MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

BORYUNG PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

66-21, Wonnam-dong, Jongno-gu, Seoul, Korea 15th Fl., Boryeong Bldg.

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

11.11.1963

 

 

Com. Reg. No.:

208-81-00281

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Finished Medicaments

 

 

No. of Employees

1,030

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 Information

 

Basic

 

Company Name

BORYUNG PHARMACEUTICAL CO., LTD.

(Korean Company Name : “보령제약(주)”)

Registered Address

66-21, Wonnam-dong, Jongno-gu, Seoul, Korea

Building

15th Fl., Boryeong Bldg.

Zip Code

110-750

Tel

+82-2-708-8000

Fax

+82-2-742-6362

E-mail

ybchoi@boryung.co.kr

Website

www.boryung.co.kr

Trading Address

15th Fl., Boryeong Bldg., 66-21, Wonnam-dong, Jongno-gu, Seoul, Korea

Tel

+82-2-708-8000

Fax

+82-2-742-6362

Other Address-Ansan Factory

14B-3, Banwol Industrial Complex, 1122-3, Singil-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-5171~5

Fax

+82-31-491-5176

Other Address-Chungcheong Branch

413-12, Gayang 1-dong, Dong-gu, Daejeon, Korea

Tel

+82-42-626-9629

Fax

+82-42-631-9450

Other Address-Gyeonggi Branch

689, Geumjeong-dong, Gunpo-si, Gyeonggi-do, Korea

Tel

+82-31-452-5561

Fax

+82-31-453-1961

Type

Export

Industry

Manufacture of Finished Medicaments

  Main Business

Thrombosis Cure, Gastroenteric Disorder Cure, Age Apostacy Antibiosis Emperors, Health Foods

  Sub Business

 

Established (mm/dd/yyyy)

11/11/1963

The Subject owns the premises of Ansan Factory, Chungcheong Branch and Gyeonggi Branch.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Drugs used for respiratory tract disorders(51161700)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Antifungal drugs(51101800)

Sell

Antihistamines or H1 blockers(51161600)

Sell

Dietary supplements and nutritional therapy products(51191900)

Sell

Ophthalmic(51102400)

Sell

Vitamin supplements(51191905)

Sell

Hormones and antihormones(51111800)

Sell

Antihypertensive drugs(51121700)

Sell

Dental drugs(51212100)

 

CEO’s

 

Name

Kim Eun-Sun

Address

 

Date of Birth

03/25/1958

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

19,170,000,000

Employees

1,030

Formation

Listed Company (Korea Stock Exchange : 003850) as of 10/24/1988

Bank Details

Hana Bank

Corporate Registered No.

110111-0012560

Business Registered No.

208-81-00281

Permit & Licenses

Int’l Trade No.: 842990

Shareholder Position

Name

Shares

%

BORYUNG INDUSTRY CO., LTD.(110111-0380230)

2,255,390

29.41

KIM EUN-SUN

934,116

12.18

BORYUNG MEDIENCE CO.,LTD.(110111-0252471)

409,582

5.34

NATIONAL PENSION SERVICE(110171-0007134)

469,007

6.12

TREASURY STOCK

251,865

3.28

OTHERS

3,348,040

43.66

TOTAL

7,668,000

100.00

Company History

11/11/1963 Incorporated as the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Kim Eun-Sun

Korean

1958.03.25

Yonsei University, Korea

President & CEO

Mr.

Choi Tae-Hong

Korean

1957.04.

Seoul National University, Korea

Sr. Executive Director

Mr.

Ahn Jae-Hyun

Korean

1961.10

Sungsil University, Korea

Outside Director

Mr.

Kil Kwang-Sub

Korean

1948.03.

Kyunghee University, Korea

Auditor

Mr.

Lee Han-Bok

Korean

1954.05.

