MIRA INFORM REPORT

 

 

Report No. :

355817

Report Date :

18.12.2015

 

IDENTIFICATION DETAILS

 

Name :

HYUNDAI CEMENT CO., LTD.

 

 

Registered Office :

398, Seocho-daero, Seocho-gu, Seoul, Platinum Tower, Korea 06619

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2015

 

 

Date of Incorporation :

30.12.1969

 

 

Com. Reg. No.:

214-81-24240

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Cement

 

 

No. of Employees :

389

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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

HYUNDAI CEMENT CO., LTD.

Registered Address

398, Seocho-daero, Seocho-gu, Seoul, Korea

Building

Platinum Tower

Zip Code

06619

Tel

+82-2-520-2114

Fax

+82-2-520-2118

E-mail

webmaster@hdcement.co.kr

Website

www.hdcement.co.kr

Trading Address

Platinum Tower, 398, Seocho-daero, Seocho-gu, Seoul, Korea

(Old Address System ; Platinum Tower, 1321-11, Seocho 2-dong, Seocho-gu, Seoul, Korea)

Tel

+82-2-520-2114

Fax

+82-2-520-2118

Other Address-Danyang Factory

122, Goyang-ri, Maepo-eup, Danyang-gun, Chungcheongbuk-do, Korea

Tel

+82-43-420-8900

Fax

+82-43-420-8888

Other Address-Yeongwol Factory

668, Sincheon-ri, Hanbando-myeon, Yeongwol-gun, Gangwon-do, Korea

Tel

+82-33-370-5500

Fax

+82-33-370-5566

Type

Export/Import

Industry

Manufacture of Cement

  Main Business

Cement

  Sub Business

 

Established (mm/dd/yyyy)

12/30/1969

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cement(30111601)

 

 

CEO’s

 

Name

Lee Ju-Hwan

Address

Suite 129-601, 111, Dokseodang-ro, Yongsan-gu, Seoul, Korea

Date of Birth

11/01/1961

Title

President & CEO

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

43,774,770,000

Employees

389

Formation

Listed Company (Korea Stock Exchange : 006390) as of 12/18/1975

A Company of Sungwoo Group

Bank Details

Korea Development Bank

Corporate Registered No.

110111-0111867

Business Registered No.

214-81-24240

Permit & Licenses

Int’l Trade No.: 760405

Shareholder Position

Name

Shares

%

Financial Institutes’ Association

KEB HANA BANK(110111-0672538)

2,138,400

24.43%

KOREA DEVELOPMENT BANK(110135-0000937)

1,433,800

16.38

KOOKMIN BANK(110111-2365321)

1,391,050

15.89

NH INVESTMENT & SECURITIES CO., LTD.(110111-0098130)

1,090,750

12.46

NONGHYUP BANK(110111-4809385)

720,050

8.22

HMC INVESTMENT SECURITIES CO., LTD.(110111-0019962)

502,050

5.73

WOORI BANK(110111-0023393)

212,200

2.42

SHINHAN BANK(110111-0012809)

127,200

1.45

INDUSTRIAL BANK OF KOREA(110135-0000903)

126,450

1.44

Others

CHUNG MONG-SUN & OTHERS(1)

204,000

2.33

TREASURY STOCK

239,899

2.74

OTHERS

569,105

6.51

TOTAL

8,754,954

100.00

Company History

12/30/1969 Incorporated as the present name

06/04/2010 Started Corporate Management Procedure by Financial Institutes’ Association

10/05/2010 Agreed to execute Corporate Management Normalization Plan with Financial Institutes’ Association

04/02/2012 Moved to the present HQ address from 1424-2, Seocho-dong, Seocho-gu, Seoul, Korea

12/31/2014 Prolonged the Agreement on Corporate Management Normalization Plan with Financial Institutes’ Association until 12/31/2016

09/23/2015 Ordered to stop the Subject’s stock trading due to Suspicion of breach of trust and misappropriation against the subject present executives and ex. executives

10/21/2015 Designated as Dishonesty Disclosure Company due to delayed disclosure on Suspicion of breach of trust and misappropriation

11/09/2015 Korea Exchange(KRX) decided the subject as a Reviewee by Corporate Appeals Review Committee on delayed disclosure until 12/07/2015

