|
Report Date : |
17.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
LS NETWORKS
CORPORATION LIMITED |
|
|
|
|
Registered Office : |
15, Bunseong-ro 627beon-gil, Gimhae-si,
Gyeongsangnam-do, Korea (Old Address System : 360-1, An-dong, Gimhae-si,
Gyeongsangnam-do, Korea) |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
30.06.2014 |
|
|
|
|
Date of Incorporation : |
21.12.1949 |
|
|
|
|
Com. Reg. No.: |
622-81-04805 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Wholesale of Footwear. |
|
|
|
|
No of Employees : |
487 |
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 : |
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 |
|
Company Name |
LS NETWORKS
CORPORATION LIMITED (Korean Company
Name : “(주)LS네트웍스”) |
|
Registered Address |
15, Bunseong-ro 627beon-gil, Gimhae-si,
Gyeongsangnam-do, Korea (Old Address System : 360-1, An-dong,
Gimhae-si, Gyeongsangnam-do, Korea) |
|
Building |
|
|
Zip Code |
621-914 |
|
Tel |
+82-55-330-7111 |
|
Fax |
+82-55-337-7088 |
|
E-mail |
lsn-ir@lsnetworks.com |
|
Website |
www.lsnetworks.co.kr;www.pro-specs.com |
|
Trading Address |
10~12FL., LS Yongsan Tower, 92,
Hangang-daero, Yongsan-gu, Seoul, Korea (Old Address System : 10~12FL., LS Yongsan
Tower, 191, Hangangno 2-ga, Yongsan-gu, Seoul, Korea) |
|
Tel |
+82-2-799-7114 |
|
Fax |
+82-2-797-5444 |
|
Other Address-Seongnam Factory |
252-1, Sangdaewon-dong, Jungwon-gu,
Seongnam-si, Gyeonggi-do, Korea |
|
Tel |
+82-31-730-7000 |
|
Fax |
|
|
Type |
Export/Import |
|
Industry |
Wholesale of Footwear |
|
Main Business |
Sports Shoes, Sports Wears |
|
Sub
Business |
Renting of Non-Residential Buildings |
|
Established (mm/dd/yyyy) |
12/21/1949 |
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Sport accessories(49221500) |
|
Sell |
Athletic wear(53102900) |
|
Sell |
Athletic footwear(53111900) |
|
Sell |
Shoes(53111600) |
|
Sell |
Sandals(53111800) |
|
Sell |
Camping and outdoor equipment(49121500) |
|
Name |
Kim Seung-Dong |
|
Address |
|
|
Date of Birth |
10/01/1953 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
|
Capital (KRW) |
394,091,500,000 |
||||||||||||
|
Employees |
487 |
||||||||||||
|
Formation |
Listed Company (Korea Stock Exchange : 000680) as of 11/15/1973 A Company of LS GROUP |
||||||||||||
|
Bank Details |
Woori Bank-Hangangro Branch |
||||||||||||
|
Corporate Registered No. |
180111-0044717 |
||||||||||||
|
Business Registered No. |
622-81-04805 |
||||||||||||
|
Permit & Licenses |
12/1994 ISO 9001 07/2004 GD Mark Int’l Trade No.: 671006 |
||||||||||||
|
Shareholder Position |
|
||||||||||||
|
Company History |
12/21/1949 Incorporated as Kukje Chemical
Corp. 10/25/1976 Changed company name to KUKJE SANGSA CORP. 03/08/2000 Approved of Corporate Clearing Procedure by Changwon
District Court 01/31/2007 Approved of finishing Corporate Clearing Procedure by
Changwon District Court 02/01/2007 Joined as a company of LS GROUP 01/29/2008 Changed company name to the present name from Kukje Sangsa
Corp. 03/04/2008 Spin off ARTIS Business to ARTIS CO., LTD. 04/06/2009 Acquired F.A.S.T. Corporation(110111-3753632) 09/01/2011 Acquired OD CAMP CO.,
LTD.(110111-2839417) 06/28/2013 Decided to acquire FRUIT BANK.CO., LTD.(110111-3779216) as
of 09/01/2013 |
||||||||||||
|
|
|
|
Job Description |
Title |
Name |
Sex |
Nationality |
Date of Birth |
|
President
& CEO |
Mr. |
Kim Seung-Dong |
Male |
Korean |
1953.10.01 |
|
Group
Chairman |
Mr. |
Koo Ja-Yeol |
Male |
Korean |
1953.03.02 |
|
Chairman |
Mr. |
Koo Ja-Yong |
Male |
Korean |
1955.03.27 |
|
Auditor |
Mr. |
Seo Byung-Hwa |
Male |
Korean |
1957.11. |
|
Director
& CFO |
Mr. |
Kim Yong-Sun |
Male |
Korean |
1964.07. |
|
Outside
Director |
Mr. |
Keum Byung-Joo |
Male |
Korean |
1946.07.05 |
|
Outside
Director |
Mr. |
Oh Ho-Soo |
Male |
Korean |
1944.04.29 |
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
397,562,123,157 |
1,341,271,643,285 |
2,135,227,582 |
|
|
(*)2013 |
695,547,406,404 |
1,295,192,275,521 |
-12,624,864,963 |
|
(*)2012 |
639,561,787,379 |
1,257,202,778,593 |
15,687,081,637 |
|
(*)2011 |
423,313,531,527 |
1,195,737,795,437 |
17,005,332,190 |
|
2010 |
358,201,817,090 |
1,017,971,296,461 |
19,468,272,062 |
|
2009 |
271,990,548,161 |
1,040,437,619,106 |
14,653,246,774 |
|
2008 |
251,252,512,610 |
466,898,210,700 |
24,822,713,070 |
(*)Figures are based
on the K-IFRS Accounting System.
