MIRA INFORM REPORT

 

 

Report Date :

31.10.2014

 

IDENTIFICATION DETAILS

 

Name :

COSMO CHEMICAL CO., LTD.

 

 

Registered Office :

43, Banpo-daero, Seocho-gu, Seoul, Korea, 137-872

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

12.02.1968

 

 

Com. Reg. No.:

105-81-33052

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of All Other Chemical Products like Titanium Dioxide, Titanium Oxide

 

 

No of Employees :

402

 

 

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

 

Company Name

COSMO CHEMICAL CO., LTD.

(Korean Company Name : “코스모화학()”)

Registered Address

43, Banpo-daero, Seocho-gu, Seoul, Korea

Building

 

Zip Code

137-872

Tel

+82-32-451-6100

Fax

+82-32-451-6119

E-mail

shim@cosmochem.co.kr

Website

www.cosmochem.co.kr

Trading Address

43, Banpo-daero, Seocho-gu, Seoul, Korea

(Old Address System : 1534-5, Seocho 3-dong, Seocho-gu, Seoul, Korea)

Tel

+82-32-451-6100

Fax

+82-32-451-6119

Other Address-Incheon Factory

6, Gaseok-ro, Seo-gu, Incheon, Korea

(Old Address System : 556-1, Gajwa-dong, Seo-gu, Incheon, Korea)

Tel

+82-32-451-6200

Fax

+82-32-451-6226

Other Address-Onsan Factory

891, Wonsan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-231-6712~5

Fax

+82-52-237-2104

Type

Export/Import

Industry

Manufacture of All Other Chemical Products n.e.c.

  Main Business

Titanium Dioxide, Titanium Oxide

  Sub Business

 

Established (mm/dd/yyyy)

02/12/1968

The Subject owns the premises of Incheon Factory and Onsan Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Titanium dioxide(12171604)

 

 

CEO’s

 

Name

Sung Jun-Kyung

Address

-

Date of Birth

-

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

65,510,795,000

Employees

402

Formation

Listed Company (Korea Stock Exchange: 005420 ) as of 07/24/1987

A Company of GS Business Group

Bank Details

S.C First Bank of Korea-Dohwa Dong Branch

Shinhan Bank

Corporate Registered No.

110111-0152738

Business Registered No.

105-81-33052

Permit & Licenses

12/19/2001 ISO 9001

09/2006 ISO 14001

 

Int’l Trade No.: 438311

Shareholder Position

Name

Shares

%

COSMO & COMPANY CO., LTD.(110111-0298243)

3,000,000

22.90

HUR KYUNG-SOO

1,517,374

11.58

FRANKLIN TEMPLETON INVESTMENT TRUST MANAGEMENT CO.,LTD.(110111-0566773)

442,164

3.37

OTHERS

8,142,621

62.15

TOTAL

13,102,159

100.00

Company History

09/2006 Acquired ISO 14001:2004

03/2006 Head office moved to Cosmo building in Seoul

04/2005 GS group incorporated Cosmo chemical

01/2005 KA-200 Product Development

02/2004 Inauguration CEO Jae-Hyun, Back

07/2003 Changed the trade name to Cosmo Chemical Co., Ltd. and announced “The Second Establishment of the Company”

06/2003 Registered as the largest shareholder in Cosmo Industry Co., Ltd.

07/2002 KA-300 Product Development

12/2001 Acquired ISO 9001

06/1999 Operation Onsan Factory

11/1995 Won the 50 Million Export Award

06/1990 The Building Permit of Onsan Factory

01/1987 Completion New-Ceramic Research Center

07/1987 Listed in Korea Stock Exchange

11/1985 Won the 7 Million Export Award

01/1980 Completion Factory Enlargement Construction 1,000M/T a Month

06/1971 Completion Incheon Factory

01/1971 Changed the Firm name to Hankook Titanium Industry Co., Ltd.

03/1968 Technical alliance with Japan Jitan Industrial Co., Ltd.

02/1968 KA-100 Product Manufacturing

02/1968 Established Korea Jitan Industrial Co., Ltd.


Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Date of Birth

Education

President & CEO

Mr.

Sung Jun-Kyung

Korean

-

Youngnam University, Korea

Sr. Executive Director & CMO

Mr.

Hong Dong-Hwan

Korean

1956.10

Yonsei University, Korea

Executive Director & CFO

Mr.

Cho Jung-Sik

Korean

1963.03

Kyungsang university, Korea

Outside Director

Mr.

Kim Sun-Ki

Korean

1949.11.20

Seoul National University, Korea

Outside Director

Mr.

Yoon Ki-Jong

Korean

1955.03.07

Seoul National University, Korea

Outside Director

Mr.

