MIRA INFORM REPORT

 

 

Report No. :

330184

Report Date :

04.07.2015

 

IDENTIFICATION DETAILS

 

Name :

DONGNAM CHEMICAL CO., LTD.

 

 

Registered Office :

80-61,Tancheonsaneopdanji-Gil,Tancheon-Myeon,Gongju-Si, Chungcheongnam-Do, Korea 314-853

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

01.10.1965

 

 

Com. Reg. No.:

122-81-17945

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Surface-Active Agents

 

 

No. of Employees :

77

 

 

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

DONGNAM CHEMICAL CO., LTD.

Registered Address

80-61, Tancheonsaneopdanji-gil, Tancheon-myeon, Gongju-si, Chungcheongnam-do, Korea

Building

 

Zip Code

314-853

Tel

+82-41-840-3100

Fax

+82-41-858-7001

E-mail

global@dongnamchem.com;sales@dongnamchem.com;rad@dongnamchem.com

Website

www.dongnamchem.com

Trading Address

80-61, Tancheonsaneopdanji-gil, Tancheon-myeon, Gongju-si, Chungcheongnam-do, Korea

(Old Address System : 730-1, Deokji-ri, Tancheon-myeon, Gongju-si, Chungcheongnam-do, Korea)

Tel

+82-41-840-3100

Fax

+82-41-858-7001

Other Address-Bupyeong Factory

99, Bupyeongbuk-ro, Bupyeong-gu, Incheon, Korea

(Old Address System : 385-1, Cheongcheon 2-dong, Bupyeong-gu, Incheon, Korea)

Tel

+82-32-450-3700

Fax

+82-32-525-0104

Other Address-Namdong Factory

98B-4, Namdong Industrial Complex, 662-3, Gojan-dong, Namdong-gu, Incheon, Korea

Tel

+82-32-818-1333

Fax

+82-32-818-1344

Other Address-Daesan Factory

691-7, Daejuk-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea

(Old Address System : 413-97, Jugyeop-ro, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea)

Tel

+82-41-661-4800

Fax

+82-41-661-4815

Other Address-Daegu Branch

42-429, Ihyeon-dong, Seo-gu, Daegu, Korea

Tel

+82-53-521-7212~3

Fax

+82-53-521-7214

Other Address-Busan Branch

380-2, Samnak-dong, Sasang-gu, Busan, Korea

Tel

+82-51-301-5984~6

Fax

+82-51-301-5987

Type

Export/Import

Industry

Manufacture of Surface-Active Agents

  Main Business

Surface Active Agent, Coarse Manufacturing for Fiber, Cleaning Material, Fiber Emulsifier, Emulsifier for Agricultural Chemicals

  Sub Business

 

Established (mm/dd/yyyy)

10/01/1965

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Surfactants(12161900)

Buy

Biochemicals(12352200)

Buy

Stearic Acid

Buy

Ethylene Oxide

Buy

Lauryl Alcohol

 

 

CEO’s

 

Name

Lee Jang-Hoon

Address

 

Date of Birth

11/1949

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,399,415,000

Employees

77

Formation

Listed Company (Korea Stock Exchange : 023450) as of 12/24/1996

Bank Details

Citibank, Korea-Daegu Bank

Shinhan Bank

Corporate Registered No.

110111-0057012

Business Registered No.

122-81-17945

Permit & Licenses

10/13/1998 ISO 9001

 

Int’l Trade No.: 850779

Shareholder Position

Name

Shares

%

MIWON CHEMICALS CO., LTD.(230111-0172244)

250,000

19.53

MIWON COMMERCIAL CO., LTD.(130111-0007707)

109,263

8.54

TAEKWANG FINE CHEMICAL CO., LTD.(120111-0052142)

74,284

5.80

MISUNG TOTAL CORPORATION(180111-0167832)

18,986

1.48

LEE JU-HEE

112,151

8.76

TREASURY STOCK

278,345

21.75

OTHERS

436,854

34.13

TOTAL

1,279,883

100.00

Company History

10/01/1965 Incorporated as HEUNGIL SYNTHETIC INDUSTRIES CO., LTD.

12/12/1970 Changed company name to DONGNAM SYNTHETIC INDUSTRIES CO., LTD.

11/30/1996 Awarded US$5 Million Export Top Prize

03/19/2004 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

Co-President & CEO

Mr.

