MIRA INFORM REPORT

 

 

Report Date :

22.10.2014

 

IDENTIFICATION DETAILS

 

Name :

PAIK KWANG INDUSTRIAL CO., LTD.

 

 

Registered Office :

494-16, Imhae-ro, Gunsan-si, Jeollabuk-do, Korea

 

 

Country :

Korea (South)

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

25.11.1954

 

 

Com. Reg. No.:

113-81-01094

 

 

Legal Form :

Listed Company (Korea Stock Exchange: 001340) as of 06/10/1976

 

 

Line of Business :

Manufacture of Other Basic Inorganic Chemicals

 

 

No. of Employees :

224

 

 

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)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

Company Name

PAIK KWANG INDUSTRIAL CO., LTD.

(Korean Company Name : “백광산업()”)

Registered Address

494-16, Imhae-ro, Gunsan-si, Jeollabuk-do, Korea

(Olds Address System : 31, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea)

Zip Code

573-879

Tel

+82-63-450-1700 +82-63-467-0248

Fax

+82-63-467-0247

E-mail

jw.seo@pkic.co.kr; sj.bae@pkic.co.kr; dy.lee@pkic.co.kr

Website

www.pkic.co.kr

Trading Address

San 55-1, Gocheok-dong, Guro-gu, Seoul, Korea

Tel

+82-2-2612-0061

Fax

+82-2-2612-9692

Other Address-Lysine Factory

228-2, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-464-6172

Fax

+82-63-464-6176

Other Address-Eumseong Factory

307-1, Yupo-ri, Geumwang-eup, Eumseong-gun, Chungcheongbuk-do, Korea

Tel

+82-43-877-0248

Type

Export/Import

Industry

Manufacture of Other Basic Inorganic Chemicals

  Main Business

Caustic Soda, Hydrochloric Acid, Chlor Alkali, Poly Aluminum Chloride, D-Sorbitol, Lysine

Established (mm/dd/yyyy)

11/25/1954

The Subject owns the premises of registered HQ address/Factory, Lysine Factory, Eumseong Factory and Seoul Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Inorganic hydroxides(12352305)

Sell

Chemistry reagents or solutions(41116105)

Sell

Inorganic metal salts(12352302)

Sell

Sorbitol(51211613)

Sell

Oxytetracycline(51101510)

Sell

Cooking or table salt(50171551)

 

 

CEO’s

 

Name

Kim Sung-Hoon

Date of Birth

03/28/1968

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

14,199,955,000

Employees

224

Formation

Listed Company (Korea Stock Exchange: 001340) as of 06/10/1976

Bank Details

Woori Bank-Youngdeungpo Branch

Shinhan Bank

Kookmin Bank

Hana Bank

Korea Development Bank

Korea Exchange Bank

Corporate Registered No.

110111-0003709

Business Registered No.

113-81-01094

Permit & Licenses

12/14/1996 ISO 9001

07/23/1997 ISO 9002

12/11/2007 ISO 9001

 

Int’l Trade No.: 872441

Shareholder Position

Name

Shares

%

SANG WON COMMERCIAL CO.,LTD.(124411-0000026)

2,013,963

6.45

KIM JONG-EUI

1,835,263

5.88

KIM SUNG-HOON

7,141,050

22.88

JIN HAN CO., LTD(131311-0034705)

2,207,110

7.07

OTHERS

18,013,855

57.72

TOTAL

31,211,241

100.00

Company History

11/25/1954 Incorporated as PAIK KWANG PHARMACEUTICAL CO., LTD.

02/07/1981 Changed company name to PAIK KWANG CHEMICALS CO., LTD.

02/20/1990 Changed company name to the present name

01/11/2008 Acquired land and buildings in Soryong-dong, Gunsan-si, Jeollabuk-do, Korea from BASF Company Limited(110111-0600860) at 25,390,800,000 KRW(USD 27,000,000)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kim Sung-Hoon

Male

Korean

1968.03.28

Outside Director

Mr.

ParkJae-Hyun

Male

Korean

1966.02.10

Director

Mr.

