MIRA INFORM REPORT

 

 

Report No. :

303693

Report Date :

19.01.2015

 

IDENTIFICATION DETAILS

 

Name :

CHONG KUN DANG PHARMACEUTICAL CORP.

 

 

Registered Office :

8, Chungjeong-ro, Seodaemun-gu,

 

 

Country :

South Korea.

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

11.05.2013

 

 

Com. Reg. No.:

110-86-08069

 

 

Legal Form :

Listed Company (Korea Stock Exchange : 185750) as of 12/06/2013

Foreign Direct Investment Corporation

 

 

Line of Business :

Manufacture of Finished Medicaments.

 

 

No. of Employee :

1,779

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

Basic

 

Company Name

CHONG KUN DANG PHARMACEUTICAL CORP.

(Trade Name : CKD Pharm)

Registered Address

8, Chungjeong-ro, Seodaemun-gu, Seoul, Korea

Building

Chongkundang Bldg.

Zip Code

120-756

Tel

+82-2-2194-0300

Fax

+82-2-2194-0417

E-mail

webmaster@ckdpharm.com; ckdexport@ckdpharm.com; intl@ckdbio.com

Website

www.ckdpharm.com

Trading Address

Chongkundang Bldg., 8, Chungjeong-ro, Seodaemun-gu, Seoul, Korea

(Old Address System : Chongkundang Bldg., 368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea)

Tel

+82-2-2194-0300

Fax

+82-2-2194-0417

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Finished Medicaments

  Main Business

Antipyretic, Digestive, Antibiotic

  Sub Business

 

Established (mm/dd/yyyy)

11/05/2013

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Antihistamines or H1 blockers(51161600)

Sell

Immunosuppressants(51201500)

Sell

Dietary supplements and nutritional therapy products(51191900)

Sell

Drugs affecting the gastrointestinal system(51170000)

Sell

Antispasmodics(51172100)

Sell

Non narcotic analgesics and antipyretics(51142000)

Sell

Anthelmintics and other antiparasitics(51101700)

Buy

Flavours or extracts(12164502)

Buy

Antiseptics(51102700)

Buy

Cyclosporine(51201502)

Buy

Menthol(51161803)

 

 

CEO’s

 

Name

Kim Jung-Woo

Address

 

Date of Birth

08/1952

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

23,522,625,000

Employees

1,779

Formation

Listed Company (Korea Stock Exchange : 185750) as of 12/06/2013

Foreign Direct Investment Corporation

A Company of CHONG KUN DANG

Bank Details

Woori Bank-Ahyeon-Station Branch

Shinhan Bank

Corporate Registered No.

110111-5260669

Business Registered No.

110-86-08069

Permit & Licenses

Int’l Trade No.: 690104

Shareholder Position

Name

Shares

%

LEE JANG-HAN

1,787,124

18.99

CHONGKUNDANG HOLDINGS CORP.(110111-0028955)

720,951

7.66

NATIONAL PENSION SERVICE(110171-0007134)

1,264,535

13.44

ALLIANZ GLOBAL INVESTORS KOREA LIMITED(110111-2124347)

470,585

5.00

KOREA VALUE ASSET MANAGEMENT CO.,LTD.(110111-3398959)

985,250

10.47

OTHERS

4,180,605

44.43

TOTAL

9,409,050

100.00

Company History

11/05/2013 Incorporated as the present name after spin off from CHONGKUNDANG HOLDINGS CORP.(110111-0028955)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Vice Chairman & CEO

Mr.

Kim Jung-Woo

Male

Korean

11/05/2013

Vice President

Mr.

Kim Kyu-Don

Male

Korean

11/05/2013

Director

Mr.

Ha Seung-Ho

Male

Korean

11/05/2013

Director

Mr.

Kim Sung-Ki

Male

Korean

11/05/2013

Director

Mr.

Kim Kwang-Jong

Male

Korean

11/05/2013

Outside Director

Mr.

Lee Jong-Yoon

Male

Korean

11/05/2013

Outside Director

Mr.

Oh Dae-Kyu

Male

Korean

11/05/2013

Auditor

Mr.

Hwang Sung-Soo

Male

Korean

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2014

402,917,364,445

563,680,476,219

31,509,787,809

2013

86,318,151,855

521,951,175,416

4,416,973,917

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

23,522,625,000

Total Issued Shares

9,409,050

 

Balance Sheet

 

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

563,680,476,219

521,951,175,416

 

Current Assets

302,956,812,525

255,302,621,390

 

Cash & Cash Equivalents

54,965,790,208

13,156,596,816

 

Current Financial Instruments

2,442,000,000

3,120,000,000

 

Trade Receivables

144,820,690,820

150,136,651,406

 

Other Receivables

8,299,596,244

10,235,643,555

 

Guarantees

4,223,139,996

3,228,881,036

 

Advance Payments

1,595,849,484

1,131,143,504

 

Prepaid Expenses

3,043,831,222

2,895,261,765

 

Other Current Assets

124,237,269

243,024,636

 

Inventories

83,441,677,282

71,155,418,672

 

Non-Current Assets

260,723,663,694

266,648,554,026

 

Non-Current Financial Instruments

916,652,200

1,699,495,550

 

Marketable Financial Instruments

8,116,016,186

7,357,516,397

 

Guarantees

2,227,758,742

2,767,220,352

 

Tangibles

207,615,656,864

214,686,281,836

 

Investment_Real Estates

24,639,747,404

22,230,331,217

 

Intangibles

17,133,732,298

17,833,608,674

 

Other Investment

74,100,000

74,100,000

 

Total Liabilities

239,902,502,885

223,827,499,962

 

Current Liabilities

143,298,877,899

130,853,061,958

 

