MIRA INFORM REPORT

 

 

Report Date :

10.06.2014

 

IDENTIFICATION DETAILS

 

Name :

MYUNG MOON PHARM. CO., LTD.

 

 

Registered Office :

26, Jeyakgongdan 2-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do 445-937

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.09.1983

 

 

Com. Reg. No.:

124-81-35615

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Pharmaceutical Goods Other Than Medicaments

 

 

No of Employees :

438

 

 

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

MYUNG MOON PHARM. CO., LTD.

(Korean Company Name : “명문제약()”)

Registered Address

26, Jeyakgongdan 2-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

(Old Address System : 901-1, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea)

Building

 

Zip Code

445-937

Tel

+82-31-350-4000 +82-31-353-3519

Fax

+82-31-353-7111

E-mail

mmpharm@mmpharm.co.kr

Website

www.mmpharm.co.kr

Trading Address

Myung Moon Bldg., 7, Gangnam-daero 54-gil, Gangnam-gu, Seoul, Korea

(Old Address System : Myung Moon Bldg., 946-18, Dogok-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-553-5805  +82-2-6711-2000

Fax

+82-2-572-5137

Other Address-Incheon Branch

Rm.601, 534-2, Sang-dong, Wonmi-gu, Bucheon-si, Gyeonggi-do, Korea

Tel

+82-32-547-4178

Fax

+82-32-547-0136

Other Address-Gyeonggi Branch

6FL., ASK Bldg., 975-11, Yeongtong-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

Tel

+82-31-202-4914~7

Fax

+82-31-202-4857

Type

Export/Import

Industry

Manufacture of Pharmaceutical Goods Other Than Medicaments

  Main Business

 

  Sub Business

 

Established (mm/dd/yyyy)

09/01/1983

The Subject owns the premises of registered HQ address and trading address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Antispasmodics(51172100)

Sell

Drugs used for gallbladder disease(51172000)

Sell

Cough and cold and antiallergy products(51161800)

Sell

Thrombolytic drugs and platelet aggregation inhibitors(51131700)

Sell

Gonadotropic hormones and ovarian stimulants and inhibitors(51181900)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

 

 

CEO’s

 

Name

Lee Kyu-Huok

Address

 

Date of Birth

10/05/1949

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

8,755,000,000

Employees

438

Formation

Listed Company (Korea Stock Exchange : 017180) as of 07/10/2008

Bank Details

Industrial Bank of Korea-Gangnam Branch

Korea Exchange Bank

Hana Bank

Corporate Registered No.

134111-0013180

Business Registered No.

124-81-35615

Permit & Licenses

Patent

- A process for solubilizing aceclofenac (Registration No. 10-069154, 2006.11.16)

- Novel Intermediate Compound for Valsartan and Preparation Process of Valsartan Using thereof (Open 10-2006-85073, 2006. 7. 26)

- Process for Manufacturing of Glimepiride (Open 10-2005-17776, 2005.2.23)

- Novel Intermediate Compound for Amlodipine Besylate and Preparation Process of Amlodipine Besylate Using thereof (Open 10-2005-122481, 2005. 12. 29)

- Preparation Process of Lacidipine (Application 10-2006-31654, 2006. 4. 6)

- Novel Intermediate Compound for Preparing Amlodipine, its Preparation

- Process and Preparation Process of Amlodipine Using it (Application 10-2006-103049, 2006. 10. 23)

 

Int’l Trade No.: 592611

Shareholder Position

Name

Shares

%

WOO SEOK-MIN

4,685,638

26.76

PARK BANG-HONG

1,293,120

7.39

LEE KYU-HUOK

247,984

1.42

TREASURY STOCK

129,495

0.74

OTHERS

11,153,763

63.70

TOTAL

17,510,000

100.00

Company History

09/01/1983 Incorporated as the present name

04/20/1988 Moved to the present HQ address from Kwanyang-dong, Anyang City, Gyeonggi-do, Korea

05/01/2007 Spin off the par value to 500 KRW from 5,000 KRW

06/26/2008 Designated as an INNO-BIZ Company

 

 


 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

Lee Kyu-Huok

Korean

1949.10.05

Kyungbuk National University, Korea

President & CEO

Mr.

Woo Seok-Min

Korean

1968.03.26

Western Illinois University, USA

Outside Director

Mr.

Jung Yong-Jin

Korean

1965.02

Chungang University, Korea

Auditor

Mr.

