MIRA INFORM REPORT

 

 

Report No. :

311446

Report Date :

12.03.2015

 

IDENTIFICATION DETAILS

 

Name :

CKD BIO CORPORATION

 

 

Registered Office :

8, Chungjeong-Ro, Seodaemun-Gu, Seoul, Chongkundang Bldg., Korea 120-756

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

12.11.2001

 

 

Com. Reg. No.:

110-81-53652

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Medicinal Chemicals and Antibiotics.

 

 

No. of Employees :

281

 

 

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

CKD BIO CORPORATION

(Trade Name : CKD BIO)

Registered Address

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

Building

Chongkundang Bldg.

Zip Code

120-756

Tel

+82-2-2194-0555

Fax

+82-2-2194-0556

E-mail

intl@ckdbio.com

Website

www.ckdbio.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

+82-2-2194-0555

Fax

+82-2-2194-0556

Other Address-Ansan Factory

16B-20, 454, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-489-1173

Fax

+82-31-489-1166

Type

Export/Import

Industry

Manufacture of Medicinal Chemicals and Antibiotics

  Main Business

Raw Material, Medicine, Acarbose, Potassium Clavulanate, DMCT, Tacrolimus, Cyclosporin

  Sub Business

 

Established (mm/dd/yyyy)

11/12/2001

The Subject owns the premises of Ansan Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Antacids and antiflatulents(51171500)

Sell

Drugs and Pharmaceutical Products(51000000)

Sell

Antifungal drugs(51101800)

Sell

Anthelmintics and other antiparasitics(51101700)

 

 

CEO’s

 

Name

Kang Hee-Il

Address

 

Date of Birth

12/16/1953

Title

Vice President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

13,073,722,500

Employees

281

Formation

Listed Company (Korea Stock Exchange : 063160) as of 12/11/2001

A Company of Chong Kun Dang Group

Bank Details

Woori Bank-Seodaemun Corporate Finance Center

Corporate Registered No.

110111-2373308

Business Registered No.

110-81-53652

Permit & Licenses

03/2005 Acquired COS on Potassium Clavulanate

Shareholder Position

Name

 

Shares

%

LEE JANG-HAN

1,024,000

19.58

LEE BOK-HWAN

2,726

0.05

JUNG JAE-JEONG

126,000

2.41

LEE JU-WON

120,000

2.29

LEE JU-KYUNG

120,000

2.29

LEE JU-AH

120,000

2.29

CHONGKUNDANG HOLDINGS CORP.(110111-0028955)

162,322

3.10

KYOUNGBO CHEMICAL CO., LTD. (164811-0001961)

33,066

0.63

THE KOREA SECURITIES FINANCE CORPORATION(110111-0025943)

210,860

4.03

OTHERS

3,310,515

63.30

TOTAL

5,229,489

100.00

Company History

11/2002 Incorporated as spinning off from CKD Pharm.

11/2001 Awarded The Presidential Prize on Environmental Technology from the Ministry of Environment

11/2001 Designated as a Leading Company in exporting of Parts & Materials by the Ministry of Industry & Resources

12/2001 Listed at KSE

03/2004 Designated as the next generation’s 1st class products, Potassium Clavulanate

03/2005 Acquired COS on Potassium Clavulanate

11/2010 Awarded US$ 100 Million Export Top Prize

03/24/2014 Changed Korean company name to “()종근당바이오” from “종근당바이오()”

 

 

 

 

Management

 

Job Description

 

Title

Name

Nationality

Date of Birth

Education

Vice President & CEO

Mr.

Kang Hee-Il

Korean

1953.12.16

Seoul national University, Korea

Director

Mr.

Lee Soo-Han

Korean

1963.05

Dankuk University, Korea

Director

Mr.

Yoon Jae-Hoon

Korean

1965.12

Sogang University, Korea

Outside Director

Mr.

Kim Young-Chan

Korean

1954.10

Dongduck University, Korea

Auditor

Mr.