Lee Jang-Hoon

Korean

Male

1949.11

Co-President & CEO

Mr.

Yang Jong-Sang

Korean

Male

1955.10

Executive Director

Mr.

Ahn Hyun-Kwan

Korean

Male

1961.10

Executive Director

Mr.

Lim Sung-Kyu

Korean

Male

1957.11.

Executive Director

Mr.

Kim Phil-Soo

Korean

Male

1961.08.

Director

Mr.

Kim Jung-Don

Korean

Male

1954.01

Outside Director

Mr.

You Jae-Seok

Korean

Male

1956.01

Outside Director

Mr.

Kang Yeon-Seung

Korean

Male

1957.07

Auditor

Mr.

Seo Young-Kyu

Korean

Male

1946.11.

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

17,548,127,131

69,305,479,263

563,310,789

(*)2014

76,119,599,017

67,560,066,830

2,295,612,804

(*)2013

60,564,486,326

56,641,901,674

1,989,502,269

(*)2012

61,964,194,197

54,686,375,690

3,809,730,061

(*)2011

59,784,516,000

62,255,155,000

1,812,404,000

(*)2010

49,918,409,000

50,165,380,000

3,306,010,000

2009

44,452,676,416

47,012,990,543

3,887,557,037

2008

44,423,998,530

40,815,778,490

2,038,826,150

2007

40,185,064,988

38,400,855,807

1,745,566,202

2006

36,627,129,354

34,909,762,265

2,214,225,267

2005

42,112,432,994

33,164,610,741

2,433,156,396

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

6,399,415,000

Total Issued Shares

1,279,883

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

69,305,479,263

67,560,066,830

56,641,901,674

Current Assets

22,329,157,550

21,518,888,676

23,056,637,544

Cash & Cash Equivalents

543,149,090

369,131,509

1,588,538,128

Trade Receivables

13,412,883,086

13,243,247,717

13,598,463,811

Current Financial Instruments

133,311,526

294,534,308

242,368,327

Inventories

8,197,885,057

7,539,951,613

7,566,001,817

Other Current Assets

41,928,791

72,023,529

61,265,461

Non-Current Assets

46,976,321,713

46,041,178,154

33,585,264,130

Long-Term Trade Receivables

26,500,000

 

10,000,000

Non-Current Non-Financial Instruments

639,922,200

696,913,290

400,694,600

Deferred Income Tax Assets

3,335,758

3,335,758

 

Marketable Financial Instruments

2,388,100,000

2,388,100,000

2,388,100,000

Tangibles

43,307,033,862

42,329,101,208

30,252,414,257

Intangibles

611,429,893

623,727,898

534,055,273

Total Liabilities

18,616,136,480

17,233,727,236

7,287,750,176

Current Liabilities

13,714,185,164

12,291,605,074

4,882,901,980

Trade Payables

3,934,859,386

4,191,025,607

3,505,571,069

Other Current Financial Debts

1,716,198,628

1,384,437,644

992,172,743

Short-Term Borrowings

7,654,000,000

6,309,600,000

 

Deferred Income Tax Credit

198,585,706

195,962,166

253,091,210

Other Current Liabilities

210,541,444

210,579,657

132,066,958

Non-Current Liabilities

4,901,951,316

4,942,122,162

2,404,848,196

Long-Term Borrowings

3,508,284,190

3,508,284,190

1,440,000,000

Confirmed Salaries

1,378,667,126

1,418,837,972

809,305,776

Deferred Income Tax Credit

 

 

155,542,420

Other Non-Current Financial Debts

15,000,000

15,000,000

 

