MIRA INFORM REPORT

 

 

Report Date :

07.06.2014

 

IDENTIFICATION DETAILS

 

Name :

DUKSUNG CO., LTD.

 

 

Registered Office :

25, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

10.11.1966

 

 

Com. Reg. No.:

123-81-00243

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Plastics Synthetic Leather

 

 

No. of Employees

184

 

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 – 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

DUKSUNG CO., LTD.

(Korean Company Name : “()덕성”)

Registered Address

25, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

Building

 

Zip Code

443-390

Tel

+82-31-204-0781

Fax

+82-31-204-0787

E-mail

webmaster@duksung21.com;sales@duksung21.com

Website

www.duksung21.com

Trading Address

25, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

(Old Address System : 557-1, Sin-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea (P.O.BOX 2173))

Tel

+82-31-204-0781

Fax

+82-31-204-0787

Other Address-Osan Factory

279-1, Songsan-ri, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea

Tel

+82-31-352-5071

Fax

+82-31-352-5075

Other Address-Incheon Factory

9B-7L, Namdong Industrial Complex, 616-9, Namchon-dong, Namdong-gu, Incheon, Korea

Tel

+82-32-812-2335

Fax

+82-32-812-7279

Other Address-Busan Factory

4B2L Industrial District, Jinae-dong, Kimhae-si, Kyungsangnam-do, Korea

Tel

+82-55-326-8191

Fax

+82-55-326-8195

Other Address-Pyongtaek Plant

1206-10, Wonjung-ri, Poseung-myeon Pyongreak-si, GyeongGi-do, Korea

Tel

+82-31-686-6191

Fax

+82-31-686-6197

Type

Export/Import

Industry

Manufacture of Plastics Synthetic Leather

  Main Business

Synthetic Leather, Polyurethane Resin, Multifunctional High Tech Textile

  Sub Business

TFT-LCD Chemical, Semiconductor

Established (mm/dd/yyyy)

11/10/1966

The Subject owns the premises of registered HQ address, Incheon Factory, Busan Factory and Pyongtaek Plant.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyurethane resins(13111061)

Sell

Synthetic or imitation leather(11162307)

Sell

Synthetic fabrics(11161800)

Sell

Specialty fabrics or cloth(11162100)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Silicone coated papers(14121804)

Sell

Chemistry reagents or solutions(41116105)

Sell

Toner(44103103)

 

CEO’s

 

Name

Lee Hae-Sung

Address

 

Date of Birth

03/01/1941

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

8,536,000,000

Employees

184

Formation

Listed Company (Korea Stock Exchange : 004830) as of 09/25/1987

Bank Details

Shinhan Bank-Anyang Branch

Corporate Registered No.

134111-0000096

Business Registered No.

123-81-00243

Permit & Licenses

04/29/1996 ISO 9002

04/27/2001 ISO 14001

08/29/2003 ISO 9001

05/02/2006 TS-16949

 

Int’l Trade No.: 720555

Shareholder Position

Name

Shares

%

LEE BONG-KEUN

2,044,353

13.04

LEE HAE-SUNG

769,623

4.91

LEE MIN-JONG

680,471

4.34

LEE HYUCK-JONG

680,471

4.34

LEE JE-JONG

680,470

4.33

DUKSUNG P&T CO., LTD.(134811-0011601)

30,930

0.20

OTHERS

12,185,682

68.84

TOTAL

17,072,000

100.00

Company History

11/1966 Incorporated as KWANGSUNG CHEMICAL INDUSTRY CO., LTD.

08/1967 Ahn-Yang Factory completed

08/1968 Company name changed to DUKSUNG CHEMICAL INDUSTRY CO., LTD.

07/1973 New Headquarters (address)

07/1979 Suwon Factory completed

11/1979 Presented the 16th Annual "Export Day" Presidential Award

03/1981 Pusan Branch opened

09/1987 Listed in the Korean Stock Exchange

11/1993 Inchon Factory completed

06/1994 Guangzhou, China Branch opened

04/1996 ISO-9002 license achieved

03/1997 Presented "Tax Day" award from National Tax Service

12/1998 Presented the "Medium Business Award" from the National Small and Medium Business Association

03/2000 Changed company name to the present name, DUKSUNG CO., LTD., from DUKSUNG CHEMICAL INDUSTRY CO. LTD.

