MIRA INFORM REPORT

 

 

Report Date :

14.07.2014

 

IDENTIFICATION DETAILS

 

Name :

KOLON LIFE SCIENCE INC.

 

 

Formerly Known As :

KOREA TISSUEGENE ASIA, LTD.

 

 

Registered Office :

13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea, 9th Fl., Kolon Tower, Zip Code 427-709

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

21.04.2000

 

 

Com. Reg. No.:

104-81-52769

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacturer of Finished Medicaments  such as API(Active Pharmaceutical Ingredients), PI(Pharmaceutical Intermediates), Environmental materials & Water solutions

 

Engaged in development of Functional Chemicals, including Paint, Ink, Catalysis, Adhesive, and chemicals for electronics, as well as Technology-Intensive Products, such as Agricultural Chemicals, and Biological Activators, such as Cosmetics and perfumes

 

·         Engaged in selling of Antineoplastic Antibiotics

 

 

No of Employees :

351

 

 

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 :

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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. 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 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, and heavy reliance on exports - which comprise about half of GDP.

 

Source : CIA

 

 

Basic

 

Company Name

KOLON LIFE SCIENCE INC.

(Trade Name : KLS)

(Korean Company Name : “코오롱생명과학(주)”)

Registered Address

13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea

Building

9th Fl., Kolon Tower

Zip Code

427-709

Tel

+82-2-3677-4150

Fax

+82-2-3677-4159

E-mail

bhhan@kolon.com

Website

www.kolonls.co.kr

Trading Address

9th Fl., Kolon Tower, 13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea

(Old Address System : 9th Fl., Kolon Tower, 1-23, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea)

Tel

+82-2-3677-4150

Fax

+82-2-3677-4159

Other Address-Incheon Factory

294, Gajwa 4-dong, Seo-gu, Incheon, Korea

Tel

+82-32-580-0862

Fax

+82-32-578-1035

Other Address-Kimcheon Factory

300-2, Eungmyeong-dong, Kimcheon-si, Gyeongsangbuk-do, Korea

Tel

+82-54-429-7601

Other Address-Eumseong Factory

185-3, Buyun-ri, Daeso-myeon, Eumseong-gun, Chungbuk, Korea

Tel

+82-43-883-3301~3

Type

Export

  Main Business

·         Manufacturer of Finished Medicaments  such as API(Active Pharmaceutical Ingredients), PI(Pharmaceutical Intermediates), Environmental materials & Water solutions

 

Engaged in development of Functional Chemicals, including Paint, Ink, Catalysis, Adhesive, and chemicals for electronics, as well as Technology-Intensive Products, such as Agricultural Chemicals, and Biological Activators, such as Cosmetics and perfumes

Established (mm/dd/yyyy)

04/21/2000

The Subject owns the premises of Kimcheon Factory and Eumseong Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antineoplastic Antibiotics(51111700)

 

 

CEO’s

 

Name

Lee Woo-Seok

Date of Birth

01/11/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

3,175,184,000

Employees

351

Formation

Listed Company(KOSDAQ : 102940) as of 04/07/2009

Foreign Direct Investment Corporation

A Company of Kolon Group

Bank Details

Hana Bank

Korea Exchange Bank

Kookmoin Bank

Woori Bank-Gwacheon Branch

Corporate Registered No.

110111-1948277

Business Registered No.

104-81-52769

Permit & Licenses

Int’l Trade No.: 45254082

Shareholder Position

Name

Shares

%

KOLON CORPORATION(110111-0030528)

1,369,249

21.56

LEE WOONG-YEOL

832,944

13.12

KWON OH-SANG

334,989

5.28

NATIONAL PENSION SERVICE(110171-0007134)

486,892

7.67

SONG MOON-SOO

122,757

1.93

OTHERS

3,203,537

50.45

TOTAL

6,350,368

100.00

Company History

04/21/2000 Incorporated as KOREA TISSUEGENE ASIA, LTD.

12/30/2005 Acquired Chemical Division from KOLON CORPORATION(110111-0030528) and KOLON CHEMICAL CO., LTD.(110111-0191405)

01/2006 Moved to the present HQ address from 35-34, Tongui-dong, Jongno-gu, Seoul, Korea

01/02/2006 Changed company name to the present name

03/21/2014 Increased capital to 3,175,184,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Woo-Seok

Korean

1957.01.11

Seoul National University, Korea

Sr. Executive Director

Mr.

Seo Myung-Kwan

Korean

1962.09.

Seoul National University, Korea

Outside Director

Mr.

Park Tae-Hyun

Korean

1957.09.

Seoul National University, Korea

Auditor

Mr.

Seo Dae-Kyo

Korean

1951.04.05

Korea University, Korea

Chairman

Mr.