Capital Stock

6,399,415,000

6,399,415,000

6,391,615,000

Capital Surplus

16,472,233,077

16,472,233,077

16,426,213,077

Others

-3,892,924,827

-3,892,924,827

-3,081,530,827

Profit Surplus

31,710,619,533

31,347,616,344

29,617,854,248

Total Equity

50,689,342,783

50,326,339,594

49,354,151,498

Liab. & Shareholder’s Equity

69,305,479,263

67,560,066,830

56,641,901,674

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

17,548,127,131

76,119,599,017

60,564,486,326

Cost of Sold Goods

15,274,875,325

66,570,933,646

52,638,617,203

Gross Profit

2,273,251,806

9,548,665,371

7,925,869,123

Selling & Admin. Expenses

1,703,543,979

7,077,412,597

5,531,951,972

Operating Income

569,707,827

2,471,252,774

2,393,917,151

Other Income

211,653,355

429,919,752

183,709,598

Other Expenses

-24,757,412

-80,306,183

-273,957,789

Finance Income

36,891,909

142,117,017

178,744,748

Finance Expenses

140,736,840

308,786,234

97,946,822

Income Before Taxes

652,758,839

2,654,197,126

2,384,466,886

Income Taxes Expenses

89,448,050

358,584,322

394,964,617

Net Income

563,310,789

2,295,612,804

1,989,502,269

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

242,444,494

4,351,975,644

184,372,103

Cash Flows from Operating

540,605,987

5,209,970,360

2,496,638,812

Net Income

563,310,789

2,295,612,804

1,989,502,269

Adjustment

688,707,197

2,090,342,836

1,699,306,573

Changes in Asset/ & Liability

-711,411,999

824,014,720

-1,192,170,030

Interests Received

1,723,569

14,508,329

69,790,178

Interests Paid

-12,752,952

-195,413,495

-11,041,068

Dividends Received

-86,824,510

-472,653,950

-2,166,304,219

Income Taxes

-200,307,600

-204,435,600

-204,711,600

Cash Flows from Investing

-1,388,121,714

-13,184,002,327

-3,695,398,457

Cash Flows from Financing

1,320,400,000

7,612,510,190

1,381,762,600

Increase/Decrease in Cash

174,722,780

-1,219,516,493

-2,129,263,754

Cash at the Beginning of Year

369,131,509

1,588,538,128

3,717,804,946

Cash at the End of Year

543,149,090

369,131,509

1,588,538,128

 

 

Products, Technologies, Services Description

 

Main Products & Services

Nonionic Surfactants

Cationic Surfactants

Anionic Surfactants

Amphteric Surfactants

Esters Products

Stearic Acid

Ethylene Oxide

 

Brand Name : Monopol,Enazol,Sofnol, PEG, MONOPOL,FMD, MBC

Annual Production Capacity

(Unit : Thousand Ton)

Item

2009

2008

2007

Surfactants

28,800

27,780

27,720

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

LG CHEM LTD.(110111-2207995)

CJ LION CORPORATION(120111-0360181)

Customers

 

Competitors

AK CHEMTECH CO., LTD.

MISEONG BLDG., 72-6, YONGJEON-DONG, DONG-GU, DAEJEON, KOREA

TEL:+82-42-280-5700  FAX:+82-42-621-0466

 

SFC CO., LTD.

11-04-0007, NATIONAL INDUSTRIAL COMPLEX, HWACHI-DONG, YEOSU-SI, JEOLLANAM-DO, KOREA

TEL:+82-61-685-8865  FAX:+82-61-685-8860

 

OH SUNG CHEMICAL IND. CO., LTD.

76B-11L, NAMDONG INDUSTRIAL COMPLEX, 645-10, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-547-3321  FAX:+82-32-547-3327

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

MIWON COMMERCIAL CO., LTD.(130111-0007707)

MIWON CHEMICALS CO., LTD.(230111-0172244)

TAEKWANG FINE CHEMICAL CO., LTD.(120111-0052142)

ASIA STABILIZERS CO., LTD.(ASCL: 134711-0016596)

MIWON CHEMICALS CO., LTD.(230111-0172244)

MIWON SPECIALTY CHEMICAL CO., LTD.(210111-0063190)

MIWON COMMERCIAL CO., LTD.(130111-0007707)

MISUNG TRADING CO., LTD.(134111-0025929)

MISUNG TOTAL CORPORATION(180111-0167832)

MIWHA LOGISTICS CO., LTD.(230111-0072014)

MIWOO SILUP CO., LTD.(134111-0062773)

MIWON EOD CO., LTD.(161411-0023544)

 

MIWON NORTH AMERICA. INC.(USA)

MIWON EUROPE GMBH(GERMANY)

MIWON SPAIN S.L.U.(SPAIN)

MIWON AUSTRIA F&E GMBH(AUSTRIA)

 

 

Cooperative Enterprise

-Insured Company

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

HEUNGKUK FIRE & MARINE INSURANCE CO., LTD.(110111-0016728)

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2015

2014

2013

Export

3,005

9,069

8,090

Domestic

14,543

67,051

52,474

Total

17,548

76,119

60,564

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.40

UK Pound

1

Rs.98.94

Euro

1

Rs.70.33

 

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.