Bae Sang-Jin

Korean

1952.02

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

23,387,680,263

162,838,818,366

739,255,844

(*)2013

100,202,505,414

162,382,349,406

2,675,638,008

(*)2012

96,381,820,368

155,915,528,133

-11,547,463,326

(*)2011

115,039,065,268

167,007,575,531

4,996,048,032

2010

100,914,504,158

127,419,866,825

3,067,853,316

2009

92,246,558,947

117,479,467,493

2,940,980,537

2008

77,390,429,527

97,456,771,754

4,863,328,968

2007

60,927,940,077

59,369,319,393

6,583,194,839

2006

47,862,609,855

43,501,511,091

5,105,209,568

2005

40,345,904,690

35,675,186,707

4,387,839,760

2004

33,248,158,389

27,437,995,737

3,207,108,831

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

8,755,000,000

Total Issues Shares

17,510,000

 

 

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

162,838,818,366

162,382,349,406

155,915,528,133

Current Assets

105,062,669,009

104,283,275,080

99,697,245,440

Cash & Cash Equivalents

2,906,672,363

3,362,322,381

2,847,069,939

Current Financial Instruments

6,947,905,524

6,448,891,097

5,973,464,689

Marketable Financial Instruments

2,279,940,000

2,070,432,000

1,217,035,000

Trade Receivables

73,252,427,158

74,154,508,760

71,315,872,988

Other Receivables

1,644,424,862

1,635,341,907

1,643,933,213

Uneraned Income

126,929,852

73,124,095

131,678,949

Short-Term Receivables

3,253,500,000

2,350,000,000

220,000,000

Advance Payments

432,419,000

333,214,000

115,190,000

Prepaid Expenses

297,951,050

300,903,241

308,095,029

Deferred Income Tax Assets

-

-

44,512,694

Inventories

17,008,556,212

16,446,531,562

18,033,214,180

Non-Current Assets

57,776,149,357

58,099,074,326

56,218,282,693

Non-Current Financial Instruments

1,210,780,449

1,162,508,328

2,022,276,965

Advance Payments

191,523,288

285,715,068

667,715,068

Marketable Financial Instruments

146,776,602

146,776,602

147,776,602

Investment_Related Companies

15,706,970,000

15,706,970,000

12,306,970,000

Tangibles

35,332,252,314

35,579,783,340

35,763,928,912

Intangibles

4,792,118,074

4,800,892,358

4,903,979,516

Guarantees

395,728,630

416,428,630

405,635,630

Total Liabilities

89,459,302,823

89,445,635,838

85,774,995,444

Current Liabilities

82,100,360,809

82,037,289,232

78,175,179,785

Trade Payables

8,697,772,574

8,940,389,352

10,157,276,359

Account Payables

879,978,852

689,742,595

1,046,468,201

Accrued Expenses

3,965,461,089

3,675,756,980

3,524,185,741

Short-Term Borrowings

61,824,372,681

61,668,149,116

56,965,137,624

Current Portion of Long-Term Debts

203,203,190

252,742,030

975,445,810

Deferred Income Tax Credit

917,442,031

1,018,669,342

 

Withholdings

186,832,986

185,495,891

180,591,057

VAT Withhold

1,502,521,800

1,601,432,650

1,291,536,580

Advance Receipts

622,982,490

661,055,903

579,543,192

Provisions for Refund

3,108,269,828

3,058,140,305

2,787,280,153

Finance Guarantee Debts

191,523,288

285,715,068

667,715,068

Non-Current Liabilities

7,358,942,014

7,408,346,606

7,599,815,659

Long-Term Borrowings

50,702,130

101,676,830

350,011,200

Provision for Severance & Retirement

4,442,177,843

4,307,848,402

3,600,937,971

Guarantee Deposit Withhold

540,900,000

479,900,000

725,874,535

Deferred Income Tax Credit

2,325,162,041

2,518,921,374

2,922,991,953

Capital Stock

8,755,000,000

8,500,000,000

8,500,000,000

Capital Surplus

21,132,999,902

21,134,793,902

21,134,793,902

Others

324,566,831

324,566,831

324,566,831

Profit Surplus

43,166,948,810

42,977,352,835

40,181,171,956

Total Equity

73,379,515,543

72,936,713,568

70,140,532,689

Liab. & Shareholder’s Equity

162,838,818,366

162,382,349,406

155,915,528,133

 

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

23,387,680,263

100,202,505,414

96,381,820,368

Cost of Sold Goods

10,960,142,852

51,377,140,383

52,743,666,084

Gross Profit

12,427,537,411

48,825,365,031

43,638,154,284

Selling & Admin. Expenses

11,208,134,932

43,704,943,370

48,009,214,254

Operating Income

1,219,402,479

5,120,421,661

-4,371,059,970

Finance Income

300,864,732

297,334,782

406,793,825

Other Income

143,401,701

1,373,113,162

274,227,165

Finance Expenses

683,459,559

3,120,668,874

3,417,484,602

Other Expenses

74,064,733

98,853,369

1,187,004,431

Income Before Taxes

906,144,620

3,571,347,362

-8,294,528,013

Income Taxes Expenses

166,888,776

895,709,354

3,252,935,313

Net Income

739,255,844

2,675,638,008

-11,547,463,326

 

