MIRA INFORM REPORT

 

 

Report Date :

28.06.2014

 

IDENTIFICATION DETAILS

 

Name :

LAFARGE HALLA CEMENT CORPORATION

 

 

Formerly Known As :

RH CEMENT CO., LTD.

 

 

Registered Office :

225, Sangye-gil, Okgye-myeon, Gangneung-si, Gangwon-do,  Zip Code 210-834

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

27.10.1998

 

 

Com. Reg. No.:

226-81-22191

 

 

Legal Form :

Co., Ltd by shares

Foreign Direct Investment Corporation

 

 

Line of Business :

Manufacturer of Cement & Clinker

 

 

No of Employees :

510

 

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. 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

LAFARGE HALLA CEMENT CORPORATION

(Korean Company Name : “라파즈한라시멘트()”)

Registered Address

225, Sangye-gil, Okgye-myeon, Gangneung-si, Gangwon-do, Korea

(Old Address System : 280-1, Sangye-ri, Okgye-myeon, Gangneung-si, Gangwon-do, Korea)

Zip Code

210-834

Tel

+82-33-534-1000

Fax

+82-33-534-0716

E-mail

manjoon.lee@kr.lafargehalla.com;yongjin.park@kr.lafarge.com

Website

www.lafargehalla.com

Trading Address

4th Fl., Rosedale Officetel, 724, Suseo-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-6902-3200

Fax

+82-2-6902-3292

Other Address-Singi Factory

23, Anui-ri, Singi-myeon, Samcheok-si, Gangwon-do, Korea

Tel

+82-33-540-0312

Fax

+82-33-540-0319

Other Address-Gwangyang Factory

1659-3, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-8291

Fax

+82-61-792-8290

Other Address-Pohang Factory

140-10, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-285-1751~3

Fax

+82-54-285-1930

Other Address-Icheon Office

358-4, Huan-ri, Hobeop-myeon, Icheon-si, Gyeonggi-do, Korea

Tel

+82-31-632-3286

Fax

+82-31-632-3287

Other Address-Maepo Office

374-4, Noho-ri, Buyong-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-269-2153

Fax

+82-43-269-2852

Other Address-Samho Office

1237-8, Sampo-ri, Samho-eup, Yeongam-gun, Jeollanam-do, Korea

Tel

+82-61-461-1415

Fax

+82-61-461-1692

Other Address-Janghang Branch

420-2, Sinchang-ri, Janghang-eup, Seocheon-gun, Chungcheongnam-do, Korea

Tel

+82-41-956-7235

Fax

+82-41-956-7237

Other Address-Uiwang Office

71-3, I-dong, Uiwang-si, Gyeonggi-do, Korea

Tel

+82-31-461-4288

Fax

+82-31-461-4971

Other Address-Eumseong Office

785-1, Pyeonggok 1-ri, Eumseong-eup, Eumseong-gun, Chungcheongbuk-do, Korea

Tel

+82-43-872-4695

Fax

+82-43-872-1937

Other Address-Jeju Office

1007, Sangdae-ri, Hallim-eub, Jeju-si, Jeju-do, Korea

Tel

+82-64-796-7270

Fax

+82-64-796-7290

Type

Export/Import

  Main Business

Manufacture of Cement & Clinker

Established (mm/dd/yyyy)

10/27/1998

 

The Subject owns the premises of registered HQ address, Singi Factory, Gwangyang Factory, Maepo Office and Samho Office.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cement(30111601)

 

CEO’s

 

Name

Michel Puchercos

Address

Suite 401, 200-16, UN village-gil, Yongsan-gu, Seoul, Korea

Date of Birth

10/02/1957

Title

President & CEO

Sex

Male

Nationality

French

 

Profiles

 

Capital (KRW)

221,737,035,000

Employees

510

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Korea Exchange Bank

Woori Bank

Corporate Registered No.

141111-0012331

Business Registered No.

226-81-22191

Permit & Licenses

11/2002 ISO 14001

 

Int’l Trade No.: 404486

Shareholder Position

Name

Shares

%

FINANCIERE LAFARGE

28,199,522

63.59

LAFARGE KOREA B.V

4,621,550

10.42

ARISEPT SAS

10,240,621

23.09

OTHERS

1,285,714

2.90

TOTAL

44,347,407

100.00

Company History

10/27/1998 Incorporated as RH CEMENT CO., LTD.