03/26/ 2003 Awarded US$20 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Vice Chairman & CEO

Mr.

Lee Hae-Sung

Korean

1942.03.01

Hanyang University, Korea

President & CEO

Mr.

Lee Bong-Keun

Korean

1959.09.27

University of Texas, USA

Executive Director

Mr.

Lee Min-Jong

Korean

1961.11.23

Pacific Western University

Executive Director

Mr.

Kim Sung-Jin

Korean

1964.09.

Ulsan University, Korea

Director

Mr.

Jung Ki-Hoon

Korean

1967.05.05

Kunkook University, Korea

Outside Director

Mr.

Kim Kook-Tae

Korean

1973.03.

Virginia University, USA

Outside Director

Mr.

Kwon Ik-Hyun

Korean

1959.05.17

Purdue University, USA

Auditor

Mr.

Bae Byung-Choon

Korean

1951.03.02

Sungkyunkwan University, Korea

Auditor

Mr.

Kim Boo-Sung

Korean

1950.08.23

Hanyang University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

21,966,463,381

98,599,072,005

1,351,618,783

(*)2013

90,283,422,702

99,916,345,235

4,792,811,911

(*)2012

79,107,827,545

92,392,976,978

3,184,135,103

2011

80,029,453,519

83,985,122,443

597,154,798

2010

95,563,583,516

83,053,913,178

1,756,276,915

2009

70,012,298,282

76,067,191,553

3,536,631,445

2008

79,325,486,729

73,222,638,241

526,138,923

2007

76,337,859,258

74,286,943,038

385,786,853

2006

74,266,059,632

69,674,775,002

1,135,548,595

2005

83,382,440,052

75,423,298,484

2,156,082,279

2004

86,621,199,914

65,369,553,187

1,019,598,247

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

 

Financial Description

 

Authorized Capital(KRW)

15,000,000,000

Paid-Up Capital(KRW)

8,536,000,000

Total Issues Shares

17,072,000

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

98,599,072,005

99,916,345,235

92,392,976,978

Current Assets

60,188,936,677

61,469,249,351

59,794,317,500

Cash & Cash Equivalents

8,820,119,296

6,236,283,434

6,452,858,103

Current Financial Instruments

16,039,489,780

15,913,989,780

15,409,148,067

Finance Assets from this year's Income

 

2,657,052,000

2,189,418,000

Trade Receivables & Other Receivables

19,334,704,408

20,509,048,615

19,842,017,330

Inventories

15,662,327,503

15,788,062,493

13,839,932,235

Other Current Assets

332,295,690

364,813,029

2,060,943,765

Non-Current Assets

38,410,135,328

38,447,095,884

32,598,659,478

Non-Current Financial Instruments

193,924,463

188,824,463

149,988,587

Marketable Financial Instruments

5,200,879,642

5,156,556,666

3,737,934,218

Leasehold Deposits

560,336,078

757,836,078

807,836,078

Investment_Subsidiaries

6,048,523,733

6,048,523,733

3,899,523,733

Investment_Related Companies

1,324,065,432

1,324,065,432

1,324,065,432

Tangibles

21,554,494,133

21,843,099,245

21,201,118,519

Investment_Real Estates

133,590,000

133,590,000

133,590,000

Intangibles

644,427,697

495,769,156

96,022,276

Finance Lease

988,975,895

988,975,895

 

