MIRA INFORM REPORT

 

 

Report No. :

355391

Report Date :

15.12.2015

 

IDENTIFICATION DETAILS

 

Name :

ALPHACHEM CO., LTD.

 

 

Registered Office :

261, Sinwon-Ro, Yeongtong-Gu, Suwon-Si, Gyeonggi-Do, Korea 16676

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

21.04.1998

 

 

Com. Reg. No.:

124-81-55891

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Printing Ink (Refill Inks, OPC Drum, Replacement Cartridge, Wide Format Printing Inks, Sublimation Ink Cartridge, Laser Printer Recycling)

 

 

No. of Employees :

146

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. 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 slow growth due to sluggish domestic consumption and investment. 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. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 

Basic Information

 

Company Name

ALPHACHEM CO., LTD.

Registered Address

261, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

Building

 

Zip Code

16676

Tel

+82-31-214-4428~9

Fax

+82-31-216-4429

E-mail

info@inkmate.co.kr

Website

www.alphachem.net

Trading Address

261, Sinwon-ro, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

(Old Address System : 407-1, Maetan 3-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea)

Tel

+82-31-214-4428~9  +82-31-8006-8115

Fax

+82-31-216-4429

Other Address-Hwasung Factory

64, 58, Nangnaegi-gil, Bongdam-eup, Hwaseong-si, Gyeonggi-do, Korea

Tel

 

Fax

 

Type

Export

Industry

Manufacture of Printing Ink

  Main Business

Refill Inks, OPC Drum, Replacement Cartridge, Wide Format Printing Inks, Sublimation Ink Cartridge, Laser Printer Recycling

  Sub Business

 

Established (mm/dd/yyyy)

04/21/1998

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Printer and facsimile and photocopier supplies(44103100)

Sell

Carbon black(12171603)

Sell

Printing and drawing inks(60121800)

Sell

Toner(44103103)

Sell

Ink cartridges(44103105)

Sell

Ink refills(44121904)

Sell

Transparency film(44103118)

Buy

Aluminum(11101705)

Buy

Pigments(12171600)

Buy

Electronic component parts and raw materials and accessories(32131000)

 

 

CEO’s

 

Name

Cho Kyu-Oh

Address

Suite 120-1101, 30, Bojeong-ro, Giheung-gu, Yongin-si, Gyeonggi-do, Korea

Date of Birth

02/12/1962

Title

President & CEO

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

4,200,000,000

Employees

146

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Woori Bank

Kookmin Bank

KEB Hana Bank

Corporate Registered No.

130111-0047092

Business Registered No.

124-81-55891

Permit & Licenses

08/21/2012 ISO 14001

08/21/2012 ISO 9001

08/21/2012 OHSAS18001

09/2009 KOSHA18001

01/2002 CE Mark

08/24/201 NT Mark

 

Int’l Trade No.: 21035276

Shareholder Position

Name

Shares

%

CHO KYU-OH

3,791,024

45.13

CHO JONG-DAE

1,201,149

14.30

OTHERS

3,407,827

40.57

TOTAL

8,400,000

100.00

Company History

04/21/1998 Incorporated as the present name

08/1999 Designated as a Venture Business

04/30/2007 Increased the authorized shares to 18,953,495 shares from 20,000,000 shares

11/2009 Awarded US$ 10 Million Export Top Prize

12/18/2009 Designated as a MAIN-BIZ Company

11/2010 Awarded US$ 20 Million Export Top Prize

06/24/2011 Designated as a Venture Business again

12/31/2011 Increased capital to 4,200,000,000 KRW from 3,013,782,000 KRW

 

 

 

 

Management

 

Job Description

Name

Nationality

Date of Birth

Inauguration Date

President & CEO

Cho Kyu-Oh

Korean

02/12/1962

02/17/2006

Director

Cho Jong-Dae

Korean

08/07/1948

02/17/2006

Director

Park Sang-Joon

Korean

06/01/1965

03/18/2011

Outside Director

Park Jong-Wook

Korean

12/01/1963

03/21/2014

Auditor

Lee Ji-Hoon

Korean

09/08/1967

03/23/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

25,755,891,262

55,812,959,646

-6,240,828,908

2013

32,268,532,739

60,345,422,285

-1,558,280,015

2012

38,216,936,055

63,151,266,129

-2,225,050,411

2011

35,572,150,162

63,159,574,605

1,620,309,237

2010

37,532,320,964

57,274,243,096

4,500,099,854

2009

30,254,507,462

47,889,368,730

3,713,046,709

 

 

Financial Description

 

Authorized Capital(KRW)

9,476,747,500

Paid-Up Capital(KRW)

4,200,000,000

Total Issued Shares

8,400,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

55,812,959,646

60,345,422,285

63,151,266,129

Current Assets

12,744,419,096

15,123,618,468

16,995,901,933

Cash & Cash Equivalents

294,928,937

376,926,352

1,014,338,564

Current Financial Instruments

3,600,000

-

 

Trade Receivables & Other Receivables

8,615,109,078

9,790,256,249

10,739,661,952

Inventories

3,773,528,450

4,798,763,792

4,984,747,589

Other Current Assets

57,161,711

157,550,795

256,120,898

Deferred Income Tax Assets

90,920

121,280

1,032,930

Non-Current Assets

43,068,540,550

45,221,803,817

46,155,364,196

Tangibles

42,859,295,421

44,922,252,631

45,858,865,199

Intangibles

150,807,129

292,261,186

284,208,997

Guarantee Deposit

27,790,000

7,290,000

12,290,000

Investment_Subsidiaries

30,648,000

-

 

