MIRA INFORM REPORT

 

 

Report No. :

319488

Report Date :

24.04.2015

 

IDENTIFICATION DETAILS

 

Name :

DONGSUH COMPANIES INC.

 

 

Registered Office :

324, Dongmak-ro, Mapo-gu, Seoul, Korea, 10th Fl., Dongsuh Bldg.,121-730

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

16.05.1975

 

 

Com. Reg. No.:

105-81-38440

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Wholesale of Other Prepared Food

 

 

No. of Employees :

252

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced sluggish growth because of external market slowdowns. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP.

 

Source : CIA


Basic Information

 

Company Name

DONGSUH COMPANIES INC.

(Korean Company Name : “()동서”)

Registered Address

324, Dongmak-ro, Mapo-gu, Seoul, Korea

Building

10th Fl., Dongsuh Bldg.

Zip Code

121-730

Tel

+82-2-701-5050

Fax

+82-2-716-7730

E-mail

eschoi79@dongsuh.com

Website

www.dongsuh.com

Trading Address

10th Fl., Dongsuh Bldg., 324, Dongmak-ro, Mapo-gu, Seoul, Korea

(Old Address System : 10th Fl., Dongsuh Bldg., 546, Dohwa-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-701-5050

Fax

+82-2-716-7730

Other Address-Ansan Factory

24B, Banwol Industrial Complex, 1114, Singil-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-3471~3

Fax

+82-31-492-2037

Other Address-Sihwa Factory

2Da-301, Sihwa Industrial Complex, 1263, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-431-4240

Fax

+82-31-432-4620

Other Address-Warehouse

34-4, Gupyeong-dong, Saha-gu, Busan, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Wholesale of Other Prepared Food

  Main Business

Tea, Coffee, Sauce

  Sub Business

Manufacture of Plastic Films, Sheets and Plates

Established (mm/dd/yyyy)

05/16/1975

The Subject owns the premises of registered HQ address, Ansan Factory, Sihwa Factory and warehouse.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Packaging films(24141514)

Sell

Hardware and fittings(40141700)

Sell

Shelf stable fruit(50101636)

Sell

Soft drinks(50202306)

Sell

Temperature and heat measuring instruments(41112200)

Sell

Coextruded films(13111205)

Buy

Packaging boxes(24121503)

Buy

Resins(13111000)

Buy

Polyethylene(13111016)

Buy

Films(13111200)

Buy

Base Metals(11101700)

 

 

CEO’s

 

Name

Kim Jong-Won

Address

 

Date of Birth

11/08/1956

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

49,850,000,000

Employees

252

Formation

Listed Company (KOSDAQ : 026960) as of 12/27/1995

Bank Details

Kookmin Bank

Citibank, Korea

Korea Exchange Bank

Woori Bank

Hana Bank

Corporate Registered No.

110111-0180888

Business Registered No.

105-81-38440

Permit & Licenses

Int’l Trade No.: 831121

Shareholder Position

Name

Shares

%

KIM SANG-HUN

22,500,000

22.57

KIM SEOK-SOO

20,022,937

20.08

HAN HYE-YEON

3,300,000

3.31

MOON HYE-YOUNG

2,005,935

2.01

KIM JONG-HEE

9,600,000

9.63

FID LOW PRICE STK PRIN ALL SEC(82 DEVONSHIRE STREET, BOSTON, MASSACHUSETTS02109, UNITED STATES)

6,572,138

6.59

TREASURY STOCK

427,477

0.43

OTHERS

35,271,513

35.38

TOTAL

99,700,000

100.00

Company History

05/16/1975 Incorporated as Apollo Heat Bottle Co., Ltd.

11/14/1978 Changed company name to Apollo Co., Ltd.

03/31/1981 Changed company name to Yudong Corporation

02/12/1989 Moved to the present HQ address

05/16/1996 Changed company name to the present name

08/01/1996 Acquired Saehan Yutong Co., Ltd.

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Date of Birth

Education

Chairman

Mr.

Lee Chang-Hwan

Korean

1953.09

Seoul National University, Korea

President & CEO

Mr.

Kim Jong-Won

Korean

1956.11.08

Seogang University, Korea

Outside Director

Mr.