Myungji University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

76,368,635,668

271,218,607,658

5,879,583,189

(*)2013

327,278,733,555

267,559,993,964

14,126,625,318

(*)2012

312,075,037,438

273,006,171,315

9,401,047,023

(*)2011

308,005,546,819

262,386,265,508

6,178,116,734

2010

300,958,914,133

245,855,180,297

14,349,093,941

2009

267,844,294,136

176,785,420,100

5,182,161,112

2008

223,259,470,630

166,206,798,107

5,205,610,389

2007

197,500,613,650

162,090,592,195

8,418,562,740

2006

180,992,983,439

158,589,967,921

2,245,585,142

2005

158,058,701,143

163,006,440,230

3,019,564,805

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

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

19,170,000,000

Total Issued Shares

7,668,000

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

271,218,607,658

267,559,993,964

273,006,171,315

Current Assets

157,443,190,823

155,114,922,773

157,886,670,726

Cash & Cash Equivalents

10,357,984,637

10,346,262,990

10,492,127,388

Current Financial Instruments

585,757,323

81,465,128

3,824,793

Trade Receivables & Other Receivables

99,309,241,449

99,477,791,768

102,327,311,528

Inventories

46,737,010,617

44,755,405,249

44,531,302,351

Other Current Assets

453,196,797

453,997,638

532,104,666

Non-Current Assets

113,775,416,835

112,445,071,191

115,119,500,589

Non-Current Financial Instruments

11,000,000

11,000,000

11,000,000

Long-Term Trade Receivables & Other Receivables

4,503,761,750

4,503,812,750

4,417,866,500

Marketable Financial Instruments

500,000,000

500,000,000

500,000,000

Tangibles

65,506,528,826

64,373,017,499

67,805,032,120

Investment_Real Estates

25,477,522,351

25,513,717,017

25,658,495,679

Intangibles

17,687,444,817

17,454,364,834

16,637,947,199

Other Non-Current Assets

89,159,091

89,159,091

89,159,091

Total Liabilities

106,957,077,138

107,579,507,435

127,213,133,347

Current Liabilities

87,500,218,149

89,866,696,743

110,054,487,514

Trade Payables & Other Payables

38,563,272,795

35,137,691,095

37,930,334,635

Short-Term Borrowings

27,108,994,750

31,685,418,005

52,122,017,312

Current Portion of Long-Term Debts

0

0

100,000,000

Accrued Income Tax

3,757,948,642

4,213,956,224

877,098,686

Other Current Liabilities

18,070,001,962

18,829,631,419

19,025,036,881

Non-Current Liabilities

19,456,858,989

17,712,810,692

17,158,645,833

Provision for Severance & Retirement

5,864,174,956

4,905,350,762

6,767,129,802

Deferred Income Tax Credit

4,207,334,557

3,621,636,467

2,851,954,765

Provisions

3,822,106,234

3,665,073,550

3,607,033,229

Other Non-Current Liabilities

5,563,243,242

5,520,749,913

3,932,528,037

Capital Stock

19,170,000,000

18,282,500,000

17,440,000,000

Capital Surplus

-1,131,613,125

292,869,173

1,018,070,335

Profit Surplus

146,223,143,645

141,405,117,356

127,334,967,633

Total Equity

164,261,530,520

159,980,486,529

145,793,037,968

Liab. & Shareholder’s Equity

271,218,607,658

267,559,993,964

273,006,171,315

 

Income Statement

Unit : Million Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

76,368,635,668

327,278,733,555

312,075,037,438

Cost of Sold Goods

40,991,624,575

186,354,015,618

185,733,544,490

Gross Profit

35,377,011,093

140,924,717,937

126,341,492,948

Selling & Admin. Expenses

24,934,426,800

97,285,691,099

94,743,736,540

R&D

5,224,080,291

24,502,265,862

28,226,087,787

Operating Income

5,218,504,002

19,136,760,976

3,371,668,621

Finance Income

40,768,036

122,167,398

388,022,485

Finance Expenses

309,768,911

1,890,149,024

2,541,569,928

Other  Income

3,058,905,175

4,868,522,460

5,346,749,964

Other Expenses

145,823,307

1,923,780,223

1,211,956,394

Income Before Taxes

7,862,584,995

20,313,521,587

5,352,914,748

Income Taxes Expenses

1,983,001,806

6,186,896,269

-4,048,132,275

Net Income

5,879,583,189

14,126,625,318

9,401,047,023

 

Cash Flows

Unit : Million Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

10,249,979,367

28,527,119,260

18,378,731,056

Net Income

5,879,583,189

14,126,625,318

9,401,047,023

Adjustment

6,521,850,136

18,155,783,992

9,344,070,603

Interests Received

4,573,005

102,960,686

160,267,133

Interests Paid

-302,715,665

-1,492,074,264

-2,185,879,170

Income Taxes

-1,853,311,298

-2,366,176,472

1,659,225,467

Cash Flows from Investing

-4,092,314,224

-7,046,102,376

-6,582,546,141

Cash Flows from Financing

-6,172,169,318

-21,407,196,674

-3,236,776,956

Increase/Decrease in Cash

-14,504,175

73,820,210

8,559,407,959

Cash at the Beginning of Year

10,346,262,990

10,492,127,388

1,970,709,521

Cash at the End of Year

10,357,984,637

10,346,262,990

10,492,127,388

 

Products, Technologies, Services Description

 

Main Products & Services

Thrombosis Cure, Gastroenteric Disorder Cure, Age Apostacy Antibiosis Emperors, Health Foods

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

BMS PHARMACEUTICAL KOREA LTD.(134111-0000343)

BORYUNG BIOPHARMA CO., LTD.(154311-0001749)

LOTTE ALUMINUM CO., LTD.(110111-0003121)

UCB(JAPAN)

MEIJI SEIKA

MAYNE PHARMA

Customers

 

Competitors

DONGA PHARMACEUTICAL CO., LTD.(110111-0017990)

252, YONGDU-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-920-8114  FAX:+82-2-924-2662

 

YUHAN CORPORATION(110111-0014409)

49-6, DAEBANG-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-828-0181 FAX:+82-2-828-0050

 

HANMI PHARM CO., LTD.(110111-0014409)

893-5, HAJEO-RI, PALTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-356-3311 FAX:+82-31-356-5151

 

GREEN CROSS CORPORATION(110111-0109854)

303, BOJEONG-DONG, GIHEUNG-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-260-9300  FAX:+82-31-260-9413

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

BORYUNG MEDIENCE CO.,LTD.(110111-0252471)

BORYUNG INDUSTRY CO., LTD.(110111-0380230)

BORYUNG BIOPHARMA CO., LTD.(154311-0001749)

KIMS COM CO., LTD.(110111-0512221)

BR NETCOM CO., LTD.(134111-0051809)

BORYUNG SOO& SOO CO., LTD.(110111-3128588)

MAM'S MAM CO., LTD.(285011-0147343)

LIK REALTY CO., LTD.(110111-3992206)

KUMJUNG PROJECT FINANCE INVESTMENT CO., LTD.(135111-0095088)

JIYOUNG PLC CO., LTD.(134611-0048533)

BORYUNG A&D MEDICAL CO., LTD.(110111-4882464)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

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

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

03/2014

2013

2012

Export

7,290,695

32,048,511

26,634,762

Domestic

69,077,940

295,230,223

285,440,276

Total

76,368,636

327,278,734

312,075,037

The Subject exports to China, Japan and USA.

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Supreme Court of Korea

National Health Insurance Service

The Subject Company and others(28)

Claim for Compensation from Damages

4,997,549,912

3rd round is proceeding

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUB DIV RAS SUM KAR

 

 

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%)

 

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.