MIRA INFORM REPORT

 

 

Report Date :

31.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

M CORPORATION

 

 

Registered Office :

49, Dongmak-ro 8-gil, Mapo-gu, Seoul, Korea, 10th Fl., Uni Tower 121-883

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

13.12.1996

 

 

Com. Reg. No.:

107-81-58156

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Wholesale of Other Chemical Materials and Chemical Products

 

 

No. of Employees :

21

 

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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

M CORPORATION

(Korean Company Name : “()”)

Registered Address

49, Dongmak-ro 8-gil, Mapo-gu, Seoul, Korea

Building

10th Fl., Uni Tower

Zip Code

121-883

Tel

+82-2-337-9660

Fax

+82-2-337-1711

E-mail

kkpk12@mcorporation.kr

Website

www.m-chemicals.com;www.mcorporation.kr

Trading Address

10th Fl., Uni Tower, 49, Dongmak-ro 8-gil, Mapo-gu, Seoul, Korea

(Old Address System : 10th Fl., Uni Tower, 358-6, Hapjeong-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-337-9662

Fax

+82-2-337-1711

Other Address-Incheon Factory

434-117, Oryu-dong, Seo-gu, Incheon, Korea

Tel

+82-32-561-1700~9

Fax

+82-32-561-1708

Other Address-Iksan Factory

641, Seogam-dong, Iksan-si, Jeollabuk-do, , Korea

Tel

+82-63-835-9620

Fax

+82-63-835-9622

Type

Export/Import

Industry

Wholesale of Other Chemical Materials and Chemical Products

  Main Business

Acetone, Ketone, Acetate, Glycol, Alcohol, Chloride, Phenol, Resin, Monomer, Retardant, Celosolve, Hexane, BTX

Established (mm/dd/yyyy)

12/13/1996

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ethers or its substitutes(12352112)

Sell

Aromatic or heterocyclic compounds(12352005)

 

CEO’s

 

Name

Lee Kang-Hoon

Address

7-5, Ilsan-ro 297beon-gil, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea

Date of Birth

12/13/1996

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

2,233,630,000

Employees

21

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Kookmin Bank

SC First Bank of Korea

Corporate Registered No.

110111-1352329

Business Registered No.

107-81-58156

Permit & Licenses

Int’l Trade No.: 11385907

Shareholder Position

Name

Shares

%

LEE KANG-HOON

1,988,200

44.51

LEE KANG-JIN

237,800

5.32

OTHERS(46)

2,241,260

50.17

TOTAL

4,467,260

100.00

Company History

12/13/1996 Incorporated as HOYEON CHEMICAL CO., LTD.

04/25/1998 Changed company name to HOYEON GT CO., LTD.

03/20/2000 Changed company name to M CHEMICALS CO., LTD.

11/26/2007 Acquired SANGHWA CO., LTD.

12/27/2007 Moved to the present HQ address from 358-6, Hapjeong-dong, Mapo-gu, Seoul, Korea

02/29/2008 Changed company name to the present name

05/22/2008 Increased the authorized shares to 20,000,000 shares from 1,000,000 shares

05/22/2008 Increased capital to 2,233,630,000 KRW from 1,993,630,000 KRW

06/30/2008 Spin off the par value to 500 KRW from 10,000 KRW

01/04/2010 Split off into the Subject company, and newly established company(M NEO MATERIALS CORPORATION(120111-0520082))

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Kang-Hoon

Male

Korean

12/13/1996

Director

Mr.

Kim Kyung-Soo

Male

Korean

03/31/2014

Director

Mr.

Park Jong-Phil

Male

Korean

10/05/2010

Auditor

Mr.

Seo Chun-Ho

Male

Korean

07/30/2005

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

215,517,753,319

62,500,857,171

-2,814,820,648

2012

205,826,098,490

52,455,737,133

-472,635,928

2011

178,774,817,050

57,815,061,883

-4,738,701,341

2010

140,928,586,520

54,547,499,138

1,847,845,317

2009

145,673,979,232

54,163,514,947

4,035,075,434

2008

173,159,286,394

42,325,746,308

1,056,334,831

2007

163,532,441,236

27,670,409,237

1,482,334,077

2006

154,050,265,755

29,147,141,715

257,623,951

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

2,233,630,000

Total Issues Shares

4,467,260

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

62,500,857,171

52,455,737,133

57,815,061,883

Current Assets

40,171,727,545

30,197,972,346

29,275,263,040

-Quick Assets

24,641,318,962

23,197,179,867

20,673,231,870

-Inventories

15,530,408,583

7,000,792,479

8,602,031,170

Fixed Assets

22,329,129,626

22,257,764,787

28,539,798,843

-Investment

14,996,761,600

15,149,999,473

16,954,385,777

-Tangibles

5,771,697,343

5,489,624,350

10,038,671,598

-Intangibles

153,447,969

195,500,973

237,553,977

-Others

1,407,222,714

1,422,639,991

1,309,187,491

Total Liabilities

61,853,081,565

49,083,287,613

50,480,204,940

Current Liabilities

61,738,160,205

47,635,597,839

49,812,303,599

Fixed Liabilities

114,921,360

1,447,689,774

667,901,341

Capital Stock

2,233,630,000

2,233,630,000

2,233,630,000

Capital Surplus

2,222,260

2,222,260

2,222,260

Profit Surplus

-610,792,505

2,282,207,025

5,989,943,963

Capital Adjustment

-977,284,149

-1,145,609,765

-890,939,280

Total Equity

647,775,606

3,372,449,520

7,334,856,943

Liab. & Shareholder’s Equity

62,500,857,171

52,455,737,133

57,815,061,883

 