Kim Jong-Eui

Male

Korean

1941.02.10

Auditor

Mr.

Park Jae-Man

Male

Korean

1966.09.

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

149,060,745,341

453,264,172,037

-18,037,345,865

(*)2013

384,095,759,492

502,627,238,417

-39,444,996,159

(*)2012

403,984,893,218

485,691,345,316

1,161,248,972

(*)2011

373,321,899,066

406,572,541,667

6,960,686,853

(*)2010

351,384,749,421

362,197,082,632

22,340,866,594

(*)2009

312,348,584,024

333,855,972,177

11,890,583,680

2008

230,861,022,913

223,411,687,569

8,744,902,018

2007

85,460,111,160

94,436,114,770

3,495,242,199

2006

89,855,127,218

84,225,545,188

4,698,492,589

2005

90,450,505,526

79,362,760,085

5,248,083,005

2004

74,626,882,973

74,400,647,892

3,353,336,199

2003

75,733,343,687

73,008,379,913

4,315,197,119

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

 

 

Financial Description

 

Authorized Capital(KRW)

75,000,000,000

Paid-Up Capital(KRW)

14,199,955,000

Total Issues Shares

2,839,991

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

453,264,172,037

502,627,238,417

485,691,345,316

Current Assets

96,487,488,549

132,879,825,929

130,003,874,823

Cash & Cash Equivalents

7,600,261,253

14,409,512,686

17,824,903,264

Other Current Financial Instruments

 

 

1,148,000,000

Trade Receivables & Other Receivables

52,246,107,361

69,967,648,619

71,779,658,950

Deferred Income Tax

9,754,110

36,687,330

379,907,787

Other Current Non-Financial Instruments

2,206,089,237

2,334,891,079

2,882,590,062

Inventories

34,425,276,588

46,131,086,215

35,988,814,760

Non-Current Assets

356,776,683,488

369,747,412,488

355,687,470,493

Other Non-Current Financial Instruments

2,401,907,539

2,240,938,419

654,810,454

Investment_Related Companies

 

 

4,475,187,077

Long-Term Trade Receivables & Other Receivables

1,976,071,393

2,220,881,074

1,199,182,393

Investment_Real Estates

1,615,608,790

1,627,981,434

1,652,726,722

Tangibles

347,058,279,164

359,623,570,997

343,047,937,368

Intangibles

1,004,304,899

1,130,884,289

1,385,720,840

Other Investment

138,041,093

138,041,093

138,041,093

Other Non-Current Non-Financial Instruments

2,582,470,610

2,765,115,182

3,133,864,546

Total Liabilities

308,060,345,458

339,390,106,378

282,816,150,797

Current Liabilities

215,939,175,545

234,556,291,231

160,383,549,116

Trade Payables & Other Payables

27,931,515,131

46,992,611,979

46,367,408,876

Short-Term Borrowings

144,225,554,384

135,086,071,245

73,622,288,676

Other Current Non-Finance Liabilities

2,167,161,470

2,079,601,257

1,762,112,285

Current Portion of Long-Term Borrowings

41,614,944,560

50,398,006,750

38,631,739,279

Non-Current Liabilities

92,121,169,913

104,833,815,147

122,432,601,681

Long-Term Borrowings

65,779,338,974

80,394,189,114

98,598,518,044

Deferred Income Tax Credit

22,535,365,173

22,535,365,173

22,843,956,136

Confirmed Salaries

2,429,809,294

1,609,260,860

890,127,501

Long-Term Trade Payables & Other Payables

1,376,656,472

295,000,000

100,000,000

Capital Stock

15,605,620,500

15,605,620,500

14,885,645,000

Capital Surplus

45,503,150,400

45,503,150,400

45,503,150,400

Capital Adjustment

-808,650,687

-807,914,867

-806,529,867

Profit Surplus

4,976,116,072

23,052,826,655

63,515,073,012

Others

79,927,590,294

79,883,449,351

79,777,855,974

Total Equity

145,203,826,579

163,237,132,039

202,875,194,519

Liab. & Shareholder’s Equity

453,264,172,037

502,627,238,417

485,691,345,316

 

