MIRA INFORM REPORT

Report Date :

22.11.2014

IDENTIFICATION DETAILS

Name :	HUVIS CORPORATION

Registered Office :	343, Hakdong-ro, Gangnam-gu, Seoul

Country :	South Korea

Financials (as on) :	320.06.2014

Date of Incorporation :	11.01.2000

Com. Reg. No.:	215-81-98804

Legal Form :	Listed Company

Line of Business :	Manufacture of Synthetic Fibers

No. of Employees :	954

RATING & COMMENTS

MIRA’s Rating :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

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, which comprise about half of GDP.

Source : CIA

Basic Information

Company Name	HUVIS CORPORATION
Registered Address	343, Hakdong-ro, Gangnam-gu, Seoul, Korea
Building	12FL., Paros Tower
Zip Code	135-010
Tel	+82-2-2189-4567
Fax	+82-2-2189-4569
E-mail	webmaster@huvis.com
Website	www.huvis.com
Trading Address	12FL., Paros Tower, 343, Hakdong-ro, Gangnam-gu, Seoul, Korea (Old Address System : 12FL., Paros Tower, 119, Nonhyeon-dong, Gangnam-gu, Seoul, Korea)
Tel	+82-2-2189-4567
Fax	+82-2-2189-4569
Other Address-Jeonju Factory	339, Palbokdong 2-ga, Deokjin-gu, Jeonju-si, Jeollabuk-do, Korea
Tel	+82-63-210-2114
Fax	+82-63-210-2233
Other Address-Ulsan Factory	600, Hwangseong-dong, Nam-gu, Ulsan, Korea
Tel	+82-52-277-0121
Fax	+82-52-277-0652
Other Address-Suwon Factory	600, Jeongja-dong, Jangan-gu, Suwon-si, Gyeonggi-do, Korea
Tel	+82-31-240-8171
Fax	+82-31-245-3004
Other Address- R&D Center	1690-1, Sinil-dong, Daedeok-gu, Daejeon, Korea
Tel	+82-42-930-4567
Fax	+82-42-930-4569
Other Address-Busan Office	830-136, Beomil 2-dong, Dong-gu, Busan, Korea
Tel	+82-51-631-5296
Fax	+82-51-631-5240
Type	Export
Industry	Manufacture of Synthetic Fibers
Main Business	Polyester Filament Yarn, Polyester Staple Fiber, Polyester Chip
Sub Business
Established (mm/dd/yyyy)	11/01/2000

The Subject owns the premises of Jeonju Factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Polyester fibers(11151503)
Sell	Thermoplastic polyester(13111057)
Sell	Fibers(11151500)
Sell	Synthetic fabrics(11161800)
Sell	Resins(13111000)
Sell	Polyester fibers(11151503)
Buy	Compounds and mixtures(12350000)
Buy	Alcohols or its substitutes(12352104)

CEO’s

Name	You Bae-Keun
Address	Suite 904-602, 525, Baekhyeon-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Date of Birth	10/14/1960
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

172,500,000,000

Employees

954

Formation

Listed Company(Korea Stock Exchange : 079980) as of 02/23/2012

Bank Details

Woori Bank-Jongno Branch

Corporate Registered No.

110111-2102070

Business Registered No.

215-81-98804

Permit & Licenses

05/2004 Obtained SEK Mark

09/2003 Obtained KT Mark (Fisto)

04/2001 Synthetic Fiber business division obtained Oeko-tex Standard 100, environmental certification of Europe.

Int’l Trade No.: 11843667

Shareholder Position

Name	Shares	%
SK SYNTEC CO., LTD.(131411-0232597)	8,797,500	25.50
SAMYANG HOLDINGS CORPORATION.(110111-0026181)	8,797,500	25.50
EMPLOYEE STOCK OWNERSHIP ASSOCIATION	3,196,724	9.27
OTHERS	13,708,276	39.73
TOTAL	34,500,000	100.00

Company History

11/11/2011 Moved to the present HQ address from Huvis Bldg., 151-7, Samseong 1-dong, Gangnam-gu, Seoul, Korea

10/26/2011 Increased capital to 146,250,000,000 KRW from 143,750,000,000 KRW

08/01/2006 Increased capital to 143,750,000,000 KRW from 100,000,000,000 KRW

11/2004 Built R&D Center in Daejeon city

05/2004 Obtained SEK Mark

10/31/2003 Moved its headquarters to 151-7, Samseong-dong, Gangnam-gu, Seoul from 77-1, Garak-dong, Songpa-gu, Seoul, Korea

09/2003 Obtained KT Mark (Fisto)

12/2001 Held a signing ceremony for the establishment of a joint venture plant to manufacture staple products in Zigong, Sichuan, China.

