MIRA INFORM REPORT

 

 

Report Date :

11.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ALPHACHEM CO., LTD.

 

 

Registered Office :

261, Sinwon-Ro, Yeongtong-Gu, Suwon-Si, Gyeonggi-Do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

21.04.1998

 

 

Com. Reg. No.:

124-81-55891

 

 

Legal Form :

Company Limited By Shares

 

 

Line of Business :

Manufacture of Printing Ink.

 

 

No of Employees :

177

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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, which comprise about half of GDP.

 

Source : CIA

 

 

 

 


Basic Information

 

Company Name

ALPHACHEM CO., LTD.

(Korean Company Name : “()알파켐”)

Registered Address

261, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

Building

 

Zip Code

443-803

Tel

+82-31-214-4428~9

Fax

+82-31-216-4429

E-mail

info@inkmate.co.kr

Website

www.alphachem.net

Trading Address

261, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

(Old Address System : 407-1, Maetan 3-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea)

Tel

+82-31-214-4428~9

Fax

+82-31-216-4429

Other Address-Hwasung Factory

64, 58, Nangnaegi-gil, Bongdam-eup, Hwaseong-si, Gyeonggi-do, Korea

Tel

 

Fax

 

Type

Export

Industry

Manufacture of Printing Ink

  Main Business

Refill Inks, OPC Drum, Replacement Cartridge, Wide Format Printing Inks, Sublimation Ink Cartridge, Laser Printer Recycling

  Sub Business

 

Established (mm/dd/yyyy)

04/21/1998

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Printer and facsimile and photocopier supplies(44103100)

Sell

Carbon black(12171603)

Sell

Printing and drawing inks(60121800)

Sell

Toner(44103103)

Sell

Ink cartridges(44103105)

Sell

Ink refills(44121904)

Sell

Transparency film(44103118)

Buy

Aluminum(11101705)

Buy

Pigments(12171600)

Buy

Electronic component parts and raw materials and accessories(32131000)

 

 

CEO’s

 

Name

Cho Kyu-Oh

Address

Suite 120-1101, 30, Bojeong-ro, Giheung-gu, Yongin-si, Gyeonggi-do, Korea

Date of Birth

02/12/1962

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

4,200,000,000

Employees

177

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Woori Bank

Kookmin Bank

Hana Bank

Korea Exchange Bank

Corporate Registered No.

130111-0047092

Business Registered No.

124-81-55891

Permit & Licenses

08/21/2012 ISO 14001

08/21/2012 ISO 9001

08/21/2012 OHSAS18001

09/2009 KOSHA18001

01/2002 CE Mark

08/24/201 NT Mark

 

Int’l Trade No.: 21035276

Shareholder Position

Name

Shares

%

CHO KYU-OH

3,791,024

45.13

CHO JONG-DAE

1,201,149

14.30

OTHERS

3,407,827

40.57

TOTAL

8,400,000

100.00

Company History

04/21/1998 Incorporated as the present name

08/1999 Designated as a Venture Business

04/30/2007 Increased the authorized shares to 18,953,495 shares from 20,000,000 shares

11/2009 Awarded US$ 10 Million Export Top Prize

12/18/2009 Designated as a MAIN-BIZ Company

11/2010 Awarded US$ 20 Million Export Top Prize

06/24/2011 Designated as a Venture Business again

12/31/2011 Increased capital to 4,200,000,000 KRW from 3,013,782,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Cho Kyu-Oh

Male

Korean

02/17/2006

Director

Mr.

Cho Jong-Dae

Male

Korean

02/17/2006

Director

Mr.

Park Sang-Joon

Male

Korean

03/18/2011

Director

Mr.

Park Jong-Wook

Male

Korean

03/21/2014

Auditor

Mr.

Lee Ji-Hoon

Male

Korean

03/23/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

32,784,506,721

60,345,422,285

-1,558,280,015

2012

38,216,936,055

63,151,266,129

-2,225,050,411

2011

35,572,150,162

63,159,574,605

1,620,309,237

2010

37,532,320,964

57,274,243,096

4,500,099,854

2009

30,254,507,462

47,889,368,730

3,713,046,709

 

 

Financial Description

 

Authorized Capital(KRW)

9,476,747,500

Paid-Up Capital(KRW)

4,200,000,000

Total Issued Shares

8,400,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

60,345,422,285

63,151,266,129

63,159,574,605

Current Assets

15,123,618,468

16,995,901,933

17,069,813,590

Cash & Cash Equivalents

376,926,352

1,014,338,564

1,423,915,056

Trade Receivables & Other Receivables

9,790,256,249

10,739,661,952

10,659,579,302

Inventories

4,798,763,792

4,984,747,589

4,707,585,195

Other Current Assets

157,550,795

256,120,898

116,080,895

Deferred Income Tax Assets

121,280

1,032,930

162,653,142

Non-Current Assets

45,221,803,817

46,155,364,196

46,089,761,015

Tangibles

44,922,252,631

45,858,865,199

45,762,794,873

Intangibles

292,261,186

284,208,997

314,676,142

Guarantees

7,290,000

12,290,000

12,290,000

Total Liabilities

35,586,784,508

36,746,176,049

33,886,841,675

Current Liabilities

28,787,163,550

27,123,863,282

22,431,752,463

Trade Payables & Other Payables

2,098,651,413

2,199,398,392

3,163,583,442

Short-Term Borrowings

19,801,679,800

16,547,752,600

17,231,297,800

Current Portion of Long-Term Debts

5,510,000,000

4,822,500,000

1,510,000,000

Current Portion of Convertible Bonds

-

2,150,046,427

-

Other Financial Debts

1,070,470,945

1,016,267,027

 

