MIRA INFORM REPORT

 

 

Report No. :

356173

Report Date :

19.12.2015

 

IDENTIFICATION DETAILS

 

Name :

HWAIL PHARM. CO., LTD.

 

 

Registered Office :

57, Jeyakgongdan 3-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea 18622

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2015

 

 

Date of Incorporation :

18.11.1980

 

 

Com. Reg. No.:

124-81-27624

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Medicinal Chemicals and Antibiotics.

 

 

No. of Employees :

141

 

 

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 – 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

HWAIL PHARM. CO., LTD.

(English Name : HWAIL PHARMACEUTICAL CO., LTD.)

Registered Address

57, Jeyakgongdan 3-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

(Old Address System : 904-7, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea)

Building

 

Zip Code

18622

Tel

+82-31-353-4101

Fax

+82-31-353-9219

E-mail

hwail@hwail.co.kr;james@hwail.com

Website

www.hwail.com

Trading Address

5FL., C-Korea Bio Park, 700, Daewangpangyo-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

(Old Address System : 5FL., C-Korea Bio Park, 694-1, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea)

Tel

+82-2-512-2592

Fax

+82-2-511-6954

Other Address

454-3, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-4042

Fax

+82-31-491-4045

Type

Export/Import

Industry

Manufacture of Medicinal Chemicals and Antibiotics

  Main Business

Pharmaceutical Raw Materials, Analgesics, Food Additives

  Sub Business

 

Established (mm/dd/yyyy)

11/18/1980

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Formulas and products for nutritional support(42231800)

Sell

Herbal drugs(51212000)

Sell

Shelf stable vegetables(50101540)

Sell

Cereal flour(50221102)

Sell

Mushrooms or fungi(50101541)

 

 

CEO’s

 

Name

Cho Jung-Myung

Address

Suite B-4601, 212, Olympic-ro, Songpa-gu, Seoul, Korea

Date of Birth

12/15/1948

Title

Chairman & CEO

Nationality

Korean

 

Profiles

 

Capital (KRW)

7,205,479,000

Employees

141

Formation

Listed Company (KOSDAQ:061250) as of 04/17/2002

Bank Details

Citibank, Korea-Yeoksam Station Branch

KEB Hana Bank-Dogokro Branch

Industrial Bank of Korea-Seocho Nam Branch

Shinhan Bank

Corporate Registered No.

134411-0000719

Business Registered No.

124-81-27624

Permit & Licenses

Int’l Trade No.: 542269

Shareholder Position

Name

Shares

%

CRYSTAL GENOMICS INCORPORATION(160111-0101016)

3,121,371

21.66

PARK PHIL-JOON

1,599,889

11.10

TREASURY STOCK

888,057

6.16

OTHERS

8,801,641

61.08

TOTAL

14,410,958

100.00

Company History

05/1974 Established as JEIL PHARM. CO.(Sole Proprietorship)

11/18/1980 Incorporated as the present name

06/2001 Designated as a Promising SME by Gyeonggi Province, Korea

10/2001 Completed BGMP Facilties

04/17/2002 Listed at KOSDAQ Market

08/2008 Acquired Eco P&F Co., Ltd.(110111-3951848)

02/04/2013 Increased capital to 7,205,479,000 KRW from 7,156,651,000 KRW

 

 

 

 

Management

 

