MIRA INFORM REPORT

 

 

Report No. :

319145

Report Date :

24.04.2015

 

IDENTIFICATION DETAILS

 

Name :

EHWHA GLOTECH CO., LTD.

 

 

Registered Office :

705, Haean-Ro, Sangnok-Gu, Ansan-Si, Gyeonggi-Do, Rm. 407, Gyeonggi Techno Park, Korea 426-901

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

25.11.1985

 

 

Com. Reg. No.:

134-81-05461

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Industrial Machinery for Washing, Dyeing, Finishing and Processing Industrial Machinery of Fibers.

 

 

No. of Employees :

108

 

 

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 – 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

EHWHA GLOTECH CO., LTD.

Registered Address

705, Haean-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

Building

Rm. 407, Gyeonggi Techno Park

Zip Code

426-901

Tel

+82-31-491-4191

Fax

+82-31-491-4194

E-mail

ehwha@ehwhaglotech.com;foxone@ehwhaglotech.com;

uk0203@ehwhaglotech.com;thjtwlove@nate.com

Website

www.ehwhaglotech.com

 

 

Trading Address

Rm. 407, Gyeonggi Techno Park, 705, Haean-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

(Old Address System : Rm. 407, Gyeonggi Techno Park, 1271-11, Sa 3-dong, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea)

Tel

+82-31-491-4191

Fax

+82-31-491-4194

 

 

Other Address-Factory

408-41, Hanjin-ri, Songak-myeon, Dangjin-gun, Chungcheongnam-do, Korea

Tel

+82-41-358-4490

Fax

+82-41-358-4496

 

 

Type

Export/Import

Industry

Manufacture of Industrial Machinery for Washing, Dyeing, Finishing and Processing Industrial Machinery of Fibers

  Main Business

Tenter (Drying & Heat, Setting Tenter)

  Sub Business

 

Established (mm/dd/yyyy)

11/25/1985

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Textile processing machinery and accessories(23121500)

Sell

Textile working machinery and equipment and accessories(23121600)

Sell

Air filters(40161505)

Sell

Switches and controls and relays and accessories(39121500)

Buy

Pipe(40142100)

Buy

Deburring equipment(23171605)

Buy

Iron plate(30102203)

Buy

Drivetrain systems(25173800)

Buy

Inverters(32121705)

 

 

CEO’s

 

Name

Chung Byung-Sik

Address

Suite 102-702, 58, Gamgol 2-ro, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

Date of Birth

03/14/1939

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,460,000,000

Employees

108

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Nonghyup Bank

Corporate Registered No.

130111-0009159

Business Registered No.

134-81-05461

Permit & Licenses

10/2008 ISO 9001

 

Int’l Trade No.: 500964

Shareholder Position

Name

Shares

%

CHUNG BYUNG-SIK

69,000

47.26

CHUNG JOONG-HAN

29,334

20.09

OTHERS(5)

47,666

32.65

TOTAL

146,000

100.00

Company History

11/25/1985 Incorporated as EHWHA MACHINERY MFG. CO., LTD.

11/2001 Awarded US$10 Million Export Top Prize

11/2003 Awarded US$20 Million Export Top Prize

11/2007 Awarded US$30 million Export Top Prize

12/06/2007 Changed company name to the present name

12/25/2009 Increased capital to 1,460,000,000 KRW from 1,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Chung Byung-Sik

Male

Korean

12/25/2009

Director

M/S.

Kang Shin-Eok

Female

Korean

03/19/2013

Director

Mr.

Chung Joong-Han

Male

Korean

04/01/2004

Auditor

M/S.

Lee Young-Sun

Female

Korean

03/19/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

41,294,929,581

25,436,824,834

883,338,671

2013

37,604,469,702

22,866,112,040

1,320,482,679

2012

48,695,742,103

23,140,236,836

486,635,167

2011

48,084,802,540

26,791,945,381

1,149,511,653

2010

51,075,420,426

24,632,165,498

1,127,612,487

2009

39,123,888,260

25,183,188,924

1,019,159,549

2008

24,485,887,211

20,149,537,070

-2,174,252,660

2007

31,009,755,480

19,846,007,280

6,057,656,944

2006

29,353,970,547

14,489,198,161

-6,312,784,018

2005

24,039,078,650

20,666,263,034

-650,710,033

2004

25,959,682,016

22,374,658,280

-477,356,937

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

1,460,000,000

Total Issues Shares

146,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

25,436,824,834

22,866,112,040

23,140,236,836

Current Assets

12,936,818,904

10,205,410,850

11,799,825,019

-Quick Assets

10,082,954,892

7,976,493,601

8,827,522,544

-Inventories

2,853,864,012

2,228,917,249

2,972,302,475

Fixed Assets

12,500,005,930

12,660,701,190

11,340,411,817

-Investment

152,000,000

32,000,000

99,624,000

-Tangibles

12,198,230,035

11,772,066,469

10,531,676,958

-Intangibles

99,437,177

194,474,682

501,652,414

-Others

50,338,718

662,160,039

207,458,445

Total Liabilities

13,314,059,808

11,626,685,685

13,221,293,160

Current Liabilities

13,207,365,139

10,014,387,863

10,981,613,406

Fixed Liabilities

106,694,669

1,612,297,822

2,239,679,754

Capital Stock

1,460,000,000

1,460,000,000

1,460,000,000

Capital Surplus

 

