MIRA INFORM REPORT

 

 

Report Date :

29.05.2014

 

IDENTIFICATION DETAILS

 

Name :

HONGDUK INDUSTRIAL CO., LTD.

 

 

Registered Office :

328, Cheolgang-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do-790-240

 

 

Country :

South Korea 

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.05.2012

 

 

Com. Reg. No.:

506-81-79611

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Hot Rolled, Drawn and Extruded Iron or Steel Products

 

 

No of Employees :

261

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

HONGDUK INDUSTRIAL CO., LTD.

(Korean Company Name : “홍덕산업()”)

Registered Address

328, Cheolgang-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 1854, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea)

Building

 

Zip Code

790-240

Tel

+82-54-271-9483

Fax

+82-54-278-1410

E-mail

 

Website

 

Trading Address

20FL., Janggyo Bldg., 1, Janggyo-dong, Jung-gu, Seoul, Korea

Tel

+82-2-316-6114

Fax

+82-2-316-6115

Other Address

80, Cheolgangsandan-ro 66beon-gil, Daesong-myeon, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

 

Fax

 

Other Address

68, Yunoegongdan-gil, Beopsu-myeon, Haman-gun, Gyeongsangnam-do, Korea

Tel

 

Fax

 

Other Address

84, Seokgang 3-gil, Gajo-myeon, Geochang-gun, Gyeongsangnam-do, Korea

Tel

 

Fax

 

Other Address

173-160, Yongmyeonggongdan-gil, Geoncheon-eup, Gyeongju-si, Gyeongsangbuk-do, Korea

Tel

 

Fax

 

Type

Export

Industry

Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Bead Wire

  Sub Business

 

Established (mm/dd/yyyy)

05/02/2012

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Mechanical wire(31151800)

Sell

Packaging films(24141514)

Sell

Rod(30102400)

 

CEO’s

 

Name

Ju Jong-Dae

Address

Suite 606-2304, 503, Geumgang-ro, Geumjeong-gu, Busan, Korea

Date of Birth

07/06/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

 

Capital (KRW)

10,813,290,000

Employees

261

Formation

Co., Ltd by shares

A Company of KISWIRE GROUP

Bank Details

Citi Bank

Busan Bank

Corporate Registered No.

171711-0099505

Business Registered No.

506-81-79611

Permit & Licenses

Int’l Trade No.: 892878

Shareholder Position

Name

Shares

%

HONG DUK CO., LTD.(174611-0007408)

740,000

64.68

KISWIRE HOLDINGS CO., LTD.(181211-0011664)

404,175

35.32

TOTAL

1,144,175

100.00

Company History

Incorporated as the present name after split off HONG DUK CO., LTD.(174611-0007408)

12/01/2012 Acquired HONGDUK ENGINEERING CO., LTD.

04/01/2014 Increased the authorized shares to 5,000,000 shares from 2,000,000 shares

04/01/2014 Increased capital to 10,813,290,000 KRW from 5,720,875,000 KRW

04/01/2014 Acquired HONGDUK STEELCORD CO., LTD.(174611-0015485), HONGDUK CABLE CO., LTD.(180111-0079219) and HONGDUK STC CO., LTD.(191411-0002154)

 

 

 

Detailed Information

 

Management

 

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Ju Jong-Dae

Male

Korean

03/26/2013

Director

Mr.

Hong Jong-Yeol

Male

Korean

05/02/2012

Director

Mr.

Hong Young-Cheol

Male

Korean

05/02/2012

Auditor

Mr.

Lim Sung-Young

Male

Korean

03/26/2013

Auditor

Mr.

Lee Cheon-Keun

Male

Korean

05/02/2012

 

 

 

Financials

 

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

198,885,370,846

199,001,832,336

9,049,451,773

2012

116,716,246,812

172,728,234,924

6,475,349,835

 

 

Financial Description

 

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

10,813,290,000

Total Issued Shares

2,162,658

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

199,001,832,336

172,728,234,924

 

Current Assets

127,759,492,889

94,048,923,598

 

-Quick Assets

101,103,483,252

67,949,057,002

 

-Inventories

26,656,009,637

26,099,866,596

 

Fixed Assets

71,242,339,447

78,679,311,326

 

-Investment

6,730,506,008

6,899,672,104

 

-Tangibles

39,971,546,782

41,633,023,849

 

-Intangibles

21,749,393,417

27,304,752,133

 

-Others

2,790,893,240

2,841,863,240

 

Total Liabilities

49,603,373,610

32,379,227,971

 

Current Liabilities

45,665,558,714

28,700,653,127

 

Fixed Liabilities

3,937,814,896

3,678,574,844

 

Capital Stock

5,720,875,000

5,720,875,000

 