 

Income Statement

 

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

149,060,745,341

384,095,759,492

403,984,893,218

Cost of Sold Goods

144,355,312,049

372,742,653,889

347,714,785,981

Gross Profit

4,705,433,292

11,353,105,603

56,270,107,237

Selling & Admin. Expenses

21,117,334,126

49,532,711,195

43,305,708,703

Operating Income

-16,411,900,834

-38,179,605,592

12,964,398,534

Other Income

4,072,209,077

9,025,080,025

7,226,306,386

Other Expenses

2,204,678,117

5,467,290,495

8,083,739,852

Finance Income

115,584,207

301,073,087

336,808,404

Finance Expenses

3,608,560,198

6,209,154,174

5,967,411,045

Profits from Investment on Related Companies

 

869,470,632

1,259,637,191

Income Before Taxes

-18,037,345,865

-39,660,426,517

7,735,999,618

Income Taxes Expenses

 

-215,430,358

1,843,079,290

Income from Continuous Business

-18,037,345,865

-39,444,996,159

5,892,920,328

Income from Stopped Business

 

 

-4,731,671,356

Net Income

-18,037,345,865

-39,444,996,159

1,161,248,972

 

 

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

4,986,224,669

-16,415,006,060

12,022,708,544

Cash Flows from Operating

8,249,774,736

-10,782,738,944

18,437,865,273

Interests Paid

-3,379,134,274

-6,116,138,887

-5,063,318,664

Interests Received

75,284,207

273,589,965

360,053,028

Dividends Received

40,300,000

28,000,000

16,800,000

Income Taxes

 

182,281,806

-1,728,691,093

Cash Flows from Investing

850,829,681

-45,857,769,452

-86,413,809,887

Cash Flows from Financing

-12,646,289,900

58,882,925,829

81,704,895,393

Increase/Decrease in Cash

-6,809,251,433

-3,415,390,578

7,310,639,356

Cash at the Beginning of Year

14,409,512,686

17,824,903,264

10,514,263,908

Cash at the End of Year

7,600,261,253

14,409,512,686

17,824,903,264

 

 

Products, Technologies, Services Description

 

Main Products & Services

Caustic Soda, Chlor-Alkali, Poly Aluminum Chloride, D-Sorbitol, Lysine

 

 

Trade Partners & Competitors

 

Customers

SAMSUNG GENERAL CHEMICALS CO., LTD.(161411-0001243)

HANWHA CHEMICAL CORPORATION(110111-0360935)

LG PETROCHEMICAL CO., LTD(110111-0226905)

DC CHEMICAL CO.,LTD(174611-0000981)

Competitors

HANWHA CHEMICAL CORPORATION(110111-0360935)

DC CHEMICAL CO.,LTD(174611-0000981)

LG CHEM LTD(110111-2207995)

SAMSUNG FINE CHEMICALS CO., LTD(181211-0000013)

UNID CO.,LTD(110111-0275069)

KOREA FINE CHEMICAL CO.,LTD(110111-0234859)

KG CHEMICAL CORPORATION(124311-0008999)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SANGWON IML CO., LTD.

SANG WON COMMERCIAL CO.,LTD(124411-0000026)

JIN HAN CO., LTD(131311-0034705)

Subsidiary

PAIK KWANG IML CO., LTD.

(100.0% held by the subject company)

 

NANOWIN CO, LTD(130111-0058164)

(60.0% held by the subject company)

Cooperative Enterprise

-Insured Company

HANWHA NON-LIFE INSURANCE CO., LTD.(110111-0006456)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

06/2014

2013

2012

Export

61,828,343

190,857,635

215,607,566

Domestic

87,232,402

193,238,124

188,377,327

Total

149,060,745

384,095,759

403,984,893

The Subject imports from Australia. It also deals with the companies in Asia, Europe, North America, and Africa.

 

 

Court Action

 

No.

 

 

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

 

Report Prepared by :

SMN

 

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.