MIRA INFORM REPORT

 

 

Report Date :

23.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SHINPOONG PHARMACEUTICAL CO., LTD

 

 

Registered Office :

7, Wonsi-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Zip Code 425-100

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

23.07.1986

 

 

Com. Reg. No.:

134-81-03819

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Finished Medicaments such as Antibiotics, Analgesic, Anti-inflammatory, Antipyretics, Anti-inflammatory Enzyme, Corticosteroids, Antacids, Digestives and antiulcer agents, Antispasmodics, Sedative agent, Geriatric agents and Vitamins, Ageuts Drugy, Calcium Supplement, Prophylaxic and therapy of liver disease, Amino Acids, Gingival agents, Antitussives and Expectorants, Antihistamines, Thrombolytics, Antihypertensives, Hemostatics

Antidiabetics, Cerebral Circulation and Metabolism, Amelioraters, For disk and peripheral Neuropathies, Ophthalmic Agents Otorthinologic Agents, Otorhinologic agents, Anti-Fungal Agents, Antimycotics, Topical Dermatic Prepar, Anthelmintics & Remedy for tropical diseases

 

 

No of Employees :

837

 


 

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 :

Exists

 

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

SHINPOONG PHARMACEUTICAL CO., LTD.

(Korean Company Name : “신풍제약()”)

Registered Address

7, Wonsi-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

(Old Address System : 434-4, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea)

Zip Code

425-100

Tel

+82-31-491-6191~2

Fax

+82-31-491-6193

E-mail

research@shinpoong.co.kr;resume1@shinpoong.co.kr

Website

www.shinpoong.co.kr

Trading Address

748-31, Yeoksam-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2189-3400

Fax

+82-2-2189-3439

Type

Export/Import

  Main Business

Manufacturer of Finished Medicaments such as Antibiotics, Analgesic, Anti-inflammatory, Antipyretics, Anti-inflammatory Enzyme, Corticosteroids, Antacids, Digestives and antiulcer agents, Antispasmodics, Sedative agent, Geriatric agents and Vitamins, Ageuts Drugy, Calcium Supplement, Prophylaxic and therapy of liver disease, Amino Acids, Gingival agents, Antitussives and Expectorants, Antihistamines, Thrombolytics, Antihypertensives, Hemostatics

Antidiabetics, Cerebral Circulation and Metabolism, Amelioraters, For disk and peripheral Neuropathies, Ophthalmic Agents Otorthinologic Agents, Otorhinologic agents, Anti-Fungal Agents, Antimycotics, Topical Dermatic Prepar, Anthelmintics & Remedy for tropical diseases

Established (mm/dd/yyyy)

07/23/1986

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

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Drugs used for respiratory tract disorders(51161700)

Sell

Urinary anti infectives and analgesics(51102200)

Sell

Antifungal drugs(51101800)

Sell

Vitamin supplements(51191905)

Sell

Drugs used for gallbladder disease(51172000)

Sell

Anthelmintics and other antiparasitics(51101700)

 

 

CEO’s

 

Name

You Je-Man

Date of Birth

11/25/1956

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

22,116,600,000

Employees

837

Formation

Listed Company (Korea Stock Exchange : 019170) as of 01/20/1990

Bank Details

Korea Exchange Bank-Yeoksam Dong Branch

Shinhan Bank

Korea Development Bank

Corporate Registered No.

130111-0011815

Business Registered No.

134-81-03819

Permit & Licenses

Int’l Trade No.: 950923

Shareholder Position

Name

Shares

%

CHANG WON-JOON

8,064,441

18.23

OH JUNG-JA

2,925,110

6.61

CHANG HO-SOOK

749,620

1.69

CHANG JI-YI

993,839

2.25

MIN YOUNG-KWAN

3,241,251

7.33

OTHERS

28,258,939

63.89

TOTAL

44,233,200

100.00

Company History

2008 Completed PYRAMAX (new anti-malarial Agent) dedicated factory in compliance with EU GMP in Ansan city.

2006 Awarded "Medicines for Malaria Venture's (MMV) Project of the Year" for 2005.

2005 Awarded "Twenty Million US dollar Export Tower" at the 42nd Trade day.

2004 Synthesized "Glimepiride".

2003 Synthesized "Cefmetazole Sodium".

2002 Completed KGMP penicillin factory in Ansan city.

2002 Established PHIL. SHINPOONG PHARMA INC. in Philippines.

2001 Synthesized "Fosfomycin Sodium" (antibiotic).

1999 Synthesized "Aceclofenac" (NSAID).

1998 Synthesized "Tiropramide" (antispasmodic agent).

1998 Synthesized "Doxifluridine" (anticancer drug) for the second time in the world, the first time in Korea.

1997 Synthesized "Cefazedone sodium" (antibiotic).

1997 Synthesized "Loxoprofen" (NSAID) for the second time in the world.

1996 Established SHINPOONG DAEWOO PHARMA CO., LTD. in Vietnam.

1995 Synthesized "Ceftizoxime" (antibiotic).

1995 Established TIANJIN SHINPOONG PHARM. CO., LTD. in China.

1992 Awarded "Ten Million US dollar Export Tower" at the 29th Trade day.

1988 Established GENERAL MEDICINES CO., LTD. in Sudan.

07/23/1986 Incorporated as SHIN POONG PHARM. CO., LTD.