Trade Payables

35,635,933,837

34,407,243,967

 

Account Payables

10,998,025,881

13,917,120,439

 

Short-Term Borrowings

67,200,000,000

63,567,000,000

 

Advance Receipts

155,880,000

 

 

Unearned Income

705,933,852

308,207,102

 

Withholdings

1,724,181,510

1,384,609,061

 

VAT Withhold

5,560,996,911

3,556,604,171

 

Guarantees

971,377,267

1,173,124,872

 

Accrued Expenses

6,709,335,575

6,971,669,731

 

Deferred Income Tax Credit

8,083,469,178

165,491,637

 

Finance Guarantee Debts

76,050,100

68,325,978

 

Provisions

5,477,693,788

5,333,665,000

 

Non-Current Liabilities

96,603,624,986

92,974,438,004

 

Long-Term Borrowings

57,367,000,000

61,000,000,000

 

Long-Term Account Payables

10,934,685,376

9,562,832,114

 

Guarantees

353,368,009

113,721,976

 

Deferred Income Tax Credit

4,625,605,667

6,954,490,489

 

Confirmed Salaries

23,322,965,934

15,343,393,425

 

Capital Stock

23,522,625,000

23,522,625,000

 

Capital Surplus

270,999,055,015

270,999,055,015

 

Others

720,079,662

145,136,822

 

Profit Surplus

28,536,213,657

3,456,858,617

 

Total Equity

323,777,973,334

298,123,675,454

 

Liab. & Shareholder’s Equity

563,680,476,219

521,951,175,416

 

 

 

Income Statement

 

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

402,917,364,445

86,318,151,855

 

Cost of Sold Goods

195,884,565,935

40,086,525,014

 

Gross Profit

207,032,798,510

46,231,626,841

 

Selling & Admin. Expenses

161,372,716,404

38,692,654,234

 

Operating Income

45,660,082,106

7,538,972,607

 

Finance Income

722,336,413

60,322,900

 

Finance Expenses

-4,265,724,382

-968,532,222

 

Non-Operating Income

1,576,646,448

674,369,018

 

Non-Operating Expenses

-974,685,538

-1,297,722,085

 

Income Before Taxes

42,718,655,047

6,007,410,218

 

Income Taxes Expenses

11,208,867,238

1,590,436,301

 

Net Income

31,509,787,809

4,416,973,917

 

 

 

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

51,471,945,945

9,959,708,946

 

Cash Flows from Operating

59,399,979,067

10,890,634,838

 

Net Income

31,509,787,809

4,416,973,917

 

Adjustment

40,864,634,550

6,047,327,352

 

Changes in Asset/ & Liability

-12,974,443,292

426,333,569

 

Interests Received

812,514,154

29,076,998

 

Interests Paid

-4,114,382,051

-956,088,900

 

Dividends Received

24,851,575

 

 

Income Taxes

-4,651,016,800

-3,913,990

 

Cash Flows from Investing

-6,664,271,137

-2,391,427,469

 

Cash Inflow from Investing

3,404,525,223

175,094,300

 

Cash Outflows for Investing

-10,068,796,360

-2,566,521,769

 

Cash Flows from Financing

-2,821,116,600

-383,616,000

 

Cash Inflows from Financing

1,600,000,000

 

 

Cash Outflows from Financing

-4,421,116,600

-383,616,000

 

Increase/Decrease in Cash

41,986,558,208

7,184,665,477

 

Cash at the Beginning of Year

13,156,596,816

5,989,147,965

 

Cash at the End of Year

54,965,790,208

13,156,596,816

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Antipyretic, Digestive, Antibiotic

 

Anthelmintics

Antibiotics

Antihistamines or H1 blockers

Antispasmodics

Cipol-N Soft Caps

Cyclosporine

Digestives

Drugs used for respiratory tract disorders

Extract

Glycyrrhiza extract

Hair care supplies

Insecticides and insect control traps

Menthol

Non narcotic analgesics and antipyretics

Nutritious foods and drugs

Spray insecticides

Tincture

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

ROCHE

KYONGBO PHARM Co., Ltd.(164811-0001961)

Customers

 

Competitors

DONGA PHARMACEUTICAL CO., LTD.(110111-0017990)

YUHAN CORPORATION(110111-0014409)

HANMI PHAM CO., LTD.(134811-0003187)

GREEN CROSS CORPORATION(110111-0109854)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CHONG KUN DANG HOLDINGS CO., LTD.(110111-0028955)

CHONG KUN DANG INDUSTRIES CO., LTD.(110111-0253437)

KYONGBO PHARM CO., LTD.(164811-0001961)

BELLCOM CO., LTD.(110111-2261339)

CHONGKUNDANG HEALTH CARE CO., LTD.(135011-0049540)

CKD VENTURE CAPITAL CORPORATION(160111-0065098)

CKD BIO CORPORATION(110111-2373308)

KOREA HINET CO., LTD. (110111-0892136)

BELL SMS CO., LTD.(110111-3483841)

CKD LIVING CO., LTD.(110111-3667049)

BELL I&S CO., LTD.(110111-3895913)

BELL SM CO., LTD.(110111-3483841)

BELL E&C CO., LTD.(EX. ANSUNG PRECISION MACHINERY CO., LTD : 134811-0013673)

 

EQUIS PHARMACEUTICALS. INC

BARDIA FARMA SPA

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2014

2013

2012

Export

25,179

7,098

 

Domestic

377,738

79,220

 

Total

402,917

86,318

 

 

The Subject deals with the companies in China, Japan, Pakistan, Vietnam and Guatemala.

 

 

Court Action

 

There are 3 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 307,391,000 KRW.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.01

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.