Current Liabilities

61,738,160,205

47,635,597,839

49,812,303,599

Trade Payables

31,272,153,672

21,003,939,422

17,962,799,682

Short-Term Borrowings

25,303,498,903

26,041,844,202

26,394,419,094

Account Payables

1,096,190,253

471,175,467

973,571,562

Accrued Expenses

206,257,969

56,758,835

52,140,538

Advance Receipts

2,396,998,239

19,343,987

12,319,265

Withholdings

62,766,372

41,549,136

47,137,800

Accrued Dividends

986,790

986,790

986,790

Current Portion of Long-Term Debts

 

 

375,000,000

Current Portion of Debentures

1,400,000,000

-

4,000,000,000

Fixed Liabilities

114,921,360

1,447,689,774

667,901,341

Long-Term Borrowings

 

 

562,500,000

Debentures

-

1,400,000,000

-

Provision for Severance & Retirement

491,845,220

495,287,175

498,939,970

Leasehold Deposit Received

17,000,000

17,000,000

17,000,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

215,517,753,319

205,826,098,490

178,774,817,050

Cost of Sold Goods

209,360,507,898

197,856,904,899

170,905,663,195

Gross Profit

6,157,245,421

7,969,193,591

7,869,153,855

Selling & Admin. Expenses

6,051,379,023

7,250,780,638

8,907,015,341

Operating Income

105,866,398

718,412,953

-1,037,861,486

Non-Operating Income

2,986,641,559

2,971,912,160

2,799,368,814

Non-Operating Expenses

6,107,650,485

4,162,961,041

6,456,923,492

Income Before Taxes

-3,015,142,528

-472,635,928

-4,695,416,164

Income Taxes Expenses

-200,321,880

-

43,285,177

Net Income

-2,814,820,648

-472,635,928

-4,738,701,341

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

-907,998,751

1,087,693,864

-8,527,012,009

-Net Income

-2,814,820,648

-472,635,928

-4,738,701,341

-Exp. without Cash Outflow

1,936,562,531

1,368,968,246

2,649,910,636

-Revenue without Cash Inflows

-1,533,365,797

-1,422,097,167

-1,378,700,286

-Changes in Asset/ & Liability

1,503,625,163

1,613,458,713

-5,059,521,018

Cash Flows from Investing

1,843,172,143

2,088,533,990

-108,040,264

-Cash Inflow from Investing

2,771,925,981

23,406,216,349

13,445,243,851

-Cash Outflows for Investing

-928,753,838

-21,317,682,359

-13,553,284,115

Cash Flows from Financing

-738,345,299

-3,479,994,509

8,933,312,630

-Cash Inflows from Financing

137,585,832,358

118,483,282,199

83,932,792,507

-Cash Outflows from Financing

-138,324,177,657

-121,963,276,708

-74,999,479,877

Increase/Decrease in Cash

196,828,093

-303,766,655

298,260,357

Cash at the Beginning of Year

34,120,285

337,886,940

39,626,583

Cash at the End of Year

230,948,378

34,120,285

337,886,940

 


Products, Technologies, Services Description

 

Main Products & Services

Acetone, Ketone, Acetate, Glycol, Alcohol, Chloride, Phenol, Resin, Monomer, Retardant, Celosolve, Hexane, BTX

 

 

Trade Partners & Competitors

 

Suppliers

LG CHEM LTD.(110111-2207995)

Competitors

DOUGLAS CHEM INC

RM. 812, DAEWOO BLDG. BOKAP-DONG, 167, NAESU-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-6272-7130  FAX:+82-2-6272-7131

 

MYOUNGJI CHEMICAL CO., LTD.

RM. 1001, DAEWOO OFFICETEL, 45-5, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-761-6660 FAX:+82-2-761-0337

 

CHEMICAL NETWORKS CO., LTD.

753-14, WONSAN-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-237-6111  FAX:+82-52-237-6110

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

M-CHEMICALS QINGDAO CO., LTD.

 

INTERCHEM KOREA CO., LTD.(KOREA)

(49.2% held by the subject company)

 

M ECO O&T CO., LTD.(110111-4059526)

(73.39% held by the subject company)

 

E&M GLOBAL CO., LTD.(110111-1470139)

(64.05% held by the subject company)

 

M NEO MATERIALS (QINGDAO) CO., LTD.

Subsidiary

M ENERGY CO., LTD.(110111-1983546)

(50.07% held by the subject company)

 

M NEO MATERIALS CORPORATION(120111-0520082)

(100.0% held by the subject company)

 

M-CHEMICALS INTERNATIONAL TRADE(SHANGHAI) CO., LTD.

(100.0% held by the subject company)

 

LEE & CHEMICAL INC.

(97.0% held by the subject company)

 

M ECO O&T CO., LTD.(110111-4059526)

(73.39% held by the subject company)

 

MRI CO., LTD.(KOREA)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in China and Vietnam.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.33

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.