Ahn Dong-Myung

Korean

1955.12

Yonsei University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2014

81,401,313,260

164,943,491,766

-939,630,930

(*)2013

100,370,797,418

175,499,039,405

1,657,448,854

(*)2012

113,759,577,682

185,424,862,991

7,101,290,078

(*)2011

110,527,721,445

198,292,672,038

10,920,596,374

2010

121,568,351,961

118,267,533,188

14,375,712,177

2009

106,553,579,320

111,260,253,039

16,183,929,127

2008

83,393,221,679

94,850,023,744

8,737,628,538

2007

66,409,840,687

84,953,644,909

-3,273,391,605

2006

72,197,255,948

94,264,058,866

428,646,943

2005

64,360,882,458

 100,680,943,036

-13,363,505,377

2004

68,718,195,340

107,594,102,819

1,105,026,359

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

 

 

Financial Description

 

Authorized Capital(KRW)

32,000,000,000

Paid-Up Capital(KRW)

13,073,722,500

Total Issues Shares

5,229,489

 

Balance Sheet

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

164,943,491,766

175,499,039,405

185,424,862,991

Current Assets

71,666,048,672

76,606,964,573

79,486,939,498

Cash & Cash Equivalents

9,494,092,621

10,347,477,214

17,169,829,931

Current Financial Instruments

330,000,000

0

0

Trade Receivables & Other Receivables

30,724,679,638

28,695,100,602

29,829,619,436

Inventories

30,705,758,914

37,131,136,888

31,873,290,937

Other Current Assets

411,517,499

433,249,869

614,199,194

Non-Current Assets

93,277,443,094

98,892,074,832

105,937,923,493

Non-Current Financial Instruments

978,000,000

894,000,000

342,000,000

Marketable Financial Instruments

18,600,000

18,600,000

18,600,000

Long-Term Trade Receivables & Other Receivables

1,348,639,400

1,335,339,400

1,330,399,400

Tangibles

90,870,983,385

96,561,154,490

104,105,996,653

Intangibles

61,220,309

82,980,942

140,927,440

Total Liabilities

42,560,064,753

51,624,969,386

61,277,558,167

Current Liabilities

27,318,431,862

33,440,801,883

41,390,338,439

Trade Payables & Other Payables

15,956,623,238

19,032,560,291

17,240,687,281

Short-Term Borrowings

11,058,353,945

13,723,128,881

23,078,955,891

Other Current Liabilities

260,627,394

594,340,459

921,754,787

Deferred Income Tax Credit

42,827,285

90,772,252

148,940,480

Non-Current Liabilities

15,241,632,891

18,184,167,503

19,887,219,728

Long-Term Trade Payables & Other Payables

509,456,429

520,288,318

280,194,901

Long-Term Borrowings

282,000,000

3,452,598,000

5,585,130,000

Confirmed Salaries

4,057,340,114

3,035,624,189

2,881,089,188

Other Non-Current Liabilities

369,643,967

412,483,787

411,666,927

Deferred Income Tax Credit

10,023,192,381

10,763,173,209

10,729,138,712

Capital Stock

13,073,722,500

13,073,722,500

13,073,722,500

Capital Surplus

25,748,502,109

25,748,502,109

25,748,502,109

Profit Surplus

83,561,202,404

85,051,845,410

85,325,080,215

Total Equity

122,383,427,013

123,874,070,019

124,147,304,824

Liab. & Shareholder’s Equity

164,943,491,766

175,499,039,405

185,424,862,991

 

Income Statement

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

81,401,313,260

100,370,797,418

113,759,577,682

Cost of Sold Goods

74,091,920,879

85,669,732,227

90,849,917,636

Gross Profit

7,309,392,381

14,701,065,191

22,909,660,046

Selling & Admin. Expenses

8,860,684,538

12,752,508,202

14,110,411,394

Operating Income

-1,551,292,157

1,948,556,989

8,799,248,652

Finance Income

961,124,483

1,168,954,380

1,471,204,084

Finance Expenses

1,246,216,264

2,080,430,069

3,151,772,424

Non-Operating Income

313,743,768

1,221,115,397

1,001,697,538

Non-Operating Expenses

85,141,561

354,984,043

1,787,839

Income Before Taxes

-1,607,781,731

1,903,212,654

8,118,590,011

Income Taxes Expenses

-668,150,801

245,763,800

1,017,299,933

Net Income

-939,630,930

1,657,448,854

7,101,290,078

 

