MIRA INFORM REPORT

 

 

Report Date :

02.06.2014

 

IDENTIFICATION DETAILS

 

Name :

EM TECH CO., LTD.

 

 

Registered Office :

2-1, Busandaehak-ro 63beon-gil, Geumjeong-gu, Busan, Korea Rm. 401, Special Engineering Hall, Busan National Univ 609-735

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.01.2001

 

 

Com. Reg. No.:

621-81-42053

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Sound Equipment

 

 

No. of Employees

221

 

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. 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

EM TECH CO., LTD.

(Korean Company Name : “()이엠텍)

Registered Address

2-1, Busandaehak-ro 63beon-gil, Geumjeong-gu, Busan, Korea

Building

Rm. 401, Special Engineering Hall, Busan National Univ.

Zip Code

609-735

Tel

+82-55-710-6000

Fax

+82-55-710-6100

E-mail

is.hwang@em-tech.co.kr

Website

www.em-tech.co.kr

Trading Address

Rm. 401, Special Engineering Hall, Busan National Univ., 2-1, Busandaehak-ro 63beon-gil, Geumjeong-gu, Busan, Korea

(Old Address System : Rm. 401, Special Engineering Hall, Busan National Univ., San 30, Jangjeon 2-dong, Geumjeong-gu, Busan, Korea)

Tel

+82-55-710-6000

Fax

+82-55-710-6100

Other Address-Changwon Branch

24-9, Seongju-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-710-6012

Fax

+82-55-710-6100

Other Address-Anyang Branch

88, Jeonpa-ro, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

Tel

+82-31-689-5800

Fax

 

Other Address-Guro Branch

11, Digital-ro 33-gil, Guro-gu, Seoul, Korea

Tel

+82-70-4030-6800

Fax

 

Type

Export

Industry

Manufacture of Other Sound Equipment

  Main Business

Micro Speaker, Speaker Receiver

  Sub Business

 

Established (mm/dd/yyyy)

01/18/2001

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Personal communications device accessories or parts(43191600)

Buy

Polypropylene resin(13111019)

Buy

Steel(11101704)

Buy

Polycarbonate resin(13111012)

Buy

Acrylonitrile butadiene styrene resin(13111004)

 


 

CEO’s

 

Name

Jeong Seung-Kiu

Address

 

Date of Birth

04/27/1964

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

6,746,340,000

Employees

221

Formation

Listed Company(KOSDAQ : 091120) as of 05/02/2007

Venture Business

Bank Details

Shinhan Bank

Corporate Registered No.

180111-0348945

Business Registered No.

621-81-42053 (Changwon Branch : 609-85-29854)

Permit & Licenses

01/2003 ISO9001

09/2005 ISO 14001

09/22/2008 ISO 14001

 

Int’l Trade No.: 30404751

Shareholder Position

Name

Shares

%

JEONG SEUNG-KIU

1,975,927

14.64

PARK YEON-KOO

1,198,395

8.88

OTHERS

10,318,358

76.47

TOTAL

13,492,680

100.00

Company History

01/18/2001 Incorporated as the present name

04/10/2001 Designated as a Venture Business

08/2007 Designated as an INNO-BIZ Company

03/29/2012 Designated as a Venture Business again

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Jeong Seung-Kiu

Korean

1964.04.27

Busan National University, Korea

Outside Director

Mr.

Park Kwang-Cheol

Korean

1962.11

-

Director

Mr.

Woo Soo-Myung

Korean

1970.09.28

Kyunghee University, Korea

Director

Mr.

Ahn Hee-Moon

Korean

1966.11

Kyungnam University, Korea

Auditor

Mr.

Jeon Seung-Bong

Korean

1973.02.21

Busan National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

38,078,917,145

120,109,802,618

3,195,457,477

(*)2013

166,954,199,024

97,769,938,222

20,823,383,908

(*)2012

203,551,478,253

91,345,388,828

13,159,065,489

2011

80,597,704,357

57,642,612,875

-1,450,743,119

2010

50,835,667,505

49,083,133,689

-172,913,703

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

6,746,340,000

Total Issued Shares

13,492,680

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

120,109,802,618

97,769,938,222

91,345,388,828

Current Assets

88,235,284,213

68,769,641,848

71,057,797,524

Cash & Cash Equivalents

27,760,408,571

5,245,024,470

33,445,673,462

Other Financial Assets

14,917,009,470

24,919,855,711

54,885,115

Trade Receivables & Other Receivables

39,502,347,688

34,330,903,823

30,513,723,064

Other Current Assets

1,435,046,548

37,817,159

55,722,927

Inventories

4,620,471,936

4,236,040,685

6,987,792,956

Non-Current Assets

31,874,518,405

29,000,296,374

20,287,591,304

Other Financial Assets

348,403,088

312,004,715

184,581,223

Marketable Financial Instruments

 

 

