MIRA INFORM REPORT

Report Date :

28.06.2014

IDENTIFICATION DETAILS

Name :	H1 GLOBAL CO., LTD.

Registered Office :	14, Nonhyeon-ro 26-gil, Gangnam-gu, Seoul, Korea

Country :	Korea (South)

Financials (as on) :	31.12.2013

Date of Incorporation :	09.09.2009

Com. Reg. No.:	220-87-87053

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesale of Household Appliances

No. of Employees :	8

RATING & COMMENTS

MIRA’s Rating :

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)

Korea (South)

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

KOREA (SOUTH) - 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	H1 GLOBAL CO., LTD.
Registered Address	14, Nonhyeon-ro 26-gil, Gangnam-gu, Seoul, Korea
Building	Hanil Bldg
Zip Code	135-855
Tel	+82-2-579-3312
Fax	+82-2-579-0415
E-mail	pureasm@hanilmanpower.com
Trading Address	Hanil Bldg, 14, Nonhyeon-ro 26-gil, Gangnam-gu, Seoul, Korea (Old Address System : Hanil Bldg, 450-8, Dogok 2-dong, Gangnam-gu, Seoul, Korea)
Tel	+82-2-579-3312
Fax	+82-2-579-0415
Type	Import
Industry	Wholesale of Household Appliances n.e.c.
Main Business	Kitchenware, Office Accessories, Interior Products, Accessories, Cosmetics, Plastic Products, Wood Products, Steel Products
Established (mm/dd/yyyy)	09/09/2009

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Bath and body(53131600)
Sell	Furniture(56101500)
Sell	Domestic appliances(52140000)
Sell	Prepared and preserved foods(50190000)
Sell	Shoe accessories(53112000)
Sell	Domestic pet treatments and accessories and equipment(10111300)
Sell	Office supplies(44120000)
Sell	Floriculture and silviculture products(10160000)
Sell	Domestic disposable kitchenware(52151500)
Sell	Art(60121000)

CEO’s

Name	Lee Ho-Sung
Address	1-121, Yongsan-dong 2-ga, Yongsan-gu, Seoul, Korea
Date of Birth	02/19/1967
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,500,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Shinhan Bank

Korea Exchange Bank

Corporate Registered No.

110111-4176297

Business Registered No.

220-87-87053

Permit & Licenses

N/A

Shareholder Position

Name	Shares	%
PARK SOO-YEON	135,000	45.00
PARK YOUNG-JOO	135,000	45.00
PARK JUNG-BOO	30,000	10.00
TOTAL	300,000	100.00

Company History

09/09/2009 Incorporated as the present name

07/20/2011 Increased the authorized shares to 1,000,000 shares from 240,000 shares

07/22/2011 Increased capital to 1,500,000,000 KRW from 300,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Ho-Sung	Male	Korean	12/31/2010
Director	Mr.	Park Jung-Boo	Male	Korean	09/09/2009
Director	Mr.	Park Young-Joo	Female	Korean	12/15/2009
Auditor	Mr.	Lee Jong-Duck	Male	Korean	09/09/2009

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	18,819,005,638	19,854,955,345	992,124,212
2011	14,097,305,488	17,617,494,601	1,047,065,981
2010	2,089,483,066	13,715,392,240	149,506,459

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	1,500,000,000
Total Issued Shares	300,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	19,854,955,345	17,617,494,601	13,715,392,240
Current Assets	5,442,619,749	4,414,216,405	911,993,948
-Quick Assets	3,890,245,831	2,865,998,084	359,300,559
-Inventories	1,552,373,918	1,548,218,321	552,693,389
Fixed Assets	14,412,335,596	13,203,278,196	12,803,398,292
-Investment	1,549,489,500	1,549,489,500	1,083,375,000
-Tangibles	12,842,846,096	11,633,788,696	11,700,023,292
-Intangibles	20,000,000	20,000,000	20,000,000
Total Liabilities	15,872,697,203	14,627,360,671	11,764,963,771
Current Liabilities	7,842,691,071	7,057,394,828	3,576,431,073
Fixed Liabilities	8,030,006,132	7,569,965,843	8,188,532,698
Capital Stock	1,500,000,000	1,500,000,000	1,500,000,000
Capital Surplus
Profit Surplus	2,482,258,142	1,490,133,930	450,428,469
Capital Adjustment
Total Equity	3,982,258,142	2,990,133,930	1,950,428,469
Liab. & Shareholder’s Equity	19,854,955,345	17,617,494,601	13,715,392,240

