/2004 Moved to the present HQ address from 378, Cheongcheon-dong, Bupyeong-gu, Incheon, Korea

11/2004 Awarded US$50 Million Export Top Prize

11/2006 Awarded US$70 Million Export Top Prize

11/2008 Awarded US$100 Million Export Top Prize

02/28/2009 Acquired the patent on spherical tools in India

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Song Ho-Keun

Korean

1952.01.15

Seoul National University, Korea

Director / R&D

Mr.

Lee Young-Bae

Korean

1951.03.10

Dongah University, Korea

Director

Mr.

Park Young-Koon

Korean

1958.01.27

Gyungnam University, Korea

Outside Director

Mr.

Kim Jong-Hoon

Korean

1953.03.08

Seoul National University, Korea

Auditor

Mr.

Lee Ho-Kil

Korean

1950.06.29

Seoul National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2013

181,150,401,375

520,379,523,419

115,947,091

(*)2012

254,704,068,809

478,156,565,006

18,528,143,774

(*)2011

257,472,360,293

408,336,611,946

20,586,778,811

2010

163,176,034,832

208,141,615,879

10,667,567,876

2009

115,507,427,989

190,838,235,591

-14,645,488,980

2008

174,829,352,201

177,677,235,137

7,670,371,069

2007

128,278,571,018

142,713,220,376

9,865,338,204

2006

105,483,007,771

119,862,120,219

7,231,213,257

2005

107,731,920,082

112,822,917,787

6,130,343,517

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

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

12,006,615,000

Total Issues Shares

24,013,230

 

Balance Sheet

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

520,379,523,419

478,156,565,006

408,336,611,946

Current Assets

273,378,549,680

247,208,274,170

236,659,301,254

Cash & Cash Equivalents

1,925,386,516

3,679,947

586,100,208

Current Financial Instruments

41,473,990,083

23,998,488,291

10,007,576,795

Trade Receivables & Other Receivables

121,289,668,655

117,303,599,163

124,229,401,024

Marketable Financial Instruments

3,590,000

1,870,000

5,550,000

Derivatives

95,836,765

-

-

Inventories

103,085,626,928

97,764,019,930

92,911,343,892

Other Current Assets

5,504,450,733

8,136,616,839

8,919,329,335

Non-Current Assets

247,000,973,739

230,948,290,836

171,677,310,692

Investment_Subsidiaries

78,191,689,022

73,460,779,755

43,411,462,828

Investment_Related Companies

2,995,402,946

3,081,172,505

5,275,424,251

Marketable Financial Instruments

1,118,453,018

1,114,109,407

126,393,317

Held-to-Maturity Financial Assets

378,580,000

381,000,000

368,040,000

Long-Term Trade Receivables & Other Receivables

729,822,763

239,043,923

2,512,793,763

Non-Current Financial Instruments

255,000,000

125,000,000

92,500,000

Tangibles

162,514,938,227

151,367,890,401

118,403,582,115

Intangibles

817,087,763

1,179,294,845

1,487,114,418

Total Liabilities

341,602,760,897

294,693,103,575

273,175,293,584

Current Liabilities

198,289,082,385

177,648,728,269

225,475,771,201

Short-Term Borrowings

153,254,962,541

126,179,488,352

166,080,337,794

Trade Payables & Other Payables

43,215,225,376

30,530,938,941

36,335,324,553

Debentures

-

17,985,892,872

19,992,789,837

Provisions

44,940,510

1,375,257,144

1,364,114,458

Finance Guarantee Debts

231,434,161

299,209,149

353,234,382

Derivatives

101,852,502

-

-

Other Current Liabilities

1,440,667,295

1,277,941,811

1,349,970,177

Non-Current Liabilities

143,313,678,512

117,044,375,306

47,699,522,383

Long-Term Borrowings

38,676,994,454

41,545,320,684

22,581,492,440

Debentures

64,809,116,456

39,929,549,038

17,968,144,627

Bond with Warrant

28,622,043,382

26,927,164,961

-

Other Non-Current Financial Debts

716,037,307

483,372,611

296,105,697

Confirmed Salaries

2,756,407,358

1,891,252,452

2,487,249,089

Deferred Income Tax Credit

7,733,079,555

6,267,715,560

4,366,530,530

Capital Stock

12,006,615,000

12,006,615,000

10,806,615,000

Others

57,755,131,321

57,755,131,321

24,455,424,339

Profit Surplus

109,015,016,201

113,701,715,110

99,899,279,023

Total Equity

178,776,762,522

183,463,461,431

135,161,318,362

Liab. & Shareholder’s Equity

520,379,523,419

478,156,565,006

408,336,611,946

 

