|
Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
WELCRON KANGWON CO., LTD. |
|
|
|
|
Formerly Known As : |
KANGWON B&E CO., LTD., |
|
|
|
|
Registered Office : |
919-18, Poseungjangan-ro, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea |
|
|
|
|
Country : |
Korea (South) |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
06.02.1976 |
|
|
|
|
Com. Reg. No.: |
124-81-46960 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of Nuclear Reactors and Steam Generators |
|
|
|
|
No. of Employees : |
112 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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) |
A1 |
A1 |
|
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
|
Company Name |
WELCRON KANGWON CO., LTD. (Ex. Company Name : KANGWON B&E CO., LTD., |
|
Registered Address |
919-18, Poseungjangan-ro, Jangan-myeon, Hwaseong-si, Gyeonggi-do,
Korea (Old Address System : 580-1, Jang-an-ri, Jang-an-myeon, Hwaseong-si,
Gyeonggi-do, Korea) |
|
Zip Code |
445-943 |
|
Tel |
+82-31-358-7683 |
|
Fax |
+82-31-358-8676 |
|
E-mail |
kwb21@kwb21.com |
|
Website |
www.kwb21.com |
|
Trading Address |
212-24, Guro-dong, Guro-gu, Seoul, Korea |
|
Tel |
+82-2-6670-9000 |
|
Fax |
+82-2-2108-4611 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Nuclear Reactors and Steam Generators |
|
Main Business |
Industrial Boilers, HRSG, Heat Exchangers, Incinerators, Furnaces,
Fired Heater, Direct Fired Incinerator, Catalytic Oxidizer |
|
Sub
Business |
Manufacture of Central Heating Boilers and Radiators |
|
Established (mm/dd/yyyy) |
02/06/1976 |
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Boilers(40102000) |
|
Sell |
Fire tube boilers(40102001) |
|
Sell |
Water tube boiler(40102002) |
|
Sell |
Convection heaters(40101811) |
CEO’s
|
Name |
Lee Young-Kyu |
|
Date of Birth |
11/10/1959 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
6,333,413,000 |
|||||||||||||||
|
Employees |
112 |
|||||||||||||||
|
Formation |
Listed Company (KOSDAQ : 114190) as of 11/20/2009 |
|||||||||||||||
|
Bank Details |
Industrial Bank of Korea-Gaebong Branch |
|||||||||||||||
|
Corporate Registered No. |
110111-0191398 |
|||||||||||||||
|
Business Registered No. |
124-81-46960 |
|||||||||||||||
|
Permit & Licenses |
12/21/1997 ISO 9001 12/27/1997 EM Mark 04/23/2001 ISO 14001 Int’l Trade No.: 175272 |
|||||||||||||||
|
Shareholder Position |
|
|||||||||||||||
|
Company History |
03/1971 Established as KANGWON BOILER
CO.(Sole Proprietorship) 02/06/1976 Incorporated as KANGWON BOILER
MANUFACTURING CO., LTD. 11/2001 Awarded US$ 5 Million Export Top
Prize 11/2007 Awarded US$ 10 Million Export Top
Prize 06/2008 Changed company name to KANGWON B&E
CO., LTD. 11/30/2011 Awarded US$ 20 Million Export Top Prize 03/23/2012 Changed company name to the present name |
|||||||||||||||
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|
|
Management
|
Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
|
President & CEO |
Mr. |
Lee Young-Kyu |
Korean |
1959.11.10 |
- |
|
Vice Chairman |
Mr. |
Lee Hyo-Kook |
Korean |
1949.02.16 |
Lusiana State University, USA |
|
Vice President |
Mr. |
Sohn Ki-Tae |
Korean |
1966.10 |
- |
|
Director |
