MIRA INFORM REPORT

 

 

Report Date :

22.10.2014

 

IDENTIFICATION DETAILS

 

Name :

DAEWOONG BIO INC.

 

 

Registered Office :

35-9, Jeyakgongdan 4-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.04.2009

 

 

Com. Reg. No.:

124-86-77584

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Medicinal Chemicals and Antibiotics

 

 

No. of Employees :

218

 

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 – 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

 

Basic

 

Company Name

DAEWOONG BIO INC.

(Korean Company Name : “대웅바이오())

Registered Address

35-9, Jeyakgongdan 4-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

(Old Adress System : 906-5, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea)

Building

Hyangnam Pharmaceutical Industries Complex

Zip Code

445-922

Tel

+82-31-353-5271~3

Fax

+82-31-353-5626

E-mail

tony@daewoong.co.kr;dwle@daewoong.co.kr

Website

www.daewoongchemical.co.kr

Trading Address

Daewoong Pharmaceutical Bldg.,163-3, Samseong-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-550-8641

Fax

+82-2-550-8249

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Medicinal Chemicals and Antibiotics

  Main Business

Ursodeoxycholic Acid, Amoxicillin, Ceftriaxone Sodium, Coenzyme Q10, Cefodizime Sodium, Cefotiam Hydrochloride, Lansoprazole, Fluconazole

  Sub Business

 

Established (mm/dd/yyyy)

04/02/2009

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Drugs and Pharmaceutical Products(51000000)

Sell

Penicillin(51101507)

 

CEO’s

 

Name

Lee Jong-Wook

Address

Suite 117-603, 155, Seongbok-dong, Suji-gu, Yongin-si, Gyeonggi-do, Korea

Date of Birth

03/10/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

 

Profiles

 

Capital (KRW)

1,000,000,000

Employees

218

Formation

Co., Ltd by shares

A Company of DAEWOONG GROUP

Bank Details

Woori Bank-Samsung Dong Branch

Shanhan Bank

Hana Bank

Corporate Registered No.

134811-0172221

Business Registered No.

124-86-77584

Permit & Licenses

Int’l Trade No.: 45370498

Shareholder Position

Name

Shares

%

DAEWOONG CO., LTD.(131111-0000271)

200,000

100.00

TOTAL

200,000

100.00

Company History

04/02/2009 Incorporated as the present name after spinning off Raw Materials Business for Pharmaceuticals from DAEWOONG CHEMICAL CO., LTD.(131112-0004827) located at 906-5, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea.

06/28/2010 Changed the financial closing date to December 31 from March 31

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Jong-Wook

Male

Korean

12/10/2009

Director

Mr.

Yoon Jae-Seung

Male

Korean

03/30/2012

Director

Mr.

Yoon Jae--Choon

Male

Korean

04/02/2009

Director

Mr.

Seo Jong-Won

Male

Korean

06/28/2010

Director

Mr.

Jeon Woo-Bang

Male

Korean

03/15/2013

Auditor

Mr.

Lee Won-Keun

Male

Korean

03/30/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

12/2013

148,927,171,717

161,757,123,771

10,387,552,496

12/2012

138,013,847,692

172,367,811,294

10,707,557,663

12/2011

132,837,744,799

176,380,999,684

8,850,003,832

12/2010

91,698,215,718

135,023,006,082

7,507,357,320

03/2010

101,131,109,420

96,739,291,272

9,026,412,992

 


 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

1,000,000,000

Total Issues Shares

200,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

161,757,123,771

172,367,811,294

176,380,999,684

Current Assets

64,835,002,755

71,286,545,088

73,521,775,239

Cash & Cash Equivalents

5,907,501,504

311,157,736

3,981,176,387

Trade Receivables & Other Receivables

26,087,464,113

34,289,905,447

39,645,313,853

Inventories

30,157,285,432

33,270,259,966

26,289,328,877

Other Current Assets

2,682,751,706

3,415,221,939

3,605,956,122

Non-Current Assets

96,922,121,016

101,081,266,206

102,859,224,445

Marketable Financial Instruments

117,945,000

119,945,000

119,945,000

Long-Term Trade Receivables & Other Receivables

1,692,058,084

477,247,062

472,896,062

Investment_Subsidiaries

6,911,113,868

6,911,113,868

4,026,762,100

Investment_Related Companies

325,258,481

635,571,078

1,271,142,157

Tangibles

78,342,306,298

82,458,896,926

87,178,321,231

Investment_Real Estates

6,501,843,965

6,557,161,392

6,612,478,819

Intangibles

2,151,901,549

2,345,818,848

2,600,448,072

Deferred Income Tax Assets

879,693,771

1,575,512,032

577,231,004

Total Liabilities

51,620,943,796

72,491,417,315

87,086,267,064

Current Liabilities

47,887,672,403

66,687,422,294

74,315,425,967

Trade Payables & Other Payables

20,125,641,740

22,301,193,691

35,057,398,224

Short-Term Borrowings

26,152,435,862

42,674,772,953

29,498,365,511

Current Portion of Long-Term Borrowings

 

 

