MIRA INFORM REPORT

 

 

Report Date :

31.05.2014

 

IDENTIFICATION DETAILS

 

Name :

DONGSUNG HIGHCHEM CO., LTD.

 

 

Formerly Known As :

HOSUNG CHEMEX CO., LTD

 

 

Registered Office :

16, Tongil-ro 2-gil, Jung-gu, Seoul, Korea 10th FI., AIA Tower 100-130

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

23.08.1978

 

 

Com. Reg. No.:

220-81-25695

 

 

Legal Form :

Listed Company (KOSDAQ : 013450) as of 06/11/1999

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals

 

 

No. of Employees

193

 

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 31st, 2014

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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,

Source : CIA

 

Basic Information

 

Basic

 

Company Name

DONGSUNG HIGHCHEM CO., LTD.

(Ex. Company Name : HOSUNG CHEMEX CO., LTD.)

(Trade Name : DSHC)

Registered Address

16, Tongil-ro 2-gil, Jung-gu, Seoul, Korea

Building

10th FI., AIA Tower

Zip Code

100-130

Tel

+82-2-3450-4200

Fax

+82-2-553-5922

E-mail

webmaster@i-chemex.com

Website

www.i-chemex.com

Trading Address

10th FI., AIA Tower, 16, Tongil-ro 2-gil, Jung-gu, Seoul, Korea

(Old Address System : 10th FI., AIA Tower, 216, Sunhwa-dong, Jung-gu, Seoul, Korea)

Tel

+82-2-3450-4200

Fax

+82-2-553-5922

Other Address-Ulsan Plant

1-31, Gilcheon-ri, Sangbuk-myeon, Ulju-gun, Ulsan, Korea

Tel

+82-52-264-2066

Fax

+82-52-264-2069

Other Address-Yeosu Plant

1023, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-685-5351

Fax

+82-61-685-5355

Other Address-Hwaseong Plant

732-6, Yangno-ri, Bibong-myeon, Hwaseong-si, Gyeonggi-do, Korea

Tel

+82-31-355-0856

Fax

+82-31-355-0859

Type

Export

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Performance Solvents, Monomer, Organic Peroxides, Polyurethans, Thermoplastic Polyurethane, Medical Treatment Tool, Coating

Established (mm/dd/yyyy)

08/23/1978

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Chemistry reagents or solutions(41116105)

Sell

Thermoplastic plastics(13102000)

Sell

Casting and splinting supplies(42241500)

Sell

Films(13111200)

Buy

Thermal insulation(30141500)

Buy

Organic peroxides(12352120)

 

CEO’s

 

Name

Lee Jae-Yong

Date of Birth

06/1995

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

70,637,910,000

Employees

193

Formation

Listed Company (KOSDAQ : 013450) as of 06/11/1999

A Company of DONGSUNG HOLDINGS CO., LTD.

Bank Details

Shinhan Bank-Sunnung Branch

Citibank, Korea-Sunnung Branch

Corporate Registered No.

110111-0237928

Business Registered No.

220-81-25695

Permit & Licenses

11/2003 ISO 9001

11/2003 ISO 14001

 

Int’l Trade No.: 11660479

Shareholder Position

Name

Shares

%

DONGSUNG HOLDINGS CO., LTD.(180111-0633031)

5,182,920

36.69

BAIK JUNG-HO

2,096,759

14.84

SHIN YOUNG INVESTMENT MANAGEMENT CO., LTD.(110111-1304148)

1,332,020

9.43

TREASURY STOCK

500,000

3.54

OTHERS

5,015,883

35.50

TOTAL

14,127,582

100.00

Company History

08/23/1978 Incorporated as Hosung Petrochemical Co., ltd.

01/01/1998 Acquired Jungwoo Industries Co., Ltd.

07/31/1999 Moved to the present HQ address from 705-18, Yeoksam-dong, Gangnam-gu, Seoul, Korea

11/1999 Changed company name to the present name

07/01/200 Acquired Dongsung Resorcves Development Co., Ltd.

04/15/2009 The Subject spin off the parts of not main business, and that parts are merged into DONGSUNG HOLDINGS CO.,LTD.(180111-0633031)

09/24/2009 Changed company name to the present name

03/12/2010 Moved to 9th FI., Sinan Bldg., 943-19, Daechi 2-dong, Gangnam-gu, Seoul, Korea from 18th Fl., Samhwa Bldg., 144-17, Samseong 2-dong, Gangnam-gu, Seoul, Korea

09/09/2013 Moved to the present HQ address from 9th FI., Sinan Bldg., 943-19, Daechi 2-dong, Gangnam-gu, Seoul, Korea

 

 


 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Jae-Yong

Korean

1955.06.

-

Director

Mr.

Park Choong-Yeol

Korean

1959.03.

-

Vice Chairman

Mr.

Kim Sung-Joo

Korean

1960.11.