Mr. |
Han Dong-Jin |
Korean |
1945.04.10 |
Hanyang University, Korea |
|
Executive Director |
Mr. |
Lee Hun-Kyu |
Korean |
1963.08. |
- |
|
Director |
Mr. |
Jung Sung-Sik |
Korean |
1968.05.03 |
- |
|
Auditor |
Mr. |
Song Young-Sub |
Korean |
1961.09.06 |
Korea University, Korea |
|
Outside Director |
Mr. |
Lee Haeng-Ki |
Korean |
1946.09.18 |
- |
|
Outside Director |
Mr. |
Jang Se-Dong |
Korean |
1956.10. |
- |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
12/2013 |
50,660,658,965 |
72,441,332,830 |
3,922,207,543 |
|
12/2012 |
106,471,213,705 |
89,258,207,531 |
8,974,548,879 |
|
12/2011 |
5,803,423,154 |
59,922,123,862 |
921,015,620 |
|
11/2011 |
50,222,892,047 |
53,719,067,042 |
5,754,714,777 |
|
11/2010 |
30,619,298,393 |
28,677,831,553 |
1,716,785,857 |
|
11/2009 |
38,673,259,927 |
31,707,898,689 |
2,590,391,566 |
|
11/2008 |
49,499,532,666 |
29,219,823,693 |
2,333,829,008 |
|
11/2007 |
31,479,842,441 |
22,319,635,110 |
2,334,372,519 |
Financial
Description
|
Authorized Capital(KRW) |
25,000,000,000 |
|
Paid-Up Capital(KRW) |
6,333,413,000 |
|
Total Issues Shares |
12,666,826 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
As of 12/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Total Assets |
72,441,332,830 |
89,258,207,531 |
59,922,123,862 |
|
Current Assets |
61,556,227,707 |
80,491,240,301 |
54,120,885,299 |
|
Cash & Cash Equivalents |
29,503,809,105 |
5,641,573,283 |
16,960,214,072 |
|
Other Financial Assets |
8,866,600,000 |
11,759,759,000 |
5,881,337,665 |
|
Marketable Financial Instruments |
2,335,067,972 |
13,476,596,026 |
0 |
|
Current Financial Instruments |
663,080,000 |
|
|
|
Trade Receivables |
15,820,368,644 |
41,538,006,115 |
17,989,855,441 |
|
Other Receivables |
134,374,552 |
544,476,762 |
662,357,981 |
|
Inventories |
2,086,978,152 |
3,808,869,707 |
4,461,701,388 |
|
Other Current Assets |
2,145,949,282 |
3,721,959,408 |
8,165,418,752 |
|
Non-Current Assets |
10,885,105,123 |
8,766,967,230 |
5,801,238,563 |
|
Marketable Financial Instruments |
2,940,244,370 |
1,968,607,695 |
644,694,495 |
|
Non-Current Financial Instruments |
36,599,309 |
142,200,000 |
576,667,760 |
|
Tangibles |
4,787,447,597 |
4,416,402,125 |
3,926,352,978 |
|
Intangibles |
928,500,746 |
928,500,746 |
332,226,666 |
|
Investment_Related Companies |
759,351,330 |
|
|
|
Other Non-Current Receivables |
50,334,300 |
82,243,300 |
82,243,300 |
|
Other Non-Current Assets |
1,181,867,000 |
1,229,013,364 |
239,053,364 |
|
Deferred Income Tax Credit |
200,760,471 |
|
|
|
Total Liabilities |
26,564,177,500 |
53,150,277,325 |
34,498,674,154 |
|
Current Liabilities |
26,561,223,546 |
52,980,413,354 |
34,329,909,160 |
|
Trade Payables |
6,911,586,660 |
17,580,576,333 |
14,087,692,725 |
|
Current Portion of Bonds with
Warrant |
3,152,525,469 |
6,102,392,358 |
0 |
|
Other Current Liabilities |
16,497,111,417 |
29,297,444,663 |
20,242,216,435 |
|
Non-Current Liabilities |
2,953,954 |
169,863,971 |
168,764,994 |
|
Deferred Income Tax Credit |
0 |
168,668,038 |
154,673,528 |
|
Provision for Severance &
Retirement |
2,953,954 |
1,195,933 |
14,091,466 |
|
Capital Stock |
6,333,413,000 |
5,300,000,000 |
2,650,000,000 |