Deferred Income Tax Assets

1,760,918,255

1,509,855,216

1,248,580,635

Total Liabilities

34,111,996,202

36,144,337,981

33,168,170,450

Current Liabilities

28,159,292,590

30,246,706,572

28,320,953,958

Trade Payables & Other Payables

7,529,682,523

7,887,025,233

9,362,143,238

Short-Term Borrowings

17,833,100,000

19,492,941,103

16,171,986,811

Current Portion of Long-Term Debts

152,760,000

218,340,000

354,520,000

Deferred Income Tax Credit

1,117,454,712

956,243,386

939,599,095

Other Current Non-Financial Debts

1,526,295,355

1,692,156,850

1,492,704,814

Non-Current Liabilities

5,952,703,612

5,897,631,409

4,847,216,492

Long-Term Borrowings

4,262,400,000

4,267,800,000

3,636,140,000

Leasehold Deposits

113,000,000

48,000,000

18,000,000

Confirmed Salaries

1,577,303,612

1,581,831,409

1,193,076,492

Capital Stock

8,536,000,000

8,536,000,000

8,536,000,000

Capital Surplus

8,199,242,227

8,199,242,227

7,967,300,026

Profit Surplus

47,678,431,819

47,030,437,341

43,150,965,873

Others

73,401,757

6,327,686

-429,459,371

Total Equity

64,487,075,803

63,772,007,254

59,224,806,528

Liab. & Shareholder’s Equity

98,599,072,005

99,916,345,235

92,392,976,978

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

21,966,463,381

90,283,422,702

79,107,827,545

Cost of Sold Goods

17,864,895,692

75,552,206,130

66,879,435,007

Gross Profit

4,101,567,689

14,731,216,572

12,228,392,538

Selling & Admin. Expenses

1,877,989,219

6,891,452,431

6,474,427,916

R&D

331,522,286

1,175,822,707

1,077,871,029

Operating Income

1,892,056,184

6,663,941,434

4,676,093,593

Finance Income

140,982,889

677,103,660

779,862,335

Finance Expenses

186,670,571

823,283,721

810,354,492

Non-Operating Income

781,632,221

1,583,937,461

1,061,833,674

Non-Operating Expenses

945,953,771

2,124,471,510

1,752,591,669

Income Before Taxes

1,682,046,952

5,977,227,324

3,954,843,441

Income Taxes Expenses

330,428,169

1,184,415,413

770,708,338

Net Income

1,351,618,783

4,792,811,911

3,184,135,103

 

Cash Flows

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

2,256,202,086

3,253,050,934

3,823,815,435

-Net Income

1,351,618,783

4,792,811,911

3,184,135,103

-Exp. without Cash Outflow

1,689,006,625

6,018,652,422

4,825,856,268

-Revenue without Cash Inflows

-445,684,522

-1,203,818,572

-1,066,396,687

-Changes in Asset/ & Liability

-168,902,499

-4,791,425,846

-2,762,066,165

Interests Received

190,572,350

744,122,567

776,415,458

Dividends Received

219,255,000

2,918,712

56,840

Interests Paid

-140,465,441

-821,077,566

-754,151,756

Income Taxes

-439,198,210

-1,489,132,694

-380,033,626

Cash Flows from Investing

2,015,740,128

-6,568,179,213

-5,869,770,088

-Cash Inflow from Investing

2,944,710,052

16,234,638,733

16,192,528,210

-Cash Outflows for Investing

-928,969,924

-22,802,817,946

-22,062,298,298

Cash Flows from Financing

-1,730,821,103

3,112,809,987

3,400,213,815

-Cash Inflows from Financing

7,299,958,897

30,474,241,103

19,551,986,811

-Cash Outflows from Financing

-9,030,780,000

-27,361,431,116

-16,151,772,996

Increase/Decrease in Cash

2,541,121,111

-202,318,292

1,354,259,162

Cash at the Beginning of Year

6,236,283,434

6,452,858,103

5,342,980,534

Cash at the End of Year

8,820,119,296

6,236,283,434

6,452,858,103

 

Products, Technologies, Services Description

 

Main Products & Services

Plastic Leather Manufacturing

Synthetic Resin Manufacturing

Fiber Products Manufacturing

Importing and Exporting

Property Leasing

Machinery Manufacturing

Storage

Construction

Industrial Waste Disposal System Manufacturing

Semi- and Super-conductor Equipment & Material Manufacturing

Polymer Compound Manufacturing

 

Brand Name: CLONE-, HI-MAX, LEDER, LEGALON, SOFT-, BESTHANE, BESTOLE

Annual Production Capacity

(Unit: KM)

