MIRA INFORM REPORT

 

 

Report No. :

309339

Report Date :

21.02.2015

 

IDENTIFICATION DETAILS

 

Name :

HWAIL PHARM. CO., LTD.

 

 

Registered Office :

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

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2014

 

 

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 :

139

 

 

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 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. Initially, a system of close government and business ties, including directed credit and import restrictions, 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 6.9% 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 6.3% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 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 heavy reliance on exports, which comprise about half of GDP.

 

Source : CIA

 

 

 


Basic Information

 

Company Name

HWAIL PHARM. CO., LTD.

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

(Korean Company Name : “화일약품()”)

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

445-937

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, 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

The Subject owns the premises of registered HQ address.

 

 

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

Lee Jung-Kyu

Address

 

Date of Birth

09/17/1947

Title

Co-Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

7,205,479,000

Employees

139

Formation

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

Bank Details

Citibank, Korea-Yeoksam Station Branch

Korea Exchange Bank-Dogokro Branch

Hana Bank-Jeki Dong 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

LEE JUNG-KYU

704,500

4.89

OTHERS

8,985,198

62.35

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)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Co-Chairman & CEO

Mr.

Lee Jung-Kyu

Korean

1947. 09.17

Myungji University, Korea

Co-Chairman & CEO

Mr.

Cho Jung-Myung

Korean

1948.12

University of Houston, USA

President & CEO

Mr.

Park Phil-Joon

Korean

1960. 09.22

-

Vice President

 

Ahn Sang-Cheon

Korean

1963.04

-

Outside Director / Auditor

Mr.

Park Jung-Il

Korean

1970.04

Seoul National University, Korea

Outside Director / Auditor

Mr.

Park Doo-Won

Korean

1955.02

-

Outside Director / Auditor

Mr.

Choi Chang-Kyu

Korean

1955.06

-

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2014

68,492,411,965

119,782,864,725

3,079,124,930

(*)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

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

119,782,864,725

123,226,934,815

113,256,835,489

Current Assets

70,102,487,102

71,906,261,994

75,114,363,501

Cash & Cash Equivalents

5,544,777,691

8,190,430,916

8,354,422,224

Current Financial Instruments

3,860,813,256

1,946,914,096

1,050,359,724

Trade Receivables

34,078,660,162

31,492,218,202

37,893,317,189

Other Current Receivables

2,595,367,803

3,249,593,029

3,013,420,206

Inventories

23,851,327,737

26,930,748,906

24,227,420,622

Current Non-Financial Instruments

171,540,453

96,356,845

575,423,536

Non-Current Assets

49,680,377,623

51,320,672,821

38,142,471,988

Non-Current Financial Instruments

1,309,083,619

3,231,626,755

2,169,514,877

Long-Term Trade Receivables

32,181,818

104,545,456

0

Other Non-Current Receivables

187,664,800

187,664,800

420,408,543

Investment_Subsidiaries

1,000,000,000

1,000,000,000

1,000,000,000

Tangibles

39,313,275,083

38,907,334,224

29,835,428,131

Investment_Real Estates

3,657,448,793

3,695,932,168

4,044,763,384

Intangibles

4,180,723,510

4,193,569,418

672,357,053

Total Liabilities

31,644,686,156

36,814,982,959

30,975,906,048

Current Liabilities

18,990,424,296

25,492,475,479

24,416,404,237

Trade Payables

7,437,748,920

5,105,213,285

7,790,507,658

Other Current Payables

1,384,449,643

7,557,234,387

725,743,771

Short-Term Borrowings

8,096,056,400

10,572,046,000

14,466,216,284

Current Portion of Long-Term Debts

1,354,840,000

1,354,840,000

358,320,000

Deferred Income Tax Credit

557,668,006

657,076,206

884,744,904

Other Current Non-Finance Liabilities

159,661,327

246,065,601

190,871,620

Non-Current Liabilities

12,654,261,860

11,322,507,480

6,559,501,811

Other Non-Current Payables

2,356,778,110

 

1,876,620,126

Long-Term Borrowings

8,774,200,000

9,790,330,000

2,919,510,000

Provision for Severance & Retirement

2,147,283

2,147,283

0

Deferred Income Tax Credit

1,521,136,467

1,530,030,197

1,763,371,685

Capital Stock

7,205,479,000

7,205,479,000

7,010,167,000

Capital Surplus

19,594,466,322

19,594,466,322

18,492,892,683

Profit Surplus

65,748,458,072

64,021,623,242

61,080,140,099

Others

-4,410,224,825

-4,409,616,708

-4,302,270,341

Total Equity

88,138,178,569

86,411,951,856

82,280,929,441

Liab. & Shareholder’s Equity

119,782,864,725

123,226,934,815

113,256,835,489

 

Income Statement

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

68,492,411,965

94,165,903,736

91,723,166,914

Cost of Sold Goods

57,748,205,128

78,089,867,068

75,710,634,197

Gross Profit

10,744,206,837

16,076,036,668

16,012,532,717

Selling & Admin. Expenses

6,487,499,032

10,464,227,568

8,345,370,665

Operating Income

4,256,707,805

5,611,809,100

7,667,162,052

Other Income

139,623,844

440,949,639

208,204,956

Other Expenses

174,566,303

397,653,808

392,874,238

Finance Income

358,698,863

410,877,753

536,833,066

Finance Expenses

626,161,105

721,109,716

870,216,613

Income Before Taxes

3,954,303,104

5,344,872,968

7,149,109,223

Income Taxes Expenses

875,178,174

1,090,162,125

2,034,432,519

Net Income

3,079,124,930

4,254,710,843

5,114,676,704

 

Cash Flows

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

2,979,937,053

7,016,234,397

1,775,488,505

Net Income

3,079,124,930

4,254,710,843

5,114,676,704

Adjustment

1,165,834,064

4,639,257,092

494,986,993

Interests Received

213,490,035

282,119,029

451,386,045

Interests Paid

-566,256,391

-611,629,852

-790,598,530

Dividends Received

71,053,000

 

191,183

Income Taxes

-983,308,585

-1,548,222,715

-3,495,153,890

Cash Flows from Investing

-764,112,279

-10,958,225,974

-3,986,219,378

Cash Flows from Financing

-4,844,409,700

3,859,938,944

7,535,750,131

Increase/Decrease in Cash

-2,628,584,926

-82,052,633

5,325,019,258

Cash at the Beginning of Year

8,190,430,916

8,354,422,224

3,036,556,738

Cash at the End of Year

5,544,777,691

8,190,430,916

8,354,422,224

 

 

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

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

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

 

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

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.62.25

UK Pound

1

Rs.96.00

Euro

1

Rs.70.72

 

 

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.