9,000,000,000

Deferred Income Tax Assets

1,304,204,179

1,203,829,355

156,595,182

Other Current Liabilities

305,390,622

507,626,295

603,067,050

Non-Current Liabilities

3,733,271,393

5,803,995,021

12,770,841,097

Long-Term Trade Payables & Other Payables

3,000,000,000

3,000,000,000

3,000,000,000

Long-Term Borrowings

-

1,700,000,000

9,000,000,000

Provision for Severance & Retirement

733,271,393

1,103,995,021

770,841,097

Capital Stock

1,000,000,000

1,000,000,000

1,000,000,000

Capital Surplus

63,373,795,312

63,373,795,312

63,373,795,312

Profit Surplus

45,762,384,663

35,502,598,667

24,920,937,308

Total Equity

110,136,179,975

99,876,393,979

89,294,732,620

Liab. & Shareholder’s Equity

161,757,123,771

172,367,811,294

176,380,999,684

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Revenues

148,927,171,717

138,013,847,692

132,837,744,799

Operating Expenses

-109,448,070,434

-104,084,325,535

-107,845,972,478

Cost of Sold Goods

39,479,101,283

33,929,522,157

24,991,772,321

Selling & Admin. Expenses

-26,236,150,375

-21,405,436,741

-14,227,284,715

R&D

13,242,950,908

12,524,085,416

10,764,487,606

Other Operating Income

-128,331,043

-1,037,590,012

-716,128,890

Operating Income

-991,820,408

-1,581,406,630

-733,292,857

Finance Income

863,489,365

543,816,618

17,163,967

Income Before Taxes

13,114,619,865

11,486,495,404

10,048,358,716

Income Before Taxes

2,727,067,369

778,937,741

1,198,354,884

Net Income

10,387,552,496

10,707,557,663

8,850,003,832

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

27,236,704,979

3,324,688,444

564,334,495

Cash Flows from Operating

30,160,490,652

5,631,207,885

4,268,108,346

Net Income

10,387,552,496

10,707,557,663

8,850,003,832

Adjustment

11,648,767,860

10,922,980,699

8,691,730,498

Changes in Asset/ & Liability

8,124,170,296

-15,999,330,477

-13,273,625,984

Interests Received

114,588,069

123,715,867

90,322,543

Interests Paid

-1,143,536,163

-1,735,759,926

-711,875,754

Income Taxes

-1,894,837,579

-694,475,382

-3,082,220,640

Cash Flows from Investing

-3,624,125,964

-4,774,213,298

-22,173,037,835

Cash Flows from Financing

-18,015,923,091

-2,220,484,558

24,398,312,765

Increase/Decrease in Cash

5,596,655,924

-3,670,009,412

2,789,609,425

Cash at the Beginning of Year

311,157,736

3,981,176,387

1,191,566,962

Cash at the End of Year

5,907,501,504

311,157,736

3,981,176,387

 

Products, Technologies, Services Description

 

Main Products & Services

Ursodeoxycholic Acid, Amoxicillin, Ceftriaxone Sodium, Coenzyme Q10, Cefodizime Sodium, Cefotiam Hydrochloride, Lansoprazole, Fluconazole

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

DAEWOONG PHARMACEUTICAL CO., LTD.(134811-0075342)

Competitors

YUHAN CORPORATION

49-6, DAEBANG-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-828-0181  FAX:+82-2-828-0300

 

KUNWHA PHARMACEUTICAL CO., LTD.

94, GARAKBON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-2047-7700  FAX:+82-2-430-1135

 

YUHAN CHEMICAL INC.

5BA-402, SIHWA INDUSTRIAL COMPLEX, 678-1, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-488-5800  FAX:+82-31-499-4115

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAEWOONG CO., LTD.(110111-2857146)

DAEWOONG INTERNATIONAL CORP.(110111-0742985)

R&P KOREA CO., LTD.(110111-0358021)

DAEWOONG MANEGEMENT DEVELOPMENT INSTITUTE(110111-0776463)

CG BIO CO., LTD.

DAEWOONG PHARMACEUTICAL CO., LTD.(134811-0075342)

DAEWOONG CHEMICAL CO., LTD.(131112-0004827)

DAEWOONG NUTRITIONS CO., LTD.(210111-0013294)

EZMEDICOM CO., LTD.(110111-2063818)

SANWOONG DEVELOPMENT CO., LTD.(110111-0978671)

SANWOONG ENGINEERING CO., LTD.(134811-0034421)

PHARMPAC CO., LTD.(134811-0048307)

PAGE1 CO., LTD.(110111-1771040)

DAEWOONG DEVELOPMENT CO., LTD.(131111-0083649)

IDS&TRUST CO., LTD.(110111-1234006)

BEST SYSTEM CO., LTD.(110111-1639850)

JEJU MOVIELAND CO., LTD.(224111-0014832)

D&P NATURAL MATERIAL RESEARCH INSTITUTE(134511-0102026)

HEALIENCE CO., LTD.(110111-3265778)

BIO AGE CO., LTD.(110111-2458689)

MD WELL INC.(110111-3716854)

HR GROUP CO., LTD.

TRUST CO., LTD.

BIO ALPHA CO., LTD.(110111-1904518)

 

DAEWOONG PHARMACEUTICAL(THAILAND)CO., LTD

DAEWOONG PHARM PHILIPPINES, INCORPORATED

BEIJING DAEWOONG PHARMACEUTICAL R&D CENTER CO., LTD.

 

PT DAEWOONG RIASIMA INDONESIA

(50.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

SACHUN DAEWOONG BIO TECHNOLOGY CO., LTD.(CHINA)

(100% held by the subject company)

 

BIO ALPHA CO., LTD.(110111-1904518)

(66.0% held by the subject company)

Corporate Ownership

DAEWOONG CO., LTD.(110111-2857146)

Major Shareholders

DAEWOONG CO., LTD.(110111-2857146)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

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

LIG INSURANCE CO., LTD.(110111-0017859)

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in China, Taiwan, India, Japan, Russia and USA.

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

Seoul High Court

The Subject Company

Protem & Others(1)

Claim for Compensation from Damages

239,165,000

1st round is proceeding

 

 

News Clipping


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.30

UK Pound

1

Rs.99.16

Euro

1

Rs.78.59

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.