-

Outside Director

Mr.

Lee Chul-Soo

Korean

1958.03.19

Seoul National University, Korea

Outside Director

Mr.

Kim Hong-Nam

Korean

1965.06.

-

Auditor

Mr.

Park Young-Jae

Korean

1958.09.12

Yonsei University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

56,086,174,951

135,902,678,539

3,693,218,973

(*)2013

215,903,060,861

131,258,543,647

10,770,319,475

(*)2012

210,428,802,944

120,195,590,270

10,911,475,854

(*)2011

206,288,387,040

90,725,352,434

9,610,042,298

(*)2010

170,730,488,286

78,143,576,365

8,478,619,630

2009

136,778,461,641

58,307,763,374

9,595,187,782

2008

143,601,463,530

81,376,714,714

4,283,136,809

2007

134,559,311,606

84,711,561,872

5,780,265,820

2006

128,854,502,794

82,279,675,997

4,413,715,255

2005

119,452,231,779

77,489,400,901

1,261,606,341

2004

128,467,338,287

80,724,685,283

5,295,256,333

2003

136,778,461,641

58,307,763,374

9,595,187,782

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

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

70,637,910,000

Total Issues Shares

14,127,582

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

135,902,678,539

131,258,543,647

120,195,590,270

Current Assets

97,415,557,952

90,243,190,241

61,351,731,727

Cash & Cash Equivalents

14,368,470,060

19,921,637,844

17,363,912,787

Finance Assets from this year's Income

33,624,188,261

19,294,022,810

 

Trade Receivables & Other Receivables

32,789,545,089

31,070,943,562

25,566,569,119

Inventories

16,215,454,953

17,512,834,219

15,119,969,617

Other Financial Assets

2,831,523

2,014,585,870

2,963,424,657

Other Current Assets

406,318,066

425,045,936

328,040,547

Marketable Financial Instruments

8,750,000

4,120,000

9,815,000

Non-Current Assets

38,487,120,587

41,015,353,406

58,843,858,543

Tangibles

33,602,151,863

33,588,360,659

31,987,636,748

Intangibles

1,982,919,423

1,594,240,043

1,614,597,073

Marketable Financial Instruments

2,035,730,000

2,040,360,000

22,044,480,000

Other Financial Assets

866,319,301

3,792,392,704

3,197,144,722

Total Liabilities

61,459,651,251

57,646,943,112

54,823,974,482

Current Liabilities

57,155,932,295

52,914,396,222

28,433,030,579

Short-Term Borrowings

4,714,065,654

3,805,687,761

5,503,438,177

Current Portion of Long-Term Debts

419,200,000

419,200,000

419,200,000

Bond with Warrant

22,595,637,357

22,200,242,383

 

Trade Payables & Other Payables

24,107,727,646

24,200,590,900

19,623,130,910

Accrued Dividends

2,861,792,220

 

 

Other Current Liabilities

402,160,586

366,334,001

945,869,867

Deferred Income Tax Credit

2,055,348,832

1,922,341,177

1,941,391,625

Non-Current Liabilities

4,303,718,956

4,732,546,890

26,390,943,903

Long-Term Borrowings

1,516,200,000

1,621,000,000

2,040,200,000

Bond with Warrant

 

 

20,696,931,842

Long-Term Trade Payables & Other Payables

202,526,304

202,526,304

257,983,681

Confirmed Salaries

1,163,243,707

848,906,600

811,689,680

Other Non-Current Financial Debts

26,100,000

26,100,000

26,100,000

Deferred Income Tax Credit

1,395,648,945

2,034,013,986

2,558,038,700

Capital Stock

7,063,791,000

7,063,791,000

7,063,791,000

Capital Surplus

10,378,807,541

10,378,807,541

10,378,807,541

Others

-1,903,757,390

-1,903,757,390

-1,903,757,390

Installments

54,038,333,334

46,538,333,334

38,183,333,334

Profit Surplus

4,865,852,803

11,534,426,050

11,649,441,303

Total Equity

74,443,027,288

73,611,600,535

65,371,615,788

Liab. & Shareholder’s Equity

135,902,678,539

131,258,543,647

120,195,590,270

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

56,086,174,951

215,903,060,861

210,428,802,944

Cost of Sold Goods

48,565,805,262

186,736,836,022

183,702,811,112

Gross Profit

7,520,369,689

29,166,224,839

26,725,991,832

Selling & Admin. Expenses

3,465,680,794

14,165,978,549

13,292,825,798

Operating Profits

4,054,688,895

15,000,246,290

13,433,166,034

Non-Operating Profits

-55,686,698

-345,142,916

537,263,728

Other Income

190,992,725

1,162,736,760

903,062,510

Other Expenses

-260,841,776

-1,259,631,517

-595,274,692

Finance Income

108,110,030

649,953,172

828,300,313

Finance Expenses

-423,647,419

-1,697,525,879

-720,010,060

Profits from investment on Related Companies

327,215,391

779,506,921

2,816,110

Other Non-Operating Income

2,484,351

19,817,627

118,369,547

Income Before Taxes

3,999,002,197

14,655,103,374

13,970,429,762

Income Taxes Expenses

305,783,224

3,884,783,899

3,058,953,908

Net Income

3,693,218,973

10,770,319,475

10,911,475,854

 

