MIRA INFORM REPORT

 

 

Report No. :

329378

Report Date :

26.06.2015

 

IDENTIFICATION DETAILS

 

Name :

DONGWHA ENTERPRISE CO., LTD.

 

 

Registered Office :

28, Gajeong-ro 97beon-gil, Seo-gu, Incheon

 

 

Country :

South Korea

 

 

Financials (as on) :

01.01.2015 to 31.03.2015

 

 

Date of Incorporation :

02.04.1948

 

 

Com. Reg. No.:

137-81-02333

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Densified and Reconstituted Wood.

 

 

No. of Employee :

618

 

 

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

 

Basic

 

Company Name

DONGWHA ENTERPRISE CO., LTD.

(Ex. Company Name : DONGWHA HOLDINGS CO., LTD.,

Registered Address

28, Gajeong-ro 97beon-gil, Seo-gu, Incheon, Korea

(Old Address System : 148-5, Gajwa 1-dong, Seo-gu, Incheon, Korea)

Building

 

Zip Code

404-810

Tel

+82-32-580-5164

Fax

+82-32-577-0056

E-mail

jrlee@dongwha-mh.com

Website

www.dongwha.co.kr

Trading Address

7th Fl., Wonchang Bldg., 26-3, Yeoeuido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-2122-0653  +82-2-2122-0589

Fax

+82-2-782-9713

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Densified and Reconstituted Wood

  Main Business

Particle Board, Medium Density Fiberboard, Formalin

  Sub Business

 

Established (mm/dd/yyyy)

04/02/1948

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Flooring(30161700)

Sell

Wallboard(30161501)

Sell

Particleboard(11121611)

Sell

Access flooring(30161717)

Sell

Windows(30171600)

Sell

Doors(30171500)

Sell

Plywood(11121609)

Buy

Wood(11121600)

 

 

CEO’s

 

Name

Kim Hong-Jin

Address

Suite b111-307, 15, Gwangpyeong-ro 10-gil, Gangnam-gu, Seoul, Korea

Date of Birth

07/09/’1965

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

7,678,378,000

Employees

618

Formation

Listed Company (KOSDAQ : 025900) as of 07/31/1995

Foreign Direct Investment Corporation

A Company of DONGWHA GROUP

Bank Details

Korea Exchange Bank

Hana Bank

Corporate Registered No.

120111-0004218

Business Registered No.

137-81-02333

Permit & Licenses

03/05/2001 KS Mark

07/01/2001 ISO 9002 by SGS

Shareholder Position

Name

Shares

%

DONGWHA INTERNATIONAL CO. LIMITED(HONG KONG)

6,342,911

41.30

SEUNG MYUNG-HO

1,213,665

7.90

SEUNG EUN-HO

1,335,171

8.69

OTHERS

6,465,009

42.10

TOTAL

15,356,756

100.00

Company History

04/02/1948 Incorporated as DONGWHA TOGUN CO., LTD.

01/1953 Changed company name to DONGWHA HEUNGUP CO., LTD.

07/1953 Changed company name to DONGWHA ENTERPRISE CO., LTD.

09/30/2003 Changed company name to DONGWHA HOLDINGS CO., LTD.

03/2009 Moved to the present HQ address from 178-26, Gajwa-dong, Seo-gu, Incheon, Korea

10/01/2013 Changed company name to DONGWHA ENTERPRISE CO., LTD., again

10/01/2013 Moved to the present HQ address from 150-14, Gajwa 1-dong, Seo-gu, Incheon, Korea

10/04/2013 Acquired DONGWHA ENTERPRISE CO., LTD.(Wood Business), and transferred Used Cars Business to DONGWHA MPARK HOLDINGS CO., LTD.(110111-5243342), newly established.

10/04/2013 Decreased capital to 7,678,378,000 KRW from 10,057,817,000 KRW

07/2014 Acquired WON CHANG TRADING.CO., LTD.(110111-1053126)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Kim Hong-Jin

Korean

1965.07.09

-

Chairman

Mr.

Seung Myung-Ho

Korean

1956.01.17

Korea University, Korea

Outside Director

Mr.

Cho Jung-Won

Korean

1947.12.10

Kyunghee University, Korea

Auditor

Mr.