12/07/2015 Korea Exchange(KRX) decided to give Correction Period to the subject until 03/30/2016

 

 

 

 

Management

 

Job Description

Name

Nationality

Date of Birth

Inauguration Date

President & CEO

Lee Ju-Hwan

Korean

11/01/1961

03/25/2011

Chairman

Chung Mong-Sun

Korean

08/15/1954

03/16/1994

Sr. Executive Director

Lim Seung-Bin

Korean

01/17/1958

03/22/2013

Outside Director

Choi Soon-Woong

Korean

07/28/1958

11/13/2015

Auditor

Sun Chang-Bok

Korean

01/09/1955

03/22/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2015

262,998,062,819

479,984,975,204

-91,103,362,753

2014

325,728,212,727

469,581,180,772

283,394,107,715

2013

326,371,366,288

478,959,202,107

-347,482,960,948

2012

296,778,438,500

533,791,532,974

-37,849,559,289

2011

269,201,818,938

604,236,688,502

-80,241,874,900

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

43,774,770,000

Total Issued Shares

8,754,954

 

 

Balance Sheet

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

479,984,975,204

469,581,180,772

478,959,202,107

Current Assets

156,980,517,853

147,660,850,772

150,235,661,858

Cash & Cash Equivalents

10,830,563,384

9,801,762,373

2,450,193,579

Current Financial Instruments

13,086,486,560

3,190,104,192

4,084,621,047

Held-to-Maturity Financial Assets

 

 

31,035,000

Trade Receivables

103,016,244,419

89,078,242,259

105,594,217,930

Other Receivables

891,428,522

886,932,970

1,196,199,966

Inventories

27,818,741,179

42,732,404,313

35,912,378,616

Other Current Assets

1,337,053,789

877,651,608

967,015,720

Deferred Income Tax Assets

 

1,093,753,057

 

Non-Current Assets

323,004,457,351

321,920,330,000

328,723,540,249

Non-Current Financial Instruments

20,500,000

21,000,000

2,375,500,000

Long-Term Trade Receivables

1,177,115,811

1,177,922,050

 

Other Long-Term Receivables

21,772,189,746

20,685,834,593

17,032,016,695

Marketable Financial Instruments

2,412,361,850

2,416,412,644

2,804,912,241

Tangibles

286,067,662,831

290,390,296,334

302,689,248,285

Investment_Real Estates

189,298,000

189,298,000

189,298,000

Intangibles

2,991,498,907

3,281,825,863

3,632,565,028

Deferred Income Tax Assets

8,373,830,206

3,757,740,516

 

Total Liabilities

522,033,258,235

413,680,241,318

755,769,818,821

Current Liabilities

80,111,973,077

107,257,120,824

355,474,855,606

Trade Payables

20,542,926,014

19,269,046,450

20,346,586,266

Short-Term Borrowings

20,633,706,231

34,263,053,802

65,273,532,366

Current Portion of Debentures

 

 

103,665,068,302

Current Portion of Convertible Bonds

 

 

14,900,423,865

Current Portion of Exchangeable Bonds

3,220,000

7,920,000

8,620,000

Current Portion of Long-Term Debts

 

16,629,360,000

122,463,176,328

Other Current Liabilities

23,765,897,857

36,330,781,305

28,817,448,479

Other Provisions

3,283,325,850

 

 

Deferred Income Tax Credit

11,882,897,125

756,959,267

 

Non-Current Liabilities

441,921,285,158

306,423,120,494

400,294,963,215

Debentures

50,470,081,500

50,470,081,500

 

Long-Term Borrowings

12,300,944,850

12,358,300,000

 

Finance Guarantee Contract Debts

59,554,386,309

58,268,294,223

353,200,425,882

Debt-equity swap Debts

259,132,803,400

140,920,158,550

 

Provision for Severance & Retirement

54,194,304,326

38,216,615,612

23,408,922,756

Other Provisions for Recovery

4,032,271,014

3,877,406,343

3,725,087,309

Guarantee Deposit Withhold

778,468,000

748,468,000

846,468,000

Other Non-Current Liabilities

1,458,025,759

1,563,796,266

4,840,811,598

Deferred Income Tax Credit

 