12/1998 Acquired Cement Business from HALLA CEMENT CO., LTD.

01/14/2000 Changed company name to the present name

01/25/2000 Registered as a Foreign Direct Investment Corporation

05/07/2004 Decreased capital to 221,737,035,000 KRW from 226,460,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Michel Puchercos

Male

French

01/29/2009

Director

Mr.

Silvang Garno

Male

French

03/30/2012

Director

Mr.

Fredrick Viyon

Male

French

03/30/2012

Director

Mr.

Wig Bacel Donbreval

Male

French

03/30/2012

Director

Mr.

Pablichio Olivares

Male

French

03/30/2012

Auditor

M/S.

Lee Hee-Sook

Female

Korean

03/29/2009

 

Mr. Michel Puchercos

-Ecole Polytechnique (1976)

-Ecole Nationale du Genie Rural, des Eaux et des Forets (National School of Rural Engineering, Waterways and Forests) (1981)

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2014

90,292,549,663

569,019,625,326

-3,601,965,786

2013

420,483,717,515

586,184,536,585

38,222,944,084

2012

402,499,788,268

531,611,745,594

29,436,675,497

2011

375,594,489,526

500,547,979,422

-28,757,135,986

2010

345,480,312,226

507,250,215,002

-14,920,340,319

2009

394,324,503,241

424,468,027,658

-13,504,758,194

2008

364,298,220,254

483,801,781,406

-9,746,864,525

2007

335,172,949,511

477,122,509,000

-11,378,798,726

2006

342,586,712,387

469,445,093,908

-2,973,565,869

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

221,737,035,000

Total Issued Shares

44,347,407

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

569,019,625,326

586,184,536,585

531,611,745,594

Current Assets

209,115,711,212

227,380,456,524

180,693,867,788

-Quick Assets

166,735,862,221

189,877,306,899

135,111,223,501

-Inventories

42,379,848,991

37,503,149,625

45,582,644,287

Fixed Assets

359,903,914,114

358,804,080,061

350,917,877,806

-Investment

5,410,160,650

7,760,424,930

6,861,571,635

-Tangibles

312,640,715,033

308,947,256,722

305,051,906,226

-Intangibles

38,597,821,470

38,692,465,116

35,192,230,678

-Others

3,255,216,961

3,403,933,293

3,812,169,267

Total Liabilities

177,059,696,846

190,502,326,545

175,328,933,891

Current Liabilities

122,373,648,830

127,345,510,081

114,679,030,594

Fixed Liabilities

54,686,048,016

63,156,816,464

60,649,903,297

Capital Stock

221,737,035,000

221,737,035,000

221,737,035,000

Capital Surplus

 

 

 

Profit Surplus

98,241,904,038

101,843,869,824

63,620,925,740

Capital Adjustment

71,980,989,442

72,101,305,216

70,924,850,963

Total Equity

391,959,928,480

395,682,210,040

356,282,811,703

Liab. & Shareholder’s Equity

569,019,625,326

586,184,536,585

531,611,745,594

 

Current Liabilities

122,373,648,830

127,345,510,081

114,679,030,594

Trade Payables

43,807,778,036

43,076,058,417

40,093,630,722

Account Payables

52,019,190,699

62,936,875,661

46,419,010,181

Advance Receipts

609,429,132

1,065,602,939

1,413,888,235

Withholdings

1,901,434,795

1,442,917,156

622,111,742

Unearned Income

854,812,182

188,011,394

8,631,690

Accrued Expenses

3,387,707,631

3,520,882,770

3,085,295,624

Accrued Dividends

 

 

685,660

Current Portion of Long-Term Debts

1,937,420,000

2,197,175,500

4,238,909,500

Current Portion of Long-Term Lease Debts

8,960,825,630

1,026,639,842

938,593,318

Accrued Income Tax

5,198,756,307

8,594,762,170

5,658,273,922

Provisions for Disaster Recovery

3,536,453,304

3,296,584,232

12,200,000,000

Derivatives

159,841,114

 

 