Income Statement

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

181,150,401,375

254,704,068,809

257,472,360,293

Cost of Sold Goods

148,947,431,303

194,614,885,219

193,683,821,645

Gross Profit

32,202,970,072

60,089,183,590

63,788,538,648

Selling Expenses

7,192,160,031

8,915,591,491

12,850,185,292

Admin. Expenses

12,022,375,679

16,553,149,847

14,022,503,281

Operating Income

12,988,434,362

34,620,442,252

36,915,850,075

Other Income

14,723,025,125

13,590,983,441

10,111,284,726

Other Expenses

15,522,916,550

17,351,117,835

12,119,449,781

Finance Income

4,796,371,570

10,511,543,480

4,542,731,113

Finance Expenses

16,010,362,288

16,316,478,823

14,767,136,244

Income Before Taxes

974,552,219

25,055,372,515

24,683,279,889

Income Before Taxes

858,605,128

6,527,228,741

4,096,501,078

Net Income

115,947,091

18,528,143,774

20,586,778,811

 

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

23,813,839,961

34,375,967,298

-29,524,530,524

Cash Flows from Operating

23,780,596,080

39,136,343,512

-28,703,895,117

Net Income

115,947,091

18,528,143,774

20,586,778,811

Adjustment

17,937,129,248

28,353,445,422

24,291,006,310

Changes in Asset/ & Liability

5,727,519,741

-7,745,245,684

-73,581,680,238

Dividends Received

50,499,936

56,614,680

 

Income Taxes

-17,256,055

-4,816,990,894

-820,635,407

Cash Flows from Investing

-42,836,640,078

-85,251,442,388

-43,530,964,379

Cash Flows from Financing

20,943,835,494

50,293,054,829

70,950,742,692

Increase/Decrease in Cash

1,921,706,569

-582,420,261

-2,104,752,211

Cash at the Beginning of Year

3,679,947

586,100,208

2,690,852,419

Cash at the End of Year

1,925,386,516

3,679,947

586,100,208

 

Products, Technologies, Services Description

 

Main Products & Services

End Mills, Taps, Drills

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

INBEX DIAMOND CO., LTD.

296-2, DONGPAE 1-RI, GYOHA-EUP, PAJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-945-2153  FAX:+82-31-945-2809

 

ACCUTECH CO., LTD.

1402-3, JUAN 5-DONG, NAM-GU, INCHEON, KOREA

TEL:+82-32-816-8808  FAX:+82-32-811-0837

 

SEWON TECH CO., LTD.

396-11, CHEONGCHEON 2-DONG, BUPYEONG-GU, INCHEON, KOREA

TEL:+82-32-582-4324~6  FAX:+82-32-582-4327

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

QINGDAO NEW CENTURY TOOL CO. ,LTD.(CHINA)

(90.6% held by the subject company)

 

QINGDAO YG-1 TOOL CO., LTD.(CHINA)

(100.0% held by the subject company)

 

YG-1 EUROPE SAS(FRANCE)

(100.0% held by the subject company)

 

PREMIER CUTTING TOOLS. INC.(USA)

(100.0% held by the subject company)

 

REGAL CUTTING TOOLS. INC.(USA)

(60.0% held by the subject company)

 

YG-1 INDUSTRIES INDIA PVT. LTD.(INDIA)

(100.0% held by the subject company)

 

EUROPA TOOLS CO., LTD.(UK)

(81.1% held by the subject company)

 

YG-1 DEUTSCHLAND GMBH(GERMANY)

(100.0% held by the subject company)

 

YG-1 AUSTRALIA PTY. LTD.(AUSTRALIA)

(100.0% held by the subject company)

 

YG-1 TOOLS ASIA PTE. LTD.(SINGAPORE)

(100.0% held by the subject company)

 

YG-1 JAPAN(JAPAN)

(90.0% held by the subject company)

 

ALPHA TOOL CO.,LTD.(JAPAN)

(48.0% held by the subject company)

 

YG-1 LATIN AMERICA(BRAZIL)

TEKNO TAKIM SAN. TIC. AS.(TURKEY)

YG CUTTING TOOLS CORPORATION PVT.LTD.(INDIA)

CLARKSON OSBORN INTERNATIONAL LTD.(UK)

MINICUT INTERNATIONAL. INC.(CANADA)

NATIONAL TOOL HARDENING INC.(CANADA)

YG-1 POLAND SP.ZOO(POLAND)

YG-1 CANADA INC.

YG-1 (HONG KONG) LIMITED

YG-1 CORPORATION TRADING SRL (RUMANIA)

YG-1 CHINA HOLDINGS LIMITED.

YG-1 (THAILAND) CO, LTD.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured company

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

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2011

2010

2009

Export

38,994

 114,564

82,500

Domestic

12,314

  48,612

33,007

Total

51,308

 163,176

115,507

The Subject exports to Australia, Germany, Japan, Singapore, UK and USA. It imports from Europe.

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.90

UK Pound

1

Rs.102.74

Euro

1

Rs.85.16

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.