Capital Surplus

126,695,870,845

126,695,870,845

 

Profit Surplus

15,524,801,608

6,475,349,835

 

Capital Adjustment

1,456,911,273

1,456,911,273

 

Total Equity

149,398,458,726

140,349,006,953

 

Liab. & Shareholder’s Equity

199,001,832,336

172,728,234,924

 

 

Current Liabilities

45,665,558,714

28,700,653,127

 

Trade Payables

37,698,079,796

25,019,062,849

 

Account Payables

1,783,970,805

1,394,143,724

 

Withholdings

71,603,182

56,632,099

 

Accrued Expenses

1,431,755,911

1,014,438,733

 

Advance Receipts

1,959,327,682

275,826,734

 

Accrued Income Tax

2,682,445,340

940,548,988

 

Deferred Income Tax

38,375,998

-

 

Fixed Liabilities

3,937,814,896

3,678,574,844

 

Provision for Severance & Retirement

4,020,293,330

3,395,544,520

 

Deferred Income Tax Credit

525,830,637

425,431,646

 

Other Guarantee Deposit

2,368,000,000

2,370,400,000

 

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

198,885,370,846

116,716,246,812

 

Cost of Sold Goods

165,471,965,484

99,539,115,908

 

Gross Profit

33,413,405,362

17,177,130,904

 

Selling & Admin. Expenses

21,232,244,915

9,618,363,369

 

Operating Income

12,181,160,447

7,558,767,535

 

Non-Operating Income

4,132,202,072

2,810,725,838

 

Non-Operating Expenses

3,121,320,654

1,589,164,485

 

Income Before Taxes

13,192,041,865

8,780,328,888

 

Income Taxes Expenses

4,142,590,092

2,304,979,053

 

Net Income

9,049,451,773

6,475,349,835

 

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

23,675,846,904

20,850,477,681

 

-Net Income

9,049,451,773

6,475,349,835

 

-Exp. without Cash Outflow

11,693,173,022

4,278,102,615

 

-Revenue without Cash Inflows

-685,586,031

-1,374,440,988

 

-Changes in Asset/ & Liability

3,618,808,140

11,471,466,219

 

Cash Flows from Investing

-45,033,922,047

6,243,990,132

 

-Cash Inflow from Investing

34,063,906,692

22,363,538,129

 

-Cash Outflows for Investing

-79,097,828,739

-16,119,547,997

 

Cash Flows from Financing

-

-

 

-Cash Inflows from Financing

-

-

 

-Cash Outflows from Financing

-

-

 

Increase/Decrease in Cash

-21,358,075,143

27,094,467,813

 

Cash at the Beginning of Year

36,333,854,408

9,239,386,595

 

Cash at the End of Year

14,975,779,265

36,333,854,408

 

 

 

Products, Technologies, Services Description

 

 

Main Products & Services

Bead Wire

 

 

Trade Partners & Competitors

 

Competitors

K&J CORPORATION

RM. 407, USEONG PETITE OFFICETEL, 1600-9, SEOCHO-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3474-4451  FAX:+82-2-3474-4454

 

PLASCO LTD.

RM. 603, JOYANG BLDG., 45, MUGYO-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-752-0866  FAX:+82-2-752-1158

 

HONGDUK STEEL CORD CO., LTD.

758, DAEGAK-RI, DAESONG-MYEON, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-271-9400  FAX:+82-54-278-4720

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

 

Affiliates-Domestic

KISWIRE CO., LTD.(180111-0001220)

HONG DUK CO., LTD.(174611-0007408)

TREFIL ARBED KISWIRE LTD.(184511-0000296)

HONGDUK STC CO., LTD.(191411-0002154)

HONG DUCK FINE CORD LTD.(194311-0001048)

 

Affiliates-Overseas

KISWIRE CORD SDN BHD

KISWIRE NEPTUNE SDN.BHD.

KISWIRE EUROPE BV

KISWIRE INC.

KISWIRE TRADING, INC.

KISWIRE JAPAN

KISWIRE SINGAPORE

KISWIRE (SHANGHAI) TRADING CO

ARCELORMITTAL PINE BLUFF

ARCELORMITTAL SZENTGOTTHARD

KISWIRE BALARAJA INDONESIA

KISWIRE QINGDAO LTD

KISWIRE SDN.BHD

QINGDAO KISWIRE  ARCELORMITTAL LTD

QINGDAO KPM LTD

VIETNAM KISWIRE ARCELORMITTAL LTD

YANGTZE KAM LTD

Corporate Ownership

HONG DUK CO., LTD.(174611-0007408)

Major Shareholders

HONG DUK CO., LTD.(174611-0007408)

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.07

UK Pound

1

Rs. 99.20

Euro

1

Rs. 80.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

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.