Yoon Se-Cheol

Korean

1957.04.16

University of Helsinki, Finland

Outside Director

Mr.

Kim Yong-Eon

Korean

1942.11

Seoul National University, Korea

Auditor

Mr.

Lee Hong-Jae

Korean

1937.04.03

Dongah University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2014

453,718,086,807

989,883,954,723

98,911,923,872

(*)2013

425,764,542,987

959,158,837,049

95,998,376,894

(*)2012

421,460,963,141

908,601,014,647

97,380,098,634

(*)2011

407,145,531,095

861,895,480,653

90,706,392,992

(*)2010

349,442,663,606

786,983,903,134

84,576,609,313

2009

308,838,422,000

722,684,057,000

107,817,530,000

2008

282,336,739,000

643,559,001,000

90,119,507,000

2007

235,209,649,805

572,631,736,324

76,472,756,615

2006

 222,018,926,711

 494,564,280,111

 63,891,382,729

2005

220,231,122,197

464,927,870,872

66,858,126,777

2004

218,729,069,751

418,257,440,214

53,452,287,691

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

49,850,000,000

Total Issued Shares

99,700,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

989,883,954,723

959,158,837,049

908,601,014,647

Current Assets

553,015,795,778

518,921,958,683

467,649,056,420

Cash & Cash Equivalents

51,343,859,579

95,947,684,007

116,058,160,635

Current Financial Instruments

361,000,000,000

278,000,000,000

135,000,000,000

Other Current Financial Instruments

60,045,300,000

68,000,210,000

140,076,127,145

Trade Receivables & Other Receivables

54,000,524,989

51,168,449,136

49,874,390,747

Other Current Assets

136,665,797

137,159,818

688,995,229

Derivatives

0

0

14,975,000

Inventories

26,489,445,413

25,668,455,722

25,936,407,664

Non-Current Assets

436,868,158,945

440,236,878,366

440,951,958,227

Other Financial Assets

12,500,000

12,500,000

12,500,000

Marketable Financial Instruments

473,640,000

473,640,000

473,640,000

Other Financial Instruments

96,110,000

113,340,000

69,005,000

Investment_Subsidiaries

16,230,137,671

16,230,137,671

16,230,137,671

Investment_Related Companies

346,527,720,084

346,527,720,084

346,527,720,084

Long-Term Trade Receivables & Other Receivables

109,155,000

109,055,000

109,465,000

Tangibles

50,751,188,255

53,960,524,925

55,550,340,000

Intangibles

1,968,901,067

2,024,644,668

2,266,689,413

Investment_Real Estates

20,698,806,868

20,785,316,018

19,712,461,059

Total Liabilities

70,209,871,058

83,097,053,724

82,991,340,217

Current Liabilities

37,085,841,856

51,027,876,519

50,223,396,168

Trade Payables & Other Payables

21,235,756,083

36,561,158,222

34,541,038,145

Other Current Liabilities

3,004,240,617

2,390,085,375

2,354,827,819

Accrued Income Tax

12,845,845,156

12,075,632,922

13,327,530,204

Derivatives

0

1,000,000

0

Non-Current Liabilities

33,124,029,202

32,069,177,205

32,767,944,049

Long-Term Trade Payables & Other Payables

4,139,584,212

4,075,574,711

4,235,185,462

Provision for Severance & Retirement

1,453,050,616

1,009,885,695

1,960,962,610

Deferred Income Tax Credit

27,531,394,374

26,983,716,799

26,571,795,977

Capital Stock

49,850,000,000

49,850,000,000

29,587,960,000

Others

4,358,397,450

4,324,292,510

2,976,400,803

Profit Surplus

865,465,686,215

821,887,490,815

793,045,313,627

Total Equity

919,674,083,665

876,061,783,325

825,609,674,430

Liab. & Shareholder’s Equity

989,883,954,723

959,158,837,049

908,601,014,647

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

453,718,086,807

425,764,542,987

421,460,963,141

Cost of Sold Goods

376,075,308,402

351,924,593,237

350,995,050,820

Gross Profit

77,642,778,405

73,839,949,750

70,465,912,321

Selling Expenses

12,356,648,994

10,783,428,807