 

 

Profit Surplus

6,508,246,925

5,624,908,254

4,304,425,575

Capital Adjustment

4,154,518,101

4,154,518,101

4,154,518,101

Total Equity

12,122,765,026

11,239,426,355

9,918,943,676

Liab. & Shareholder’s Equity

25,436,824,834

22,866,112,040

23,140,236,836

 

Current Liabilities

13,207,365,139

10,014,387,863

10,981,613,406

Trade Payables

9,311,232,489

6,374,210,820

6,666,944,976

Short-Term Borrowings

-

1,400,000,000

1,400,000,000

Account Payables

1,502,837,705

865,380,326

1,338,021,530

Advance Receipts

1,247,224,864

153,360,158

487,794,424

Accrued Expenses

715,879,422

531,925,819

443,531,539

Accrued Income Taxes

324,731,789

-

10,123,680

Withholdings

105,458,870

73,910,740

19,597,257

Current Portion of Long-Term Debts

-

615,600,000

615,600,000

Fixed Liabilities

106,694,669

1,612,297,822

2,239,679,754

Long-Term Borrowings

-

1,507,800,000

2,123,400,000

Provision for Severance & Retirement

1,314,955,487

1,082,099,137

809,838,170

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

41,294,929,581

37,604,469,702

48,695,742,103

Cost of Sold Goods

31,695,580,391

29,759,263,043

38,830,697,130

Gross Profit

9,599,349,190

7,845,206,659

9,865,044,973

Selling & Admin. Expenses

8,442,040,070

5,639,066,057

8,417,937,010

Operating Income

1,157,309,120

2,206,140,602

1,447,107,963

Non-Operating Income

787,941,336

726,726,905

589,897,473

Non-Operating Expenses

737,128,756

1,612,384,828

1,538,881,869

Income Before Taxes

1,208,121,700

1,320,482,679

498,123,567

Income Taxes Expenses

324,783,029

-

11,488,400

Net Income

883,338,671

1,320,482,679

486,635,167

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

4,940,953,018

2,729,011,006

-1,405,714,262

-Net Income

883,338,671

1,320,482,679

486,635,167

-Exp. without Cash Outflow

2,750,698,035

1,787,469,471

1,651,446,374

-Revenue without Cash Inflows

-255,278,122

-79,723,216

-49,728,131

-Changes in Asset/ & Liability

1,562,194,434

-299,217,928

-3,494,067,672

Cash Flows from Investing

-1,334,963,627

-1,180,176,307

-355,134,391

-Cash Inflow from Investing

85,575,873

738,801,000

759,510,000

-Cash Outflows for Investing

-1,420,539,500

-1,918,977,307

-1,114,644,391

Cash Flows from Financing

-3,523,400,000

-615,600,000

-115,590,000

-Cash Inflows from Financing

7,000,000,000

5,850,000,000

4,100,000,000

-Cash Outflows from Financing

-10,523,400,000

-6,465,600,000

-4,215,590,000

Increase/Decrease in Cash

82,589,391

933,234,699

-1,876,438,653

Cash at the Beginning of Year

1,314,698,148

381,463,449

2,257,902,102

Cash at the End of Year

1,397,287,539

1,314,698,148

381,463,449

 

 

Products, Technologies, Services Description

 

Main Products & Services

Padding mangles

Roller squeezers

Tentering and stentering machines

Tensionless and conveyor dryers

Drying chambers, ovens

Software systems for the knitting industry

 

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides vehicle leasing services to the subject company.

Customers

 

Competitors

SHINIL ENTERPRISE COMPANY

RM. 322, SK HURBGREEN OFFICETEL, 556, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-2273-0581~2  FAX:+82-2-2277-2387

 

CHUNG SONG MACHINERY IND. CO., LTD.

2NA-702, SIHWA INDUSTRIAL COMPLEX, 1259-1, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-431-8595  FAX:+82-31-431-8598

 

NPI LTD.

A-709, GEUMGANG PENTERIUM IT TOWER, 333-7, SANGDAEWON 1-DONG, JUNGWON-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-730-0922  FAX:+82-31-730-0923

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO.,LTD.(110111-0005078)

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to Bangladesh, China, Egypt(Syria, Morocco), India and Turkey.

 

 

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 :

NIT

 

               

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.