Kim Woo-Yeol

Korean

1956.11

Tokyo Technical College, Japan

Outside Director

Mr.

Park Hee-Gap

Korean

-

Busan National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

70,243,377,535

524,717,688,949

-10,703,525,078

(*)2013

162,610,083,279

513,672,333,987

3,517,840,055

(*)2012

180,206,641,655

499,545,376,305

-4,974,083,389

2011

172,362,820,557

527,599,742,901

14,009,755,698

2010

124,716,323,966

434,697,330,834

30,909,429,018

2009

110,563,823,762

344,800,742,063

2,215,584,933

2008

103,633,429,228

355,162,352,763

-4,839,976,985

2007

86,532,948,911

159,852,368,906

-17,557,348,588

2006

75,589,485,141

162,600,789,392

-25,672,824,529

2005

71,850,382,047

167,703,584,113

777,761,918

2004

69,695,899,720

160,817,254,026

-34,598,411,728

2003

65,089,347,760

175,939,224,137

33,489,491,663

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

 

 

Financial Description

 

Authorized Capital(KRW)

200,000,000,000

Paid-Up Capital(KRW)

65,510,795,000

Total Issued Shares

13,102,159

 


 

Balance Sheet

 

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

524,717,688,949

513,672,333,987

499,545,376,305

Current Assets

125,363,555,519

121,514,943,262

128,419,114,416

Cash & Cash Equivalents

1,481,431,668

943,335,393

604,124,095

Current Financial Instruments

6,542,005,066

8,072,000,000

6,495,000,000

Trade Receivables & Other Receivables

46,550,055,760

47,915,030,422

45,171,568,252

Inventories

58,322,704,346

55,703,160,731

69,858,365,689

Other Current Assets

12,467,358,679

8,881,416,716

6,290,056,380

Non-Current Assets

399,354,133,430

392,157,390,725

371,126,261,889

Non-Current Financial Instruments

250,512,500

191,709,500

77,103,500

Marketable Financial Instruments

6,118,636,517

6,129,538,767

6,082,719,367

Investment_Subsidiaries

13,512,375,800

13,512,375,800

13,512,375,800

Investment_Related Companies

6,553,113,452

6,553,113,452

6,553,113,452

Tangibles

369,609,188,649

362,493,941,694

341,732,737,961

Intangibles

3,097,685,512

3,097,685,512

2,914,295,540

Other Financial Assets

 

 

49,992,269

Other Non-Current Assets

212,621,000

179,026,000

203,924,000

Total Liabilities

311,566,155,564

289,286,382,595

282,598,930,613

Current Liabilities

218,986,185,754

194,782,691,163

161,494,292,944

Trade Payables & Other Payables

55,484,626,150

32,856,765,865

25,650,719,060

Short-Term Borrowings

138,992,307,061

136,713,041,962

116,019,273,204

Current Portion of Long-Term Debts

16,090,440,000

15,649,970,000

13,164,250,000

Current Portion of Account Payables

3,248,233,230

3,399,166,630

4,449,423,070

Deferred Income Tax Credit

 

49,748,574

 

Other Current Liabilities

5,170,579,313

6,113,998,132

2,210,627,610

Non-Current Liabilities

92,579,969,810

94,503,691,432

121,104,637,669

Long-Term Borrowings

18,555,550,000

23,496,000,000

48,096,930,000

Bond with Warrants

27,768,432,004

26,565,787,294

24,341,405,634

Long-Term Account Payables

3,549,470,314

5,084,854,676

5,361,072,637

Provisions

474,916,964

336,824,118

351,313,477

Deferred Income Tax Credit

37,545,441,818

37,545,441,818

40,863,128,908

Provision for Severance & Retirement

3,986,158,710

1,474,783,526

2,090,787,013

Other Non-Current Liabilities

700,000,000

 

 

Capital Stock

65,510,795,000

65,510,795,000

65,510,795,000

Capital Surplus

23,928,234,555

23,928,234,555

23,928,234,555

Capital Adjustment

-177,049,855

-177,049,855

-177,049,855

Others

133,090,775,386

133,101,677,636

144,843,617,260

Profit Surplus

-9,201,221,701

2,022,294,056

-17,159,151,268

Total Equity

213,151,533,385

224,385,951,392

216,946,445,692

Liab. & Shareholder’s Equity

524,717,688,949

513,672,333,987

499,545,376,305

 

 

Income Statement

 