11/2001 Staple'LMF' selected as the world's top product by the Ministry of Commerce, Industry and Energy

08/2001 Newly established 'Research Institute II'

04/2001 Synthetic Fiber business division obtained Oeko-tex Standard 100, environmental certification of Europe.

11/01/2000 Huvis officially launched; President and CEO Cho Min-ho assumed office.

07/2000 Held signing ceremony for the establishment of a separate corporation, integrating the chemical textile divisions of Samyang and SK Chemical.

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
President & CEO	Mr.	You Bae-Keun	Korean	1959.10.14	Kyunghee University, Korea
Director	Mr.	Moon Sung-Hwan	Korean	1953.12.04	Seoul National University, Korea
Director	Mr.	Lee Moon-Seok	Korean	1954.04.09	Kyunghee University, Korea
Outside Director	Mr.	Sung Je-Hwan	Korean	1953.08	Cornell Univ., USA
Outside Director	Mr.	Lee Do-Mook	Korean	1950.08	Seoul National University, Korea
Outside Director	Mr.	Hur Yong-Seok	Korean	1956.07	Hongik University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2014	582,714,436,133	691,153,052,989	18,225,833,733
(*)2013	1,257,250,573,291	716,851,750,873	29,182,710,765
(*)2012	1,283,896,038,747	712,409,705,822	48,722,969,889
(*)2011	1,386,699,369,618	673,513,547,571	62,351,780,404
(*)2010	1,125,337,046,277	616,500,646,481	15,698,106,871
2009	952,464,339,603	558,259,933,928	3,574,128,424
2008	942,378,377,574	595,346,357,376	(-)26,919,275,941
2007	899,909,051,340	582,876,597,640	(-)40,888,565,109
2006	786,208,135,240	639,822,609,958	(-)117,004,930,591
2005	876,813,565,920	743,430,513,560	(-)24,231,603,083
2004	1,074,203,592,682	795,724,879,151	(-)33,536,243,989
2003	981,061,545,872	794,191,963,887	2,709,914,079

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

Financial Description

Authorized Capital(KRW)	400,000,000,000
Paid-Up Capital(KRW)	172,500,000,000
Total Issues Shares	34,500,000