8,558,008,320

Admin. Expenses

24,695,304,782

23,514,310,820

22,159,355,827

Operating Income

40,590,824,629

39,542,210,123

39,748,548,174

Finance Income

77,361,188,453

77,587,668,626

77,782,026,944

Finance Expenses

115,290,837

31,919,306

1,466,802

Other Non-Operating Income

8,208,755,945

7,149,310,944

6,162,591,428

Other Non-Operating Expenses

1,743,619,399

2,341,251,435

1,518,339,395

Income Before Taxes

124,301,858,791

121,906,018,952

122,173,360,349

Income Taxes Expenses

25,389,934,919

25,907,642,058

24,793,261,715

Net Income

98,911,923,872

95,998,376,894

97,380,098,634

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

83,982,070,479

100,938,862,933

99,652,507,153

Cash Flows from Operating

31,793,130,886

51,550,836,765

44,928,261,074

Net Income

98,911,923,872

95,998,376,894

97,380,098,634

Adjustment

-67,118,792,986

-44,447,540,129

-52,451,837,560

Interests Received

11,310,154,994

11,492,966,389

17,274,787,578

Interests Paid

0

0

-809,236

Dividends Received

64,727,431,183

64,685,349,000

63,453,020,000

Income Taxes

-23,848,646,584

-26,790,289,221

-26,002,752,263

Cash Flows from Investing

-73,986,007,257

-73,949,905,248

1,378,897,450

Cash Flows from Financing

-54,599,887,650

-47,099,434,313

-39,683,834,220

Increase/Decrease in Cash

-44,603,824,428

-20,110,476,628

61,347,570,383

Cash at the Beginning of Year

95,947,684,007

116,058,160,635

54,710,590,252

Cash at the End of Year

51,343,859,579

95,947,684,007

116,058,160,635

 

 

Products, Technologies, Services Description

 

Main Products & Services

Tea, Coffee, Sauce

 

Packing Business Division

Tea Business Division

Wholesales of Edible Oils and Beverages

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

DONGSUH FOOD & TRADING CO., LTD.(124311-0011116)

DONGSUH FOODS CORPORATION(120111-0000464)

DONG SUH OIL & FATS CO., LTD.(194211-0002824)

Customers

 

Competitors

CJ FRESHWAY CORPORATION

156-2 HAKAL-REE GEEHUENG-GU YOUNGIN-SI, KYEONGGI-DO, 449-910 SOUTH KOREA

TEL:+82-2-21496007 FAX:+82-2-21496098

 

E-NET CORPORATION

2F, SOOAHM BUILDING 66-1 YANGJAE-DONG SUHCHO-GU SEOUL, 138-240 SOUTH KOREA

TEL:+82-2-34983400 FAX:+82-2-5747447

 

NRD CO., LTD.

344 DAEYA-RI SAMSEONG-MYEON EUMSEON-GUN, CHOONGCHUNGBOOK-DO, 369-830 SOUTH KOREA

TEL:+82-43-8788851 FAX:+82-43-8776818

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGSUH FOODS CORPORATION(120111-0000464)

(50.0% held by the subject company)

 

DONG SUH OIL & FATS CO., LTD.(194211-0002824)

(19.0% held by the subject company)

 

DONGSUH FOOD & TRADING CO., LTD.(124311-0011116)

(62.5% held by the subject company)

 

DAESUNG MACHINERY CO., LTD.

(48.0% held by the subject company)

 

SUNG JE DEVELOPMENT CO., LTD.(110111-0430142)

(19.8% held by the subject company)

 

DONGSUH SILUP CO., LTD.(CHINA)

(100.0% held by the subject company)

 

DONGSUH BEVERAGE CORPORATION(110111-4537126)

(17.00% held by the subject company)

 

MIGABANG CO., LTD.(284714-0000146)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

DONGSUH FOOD & TRADING CO., LTD.(124311-0011116)

(62.5% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

09/2012

2011

2010

Export

50,119,494

63,327,982

47,481,709

Domestic

266,282,862

343,817,550

301,960,955

Total

316,402,356

407,145,532

349,442,664

 

 

Court Action

 

No.

 

 

News Clipping

 

------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.19

UK Pound

1

Rs.94.94

Euro

1

Rs.67.66

 

 

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%)

 

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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.