Lee Woong-Yeol

Korean

1956.04.18

George Washington University, USA

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

33,506,812,060

205,958,612,187

2,512,952,794

(*)2013

139,611,274,566

206,897,996,587

17,228,115,420

(*)2012

141,254,377,758

192,295,576,052

18,902,265,354

(*)2011

117,192,615,092

149,568,346,939

11,169,272,545

2010

101,882,913,020

83,883,267,843

8,564,699,348

2009

86,782,783,434

78,802,349,378

8,841,348,683

2008

70,247,078,901

55,054,825,973

7,588,481,948

2007

57,441,040,263

37,865,730,595

3,450,947,572

2006

48,656,870,324

29,262,265,204

2,143,875,628

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

3,175,184,000

Total Issues Shares

6,350,368

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

205,958,612,187

206,897,996,587

192,295,576,052

Current Assets

78,166,560,126

86,848,312,028

77,360,599,497

Cash & Cash Equivalents

10,997,397,455

19,939,942,017

16,096,791,444

Trade Receivables & Other Receivables

21,772,116,003

22,196,713,230

24,744,825,787

Inventories

44,321,527,124

43,285,477,909

35,830,022,561

Marketable Financial Instruments

303,420,500

306,697,600

0

Held-to-Maturity Financial Assets

149,625,177

148,817,766

0

Other Current Assets

622,473,867

970,663,506

688,959,705

Non-Current Assets

127,792,052,061

120,049,684,559

114,934,976,555

Long-Term Trade Receivables & Other Receivables

1,321,525,303

1,250,785,769

1,362,456,979

Marketable Financial Instruments

9,048,200,791

3,837,958,890

4,156,320,790

Held-to-Maturity Financial Assets

110,422,912

110,306,461

255,405,144

Non-Current Financial Instruments

3,000,000

3,000,000

3,000,000

Tangibles

110,337,432,953

108,256,729,589

103,968,361,778

Operating Rights

2,992,402,771

2,992,402,771

2,992,402,771

Intangibles

3,782,081,987

3,309,236,292

2,079,186,227

Deferred Income Tax Assets

196,985,344

289,264,787

117,842,866

Total Liabilities

79,580,382,208

83,270,342,390

85,597,257,822

Current Liabilities

45,242,743,732

46,300,641,290

40,049,722,017

Trade Payables & Other Payables

13,892,247,609

16,203,748,223

20,816,597,726

Short-Term Borrowings

13,447,368,447

11,767,176,089

12,376,605,263

Current Portion of Long-Term Debts

16,524,678,011

16,468,718,202

4,404,140,000

Deferred Income Tax Assets

1,226,318,740

1,612,980,780

2,164,288,360

Other Current Liabilities

152,130,925

248,017,996

288,090,668

Non-Current Liabilities

34,337,638,476

36,969,701,100

45,547,535,805

Long-Term Borrowings

30,266,480,000

33,466,460,000

43,196,206,651

Long-Term Trade Payables & Other Payables

1,257,236,373

1,249,298,456

1,026,542,546

Provision for Severance & Retirement

2,813,922,103

2,253,942,644

1,324,786,608

Capital Stock

3,175,184,000

2,639,437,500

2,574,115,500

Capital Surplus

49,053,424,631

48,697,492,898

45,096,372,677

Profit Surplus

74,146,953,358

72,285,499,671

59,013,507,771

Others

2,667,990

5,224,128

14,322,282

Total Equity

126,378,229,979

123,627,654,197

106,698,318,230

Liab. & Shareholder’s Equity

205,958,612,187

206,897,996,587

192,295,576,052

 

 

Income Statement

 

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

33,506,812,060

139,611,274,566

141,254,377,758

Cost of Sold Goods

24,302,287,380

96,249,189,163

95,360,359,909

Gross Profit

9,204,524,680

43,362,085,403

45,894,017,849

Selling Expenses

1,105,609,468

4,422,904,052

4,143,032,600

Admin. Expenses

2,258,264,123

10,120,876,095

9,042,523,905

R&D

2,507,249,512

10,479,133,624

10,399,201,404

Operating Income

3,333,401,577

18,339,171,632

22,309,259,940

Other Income

769,811,583

8,531,126,498

2,278,484,086

Other Expenses

627,814,489

5,768,503,136

2,404,228,210

Finance Income

87,814,094

465,681,057

895,420,428

Finance Expenses

583,367,047

1,752,195,287

1,661,732,891

Income Before Taxes

2,979,845,718

19,815,280,764

21,417,203,353

Income Taxes Expenses

466,892,924

2,587,165,344

2,514,937,999

Net Income

2,512,952,794

17,228,115,420

18,902,265,354

 

 

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

2,338,493,435

16,160,570,798

23,369,670,554

Net Income

2,512,952,794

17,228,115,420

18,902,265,354

Adjustment

1,018,196,712

3,755,040,061

6,429,944,292

Interests Received

137,487,454

420,872,970

977,276,544

Interests Paid

-574,883,815

-1,964,211,183

-1,512,200,606

Income Taxes

-755,259,710

-3,279,246,470

-1,427,615,030

Cash Flows from Investing

-10,161,793,177

-12,868,080,640

-65,313,229,384

Cash Flows from Financing

-1,110,512,378

553,883,177

19,073,399,528

Increase/Decrease in Cash

-8,942,544,562

3,843,150,573

-22,870,256,345

Cash at the Beginning of Year

19,939,942,017

16,096,791,444

38,967,047,789

Cash at the End of Year

10,997,397,455

19,939,942,017

16,096,791,444

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pharmaceuticals

Environmental materials

Water solutions

 