|
Authorized Capital(KRW) |
5,000,000,000,000 |
|
Paid-Up Capital(KRW) |
394,091,500,000 |
|
Total Issues Shares |
78,818,300 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
01/01/2014~06/30/2014 |
As of 12/31/2013 |
As of 12/31/2012 |
|
Total Assets |
1,341,271,643,285 |
1,295,192,275,521 |
1,257,202,778,593 |
|
Current Assets |
326,486,380,235 |
274,350,597,810 |
265,113,560,218 |
|
Cash & Cash Equivalents |
10,790,860,943 |
10,341,229,867 |
7,318,964,733 |
|
Trade Receivables & Other
Receivables |
111,708,950,395 |
86,298,890,149 |
79,994,384,375 |
|
Current Financial Instruments |
2,128,820,400 |
2,037,570,400 |
1,105,879,278 |
|
Derivatives |
179,501,915 |
211,999,386 |
310,286,119 |
|
Current Non-Financial Instruments |
19,829,051,885 |
5,180,476,555 |
1,997,158,508 |
|
Inventories |
181,849,194,697 |
170,280,431,453 |
174,386,887,205 |
|
Non-Current
Assets |
1,014,785,263,050 |
1,020,841,677,711 |
992,089,218,375 |
|
Long-Term Trade Receivables &
Other Receivables |
22,126,154,004 |
22,653,091,499 |
20,459,257,300 |
|
Investment_Related Companies |
222,370,408,170 |
222,370,408,170 |
169,580,038,375 |
|
Non-Current Financial Instruments |
21,274,933 |
33,764,933 |
8,021,763,353 |
|
Non-Current Non-Financial
Instruments |
1,558,964,692 |
2,476,274,590 |
1,447,763,780 |
|
Tangibles |
178,981,900,586 |
192,725,807,154 |
217,335,499,314 |
|
Investment_Real Estates |
581,915,651,157 |
572,431,708,940 |
566,915,543,823 |
|
Intangibles |
7,810,909,508 |
8,150,622,425 |
8,329,352,430 |
|
Total
Liabilities |
676,556,916,323 |
629,270,648,516 |
562,434,567,182 |
|
Current
Liabilities |
222,161,711,244 |
137,819,250,311 |
345,408,693,828 |
|
Trade Payables & Other
Payables |
62,812,142,577 |
40,194,629,916 |
41,980,967,452 |
|
Short-Term Borrowings |
100,670,094,658 |
84,603,798,210 |
261,824,950,766 |
|
Current Portion of Long-Term
Borrowings |
51,997,998,216 |
2,032,000,000 |
|
|
Current Non-Financial Instruments |
4,422,778,967 |
7,311,346,635 |
8,169,092,119 |
|
Derivatives |
1,520,748,351 |
683,802,896 |
32,260,525,294 |
|
Deferred Income Tax Credit |
737,948,475 |
2,993,672,654 |
1,173,158,197 |
|
Non-Current
Liabilities |
454,395,205,079 |
491,451,398,205 |
217,025,873,354 |
|
Long-Term Trade Payables &
Other Payables |
78,798,696,566 |
71,898,662,109 |
52,642,961,460 |
|
Debentures |
0 |
49,933,529,706 |
49,870,669,280 |
|
Long-Term Borrowings |
276,673,007,639 |
273,484,154,383 |
42,692,566,635 |
|
Other Non-Current Non-Financial
Debts |
3,745,830,239 |
3,694,669,340 |
1,638,419,914 |
|
Derivatives |
32,236,982,931 |
30,863,097,451 |
794,153,994 |
|
Provision for Severance &
Retirement |
5,887,388,738 |
4,186,994,079 |
3,171,605,451 |
|
Deferred Income Tax Credit |
57,053,298,966 |
57,390,291,137 |
66,215,496,620 |
|
Capital
Stock |
394,091,500,000 |
394,091,500,000 |
394,091,500,000 |