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

70,243,377,535

162,610,083,279

180,206,641,655

Cost of Sold Goods

69,255,687,254

154,104,185,847

154,679,745,940

Gross Profit

987,690,281

8,505,897,432

25,526,895,715

Selling & Admin. Expenses

7,548,132,158

19,674,879,245

19,965,946,058

Operating Income

-6,560,441,877

-11,168,981,813

5,560,949,657

Finance Income

2,393,188,024

3,994,790,584

4,386,267,356

Finance Expenses

6,474,236,598

13,564,369,022

17,682,649,381

Other Income

68,840,724

25,068,366,060

2,890,631,831

Other Expenses

130,875,351

169,234,285

129,282,852

Income Before Taxes

-10,703,525,078

4,160,571,524

-4,974,083,389

Income Taxes Expenses

 

642,731,469

 

Income from Continuous Business

-10,703,525,078

3,517,840,055

-4,974,083,389

Income from Stopped Business

 

 

 

Net Income

-10,703,525,078

3,517,840,055

-4,974,083,389

 

 

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

18,726,914,708

23,420,276,153

-2,155,951,752

Cash Flows from Operating

22,298,984,719

32,850,537,483

5,408,341,634

-Net Income

-10,703,525,078

3,517,840,055

-4,974,083,389

-Exp. without Cash Outflow

16,856,244,156

34,384,614,907

37,726,397,892

-Revenue without Cash Inflows

-1,905,547,792

-27,351,759,738

-5,153,202,144

-Changes in Asset/ & Liability

18,051,813,433

22,299,842,259

-22,190,770,725

Interests Received

537,580,010

289,275,645

2,265,185,051

Interests Paid

-4,683,315,546

-9,488,523,254

-9,908,089,739

Income Taxes

573,665,525

-231,013,721

78,611,302

Cash Flows from Investing

-14,090,028,659

-19,851,597,647

-12,488,456,646

Cash Inflow from Investing

6,037,125,574

52,198,326,269

22,549,128,965

Cash Outflows for Investing

-20,127,154,233

-72,049,923,916

-35,037,585,611

Cash Flows from Financing

-4,047,197,593

-3,123,991,077

14,362,357,128

Cash Inflows from Financing

68,550,306,895

207,688,149,458

290,879,431,542

Cash Outflows from Financing

-72,597,504,488

-210,812,140,535

-276,517,074,414

Increase/Decrease in Cash

538,096,275

339,211,298

-520,168,114

Cash at the Beginning of Year

943,335,393

604,124,095

1,124,292,209

Cash at the End of Year

1,481,431,668

943,335,393

604,124,095

 

 

Products, Technologies, Services Description

 

Main Products & Services

TiO2 is very stable material in physical and chemical terms and has superior coverage and staining power because it has the highest refractive index among white pigments and accurate particle sizes and dispensability. It is used to remove gloss from chemical textiles and improve abrasion resistance of chemical textiles as well as for pigment. Moreover, it is widely used in various areas such as electronic materials, TV brawn tubes and welding rod coverings using electronic characteristics.

 

TiO2

Environment & Construction Materials

Ferrous Sulfate

Poly Ferric Sulfate Solution

Ferrous Sulfate Solution

HISOL

Gypsum

 

Brand Name: COTIOX, COCOS

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

COSMO CORPORATION CO., LTD.(110111-2559354)

COSMO FINE CHEMICALS CO.,LTD.(110111-0531205)

Customers

COSMO FINE CHEMICALS CO.,LTD.(110111-0531205)

CHEMTECH INTERNATIONAL CO., LTD.(110111-1967730)

Competitors

WE INTERNATIONAL CO., LTD.

RM. 1402, BYEOKSAN GWANGHWAMUN SIDAE OFFICETEL, 74, NAESU-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2195-4281~3  FAX:+82-2-2185-4280

 

TMC CO., LTD.

NAJEON INDUSTRIAL COMPLEX, 554-5, NAJEON-RI, SAENGNIM-MYEON, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-323-3663  FAX:+82-55-323-3687

 

NANO CO., LTD.

1108-1, BONGGOK-RI, SABONG-MYEON, JINJU-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-762-8887  FAX:+82-55-755-6755

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

GS HOLDINGS CORP. (110111-3045112)

GS HOME SHOPPING INC. (110111-1111444)

GS CALTEX OIL CORPORATION (110111-0078819)

GS ENGINEERING & CONSTRUCTION CORPORATION (110111-0002694)

GS POWER (134111-0074744)

HAEYANG CITY GAS. CO., LTD (200111-0004906)

SEORABEOL CITY GAS CO.,LTD (171211-0024180)

OIL CHAIN CORPORATION (110111-2194754)

GS FUELCELL CO.LTD. (160111-0108202)

GS RETAIL (110111-0090037)

GSWATSONS (110111-3136474)

KOREA CABLE TV ULSAN STATION (181211-0045481)

GS TELESERVICE (110111-2618192)

GS SPORTS.LTD (110111-3024330)