 

Brand Name : CleanBio, CleanBioZinc, Hiretar, Purecell, Besfloc, KOLOXO, Tissuegene-C, Tissuegene-B, Tissuegene-N

 

 

Trade Partners & Competitors

 

Suppliers

YONGSAN MITSUI CHEMICALS, INC.(110111-1852600)

Customers

UNILEVER KOREA LTD.(110111-0839039)

PACIFIC CORPORATION(110111-0026644)

INTERNATIONAL PAINT (KOREA) LTD.(134111-0006565)

CHOKWANG JOTUN LTD.(184511-000343)

YOSHINDO

GSK(UK)

Competitors

EYANG CHEMICAL CO.,LTD.(110111-0506216)

HANSOL CHEMICAL CO., LTD.(110111-0270895)

SONGWON INDUSTRIAL CO., LTD.(180111-0000636)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

KOLON PHARMACEUTICAL CO., LTD.(110111-0256259)

KOLON CORPORATION(110111-0030528)

KTP INDUSTRIES INC.(171311-0003504)

KOLON GLOTECH INC. (110111-0524838)

KOLON FASHION CORPORATION(110111-2127292)

NEOVIEWKOLON CO., LTD (134211-0040660)

KF&T INDUSTRIES INC.(230111-0091824)

KOLON PLASTICS INC.(171311-0003504)

KOLON LIFE SCIENCE CO., LTD.(110111-1948277)

CELLVIC DEVELOPMENT CORPORATION(131111-0031292)

CRYOTECH CO., LTD.(191211-0010226)

KOLON FASHION MATERIAL INC.(135311-0011139)

KOLON EVERAY CO., LTD.(176011-0054417)

FNC KOLON CORP.(110111-0003973)

CAMBRIDGE MEMBERS CO., LTD.(134111-0000517)

KOLONWELLCARE CO., LTD.(110111-2930299)

SWEET MEAL CO., LTD.(110111-2925604)

SURPLUS GLOBAL, INC.(110111-1921140)

KOLON MOTORS CO., LTD.(131111-0209708)

KOLON ENGINEERING & CONSTRUCTION CO., LTD.(110111-0036502)

KOLON CONSTRUCTION & CONSULTING CO., LTD.(170111-0230756)

I PACIFIC PARTNERS INC.(110111-1902786)

KOLON I' NETWORKS CORP.(110111-0712350)

DEOK PYEONG LAND CO., LTD.(134411-0024149)

KOLON ENVIRONMENTAL SERVICE CO., LTD.(135311-0005893)

GREEN NARAE INC(161511-0078133)

KESCO LANDSCAPE CO., LTD.(135311-0009572)

KOLON BENIT CO., LTD.(135311-0003920)

MAUNA OCEAN DEVELOPMENT CO., LTD.(171211-0045128)

EFMC (ENVIRONMENTAL FACILITIES MANAGEMENT CORPORATION 110111-1458739 )

ENVY SYSTEM INC.(110111-1028798)

GREEN HWASUN INC.(160111-0199459)

GREEN GYEONGSAN INC.(160111-0203622)

GREEN SUNCHANG INC.(160111-0134942)

ON ORGANICNANO ELECTROIC SYSEMS INC.(200111-0255228)

KOREA EPLATFORM CO., LTD.(110111-2008921)

KOLON PLASTICS, INC.(171311-0003504)

Affiliates-Overseas

PT. KOLON INA

KOLON USA INC.

TISSUEGENE INC.

QINGDAO KOLON GLOTECH INC.

KOLON NANJING CO.,LTD.

ZHANGJIAGANG KOLON GLOTECH INC.

BEIJING KOLON GLOTECH, INC.

KOLON CHEMICAL (SUZHOU) CO., LTD.

BEIJING MI JO DESIGN CO. LTD.

INTELLIGENT COMMUNITIES KOLON FZCO

KOLON GLOTECH MEXICO SA.DEC.V

Yontai Chungjung Co., Ltd.

KOLON EU GMBH

KOREA KOLON WATER LITMITED

KOLON GLOTECH U.S.A. CORP.

FNC KOLON SHANGHAI CORP.

FNC KOLON USA CORP.

KOLON I'NETWORKS AMERICA CORP.

Corporate Ownership

KOLON CORPORATION(110111-0030528)

Major Shareholders

KOLON CORPORATION(110111-0030528)

Cooperative Enterprise

-Insured Company

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

 

-License/Technology Agreement from

TISSUEGENE, INC.(USA)

GENEXINE CO.,LTD.(171711-0036705)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2014

2013

2012

Export

24,914

105,023

107,998

Domestic

8,592

34,588

33,256

Total

33,506

139,611

141,254

 

The Subject exports to Japan and UK. It imports from China and India.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.19

UK Pound

1

Rs.103.15

Euro

1

Rs.81.87

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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