Balance Sheet
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	691,153,052,989	716,851,750,873	712,409,705,822
Current Assets	362,673,641,853	388,506,419,523	392,252,448,531
Cash & Cash Equivalents	74,830,393,066	78,079,207,733	80,505,661,254
Current Financial Instruments	10,100,000,000	17,000,000,000	26,000,000,000
Trade Receivables	136,597,939,580	133,260,221,659	133,146,396,609
Other Receivables	32,864,359,897	35,866,941,645	26,437,588,155
Derivatives	68,943,986	5,762,576
Inventories	103,684,963,003	122,663,851,721	124,359,554,233
Deferred Income Tax Assets			235,390,130
Other Current Assets	4,527,042,321	1,630,434,189	1,567,858,150
Non-Current Assets	328,479,411,136	328,345,331,350	320,157,257,291
Tangibles	308,596,983,090	309,112,868,690	300,528,798,581
Intangibles	4,941,105,864	4,700,469,143	4,840,365,223
Investment_Related Companies	12,274,203,958	12,274,203,958	12,274,203,958
Marketable Financial Instruments	254,400,000	234,600,000
Other Non-Current Assets			537,348,000
Other Financial Assets	2,412,718,224	2,023,189,559	1,976,541,529
Total Liabilities	338,404,022,384	372,470,644,601	367,906,109,707
Current Liabilities	322,714,547,938	357,265,252,571	352,262,062,519
Trade Payables	221,024,416,311	258,344,792,677	272,274,028,402
Other Payables	23,891,489,957	23,266,746,963	26,165,270,119
Short-Term Borrowings	65,939,979,284	66,625,315,154	46,603,119,736
Current Portion of Long-Term Debts	82,850,000	52,800,000	26,400,000
Deferred Income Tax Credit	6,180,260,699	2,850,165,278
Other Financial Liabilities	1,848,287,332	2,559,344,967	2,687,412,384
Other Current Liabilities	3,747,264,355	3,566,087,532	4,505,831,878
Non-Current Liabilities	15,689,474,446	15,205,392,030	15,644,047,188
Long-Term Borrowings	3,442,350,000	3,498,800,000	1,940,600,000
Provision for Severance & Retirement	6,897,513,140	5,869,146,466	9,660,005,665
Deferred Income Tax Credit	3,210,799,384	3,686,439,207	1,082,786,871
Other Non-Current Liabilities	2,138,811,922	2,151,006,357	2,960,654,652
Capital Stock	172,500,000,000	172,500,000,000	172,500,000,000
Capital Surplus	22,202,479,600	22,202,479,600	40,257,319,800
Profit Surplus	158,026,826,833	149,674,089,100	131,746,276,315
Others	19,724,172	4,537,572
Total Equity	352,749,030,605	344,381,106,272	344,503,596,115
Liab. & Shareholder’s Equity	691,153,052,989	716,851,750,873	712,409,705,822

Income Statement
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Sales	582,714,436,133	1,257,250,573,291	1,283,896,038,747
Cost of Sold Goods	522,527,606,478	1,150,212,455,784	1,162,269,656,366
Gross Profit	60,186,829,655	107,038,117,507	121,626,382,381
Selling & Admin. Expenses	38,751,701,136	71,895,431,966	71,387,478,263
Operating Income	21,435,128,519	35,142,685,541	50,238,904,118
Non-Operating Income	8,871,690,217	18,555,253,682	15,123,701,999
Non-Operating Expenses	7,013,240,724	16,026,310,186	10,324,536,512
Finance Income	1,535,602,356	2,262,537,854	3,016,647,192
Finance Expenses	786,529,644	1,825,666,968	2,251,265,599
Income Before Taxes	24,042,650,724	38,108,499,923	55,803,451,198
Income Taxes Expenses	5,816,816,991	8,925,789,158	7,080,481,309
Net Income	18,225,833,733	29,182,710,765	48,722,969,889

Cash Flows
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	9,021,700,343	15,277,740,307	74,262,683,336
Cash Flows from Operating	18,225,833,733	29,182,710,765	48,722,969,889
Net Income	-6,747,527,450	-11,510,982,612	25,637,109,849
Interests Received	662,724,762	1,623,326,352	1,681,368,396
Interests Paid	-643,665,909	-1,054,245,137	-1,570,153,420
Dividends Received	491,310,000	0	0
Income Taxes	-2,966,974,793	-2,963,069,061	-208,611,378
Cash Flows from Investing	-1,685,683,140	-10,906,174,426	-50,304,011,358
Cash Flows from Financing	-10,584,831,870	-6,798,019,402	27,617,830,662
Increase/Decrease in Cash	-3,248,814,667	-2,426,453,521	51,576,502,640
Cash at the Beginning of Year	78,079,207,733	80,505,661,254	28,929,158,614
Cash at the End of Year	74,830,393,066	78,079,207,733	80,505,661,254

Products, Technologies, Services Description

Main Products & Services

PSF, Polyester Staple Fiber

PFY, Polyester Filament Yarn

Detailed Products Spec.