 

 

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

1,320,144,628

4,078,370,314

1,878,298,541

Cash Flows from Operating

2,433,499,552

6,770,927,270

9,513,298,596

Net Income

739,255,844

2,675,638,008

-11,547,463,326

Adjustment

1,630,862,984

8,220,621,245

11,985,197,970

Changes in Asset/ & Liability

63,380,724

-4,123,331,983

9,075,563,952

Interests Received

24,081,892

326,952,884

252,956,233

Interests Paid

-675,561,396

-2,706,399,978

-2,967,391,134

Income Taxes

-461,875,420

-315,109,862

-4,920,565,154

Cash Flows from Investing

-1,559,749,839

-7,604,040,526

-2,009,719,985

Cash Flows from Financing

-216,044,807

4,040,922,654

83,512,693

Increase/Decrease in Cash

-455,650,018

515,252,442

818,694,904

Cash at the Beginning of Year

3,362,322,381

2,847,069,939

2,028,375,035

Cash at the End of Year

2,906,672,363

3,362,322,381

2,847,069,939

 

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacture, wholesale, export and import of pharmaceuticals

Selling of chemicals (with exception of a poison and chemical class)

A wholesale business of non-pharmaceuticals

The publication of a document definite promise about sale and delivery

Division of labor of pharmaceuticals

The business articles of food (health food)

All the business attached to each an item

 

ETC

Anesthetic agent Analgesic agent

Circulatory sys

Anti-depressants

Digestive sys Respiratory sys

Hormone

Dermatology/Uroloy

Muscle relaxant Antibiotics

Narcotics

Anti rheumarthritis

Anti osteoarthritis

Anti-diabetics

Anti inflammatory enzymes

Anti-osteoporosis

Anti-epileptics steroids

appetite suppressant

 

OTC

Eye nutrition Antinausant

Hepatics

Immunologics

Antidiarrheal agent Skin external preparation

Digestive sys

Calcium

Cold drugs Cathartic

Antiallergic agent

Muscle relaxant

Parasiticide Health supplement

Genitourinary sys.

Antidiarrheal agent

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

TRB CHEMEDICA INTERNATIONAL SA.

ISHIMOTO BIO CHEMICAL LAB.

PROTHERICS INC.

 

CKD BIO CO., LTD.(110111-2373308)

DAE HE CHAMICAL CO., LTD.(134511-0005767)

Customers

CLARIS

Competitors

DAEWOONG PHARMACEUTICAL CO., LTD.(134811-0075342)

SHINPOONG PHARMACEUTICAL CO.,LTD.(130111-0011815)

BOEHRINGER INGELHEIM KOREA LTD.(110111-0359342)

SAMJIN PHARMACEUTICAL CO., LTD.(110111-0088652)

DONGWHA PHARM IND CO., LTD.(110111-0043870)

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

YUHAN CORPORATION(110111-0014409)

HANMI PHAM CO., LTD.(134811-0003187)

GREEN CROSS CORPORATION(110111-0109854)

CHOONGWAE PHARMA CORP.(110111-0019342)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

MYUNGJI PHARMACEUTICALS CO., LTD.(110111-0541036)

(100.0% held by the subject company)

 

MYUNGMOON INVESTMENT DEVELOPMENT CO., LTD.(134411-0040301)

(57.0% held by the subject company)

 

BIO R&D CO., LTD.(KOREA)

(23.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

MYUNGJI PHARMACEUTICALS CO., LTD.(110111-0541036)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Licensed with;

TRANS BUSSAN S.A

CLARIS-INDIA

MACROMED-USA

 

-Insured Company

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

HANWHA NON-LIFE INSURANCE CO., LTD.(110111-0006456)

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

-Collaborated R&D with

MEDICHEM KOREA CO., LTD.(135811-0158543)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

09/2010

2009

2008

Export

614,512

1,003,990

761,410

Domestic

75,572,613

91,242,569

76,629,019

Total

76,187,125

92,246,559

77,390,429

The Subject deals with the companies in China, Dominica, Guatemala, Hong Kong, Nigeria, Pakistan and Vietnam.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

-

National Health Insurance Corp.

The Subject Company & Others(22)

Claim for Compensation from Damages

-

2nd round is proceeding.

 

 

News Clipping

 

--

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.06

UK Pound

1

Rs. 99.34

Euro

1

Rs. 80.61

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.