Fixed Liabilities

54,686,048,016

63,156,816,464

60,649,903,297

Long-Term Borrowings

3,516,777,500

3,931,467,500

5,968,976,500

Provision for Severance & Retirement

29,354,375,909

28,762,909,494

29,941,581,474

Other Provisions

11,862,277,222

11,559,665,250

10,702,291,129

Leasehold Deposit Received

8,136,774,566

8,125,363,479

414,362,313

Guarantee Deposit

773,700,000

743,700,000

843,700,000

Deferred Income Tax Credit

911,887,334

1,683,121,365

3,873,074,188

Long-Term Lease Debts

 

8,182,281,351

9,208,921,193

Long-Term Unearned Income

391,098,585

433,354,125

 

 

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

90,292,549,663

420,483,717,515

402,499,788,268

Cost of Sold Goods

85,315,563,223

344,906,519,454

332,705,973,528

Gross Profit

4,976,986,440

75,577,198,061

69,793,814,740

Selling & Admin. Expenses

8,533,462,170

38,104,833,005

32,877,960,779

Operating Income

-3,556,475,730

37,472,365,056

36,915,853,961

Non-Operating Income

1,578,147,209

22,275,161,450

19,278,340,480

Non-Operating Expenses

2,702,305,896

9,173,218,063

27,040,741,090

Income Before Taxes

-4,680,634,417

50,574,308,443

29,153,453,351

Income Taxes Expenses

-1,078,668,631

12,351,364,359

-283,222,146

Net Income

-3,601,965,786

38,222,944,084

29,436,675,497

 

 

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

4,025,278,756)

79,519,999,009

51,937,595,888

-Net Income

-3,601,965,786

38,222,944,084

29,436,675,497

-Exp. without Cash Outflow

9,086,432,091

32,341,560,452

46,474,729,762

-Revenue without Cash Inflows

-103,479,843

-390,097,552

-928,945,083

-Changes in Asset/ & Liability

-9,406,265,218

9,345,592,025

-23,044,864,288

Cash Flows from Investing

-8,841,841,472

-23,735,637,410

-14,244,715,050

-Cash Inflow from Investing

89,124,178

3,483,965,210

2,006,967,094

-Cash Outflows for Investing

-8,930,965,650

-27,219,602,620

-16,251,682,144

Cash Flows from Financing

-1,127,890,340

-5,893,022,360

-6,818,788,860

-Cash Inflows from Financing

 

 

 

-Cash Outflows from Financing

-1,127,890,340

-5,893,022,360

-6,818,788,860

Increase/Decrease in Cash

-13,995,010,568

49,891,339,239

30,874,091,978

Cash at the Beginning of Year

99,516,874,875

49,625,535,636

18,751,443,658

Cash at the End of Year

85,521,864,307

99,516,874,875

49,625,535,636

 

 


Products, Technologies, Services Description

 

Main Products & Services

Cement & Clinker

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI OIL REFINERY CO., LTD.(110111-0090558)

NAMHAE CHEMICAL CORPORATION(110111-0164717)

OXBOW

Competitors

SSANGYONG CEMENT INDUSTRIAL CO., LTD.

SSANG-YONG BLDG., 24-1, JEODONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2270-5114  FAX:+82-2-2275-7040

 

HANIL CEMENT CO., LTD.

15TH FL., UDEOK BLDG., 832-2, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-531-7000  FAX:+82-2-531-7113

 

TONG YANG CEMENT CORPORATION

ALPHA BLDG., 70, SEORIN-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-3770-3000  FAX:+82-2-3770-3305

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

LAFARGE S.A.

LAKO LTD.(141111-0027009)

POSFINE CO., LTD.(204611-0030668)

CEMENTIA TRADING CO.

LAFARGE ASIA SDN BHD

LAFARGE CEMENT LIMITED LIABLITY COMPANY

LAFARGE SHUI ON(BEIJING)

LAFARGE SURMA CEMENT

MALAYAN CEMENT BERHAD

PT.SEMEN ANDALAS INDONESIA

Corporate Ownership

LAFARGE S.A.

FINANCIERE LAFARGE

Cooperative Enterprise

-Franchise Agreement with

LAFARGE S.A.

 

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO.,LTD.(110111-0035893)

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

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2014

2013

2012

Export

15,864

31,145

38,902

Domestic

74,429

389,339

363,598

Total

90,293

420,484

402,500

 

The Subject deals with the companies in China and Taiwan.


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 :

KAR

 

 

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.