 

14,273,247,670

Capital Stock

43,774,770,000

43,774,770,000

36,720,000,000

Capital Surplus

40,898,414,564

54,846,825,275

12,736,367,143

Profit Surplus

-97,963,253,772

-13,949,122,317

-298,909,358,587

Others

-28,758,213,823

-28,771,533,504

-27,357,625,270

Total Equity

-42,048,283,031

55,900,939,454

-276,810,616,714

Liab. & Shareholder’s Equity

479,984,975,204

469,581,180,772

478,959,202,107

 

Income Statement

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

262,998,062,819

325,728,212,727

326,371,366,288

Cost of Sold Goods

195,013,853,026

234,585,864,445

242,757,954,373

Gross Profit

67,984,209,793

91,142,348,282

83,613,411,915

Selling & Admin. Expenses

26,761,479,857

42,608,263,483

37,912,631,834

Operating Income

41,222,729,936

48,534,084,799

45,700,780,081

Other Income

3,267,341,666

5,725,509,503

6,594,004,168

Other Expenses

2,668,268,340

36,642,193,879

373,022,515,720

Finance Income

1,238,498,373

266,869,421,338

3,467,876,835

Finance Expenses

123,788,880,172

12,786,991,329

28,479,178,795

Income Before Taxes

-80,728,578,537

271,699,830,432

-345,739,033,431

Income Taxes Expenses

10,374,784,216

-11,694,277,283

1,743,927,517

Net Income

-91,103,362,753

283,394,107,715

-347,482,960,948

 

Cash Flows

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

46,294,918,009

58,952,972,955

51,941,883,753

Cash Flows from Operating

50,762,160,382

71,632,337,627

68,716,646,630

Net Income

-91,103,362,753

283,394,107,715

-347,482,960,948

Adjustment

149,791,300,754

-203,952,091,376

418,713,469,006

Changes in Asset/ & Liability

-7,925,777,619

-7,809,678,712

-2,513,861,428

Interests Received

126,790,314

363,003,002

219,223,346

Interests Paid

-3,758,626,067

-9,627,933,694

-17,102,186,663

Dividends Received

44,140

41,280

37,480

Income Taxes

-835,450,760

-3,414,475,260

108,162,960

Cash Flows from Investing

-13,669,445,615

-143,015,424

-4,451,354,813

Cash Flows from Financing

-31,596,671,383

-51,458,388,737

-47,067,843,455

Increase/Decrease in Cash

1,028,801,011

7,351,568,794

422,685,485

Cash at the Beginning of Year

9,801,762,373

2,450,193,579

2,027,508,094

Cash at the End of Year

10,830,563,384

9,801,762,373

2,450,193,579

(*)The Subject needs to be monitored because Total Liabilities exceed Total Assets as much as 42,048,000,000 KRW as of 09/30/2015. And it could lead the subject delisted from Korea Stock Exchange market from the impaired capital, impairment of capital.

 

 


Products, Technologies, Services Description

 

Main Products & Services

Cement

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

SSANGYONG CEMENT INDUSTRIAL CO., LTD.

SSANG-YONG BLDG., 24-1, JEODONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2270-5114  FAX:+82-2-2275-7040

 

HANIL CEMENT CO., LTD.

15TH FL., UDEOK BLDG., 832-2, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-531-7000  FAX:+82-2-531-7113

 

TONG YANG CEMENT CORPORATION

ALPHA BLDG., 70, SEORIN-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-3770-3000  FAX:+82-2-3770-3305

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

 

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

SUNGWOO CONSTRUCTION CO., LTD.(110111-0617394)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2015

2014

2013

Export

-

-

1,509

Domestic

262,998

325,072

324,119

Total

262,998

325,072

325,628

Not Available.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

2015KAHAP1121

Seoul Central District Court

Chairman of the Subject Company

President & Executives of the Subject Company

Provisional injunction on execution of duty

-

Filed as of 10/01/2015

 

 

 

The Subject Company(6 Cases)

Claim for Compensation from Damages

614,000,000

Proceeding

 

 

News Clipping

 

---------

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.65

UK Pound

1

Rs.99.61

Euro

1

Rs.72.33

KRW

1

Rs.0.056

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%)

 

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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.