1984 Conferred the Order of Civil Merit MOK-RYUN Medal for the first time in Korean Pharmaceutical industry history.

1984 Completed the KGMP factory in Ansan city.

1983 Synthesized "Praziquantel"(anthelmintic) for the second time in the world.

1975 Synthesized "Mebendazole"(anthelmintic).

06/05/1962 Established as SHIN POONG PHARMACEUTICAL CO.(Sole Proprietorship)

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

You Je-Man

Korean

1956.11.25

-

Vice President

Mr.

Kim Byung-Yong

Korean

1959.01

-

Outside Director

Mr.

Cho Hyun-Je

Korean

1936.09.13

Sogang University, Korea

Outside Director

Mr.

Kim Hak-Soo

Korean

1949.01.06

-

Auditor

Mr.

Yoon Soo-Duck

Korean

1938.02.25

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

48,801,557,764

395,222,274,754

-3,944,584,351

(*)2013

206,471,348,564

392,438,757,859

2,482,949,076

(*)2012

212,009,533,345

375,746,232,373

14,102,563,274

(*)2011

224,915,147,482

370,849,235,191

24,417,807,606

(*)2010

224,719,180,623

361,962,379,960

20,862,584,686

2009

207,944,403,845

292,224,036,233

18,861,690,865

2008

181,354,253,481

252,887,164,135

10,190,277,455

2007

161,393,076,297

212,248,883,926

8,809,137,852

2006

154,979,986,643

196,130,857,044

21,899,546,370

2005

150,027,107,159

184,599,750,889

11,831,931,590

2004

138,749,317,287

169,201,648,928

1,387,072,281

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

 

 

Financial Description

 

Authorized Capital(KRW)

40,000,000,000

Paid-Up Capital(KRW)

22,116,600,000

Total Issues Shares

44,233,200 (Common: 42,033,200 / Preferable: 2,200,000)

 

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

395,222,274,754

392,438,757,859

375,746,232,373

Current Assets

199,301,742,692

196,845,360,276

185,203,410,462

Cash & Cash Equivalents

8,780,094,052

9,267,676,129

3,707,129,803

Current Financial Instruments

1,685,000,000

662,000,000

438,000,000

Trade Receivables & Other Receivables

142,788,026,021

142,085,126,034

134,216,448,617

Current Financial Instruments

1,791,610,669

2,937,158,535

2,144,811,926

Current Non-Financial Instruments

291,440,968

385,274,474

338,584,672

Inventories

43,965,570,982

41,508,125,104

43,316,160,523

Income Taxes

0

0

1,042,274,921

Non-Current Assets

195,920,532,062

195,593,397,583

190,542,821,911

Non-Current Financial Instruments

1,221,890,000

2,225,920,000

1,840,000,000

Marketable Financial Instruments

69,196,243

69,196,243

69,196,243

Other Non-Current Financial Instruments

1,827,620,870

1,815,620,870

1,715,120,870

Investment_Related Companies

15,785,940,843

14,365,940,843

14,265,940,843

Tangibles

158,776,588,611

159,275,175,557

159,685,072,614

Intangibles

12,050,545,126

11,652,793,701

10,726,796,005

Deferred Income Tax Assets

6,188,750,369

6,188,750,369

2,240,695,336

Total Liabilities

214,871,520,189

206,552,543,533

190,102,215,099

Current Liabilities

156,524,625,580

151,627,439,506

155,813,442,884

Other Current Financial Debts

22,686,421,963

21,340,125,095

24,840,366,388

Trade Payables & Other Payables

9,678,111,686

7,640,821,004

7,634,364,304

Short-Term Borrowings

114,958,114,815

114,220,310,645

119,565,700,064

Other Current Non-Financial Debts

6,622,098,021

4,748,037,887

3,773,012,128

Deferred Income Tax Credit

2,579,879,095

3,678,144,875

0

Non-Current Liabilities

58,346,894,609

54,925,104,027

34,288,772,215

Long-Term Borrowings

33,173,535,204

30,101,174,569

11,599,827,523

Other Non-Current Financial Debts

993,060,000

1,143,245,909

302,537,909

Provision for Severance & Retirement

20,449,052,440

19,857,181,117

18,099,669,036

Provision for Severance & Retirement

383,147,774

383,147,774

378,435,288

Other Non-Current Provisions

3,348,099,191

3,440,354,658

3,908,302,459

Capital Stock

22,116,600,000

22,116,600,000

21,366,085,000

Capital Surplus

21,738,141,715

21,738,141,715

21,739,641,715

Others

-10,783,213,932

-11,563,763,932

-11,555,171,832

Profit Surplus

147,279,226,782

153,595,236,543

154,093,462,391

Total Equity

180,350,754,565

185,886,214,326

185,644,017,274

Liab. & Shareholder’s Equity

395,222,274,754

392,438,757,859

375,746,232,373

 