Job Description

Name

Nationality

Date of Birth

Inauguration Date

Chairman & CEO

Cho Jung-Myung

Korean

12/15/1948

10/16/2013

President & CEO

Park Phil-Joon

Korean

09/22/1960

01/02/2013

Vice President

Ahn Sang-Cheon

Korean

04/12/1963

10/14/2013

Outside Director / Auditor

Park Jung-Il

Korean

04/28/1970

03/21/2014

Outside Director / Auditor

Park Doo-Won

Korean

02/11/1955

10/14/2013

Outside Director / Auditor

Choi Chang-Kyu

Korean

06/04/1955

10/14/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2015

77,794,744,464

128,894,546,338

2,357,888,854

(*)2014

96,103,080,879

122,924,472,259

4,028,958,926

(*)2013

94,165,903,736

123,226,934,815

4,254,710,843

(*)2012

91,723,166,914

113,256,835,489

5,114,676,704

(*)2011

78,097,350,738

98,791,213,472

4,676,324,958

(*)2010

76,067,646,494

107,660,060,440

4,274,517,444

2009

72,112,584,287

85,321,200,059

4,289,385,137

2008

61,371,591,549

71,890,758,102

5,148,234,554

2007

60,287,772,247

57,760,360,949

4,929,631,959

2006

54,900,919,914

56,401,487,368

4,509,130,859

2005

52,921,707,173

46,115,581,223

4,733,147,756

2004

49,767,669,954

40,824,313,435

4,008,977,573

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

7,205,479,000

Total Issues Shares

14,410,958

 

Balance Sheet

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

128,894,546,338

122,924,472,259

123,226,934,815

Current Assets

80,714,156,161

74,052,337,812

71,906,261,994

Cash & Cash Equivalents

3,736,884,417

4,257,105,463

8,190,430,916

Current Financial Instruments

1,486,583,274

4,950,813,256

1,946,914,096

Trade Receivables

41,089,343,782

38,054,991,862

31,492,218,202

Other Current Receivables

152,042,932

325,634,485

3,249,593,029

Inventories

34,131,971,085

25,942,272,501

26,930,748,906

Deferred Income Tax Assets

 

283,306,362

 

Current Non-Financial Instruments

117,330,671

238,213,883

96,356,845

Non-Current Assets

48,180,390,177

48,872,134,447

51,320,672,821

Non-Current Financial Instruments

1,095,561,786

1,177,957,199

3,231,626,755

Long-Term Trade Receivables

4,259,721

 

104,545,456

Other Non-Current Receivables

187,664,800

187,664,800

187,664,800

Investment_Subsidiaries

643,796

9,371,837

1,000,000,000

Tangibles

38,198,039,848

39,039,568,828

38,907,334,224

Investment_Real Estates

3,606,137,625

3,644,621,001

3,695,932,168

Intangibles

5,088,082,601

4,812,950,782

4,193,569,418

Total Liabilities

38,810,255,758

33,854,340,611

36,814,982,959

Current Liabilities

32,229,961,874

21,861,701,847

25,492,475,479

Trade Payables

6,177,227,146

6,777,040,797

5,105,213,285

Other Current Payables

3,560,865,443

1,416,972,292

7,557,234,387

Short-Term Borrowings

18,287,295,693

11,872,809,522

10,572,046,000

Current Portion of Long-Term Debts

3,354,840,000

1,354,840,000

1,354,840,000

Deferred Income Tax Credit

675,789,828

289,345,617

657,076,206

Other Current Non-Finance Liabilities

173,943,764

150,693,619

246,065,601

Non-Current Liabilities

6,580,293,884

11,992,638,764

11,322,507,480

Other Non-Current Payables

 

2,378,023,092

 

Long-Term Borrowings

5,419,360,000

8,435,490,000

9,790,330,000

Deferred Income Tax Credit

1,160,428,851

1,178,620,639

1,530,030,197

Provision for Severance & Retirement

505,033

505,033

2,147,283

Capital Stock

7,205,479,000

7,205,479,000

7,205,479,000

Capital Surplus

19,594,466,322

19,594,466,322

19,594,466,322

Profit Surplus

67,703,890,822

66,698,292,068

64,021,623,242

Others

-4,419,545,564

-4,428,105,742

-4,409,616,708

Total Equity

90,084,290,580

89,070,131,648

86,411,951,856

Liab. & Shareholder’s Equity

128,894,546,338

122,924,472,259

123,226,934,815

 