|
Capital Surplus |
-21,107,987,730 |
-18,092,838,103 |
-7,920,703,249 |
|
Others |
-635,256,492 |
-614,785,099 |
3,445,790,527 |
|
Profit Surplus |
292,366,471,184 |
290,537,750,207 |
305,151,624,133 |
|
Total Equity |
664,714,726,962 |
665,921,627,005 |
694,768,211,411 |
|
Liab. & Shareholder’s Equity |
1,341,271,643,285 |
1,295,192,275,521 |
1,257,202,778,593 |
|
Income Statement |
|||
|
Unit : Korean Won |
01/01/2014~06/30/2014 |
As of 12/31/2013 |
As of 12/31/2012 |
|
Sales |
397,562,123,157 |
695,547,406,404 |
639,561,787,379 |
|
Cost of Sold Goods |
260,681,509,661 |
448,721,174,720 |
360,281,626,361 |
|
Gross Profit |
136,880,613,496 |
246,826,231,684 |
279,280,161,018 |
|
Selling & Admin. Expenses |
125,256,166,744 |
243,203,085,180 |
264,237,048,696 |
|
Operating Income |
11,624,446,752 |
3,623,146,504 |
15,043,112,322 |
|
Other Income |
7,219,543,218 |
11,687,495,935 |
14,013,692,582 |
|
Other Expenses |
8,052,893,790 |
15,937,693,772 |
10,201,204,523 |
|
Finance Income |
640,771,892 |
8,839,891,822 |
26,123,570,997 |
|
Finance Expenses |
10,046,187,973 |
23,539,254,976 |
21,667,115,943 |
|
Income Before Taxes |
1,385,680,099 |
-15,326,414,487 |
23,312,055,435 |
|
Income Taxes Expenses |
-749,547,483 |
-2,701,549,524 |
7,624,973,798 |
|
Net Income |
2,135,227,582 |
-12,624,864,963 |
15,687,081,637 |
|
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 |
-5,808,094,333 |
-4,638,750,723 |
-17,184,857,557 |
|
Net Income |
2,135,227,582 |
-12,624,864,963 |
15,687,081,637 |
|
Adjustment |
-6,106,688,770 |
10,788,046,713 |
-26,430,758,545 |
|
Income Taxes |
-1,836,633,145 |
-2,801,932,473 |
-6,441,180,649 |
|
Cash Flows from Investing |
-4,401,259,412 |
-39,437,612,717 |
-14,347,166,357 |
|
Cash Flows from Financing |
10,670,476,730 |
47,120,904,020 |
35,145,741,395 |
|
Increase/Decrease in Cash |
449,631,076 |
3,022,265,134 |
3,543,402,935 |
|
Cash at the Beginning of Year |
10,341,229,867 |
7,318,964,733 |
3,775,561,798 |
|
Cash at the End of Year |
10,790,860,943 |
10,341,229,867 |
7,318,964,733 |
|
Main Products & Services |
Real Estate/Lease Business Investment Business Brand Business Bicycle Distribution Business Composite New Distribution Business Fashion, Sportswear, Outdoor Products,
Toyota Motors, Bicycle, Fruits Brand Name-PROSPECS, SKECHERS, Jack Wolfskin,
TOYOTA, biclo, Walk&Talk |
|
Detailed Products Spec. |
|
|
Technologies Acquired |
|
|
Suppliers |
|
|
Customers |
|
|
Competitors |
SAE-A TRADING CO., LTD. 8TH FL., SE-A VENTURE TOWER, 946-12, DAECHI
3-DONG, GANGNAM-GU, SEOUL, KOREA TEL:+82-2-6252-7000 FAX:+82-2-6252-7002 KYUNG SEUNG TRADING CO., LTD. 4TH FL., KYUNGSEUNG BLDG., 960,
DAECHI-DONG, GANGNAM-GU, SEOUL, KOREA TEL:+82-2-566-6842 FAX:+82-2-566-6867 NIKE SPORTS KOREA CO., LTD. 30TH FL., GANGNAM FINANCE CENTER, 737,
YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA TEL:+82-2-2006-5700 FAX:+82-2-557-9002 |
|
Affiliates-Domestic |
LS CORP.(110111-0003965) LS CABLE LTD.(134111-0168357) LS MTRON LTD.(134111-0168349) LS-NIKKO COPPER INC.(230111-0058436) GAON CABLE CO., LTD.(134111-0000567) E1 CORPORATION(110111-0381387) YESCO CO., LTD.(110111-0290778) LS NETWORKS CORPORATION
LIMITED(180111-0044717) POUNTEK LTD.(151111-0022867) GLOBAL CABLE INC.(130111-0008797) ALUTEK LTD.(110111-1479909) JS CABLE CO., LTD.(124311-0004327) YESCO SERVICE CO., LTD.(110111-1030082) KOSPACE CO., LTD.(134411-0012243) CARBONIX, INC.(171711-0036242) E&R INC.(164411-0005052) DAEHAN GM CORPORATION(110111-0613045) CASCO CO.,LTD.(210111-0047938) LS GLOBAL INCORPORATED.,
LTD.(110111-3359985) LS ASSET MANAGEMENT CO.,
LTD.(110111-1896137) E1 CONTAINER TERMINAL CO.,
LTD.(120111-0432039) E1 LOGISTICS CORPORATION(124611-0257243) KJ MOTORRAD(110111-3740499) DONGBANG CITY GAS INDUSTRY CO.,
LTD.(141111-0011979) GRM CO., LTD.(154611-0008012) OD CAMP CO., LTD.(110111-2839417) DAESUNG ELECTRIC CO., LTD.(110111-01415590 DELTECH CO., LTD.(134911-0010809) ACE R&A CO., LTD. (135111-0047493) TORECOM CORPORATION(135011-0054119) PLANET SYSTEM CO., LTD.(110111-1619745) RECYTECHKOREA CO., LTD.(161511-0044861) TRINNO TECH CO., LTD.(134111-0169397) |
|
Affiliates-Overseas |
LS KONGJO(SHANDONG) CO., LTD-CHINA LS JEONRAM(MUSEOK) CO., LTD-CHINA LS MACHINERY(MUSEOK) CO., LTD-CHINA LS-VINA LS CABLE MALAYSIA LS CABLE(TENJIN) CO., LTD-CHINA LS CABLE AMERICA INC LS SANGMOO(SHANGHAI) CO., LTD-CHINA LS CABLE VIETNAM CO. LTD. LS ELECTRONIC-DEVICES QINGDAO CO. LTD. LEADING SOLUTION CABLE INDIA PVT LTD. LS CABLE UK LTD. LS AGRICULTURAL EQUIPMENT(QINGDAO)CO.LTD CYPRUS INVESTMENTS, INC. SUPERIOR ESEEX INC. LS INDUSTRIAL SYSTEMS(DAIRIAN) CO.,
LTD.-CHINA LS VINA I.S LS INDUSTRIAL SYSTEM ELECTRIC(SHANGHAI)
CO., LTD-CHINA LS INDUSTRIAL SYSTEMS(MUSEOK) CO.,
LTD.-CHINA LS I.S(MIDDLE EAST) FZE CASCO DALIAN PT E1-PERTAGAS |
|
Overseas Office |
|
|
Liaison Office |
|
|
Overseas Branch |
|
|
Joint Venture |
|
|
Subsidiary |
BEST TOYOTA CO., LTD.(110111-5129881) (100.0% held by the subject company) KJ MOTORRAD(110111-3740499) (100.0% held by the subject company) LS NETWORKS TRADING (BEIJING)CO., LTD.(CHINA) (100.0% held by the subject company) HEUNG UP CO., LTD.(150111-0009270) (100.0% held by the subject company) SPORTS MOTORSYCLE KOREA CO., LTD.(110111-3688011) (100.0% held by the subject company) |
|
Corporate Ownership |
E1 CORPORATION(110111-0381387) |
|
Major Shareholders |
|
|
Cooperative Enterprise |
|
|
Sales/ Unit :Mil
KRW |
09/2011 |
2010 |
2009 |
|
Export |
10,209 |
3,885 |
472 |
|
Domestic |
286,108 |
354,317 |
271,519 |
|
Total |
296,317 |
358,202 |
271,991 |
Not Available.
No.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.47 |
|
|
1 |
Rs.98.23 |
|
Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.