Current Liabilities	7,842,691,071	7,057,394,828	3,576,431,073
Trade Payables	1,461,648,370	729,221,202	128,963,321
Short-Term Borrowings	5,590,000,000	5,600,000,000	2,923,020
Account Payables	4,524,621	39,890,930	-
Accrued Expenses	186,415,076	65,568,467	47,764,304
Withholdings	55,362,160	67,282,120	3,395,000,000
Accrued Income Tax	166,963,052	255,432,109	1,780,428
Current Portion of Long-Term Debts	377,777,792	300,000,000	-
Fixed Liabilities	8,030,006,132	7,569,965,843	8,188,532,698
Long-Term Borrowings	6,222,222,208	5,900,000,000	6,500,000,000
Leasehold Deposit Received	1,740,000,000	1,620,000,000	1,680,000,000
Provision for Severance & Retirement	166,233,068	139,965,843	8,532,698

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	18,819,005,638	14,097,305,488	2,089,483,066
Cost of Sold Goods	15,791,051,671	11,821,227,543	1,416,398,703
Gross Profit	3,027,953,967	2,276,077,945	673,084,363
Selling & Admin. Expenses	1,189,051,343	500,084,925	266,210,196
Operating Income	1,838,902,624	1,775,993,020	406,874,167
Non-Operating Income	300,099,300	209,919,538	73,723,565
Non-Operating Expenses	859,746,180	676,423,908	309,739,952
Income Before Taxes	1,279,255,744	1,309,488,650	170,857,780
Income Taxes Expenses	287,131,532	262,422,669	21,351,321
Net Income	992,124,212	1,047,065,981	149,506,459

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,079,677,005	-1,461,808,302	73,334,793
-Net Income	992,124,212	1,047,065,981	149,506,459
-Exp. without Cash Outflow	257,935,145	123,589,172	48,737,132
-Revenue without Cash Inflows	-	-2,089,960	-28,906
-Changes in Asset/ & Liability	-170,382,352	-2,630,373,495	-124,879,892
Cash Flows from Investing	-1,439,795,250	-485,114,500	-10,403,941,800
-Cash Inflow from Investing		-	-
-Cash Outflows for Investing	-1,439,795,250	-485,114,500	-10,403,941,800
Cash Flows from Financing	510,000,000	1,845,000,000	10,465,000,000
-Cash Inflows from Financing	22,620,000,000	15,420,000,000	13,770,000,000
-Cash Outflows from Financing	-22,110,000,000	-13,575,000,000	-3,305,000,000
Increase/Decrease in Cash	149,881,755	-101,922,802	134,392,993
Cash at the Beginning of Year	48,548,546	150,471,348	16,078,355
Cash at the End of Year	198,430,301	48,548,546	150,471,348

Products, Technologies, Services Description

Main Products & Services

Kitchenware, Office Accessories, Interior Products, Accessories, Cosmetics, Plastic Products, Wood Products, Steel Products

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

HANIL MANPOWER CO., LTD.(110111-4129098)

HAN WELL CO., LTD.(110111-0562333)

DAISO ASUNG CO., LTD.(110111-0832736)

Overseas Office

HAN WELL INTERNATIONAL TRADE CO., LTD.(CHINA)

(45.00% held by the subject company)

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

Sales by Region (Activity & Markets)

The Subject imports from China, India, Vietnam and Thailand.

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.102.40
Euro	1	Rs.81.88

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NNA

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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