Jung Seung-Hwan

Korean

1946.07.08

Sungkyunkwan University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2015

102,125,387,913

716,879,083,125

4,263,060,417

2014

395,784,373,699

675,463,458,755

15,426,462,920

2013

113,873,787,353

645,872,672,748

2,287,454,154

2012

20,803,346,251

337,060,077,099

717,662,246

2011

16,838,871,451

337,202,023,609

-6,643,463,716

2010

23,926,480,144

297,018,407,744

3,564,587,210

2009

25,537,940,394

283,228,785,478

6,739,722,819

2008

22,538,700,874

289,339,262,994

1,254,588,635

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

7,678,378,000

Total Issued Shares

15,356,756

 

 

BALANCE SHEET

 

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

716,879,083,125

675,463,458,755

645,872,672,748

Current Assets

142,855,246,057

130,043,603,651

131,765,547,701

Cash & Cash Equivalents

3,029,136,015

2,220,498,327

859,872,768

Current Financial Instruments

95,934,060

 

282,018,398

Trade Receivables & Other Receivables

72,355,229,172

66,323,988,516

68,278,020,478

Marketable Financial Instruments

 

 

15,330,000

Inventories

62,160,713,873

57,061,867,873

52,627,471,404

Other Receivables-Construction

761,566,191

431,065,459

4,338,848,212

Deferred Income Tax Assets

 

 

299,115,314

Other Financial Assets

2,029,440,000

2,157,816,000

3,007,872,000

Other Current Assets

2,423,226,746

1,848,367,476

2,026,999,127

Assets to be Sold

 

 

30,000,000

Non-Current Assets

574,023,837,068

545,419,855,104

514,107,125,047

Non-Current Financial Instruments

145,456,827

236,390,887

16,120,000

Marketable Financial Instruments

1,961,610,445

761,196,815

934,107,488

Investment_Related Companies

151,831,294,552

120,618,191,892

130,114,927,347

Tangibles

378,620,987,964

380,492,960,698

346,728,014,159

Investment_Real Estates

4,774,437,078

4,777,650,388

4,790,503,628

Operating Rights

10,743,419,367

10,743,419,367

6,606,467,565

Intangibles

6,045,708,821

6,337,926,186

7,297,896,454

Other Financial Assets

19,900,922,014

17,462,118,871

17,619,088,406

Other Non-Current Assets

 

3,990,000,000

 

Total Liabilities

409,344,002,882

371,913,498,830

381,060,603,743

Current Liabilities

275,856,144,241

254,802,461,382

273,306,391,890

Trade Payables & Other Payables

64,628,107,452

66,603,743,146

65,906,954,155

Other Payables-Construction

1,238,731,053

2,063,109,622

167,998,205

Short-Term Borrowings

203,067,766,632

178,751,672,738

203,100,614,700

Accrued Income Tax

3,160,411,448

2,873,783,781

 

Other Current Financial Debts

319,023,391

438,719,361

695,408,608

Other Current Liabilities

3,442,104,265

4,071,432,734

3,435,416,222

Non-Current Liabilities

133,487,858,641

117,111,037,448

107,754,211,853

Long-Term Borrowings

81,426,099,299

66,335,415,986

67,519,470,990

Confirmed Salaries

12,259,947,742

10,875,696,644

7,191,452,223

Provisions

892,798,123

892,798,123

808,138,711

Deferred Income Tax Credit

37,292,587,876

37,315,805,678

31,469,922,011

Other Non-Current Financial Debts

1,616,425,601

1,691,321,017

765,227,918

Capital Stock

7,678,378,000

7,678,378,000

7,678,378,000

Capital Surplus

35,194,997,605

35,194,997,605

12,484,687,003

Profit Surplus

264,656,005,282

260,671,207,595

244,645,797,136

Others

5,699,356

5,376,725

3,206,866

Total Equity

307,535,080,243

303,549,959,925

264,812,069,005

Liab. & Shareholder’s Equity

716,879,083,125

675,463,458,755

645,872,672,748

 

 

INCOME STATEMENT

 

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

102,125,387,913

395,784,373,699

113,873,787,353

Cost of Sold Goods

82,642,804,171

319,072,048,065

87,440,184,048

Gross Profit

19,482,583,742

76,712,325,634

26,433,603,305

Selling Expenses

7,687,513,586

31,550,043,822

9,051,114,360

Admin. Expenses

3,825,217,763

17,316,289,844

9,782,522,722

Operating Income

7,969,852,393

27,845,991,968

7,599,966,223

Finance Income

337,090,107

2,817,319,929

2,352,528,868

Finance Expenses

3,336,585,853

13,096,789,359

6,484,491,575

Other Income

1,284,444,382

5,272,627,752

3,904,081,982

Other Expenses

392,752,116

4,737,984,274

3,974,314,512

Profits from Investment on Related Companies

 

 

-275,000,000

Income Before Taxes

5,862,048,913

18,101,166,016

3,122,770,986

Income Taxes Expenses

1,598,988,496

2,674,703,096

606,253,972

Income from Continuous Business

4,263,060,417

15,426,462,920

2,516,517,014

Income from Stopped Business

 