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

8,987,370,726

10,924,090,046

22,900,061,374

Cash Flows from Operating

9,269,572,030

11,557,212,209

23,851,131,381

Net Income

-939,630,930

1,657,448,854

7,101,290,078

Adjustment

9,118,789,054

13,548,045,213

14,645,572,127

Changes in Asset/ & Liability

1,090,413,906

-3,648,281,858

2,104,269,176

Interests Received

127,929,245

335,030,848

406,363,994

Interests Paid

-301,091,689

-737,635,637

-1,247,360,094

Income Taxes

-109,038,860

-231,717,374

-111,273,907

Dividends Received

0

1,200,000

1,200,000

Cash Flows from Investing

-3,322,805,660

-4,630,208,449

-3,470,655,177

Cash Flows from Financing

-6,528,413,720

-13,100,037,553

-5,466,223,903

Increase/Decrease in Cash

-863,848,654

-6,806,155,956

13,963,182,294

Cash at the Beginning of Year

10,347,477,214

17,169,829,931

3,297,609,256

Cash at the End of Year

9,494,092,621

10,347,477,214

17,169,829,931

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

 

 

Products, Technologies, Services Description

 

Main Products & Services

 

Potassium Clavulanate, DMCT, Rifampicin, Cyclosporin,Tacrolimus

Annual Production Capacity (Unit : Kg)

Products

03/2011

2010

2009

P.Clavulanate

77,244

163,033

125,630

DMCT

-

134,000

86,860

Acarbose

-

11,760

8,001

Rifampicin

13,500

52,800

17,250

Tacrolimus

3.4

5.5

3.3

Cyclosporin(A)

-

-

-

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

DONG SUH ONG(DOMESTIC)

UNI CHEMA(OVERSEAS)

KYUNGDONG CERAMIC(DOMESTIC)

YUSUNG FOODS(DOMESTIC)

DONG WOO SHIN TECH(DOMESTIC)

NIPPON SODA(OVERSEAS)

CRODA(UK)

Customers

Major Pharmaceutical Companies

Competitors

YUHAN CORPORATION

49-6, DAEBANG-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-828-0181  FAX:+82-2-828-0300

 

YUHAN CHEMICAL INC.

5BA-402, SIHWA INDUSTRIAL COMPLEX, 678-1, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-488-5800  FAX:+82-31-499-4115

 

KUNWHA PHARMACEUTICAL CO., LTD.

94, GARAKBON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-2047-7700  FAX:+82-2-430-1135

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CHONGKUNDANG HOLDINGS CORP.(110111-0028955)

CHONG KUN DANG PHARMACEUTICAL CORP.(110111-5260669)

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

BELLCOM CO., LTD.(110111-2261339)

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

BELL E&C CO., LTD.(134811-0013673)

CKD VENTURE CAPITAL CORPORATION(160111-0065098)

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

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

KYOUNGBO CHEMICAL CO., LTD. (164811-0001961)

 

BARDIA FARMA S.P.A

EQUIS PHARMACEUTICALS, INC

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

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

(10.00% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : Million KRW

09/2014

2013

2012

Export

61,418

73,337

83,237

Domestic

19,983

27,034

30,523

Total

81,401

100,371

113,760

The subject exports about 30 kinds of raw materials and finished products to USA, China, South America, Middle East, Africa and Europe.

 

 


Court Action

 

No.

 

 

News Clipping

 

----------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.75

UK Pound

1

Rs.94.60

Euro

1

Rs.67.10

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.