|
Capital Surplus |
9,180,043,766 |
4,161,631,046 |
6,155,226,039 |
|
Others |
1,659,254,108 |
633,587,547 |
-856,324,163 |
|
Profit Surplus |
28,976,225,604 |
25,687,359,361 |
17,474,547,832 |
|
Installments |
-271,781,148 |
325,352,252 |
0 |
|
Total Equity |
45,877,155,330 |
36,107,930,206 |
25,423,449,708 |
|
Liab. & Shareholder’s Equity |
72,441,332,830 |
89,258,207,531 |
59,922,123,862 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Sales |
31,979,175,911 |
5,803,423,154 |
50,222,892,047 |
|
Cost of Sold Goods |
24,058,108,301 |
4,236,747,565 |
37,631,682,953 |
|
Gross Profit |
7,921,067,610 |
1,566,675,589 |
12,591,209,094 |
|
Selling & Admin. Expenses |
2,447,519,864 |
602,930,555 |
6,335,758,798 |
|
Other Operating Income |
143,442,161 |
182,374,401 |
764,461,238 |
|
Other Operating Expenses |
207,180,999 |
57,825,112 |
429,904,002 |
|
Operating Income |
5,409,808,908 |
1,088,294,323 |
6,590,007,532 |
|
Finance Income |
331,023,712 |
122,142,627 |
745,100,730 |
|
Finance Expenses |
11,219,357 |
221,230 |
89,474,417 |
|
Income Before Taxes |
5,729,613,263 |
1,210,215,720 |
7,245,633,845 |
|
Income Taxes Expenses |
1,206,326,842 |
289,200,100 |
1,490,919,068 |
|
Net Income |
4,523,286,421 |
921,015,620 |
5,754,714,777 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Operating Activities Cash Flows |
7,480,220,979 |
789,090,165 |
15,102,829,626 |
|
Net Income |
4,523,286,421 |
921,015,620 |
5,754,714,777 |
|
Adjustment |
3,410,255,191 |
-186,851,287 |
9,329,103,673 |
|
Interests Paid |
- |
-221,230 |
-16,729,702 |
|
Interests Received |
210,823,085 |
64,149,742 |
374,955,134 |
|
Income Taxes |
-664,143,718 |
-9,002,680 |
-339,214,256 |
|
Cash Flows from Investing |
-12,147,246,425 |
835,108,590 |
-4,700,331,036 |
|
Cash Flows from Financing |
11,211,544,928 |
|
-626,155,015 |
|
Increase/Decrease in Cash |
6,556,417,473 |
1,622,204,775 |
9,773,098,824 |
|
Cash at the Beginning of Year |
16,960,214,072 |
15,338,009,297 |
5,654,910,473 |
|
Cash at the End of Year |
23,516,631,545 |
16,960,214,072 |
15,338,009,297 |
Products,
Technologies, Services Description
|
Main Products & Services |
Industrial Boilers, HRSG, Heat Exchangers, Incinerators, Furnaces,
Fired Heater, Direct Fired Incinerator, Catalytic Oxidizer |
Trade Partners
& Competitors
|
Suppliers |
POSCO(174611-0000741) |
|
Competitors |
SEENTEC CO., LTD.(194211-0046004) TODAYSURE PROJECT(USA) ENERCON SYSTEM(UK) HS THERMAL ENGINEERING(UK) GEM CANADA(CANADA) MACCI(ITALY) CELICES(MEXICO) THERMAX(INDIA) |
Related Parties (Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates |
WELCRON HANTEC CO., LTD. (Ex. HANTEC ENGINEERING CO., LTD. 110111-1118276) |
Sales by Region
(Activity & Markets)
|
Sales/ Unit : KRW |
03/2012 |
2011 |
2010 |
|
Export |
27,646,405,752 |
40,233,668,779 |
23,986,650,195 |
|
Domestic |
4,332,770,159 |
9,999,223,268 |
6,632,648,198 |
|
Total |
31,979,175,911 |
50,222,892,047 |
153,137,921,474 |
The Subject exports to China, Germany,
Indonesia, Iran, Japan, Philippines, Russia, Thailand and Egypt.
Not Available.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
|
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.