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

48,801,557,764

206,471,348,564

212,009,533,345

Cost of Sold Goods

27,945,714,895

118,330,927,739

128,976,650,767

Gross Profit

20,855,842,869

88,140,420,825

83,032,882,578

Selling & Admin. Expenses

16,962,299,692

64,947,723,015

58,392,124,889

Operating Income

3,893,543,177

23,192,697,810

24,640,757,689

Other Operating Income

259,653,955

3,305,303,694

1,249,431,583

Other Operating Expenses

261,291,890

2,851,528,773

1,715,755,520

Finance Income

84,776,992

303,258,891

1,324,164,504

Finance Expenses

1,995,183,095

7,662,542,437

7,815,724,576

Income Before Taxes

1,981,499,139

16,287,189,185

17,682,873,680

Income Taxes Expenses

5,926,083,490

13,804,240,109

3,580,310,406

Net Income

-3,944,584,351

2,482,949,076

14,102,563,274

 

 

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

1,146,119,809

4,987,598,346

29,362,591,586

Cash Flows from Operating

9,993,475,695

24,921,517,535

40,999,921,192

Interests Received

21,372,655

45,428,857

85,403,489

Interests Paid

-1,844,379,271

-7,500,486,753

-7,687,597,567

Income Taxes

-7,024,349,270

-13,046,190,444

-4,848,982,000

Dividends Received

0

567,329,151

813,846,472

Cash Flows from Investing

-3,541,618,431

-10,413,710,313

-20,726,167,305

Cash Flows from Financing

1,888,693,099

11,007,904,871

-7,771,500,626

Increase/Decrease in Cash

-487,582,077

5,560,546,326

846,381,668

Cash at the Beginning of Year

9,267,676,129

3,707,129,803

2,860,748,135

Cash at the End of Year

8,780,094,052

9,267,676,129

3,707,129,803

 

 


Products, Technologies, Services Description

 

Main Products & Services

Antibiotics

Analgesic, Anti-inflammatory, Antipyretics

Anti-inflammatory Enzyme

Corticosteroids

Antacids

Digestives and antiulcer agents

Antispasmodics

Sedative agent

Geriatric agents and Vitamins

Ageuts Drugy, Calcium Supplement

Prophylaxic and therapy of liver disease

Amino Acids

Gingival agents

Antitussives and Expectorants

Antihistamines

Thrombolytics

Antihypertensives

Hemostatics

Antidiabetics

Cerebral Circulation and Metabolism

Amelioraters

For disk and peripheral Neuropathies

Ophthalmic Agents Otorthinologic Agents

Otorhinologic agents

Anti-Fungal Agents

Antimycotics

Topical Dermatic Prepar

Anthelmintics

Remedy for tropical diseases

 

 

Trade Partners & Competitors

 

Competitors

JEIL PHARMACEUTICAL CO., LTD.(110111-0026652)

745-5, BANPO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-549-7451  FAX:+82-2-549-7478

 

BORYUNG PHARM CO., LTD.(110111-0012560)

15TH FL., BORYEONG BLDG., 66-21, WONNAM-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-708-8000  FAX:+82-2-742-6362

 

KWANGDONG PHARMACEUTICAL CO., LTD(110111-0152134)

4TH FL., GASAN BLDG., 1577-4, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-6006-7777  FAX:+82-2-6006-702

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TIANJIN SHINPOONG PHRAM. CO., LTD.(CHINA)

(45.0% held by the subject company)

 

SHINPOONG DAEWOO PHARMA. CO., LTD.(VIETNAM)

(94.1% held by the subject company)

 

GENERAL MEDICINES CO., LTD.(SUDAN)

(33.3% held by the subject company)

 

PHILIPPINE SHINPOONG PHRAMA CO., LTD.

(80.0% held by the subject company)

Subsidiary

SHINPOONG DAEWOO PHARMA. CO., LTD.(VIETNAM)

(96.4% held by the subject company)

BIEN HOA INDUSTRIAL ZONE NO2 NAI PROVINCE, VIETNAM

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

16,722

4,444

17,698

Domestic

141,943

52,828

207,217

Total

158,665

57,272

224,915

The Subject deals with the companies in China and Vietnam.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

 

The Subject Company (4 Cases)

Claim for Compensation

6,953

Proceeding

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.28

UK Pound

1

Rs.102.77

Euro

1

Rs.82.12

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.