 

-229,062,860

Net Income

4,263,060,417

15,426,462,920

2,287,454,154

 

 

CASH FLOWS

 

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Cash Flows from Operating

-4,956,036,389

41,364,613,369

10,563,674,021

Cash Flows from Operating

-1,344,924,424

53,312,354,935

10,558,514,884

-Net Income

4,263,060,417

15,426,462,920

2,287,454,154

-Exp. without Cash Outflow

10,563,964,679

38,222,133,089

16,411,937,290

-Revenue without Cash Inflows

-846,121,032

-3,473,183,298

-8,531,801,313

-Changes in Asset/ & Liability

-15,325,828,488

3,136,942,224

390,924,753

Interests Received

35,745,299

22,642,729

65,301,034

Interests Paid

-2,389,671,994

-10,655,823,397

-5,618,094,887

Dividends Received

 

 

5,558,772,000

Income Taxes

-1,257,185,270

-1,314,560,898

-819,010

Cash Flows from Investing

-33,400,646,672

-8,204,143,778

-7,970,127,895

-Cash Inflow from Investing

7,915,000,000

898,422,736

11,613,295,472

-Cash Outflows for Investing

-41,315,646,672

-9,102,566,514

-19,583,423,367

Cash Flows from Financing

39,166,908,871

-31,799,844,032

-2,802,150,995

-Cash Inflows from Financing

129,481,711,885

286,309,412,815

149,755,306,961

-Cash Outflows from Financing

-90,314,803,014

-318,109,256,847

-152,557,457,956

Increase/Decrease in Cash

810,225,810

1,360,625,559

-208,604,869

Cash at the Beginning of Year

2,220,498,327

859,872,768

1,068,477,637

Cash at the End of Year

3,029,136,015

2,220,498,327

859,872,768

 

 

Products, Technologies, Services Description

 

Main Products & Services

Particle Board, Medium Density Fiberboard, Formalin

 

Brand Name : DONGWHA ECO BOARD

Detailed Products Spec.

--

Technologies Acquired

--

 

 

Trade Partners & Competitors

 

Suppliers

--

Customers

--

Competitors

HANSOL HOMEDECO CO., LTD.(110111-0825624)

27TH FL., KOREA SPECIALTY CONTRACTOR CENTER, 395-70, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-3284-3812~4  TEL:+82-2-3284-3838~9

 

UNID CO.,LTD.(110111-0275069)

17TH FL., ORIENTAL CHEMICAL INDUSTRIES BLDG., 50, SOGONG-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-3709-9500  FAX:+82-2-774-7591

 

SUNCHANG CORPORATION(110111-0027593)

6-32, BUKSEONG-DONG 1-GA, JUNG-GU, INCHEON, KOREA

TEL:+82-32-770-3000  FAX:+82-32-763-3171

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGWHA MPARK HOLDINGS CO., LTD.(110111-5243342)

DONGWHA MPARK CO., LTD.(120111-0411893)

DONGWHA MPARK SERVICE CO., LTD (110111-4809103)

DONGWHA A&A CO., LTD.(110111-4102185)

NEWSIS(110111-1119620)

KOREA MEDIA NETWORK CO., LTD.(110111-1870991)

THE HANKOOK CHILDREN''S DAILY(110111-1022526)

HANNAM LEISURE CO., LTD.(110111-0136774)

HANKOOK ILBO CULTURE BUSINESS CO., LTD.(110111-4886698)

HANKOOK MEDIA R&C CO., LTD.(110111-4132439)

 

DONGWHA AUTOCARE CO., LTD.(120111-0497405)

(100.0% held by the subject company)

Overseas Office

DONGWHA FIBREBOARD SDN BHD

DONGWHA INTERNATIONAL KOR

DONGWHA HONG KONG INTERNATIONAL

DONGWHA PATINNA NZ LTD.

DONGWHA USA INC.

DONGWHA AUSTRALIA HOLDING

WOODIKO LTD.

TASCO FORESTRY RESOURCES PTY LTD.

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

HANKOOK ILBO CO., LTD.(110111-0223810)

DAESUNG WOOD IND.CO., LTD.(120111-0018524)

KOREA TIMES CO., LTD.(110111-0343452)

DONGWHA VINA CO., LTD.

DONGWHA TIMBERS PTY LTD.

THE AUSTRALIAN SAWMILLING CO. PTY LTD.

VRG DONGWHA JOINT STOCK COMPANY

Corporate Ownership

DONGWHA INTERNATIONAL CO. LIMITED(HONG KONG)

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

The Subject imports from Australia, China, USA and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.61

UK Pound

1

Rs.99.79

Euro

1

Rs.71.17

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.