Income Statement

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

77,794,744,464

96,103,080,879

94,165,903,736

Cost of Sold Goods

69,098,793,203

81,900,803,602

78,089,867,068

Gross Profit

8,695,951,261

14,202,277,277

16,076,036,668

Selling & Admin. Expenses

5,969,041,744

8,348,066,335

10,464,227,568

Operating Income

2,726,909,517

5,854,210,942

5,611,809,100

Other Income

1,210,185,247

190,806,686

440,949,639

Other Expenses

207,145,875

1,632,249,736

397,653,808

Finance Income

131,754,773

466,869,151

410,877,753

Finance Expenses

523,756,476

574,305,525

721,109,716

Income Before Taxes

3,337,947,186

4,305,331,518

5,344,872,968

Income Taxes Expenses

980,058,332

276,372,592

1,090,162,125

Net Income

2,357,888,854

4,028,958,926

4,254,710,843

 

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

-7,706,828,110

-2,622,701,205

7,016,234,397

Net Income

2,357,888,854

4,028,958,926

4,254,710,843

Adjustment

-9,535,896,483

-4,980,622,818

4,639,257,092

Interests Received

209,365,876

258,388,095

282,119,029

Interests Paid

-477,344,671

-726,874,159

-611,629,852

Dividends Received

 

71,053,000

 

Income Taxes

-260,841,686

-1,273,604,249

-1,548,222,715

Cash Flows from Investing

3,118,449,851

92,160,721

-10,958,225,974

Cash Flows from Financing

4,046,066,071

-1,406,366,578

3,859,938,944

Increase/Decrease in Cash

-542,312,188

-3,936,907,062

-82,052,633

Cash at the Beginning of Year

4,257,105,463

8,190,430,916

8,354,422,224

Cash at the End of Year

3,736,884,417

4,257,105,463

8,190,430,916

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pharmaceutical Raw Materials, Analgesics, Food Additives

-Acemetacin

-Oxatomide

-Phloro Glucin

-Talniflumate

-Triflusal

-Gallamine Triethyl Iodide

-Alibendol Erdostein

-Others

 

Automobile

 

Brand Name : LVSP, TNFL, ACCL, TRPR, LTBF, EDST

Annual Production Capacity

(Unit: Kg)

Item

06/2011

2010

2009

LVSP

2,500

3,094

3,094

TNFL

7,500

15,000

15,000

ACCL

10,000

3,500

3,500

PLOG

875

1,750

1,750

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

WAFRAPHARMA LABORATORIES LTD.

HYUNDAI MOTOR COMPANY(110111-0085450)

Customers

Major Pharmaceutical Manufacturing Companies

 

SEPEHR DIESEL KAVEH AUTOMOTIVE

Competitors

DAEBONGLSCO.,LTD(124311-0016976)

122B-9L, NAMDONG INDUSTRIAL COMPLEX, 692-8, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-817-8800~7 FAX:+82-32-817-8808

 

ESTECHPHARMA CO., LTD(135111-0047782)

34-10B, BARAN LOCAL INDUSTRIAL COMPLEX, 1407-9, HAGIL-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-831-4800  FAX:+82-31-831-4801

 

HANMIFINECHEMICAL CO.,LTD.(131111-0005106)

1248-8, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-2541  FAX:+82-31-499-2540

 

DAEWOONG BIO INC.(131112-0004827)

906-5, SANGSIN-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-353-5271~3  FAX:+82-31-353-5626

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CRYSTAL GENOMICS INCORPORATION(160111-0101016)

 

ECO P&F CO., LTD.(110111-3951848)

(19.74% held by the subject company)

776-12, YEOKSAM-DONG, GANGNAM-GU, SEOUL, KOREA

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

HWAIL INTERNATIONAL CO., LTD.(110111-4313162)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

CRYSTAL GENOMICS INCORPORATION(160111-0101016)

Cooperative Enterprise

-Insured Company

MG NON-LIFE INSURANCE CO., LTD.(110111-5065077)

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to China and India, and it imports from USA, Japan and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

---------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.42

UK Pound

1

Rs.99.17

Euro

1

Rs.72.14

KRW

1

Rs.0.056

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

 

 

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%)

 

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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.