Products

09/2010

2009

2008

Synthetic Leather

7,128

9,504

9,504

Synthetic Resin

11,700

15,600

15,600

Electronic Materials

7,290

9,720

9,720

Facilities

Technology and machinery for dry process synthetic leather

-Coating Machine for Dry Process PU Synthetic Leather

-Printing Machine

-High Speed Mixer

 

Technology

-Coating & Coagulation Machine for Wet Process PU synthetic Leather

-Vacuum Dissolver

-Embossing Machine

-DMF Recovery Plant

 

Technology and machinery for polyester &Polyester & Polyurethane Resin

-Polyester Polyol Reactor

-Polyurethane Resin Reactor

 

Technology and machinery for others

-Coating Machine for PU Coated Split Leather

-Coating Machine for Water-proof and Moisture Permeable Product

-Silicon Embossing Roll for PVC Casting Leather

-Lamination & Bonding Machine for Fabrics and Films

 

Trade Partners & Competitors

 

Suppliers

 

Customers

ADDIDAS, NIKE, Reebok

 

Sales Channel

The subject is manufacturing 100% by the customers' demands.

 

Payment Conditions

Direct Export : MASTER L/C

Export through Local : Local L/C Base

Domestic: Cash & Credit, but nowadays it is paid by Purchasing Card Payment

Competitors

BAIKSAN CO., LTD.(114711-0003729)

DAEWON CHEMICAL CO., LTD.(110111-0165393)

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DUKSUNG P&T CO., LTD.(134811-0011601)

(48.00% held by the subject company)

 

BIOBETA BIO LOGICS CO., LTD.(134811-0249682)

(25.00% held by the subject company)

 

PT DUKSUNG INDONESIA

RUKO PINANGSIA BLOCK B-22, LIPPO KARAWACI

TANGERANG 15139, INDONESIA

TEL :+62-21-5579-5565 FAX :+62-21-5579-5572

Overseas Office

VIETNAM OFFICE

BC5-3, PARK VIEW TOWN - PHU MY HUNG, TAN PHONG WARD, DIST 7 HOCHIMINH, VIETNAM

TEL :+84-8-412-1476 FAX :+84-8-412-1481

 

GUANGZHOU OFFICE

DUKSUNG(GUANGZHOU) SYNTHETIC LEATHER CO., LTD.(CHINA)

(100.0% held by the subject company)

HUAXING IND. AREA, XINHUA, HUADU, GUANGZHOU, GUANGDONG, CHINA

TEL :+86-20-3682-9935 FAX :+86-20-3682-9967

 

DONG GUAN OFFICE

7B ROOM, THE 12TH BUILDING OF CUI MAN YUAN, JIANGBIN GARDEN, WANJIANG

DISTRICT OF DONG GUAN CITY, CHINA

TEL :+86-769-218-5206

 

FU ZHOU OFFICE

LI MA GARDEN,NO.220,JUN ZHU ROAD,MAWEI IND. FUZHOU CITY, FUJIAN CHINA

TEL/TAX :+86-591-399-7439

 

SHANG HAI OFFICE

1F, B/L 1ST, #1650, LAIFANG ROAD, JIUTING, SHANGHAI, CHINA

TEL :+86-21-3673-3501 FAX :+86-21-3673-3505

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

DUKSUNG(GUANGZHOU) SYNTHETIC LEATHER CO., LTD.(CHINA)

(100.0% held by the subject company)

HUAXING IND. AREA, XINHUA, HUADU, GUANGZHOU, GUANGDONG, CHINA

TEL : +86-20-3685-0200 FAX : +86-20-3685-0089

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Domestic Sales Agent(Arino)

HANMI MEDICARE, INC.(110111-2098295)

 

-Technology Transferring to

JASCH INDUSTRIES LTD.(INDIA)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2010

2009

2008

Export

36,119

47,058

59,529

Domestic

34,349

22,954

19,796

Total

70,468

70,012

79,325

The Subject exports to China, Japan, Russia, USA and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.20

UK Pound

1

Rs.99.52

Euro

1

Rs.80.83

 

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%)

 

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.