Polyester Filament Yarn

- Wool: MARKY-1,2, MOXIE, RENOVA-1,2,7, RENOVA-6, CENO, CEY

- Silk: JUNE-1,2, MONO, PRY

- Linen: CELESTO, LINACEO-1,2,3, New LINACEO

- Microfiber1: ISOL-1,2, ISOL-S, ISOL-C, ISOL-E, ISOL-K

- Microfiber2: NCD, FPN, PN

- For Pile & Fleece: GENTOS, PUD/PUB, SDF, WINPOL

- Stretch: SSY (FISTO), PWPY, ESSE (FISE)

- Performance: ESPOL, ESPOL-stretch, ESPOL-cool, MIRAWAVE-cool

Coolever

- Quick absorbing

- Moisture management

- Easy to care

- Soft touch

Mirawave (Multifunctional yarn for health and comfort)

- Anti-bacterial

- Far-infrared radiation / Heat retention

- UV-protection

- Special Use: LOMELA (LOM-C), NOSPA, WSP

Polyester Staple Fiber

- Spinning: FRE-ZEROXY, POPOP, ABF, MICRO-FIBER, APF, Dope-Dyed, ZEROXY, MIRAWAVE, TRIROBAL, PHF

- Stuffing/Padding: Conjugate

- Wadding: LMF

- Non Woven: ZEROXY, HPF, Napoly, FLOFA, NyLON-PRIME, RAYPOL, MICRO-SPLIT, HCT/HSFC, HSF

- Industrial

- Hygiene/Health: O-LMF

Chip

- Textile: SD, SB

- Bottle: BL, BB

Technologies Acquired

Trade Partners & Competitors

Suppliers

SAMNAM PETROCHEMICAL CO., LTD.(110111-0557061)

SK PETROCHEMICAL CO., LTD.(135811-0120906)

SAMSUNG PETROCHEMICAL CO., LTD.(181211-0000435)

SABIC

Customers

SK CHEMICALS CO., LTD.(130111-0005727)

SAM YANG SA CO., LTD.(140111-0003032)

Competitors

WOONGJIN CHEMICAL CO., LTD.(174811-0000151)

HYOSUNG CORPORATION(110111-0030497)

TK CHEMICAL CORPORATION(110111-3783457)

JIANGYIN SANFANGXIANG

RELIANCE INDUSTRIES

YIZHENG

HUVIS

NAN YA

YUANDONG

FAR EASTERN

TUNTEX

WELLMAN

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

SICHUAN HUVIS CO., LTD.

(95.0% held by the subject company)

XINMIN GUARD, DAAN DISTRICT, ZIGONG, SICHUAN, CHINA

TEL:+86-813-8000

GUANGZHOU HUVIS YOUNGSUNG FIBER CO., LTD.(CHINA)

(30.0% held by the subject company)

RM.2105, EAST TOWER YANGCHENG INTERNATIONAL COMMERCIAL CENTER, NO. 122, TI YU DONG ROAD, GUANGZHOU, CHINA

TEL:+86-20-3887-2510

Overseas Office

SICHUAN HUVIS CO., LTD.

(95.0% held by the subject company)

XINMIN GUARD, DAAN DISTRICT, ZIGONG, SICHUAN, CHINA

TEL:+86-813-8000

CHEONGDU OFFICE

B-2, 1601, FENGDE INTERNATIONAL PLAZA, NO.6, HANGKONG RD., WUHOU, DISTRICT, CHENGDU, CHINA

TEL:+86-28-8526-6067

GUANGZHOU HUVIS YOUNGSUNG FIBER CO., LTD.(CHINA)

(30.0% held by the subject company)

RM.2105, EAST TOWER YANGCHENG INTERNATIONAL COMMERCIAL CENTER, NO. 122, TI YU DONG ROAD, GUANGZHOU, CHINA

TEL:+86-20-3887-2510

SHANGHAI OFFICE

RM.2003, SHENG GAO INTERNATIONAL TOWER, NO. 137, XIANXIA ROAD, SHANGHAI, CHINA

TEL:+86-21-5204-4588

Corporate Ownership

SAMYANG HOLDINGS CORPORATION(110111-0026181)

SK SYNTEC CO., LTD.(131411-0232597)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	06/2014	2013	2012
Export	434,624	903,524	938,514
Domestic	148,090	353,727	345,382
Total	582,714	1,257,251	1,283,896

The Subject exports to China, Germany and USA.

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (KRW)	Status
			The Subject Company		435,481,700	Proceeding
		The Subject Company			71,500,000	Proceeding

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.97.01
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIT

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.