Other Current Liabilities

256,321,073

350,310,340

362,150,895

Provisions for Refund

50,040,319

37,588,496

164,720,326

Non-Current Liabilities

6,799,620,958

9,622,312,767

11,455,089,212

Long-Term Borrowings

3,645,000,000

6,155,000,000

5,477,500,000

Provision for Severance & Retirement

1,828,951,296

1,691,366,210

1,541,874,677

Other Financial Debts

-

5,000,000

5,000,000

Convertible Bonds

 

 

2,042,748,565

Deferred Income Tax Credit

1,325,669,662

1,770,946,557

2,387,965,970

Capital Stock

4,200,000,000

4,200,000,000

4,200,000,000

Capital Surplus

1,618,328,187

1,618,328,187

1,625,158,027

Others

-61,000

-61,000

-61,000

Profit Surplus

18,940,370,590

20,586,822,893

23,447,635,903

Total Equity

24,758,637,777

26,405,090,080

29,272,732,930

Liab. & Shareholder’s Equity

60,345,422,285

63,151,266,129

63,159,574,605

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

32,784,506,721

38,216,936,055

35,572,150,162

Cost of Sold Goods

26,429,586,313

28,925,683,116

25,180,328,264

Gross Profit

6,354,920,408

9,291,252,939

10,391,821,898

Selling & Admin. Expenses

6,321,457,565

8,421,661,769

7,750,849,128

Operating Income

33,462,843

869,591,170

2,640,972,770

Finance Income

146,310,040

80,337,466

43,661,452

Finance Expenses

1,246,979,414

1,326,170,900

952,190,293

Non-Operating Income

780,388,961

890,624,525

974,700,007

Non-Operating Expenses

1,715,562,197

3,347,716,565

875,333,226

Income Before Taxes

-2,002,379,767

-2,833,334,306

1,831,810,710

Income Taxes Expenses

-444,099,752

-608,283,895

211,501,473

Net Income

-1,558,280,015

-2,225,050,411

1,620,309,237

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

2,893,666,482

390,165,494

2,644,555,839

Net Income

-1,558,280,015

-2,225,050,411

1,620,309,237

Adjustment

3,822,339,036

5,076,153,147

3,877,833,250

Changes in Asset/ & Liability

626,985,771

-2,631,141,770

-2,079,699,360

Interests Received

1,710,040

7,512,466

74,762,787

Income Taxes

911,650

162,692,062

-848,650,075

Cash Flows from Investing

-1,981,218,382

-3,095,607,850

-8,740,430,777

Cash Inflow from Investing

 

375,824,545

427,728,273

Cash Outflows for Investing

 

-3,471,432,395

-9,168,159,050

Cash Flows from Financing

-1,546,926,423

2,298,472,291

3,921,907,428

Cash Inflows from Financing

 

4,428,966,385

11,912,788,642

Cash Outflows from Financing

 

-2,130,494,094

-7,990,881,214

Increase/Decrease in Cash

-634,478,323

-406,970,065

-2,173,967,510

Cash at the Beginning of Year

1,014,338,564

1,423,915,056

3,595,109,762

Cash at the End of Year

376,926,352

1,014,338,564

1,423,915,056

 

 

Products, Technologies, Services Description

 

Main Products & Services

Refill Inks, OPC Drum, Replacement Cartridge, Wide Format Printing Inks, Sublimation Ink Cartridge, Laser Printer Recycling

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

ALPROD SHANGHAI TRADING CO., LTD.(CHINA)

Competitors

JOEUN INK & CHEMICAL CO., LTD.

1037-83, MAE-RI, SANGDONG-MYEON, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-329-0615  FAX:+82-55-329-0617

 

HAN YANG INK. CO., LTD.

55-1, YANGPYEONG-DONG 5-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2676-6667  FAX:+82-2-2671-9686

 

DIPI COLOR KOREA CO., LTD.

952-14, DEOKJEONG-RI, SAMSEONG-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-877-3165  FAX:+82-43-877-4395

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ZEUS TECH CO., LTD.(KOREA)

Overseas Office

 

Subsidiary

ALPROD SHANGHAI TRADING CO., LTD.(CHINA)

(100.0% held by the subject company)

 

ALPHACHEM USA, INC(USA)

(100.0% held by the subject company)

 

ALPHACHEM EUROPE GMBH(GERMANY)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

2013

2012

2011

Export

25,411,490

31,152,370

 

Domestic

7,373,017

7,064,566

 

Total

32,784,507

38,216,936

 

The Subject exports to Germany, USA and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.