46,800,000

Investment_Subsidiaries

7,652,686,071

7,652,686,071

7,652,686,071

Tangibles

21,897,768,614

19,270,736,695

10,190,994,333

Intangibles

956,091,206

716,840,124

607,607,550

Investment_Real Estates

 

 

469,907,930

Deferred Income Tax Assets

1,019,569,426

1,048,028,769

1,135,014,197

Total Liabilities

44,277,963,374

25,236,948,480

41,443,021,467

Current Liabilities

32,984,916,609

14,115,804,463

41,294,880,954

Trade Payables & Other Payables

30,413,295,394

10,919,893,925

35,542,249,163

Short-Term Borrowings

 

 

2,142,200,000

Other Current Financial Debts

 

 

6,234,424

Other Current Liabilities

5,277,509

5,277,509

216,985,040

Deferred Income Tax Credit

2,566,343,706

3,190,633,029

3,387,212,327

Non-Current Liabilities

11,293,046,765

11,121,144,017

148,140,513

Long-Term Borrowings

2,597,970,000

2,597,970,000

 

Other Non-Current Financial Debts

29,982,758

39,846,618

148,076,512

Other Non-Current Liabilities

 

 

64,001

Bond with Warrant

8,665,094,007

8,483,327,399

 

Capital Stock

6,746,340,000

6,746,340,000

6,746,340,000

Capital Surplus

14,355,633,200

14,355,633,200

14,355,633,200

Others

2,972,500,866

2,869,108,841

1,061,870,368

Profit Surplus

51,757,365,178

48,561,907,701

27,738,523,793

Total Equity

75,831,839,244

72,532,989,742

49,902,367,361

Liab. & Shareholder’s Equity

120,109,802,618

97,769,938,222

91,345,388,828

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

38,078,917,145

166,954,199,024

203,551,478,253

Cost of Sold Goods

33,084,452,429

140,994,951,285

175,854,977,380

Gross Profit

4,994,464,716

25,959,247,739

27,696,500,873

Selling & Admin. Expenses

3,613,964,276

14,055,493,435

17,653,747,233

Operating Income

1,380,500,440

11,903,754,304

10,042,753,640

Other Income

2,730,901,236

15,606,199,016

11,166,829,819

Other Expenses

306,686,883

4,896,124,792

5,000,681,183

Finance Income

217,465,036

659,896,385

728,305,511

Finance Expenses

195,454,472

536,510,283

192,534,524

Income Before Taxes

3,826,725,357

22,737,214,630

16,744,673,263

Income Taxes Expenses

631,267,880

1,913,830,722

3,585,607,774

Net Income

3,195,457,477

20,823,383,908

13,159,065,489

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

15,629,585,139

-7,323,247,352

22,557,145,948

Net Income

3,195,457,477

20,823,383,908

13,159,065,489

Adjustment

913,323,111

-200,795,108

220,243,338

Changes in Asset/ & Liability

12,489,591,646

-25,880,965,893

8,652,986,667

Interests Received

258,310,765

360,606,643

78,430,491

Income Taxes

-1,227,097,860

-2,425,476,902

-113,020,950

Dividends Received

 

 

559,440,913

Cash Flows from Investing

6,932,836,250

-31,196,666,457

891,913,822

Cash Flows from Financing

-13,692,135

10,327,782,042

3,928,718,309

Increase/Decrease in Cash

22,515,384,101

-28,200,648,992

27,128,094,267

Cash at the Beginning of Year

5,245,024,470

33,445,673,462

6,317,579,195

Cash at the End of Year

27,760,408,571

5,245,024,470

33,445,673,462

 


 

Products, Technologies, Services Description

 

Main Products & Services

Micro Speaker, Speaker Receiver

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

SAMSUNG ELECTRONICS CO., LTD.(130111-0006246)

LG ELECTRONICS INC.(110111-2487050)

Competitors

BEST SOUND ELECTRONICS CO., LTD.

58B-4L, NAMDONG INDUSTRIAL COMPLEX, 626-3, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-500-1700~7  FAX:+82-32-554-6205~6

 

INTER M CORPORATION

226-9, DEOKJEONG-DONG, YANGJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-860-7111~8  FAX:+82-31-858-1905

 

BLUECOM CO., LTD.

11-80, SONGDO-DONG, YEONSU-GU, INCHEON, KOREA

TEL:+82-32-810-0500  FAX:+82-32-810-0600

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

 

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

EM-TECH VIETNAM CO., LTD.

(100.0% held by the subject company)

 

QINGDAO EM TECH CO., LTD.(CHINA)

(100.0% held by the subject company)

 

YONTAI EM TECH CO., LTD.(CHINA)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2014

2013

2012

Export

28,385

139,344

153,171

Domestic

9,694

27,610

50,380

Total

38,079

166,954

203,551

The Subject deals with the companies in Vietnam and China.

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.34

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.