HAMOO DEVELOMET CO., LTD (110111-0411142)

XI SERVICE (110111-3141720)

SAMYANG INT'L CO., LTD. (110111-0424848)

BOHEUN DEVELOPMENT CO., LTD. (110111-1557573)

CHEMTECH INTERNATIONAL CO., LTD.(110111-1967730)

OKSAN DISTRIBUTION (110111-1426108)

S M COMPANY., LTD (110111-1308124)

GS NEOTEK (110111-0166953)

EZVILLE,INC. (110111-1934557)

CENTRAL MOTORS CORP. (131111-0101912)

SUNGSAN GROUP CORPORATION (110111-0110653)

SLS LTD (110111-1632424)

SUNGSAN LEISURE INC (141111-0022893)

YEOSU-WHAMUL INC (204714-0001033)

COSMO FINE CHEMICALS CO.,LTD.(110111-0531205)

COSMO INDUSTRIAL CO.LTD (150111-0077722)

SMARTRO CO.,LTD (110111-1536189)

COSMO & COMPANY CO., LTD. (110111-0298243)

COSMO INET (110111-2559362)

ISURF INC. (110111-2197047)

LANDMARK ASIA, INC. (110111-2219411)

MARUMAN KOREA (131111-0093953)

ESTECH ESTIMATE CORP. (110111-3253583)

NEXTATION.CO.,LTD. (110111-2123571)

UIJEONGBU LIGHT RAIL TRANSIT CO., LTD (280111-0071743)

STSLOGISTICS INC. (110111-1999197)

GS EPS CO., LTD.(165011-0004621)

KANGNAM CABLE SYSTEM INC. (110111-1009780)

ITMEXSYI (110111-3451731)

GLS SERVICE CORP. (110111-3532846)

 

COSMO CORPORATION CO., LTD.(110111-2559354)

(33.0% held by the subject company)

 

COSMO ADVANCED MATERIALS & TECHNOLOGY CO., LTD.(120111-0018251)

(42.0% held by the subject company)

Affiliates-Overseas

GS CALTEX SINGAPORE PTE.(SINGAPORE)

GS E&C ITALY S.R.(ITALY)

GS E&C (NANJING) CO. LTD.(CHINA)

GS E&C POLAND SP.Z.O.O.(POLAND)

CHONGQING GS SHOPPING INC.(CHINA)

SAMHO CO. LTD.(VIETNAM)

SAMMA CORP.(PHILLIPPINES)

FARWEST STEEL CO.(USA)

GS AROMATICS PTE.(SINGAPORE)

LIDONG CHEMICAL CO. LTD.(CHINA)

GS-HP SUNFLOWER INTERNATIONAL VILLAGE CORP.(VIETNAM)

LANDMARK GLOBAL INC.(USA)

WESTERN COATING INC.(USA)

QINGDAO LIXING LOGISTICS CO., LTD.(CHINA)

GS E&C THAI CO., LTD.(THAILAND)

FRONTIER NEMTWO(MALAYSIA)

FRONTIER WOKAM(MALAYSIA)

GS E&C INDIA PRIVATE LTD.(INDIA)

GS CU CHI DEVELOPMENT CO. LTD.(VIETNAM)

COSMO VIETNAM CO., LTD.(VIETNAM)

GS CONSTRUCTION (ARABIA) LIMITED(SAUDI ARABIA)

GS NHA BE DEVELOPMENT ONE-MEMEBER LLC.(VIETNAM)

GS CALTEX(QINGDAO) ENERGY CO., LTD.(CHINA)

GS RETAIL VIETNAM CO., LTD.(VIETNAM)

COSMO RUS, LLC(RUSSIA)

MK INTERNATIONAL(JAPAN)

GS NEOTEK VIETNAM CO., LTD.(VIETNAM)

GS SAIGON DEVELOPMENT ONE-MEMBER LLC.(VIETNAM)

SLEEP METHODS, INC.(USA)

COSMO CHINA INVESTMENT CO., LTD.(CHINA)

GS CALTEX(JINAN) ENERGY CO., LTD..(CHINA)

GS (CAMBODIA) DEVELOPMENT CO., LTD.(CAMBODIA)

GS GLOBAL BIO CO., LTD.(CAMBODIA)

GS AROMATICS (QINGDAO) CHEMICAL CO., LTD.(CHINA)

GS CALTEX (YANTAI) ENERGY CO., LTD.(CHINA)

 

 

Sales by Region (Activity & Markets)

 

The Subject imports raw materials from India and Vietnam, and exports USA, Japan, Europe and South-East Countries. 65% out of total sales accounts for exporting and 35% is for domestic sales.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.21

Euro

1

Rs.77.45             

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.