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

3,800,063,728

8,772,882,967

2,338,307,189

Net Income

3,693,218,973

10,770,319,475

10,911,475,854

Adjustment

1,331,503,748

7,760,238,771

6,104,602,495

Changes in Asset/ & Liability

-472,357,666

-5,692,683,683

-12,206,955,551

Interests Paid

-61,025,094

-197,203,431

-277,282,779

Interests Received

119,864,377

499,811,828

842,897,573

Income Taxes

-811,140,610

-4,367,599,993

-3,036,430,403

Cash Flows from Investing

-10,153,159,569

-1,759,446,808

-32,211,446,577

Cash Flows from Financing

803,577,893

-4,433,639,356

23,654,783,339

Increase/Decrease in Cash

-5,549,517,948

2,579,796,803

-6,225,116,331

Cash at the Beginning of Year

19,921,637,844

17,363,912,787

23,589,029,118

Cash at the End of Year

14,368,470,060

19,921,637,844

17,363,912,787

 

 

Products, Technologies, Services Description

 

Main Products & Services

Performance Solvent

PETROCHEMICAL

-Paraffine

-Naphthene

 

PERFORMANCE SOLVENTS

-Aliphatic

-De-Aromatic

 

FUNCTIONAL SOLVENTS

-De-Aromatic

-Aromatic

-Ketone

-Glycol

-Monomer

 

Organic Peroxide

RADICAL POLYMERIZATION

LDPE/PVC/ABS/PAINT

 

CROSS-LINKING

PE/EVA/RUBBER

 

CURING

UPR

 

REFORMING

PP

 

Polyurethane

Easter

TPU

AD-TPU

 

Paint & Special Coating

Paints for non-ferrous metal

Paints for Plastics

RESIN FOR LCDs

 

 

Trade Partners & Competitors

 

Suppliers

YEOCHUN NCC CO., LTD.(110111-1839096)

LG PETROCHEMICAL CO., LTD.(110111-0226905)

BASF COMPANY LIMITED(110111-0600860)

KOREA PTG CO., LTD.(230111-0060548)

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

 

EXXON MOBIL CHEMICAL

EVONIC DEGUSSA

BAYER

ASAHI

Customers

DONGSUNG CHEMICAL CO., LTD.(180111-0007690)

LG CHEM LTD(110111-2207995)

HANWHA L&C CORPORATION(110111-1725930)

Competitors

FUTURE TECHNOLOGIES SYSTEM INC.

RM. 406, JANG YEONG SIL HALL, VENTURE BLDG., 1688-5, SINIL-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-42-931-7680~2  FAX:+82-42-931-7683

 

SEKI ARKEMA CO., LTD.

8B-16L, CHILSEO LOCAL INDUSTRIAL COMPLEX, 79, GYENAE-RI, CHILSEO-MYEON, HAMAN-GUN, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-587-8055  FAX:+82-55-587-8061

 

KEUM JUNG CO., LTD.

852-141, GACHEON-RI, SAMNAM-MYEON, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-264-8586  FAX:+82-52-264-8589

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DONGSUNG HOLDINGS CO., LTD.(180111-0633031)

DONGSUNG CHEMICAL CO., LTD.(180111-0007690)

DONGSUNG MACHINERY CO., LTD.(180111-0192780)

DONGSUNG GREEN TECH CO., LTD.(110111-1249063)

FANTUM GOLF CO., LTD.(131111-0177525)

DONGSUNG CHEMEX CO., LTD.(135511-0179785)

DXD CO., LTD.(180111-0453489)

JOHNSON CONTROLS DONGSUNG AUTOMOTIVE, INC.(180111-0622018)

 

BIOLANE CO., LTD.(110111-2031617)

(40.12% held by the subject company)

 

BIOPOL CO., LTD.(134811-0053041)

(55.43% held by the subject company)

Affiliates-Overseas

QINGDAO DONGSUNG GOLF CO., LTD.(QDS)

PT.DONGSUNG JAKARTA(JDS)

GWANGZOHOU DONGSUNG CHEMICALS CO., LTD.(GDS)

DONGSUNG CHEMICAL VETNAM(VDS)

Cooperative Enterprise

-Insured Company

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

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2014

2013

2012

Export

17,004

62,232

50,466

Domestic

39,082

153,671

159,963

Total

56,086

215,903

210,429

 

 

News Clipping

 

Not Available


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.34

                

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

               

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.