Total Liabilities

37,330,307,428

35,586,784,508

36,746,176,049

Current Liabilities

33,501,981,968

28,787,163,550

27,123,863,282

Trade Payables & Other Payables

2,602,280,146

2,098,651,413

2,199,398,392

Short-Term Borrowings

21,619,487,200

19,801,679,800

16,547,752,600

Current Portion of Long-Term Debts

8,385,000,000

5,510,000,000

4,822,500,000

Current Portion of Convertible Bonds

 

 

2,150,046,427

Other Current Financial Debts

681,575,977

1,070,470,945

1,016,267,027

Other Current Liabilities

195,154,397

256,321,073

350,310,340

Provisions for Refund

18,484,248

50,040,319

37,588,496

Non-Current Liabilities

3,828,325,460

6,799,620,958

9,622,312,767

Long-Term Borrowings

260,000,000

3,645,000,000

6,155,000,000

Confirmed Salaries

2,007,270,239

1,828,951,296

1,691,366,210

Other Non-Current Financial Debts

 

 

5,000,000

Deferred Income Tax Credit

1,561,055,221

1,325,669,662

1,770,946,557

Capital Stock

4,200,000,000

4,200,000,000

4,200,000,000

Capital Surplus

1,618,328,187

1,618,328,187

1,618,328,187

Others

-61,000

-61,000

-61,000

Profit Surplus

12,664,385,031

18,940,370,590

20,586,822,893

Total Equity

18,482,652,218

24,758,637,777

26,405,090,080

Liab. & Shareholder’s Equity

55,812,959,646

60,345,422,285

63,151,266,129

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

25,755,891,262

32,268,532,739

38,216,936,055

Cost of Sold Goods

-22,554,351,523

-25,106,039,566

-28,925,683,116

Gross Profit

3,201,539,739

7,162,493,173

9,291,252,939

Selling & Admin. Expenses

-7,064,057,344

-6,110,228,661

-8,421,661,769

Operating Income

-3,862,517,605

1,052,264,512

869,591,170

Finance Income

53,283,187

146,310,040

80,337,466

Finance Expenses

-1,416,002,349

-1,246,979,414

-1,326,170,900

Non-Operating Income

842,059,081

780,388,961

890,624,525

Non-Operating Expenses

-603,183,536

-1,715,335,153

-3,347,716,565

Income Before Taxes

-4,986,361,222

-983,351,054

-2,833,334,306

Income Taxes Expenses

245,301,537

-444,099,752

-608,283,895

Income from Continuous Business

-5,231,662,759

-539,251,302

-2,225,050,411

Income from Stopped Business

-1,009,166,149

-1,019,028,713

 

Net Income

-6,240,828,908

-1,558,280,015

-2,225,050,411

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

796,160,120

2,893,666,482

390,165,494

Net Income

-6,240,828,908

-1,558,280,015

-2,225,050,411

Adjustment

5,987,226,264

3,822,339,036

5,076,153,147

Changes in Asset/ & Liability

1,045,127,908

626,985,771

-2,631,141,770

Interests Received

4,604,496

1,710,040

7,512,466

Income Taxes

30,360

911,650

162,692,062

Cash Flows from Investing

-1,104,903,314

-1,981,218,382

-3,095,607,850

Cash Flows from Financing

226,770,784

-1,546,926,423

2,298,472,291

Increase/Decrease in Cash

-81,972,410

-634,478,323

-406,970,065

Cash at the Beginning of Year

376,926,352

1,014,338,564

1,423,915,056

Cash at the End of Year

294,928,937

376,926,352

1,014,338,564

 

 

Products, Technologies, Services Description

 

Main Products & Services

Refill Inks, OPC Drum, Replacement Cartridge, Wide Format Printing Inks, Sublimation Ink Cartridge, Laser Printer Recycling

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

ALPROD SHANGHAI TRADING CO., LTD.(CHINA)

Competitors

JOEUN INK & CHEMICAL CO., LTD.

1037-83, MAE-RI, SANGDONG-MYEON, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-329-0615  FAX:+82-55-329-0617

 

HAN YANG INK. CO., LTD.

55-1, YANGPYEONG-DONG 5-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2676-6667  FAX:+82-2-2671-9686

 

DIPI COLOR KOREA CO., LTD.

952-14, DEOKJEONG-RI, SAMSEONG-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-877-3165  FAX:+82-43-877-4395

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ZEUS TECH CO., LTD.(KOREA)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

ALPROD SHANGHAI TRADING CO., LTD.(CHINA)

(100.0% held by the subject company)

 

ALPHACHEM USA, INC(USA)

(100.0% held by the subject company)

 

ALPHACHEM EUROPE GMBH(GERMANY)

(100.0% held by the subject company)

 

ALPHACHEM ZHUHAI TRADING CO., LTD.

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

2014

2013

2012

Export

20,327,628

25,411,490

31,152,370

Domestic

5,602,354

7,373,017

7,064,566

Total

25,929,982

32,784,507

38,216,936

The Subject exports to Germany, USA and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

-------------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.99

UK Pound

1

Rs.101.78

Euro

1

Rs.73.47

KRW

1

Rs.0.057

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.