MIRA INFORM REPORT

Report No. :	321372
Report Date :	07.05.2015

IDENTIFICATION DETAILS

Name :	CQV CO., LTD.
Registered Office :	144, Seongjung-ro, Jincheon-eup, Jincheon-gun, Chungcheongbuk-do, Korea
Country :	South Korea
Financials (as on) :	31.12.2014
Date of Incorporation :	20.10.2000
Com. Reg. No.:	301-81-47023
Legal Form :	Listed Company
Line of Business :	Manufacture of Ceramic Enamels and Related Products
No. of Employees :	123

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 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, and is currently the world's 12th largest economy. 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 sluggish growth because of external market slowdowns. 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.

Source : CIA

Basic Information

Company Name	CQV CO., LTD. (Korean Company Name : “씨큐브(주)”)
Registered Address	144, Seongjung-ro, Jincheon-eup, Jincheon-gun, Chungcheongbuk-do, Korea
Building
Zip Code	365-802
Tel	+82-43-531-2500
Fax	+82-43-536-0314
E-mail	webmaster@cqv.co.kr
Website	www.cqv.co.kr
Trading Address	144, Seongjung-ro, Jincheon-eup, Jincheon-gun, Chungcheongbuk-do, Korea (Old Address System : 450, Songdu-ri, Jincheon-eup, Jincheon-gun, Chungcheongbuk-do, Korea)
Tel	+82-43-531-2500
Fax	+82-43-536-0314
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Ceramic Enamels and Related Products
Main Business	Pearl Pigment
Sub Business
Established (mm/dd/yyyy)	10/20/2000

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Pigments(12171600)

CEO’s

Name	Chang Kil-Wan
Address
Date of Birth	09/1955
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

3,425,081,500

Employees

123

Formation

Listed Company (KOSDAQ: 101240) as of 11/08/2011

Venture Business

Bank Details

Shinhan Bank

Korea Development Bank

Corporate Registered No.

154311-0010576

Business Registered No.

301-81-47023

Permit & Licenses

04/2003 NT

11/2006 ISO 14001

11/2006 ISO 9001

Int’l Trade No.: 11841452

Shareholder Position

Name	Shares	%
KDB CAPITAL CORPORATION(110111-0137558)	576,050	8.41
CHANG KIL-WAN	1,487,139	21.71
LIM KWANG-SOO	433,248	6.32
TREASURY STOCK	482,186	7.04
OTHERS	3,871,540	56.52
TOTAL	6,850,163	100.00

Company History

10/20/2000 Incorporated as SKY CHEMICAL CO., LTD.

08/2002 Designated as a Venture Business

12/03/2004 Designated as an INNO-BIZ Company

03/29/2005 Changed company name to the present name

12/2008 Awarded US$ 3 Million Export Top Prize

09/04/2009 Moved to the present HQ address from 27-5, Okdong-ri, Deoksan-myeon, Jincheon-gun, Chungcheongbuk-do, Korea

12/10/2010 Designated as a Venture Business again

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
President & CEO	Mr.	Chang Kil-Wan	Korean	1955.09	Yosu High School
Sr. Executive Director	Mr.	Lim Kwang-Soo	Korean	1963.04	Hongik Technical College, Korea
Director	Mr.	Jung Sung-Ki	Korean	1961.07	Inha Technical College, Korea
Auditor	Mr.	Lim Chae-Hwan	Korean	1955.10	Jeonnam National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)2014	29,771,485,693	57,412,463,074	3,355,881,371
(*)2013	28,083,016,329	49,206,404,667	2,467,350,908
(*)2012	24,360,748,077	47,063,372,400	2,015,652,751
(*)2011	21,544,264,367	44,537,125,997	2,383,736,519
(*)2010	18,194,781,956	37,407,912,708	2,321,369,232

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	3,425,081,500
Total Issued Shares	6,850,163

Balance Sheet
Unit : Korean Won	As of 12/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	57,412,463,074	49,206,404,667	47,063,372,400
Current Assets	30,253,640,376	23,850,105,549	20,985,824,501
Cash & Cash Equivalents	9,213,720,600	4,868,625,056	4,672,563,776
Trade Receivables	5,984,799,603	5,298,857,236	5,469,322,109
Other Financial Assets	367,882,319	624,965,710	109,914,054
Other Current Assets	304,841,698	416,590,314	532,309,942
Inventories	14,382,396,156	12,641,067,233	10,201,714,620
Non-Current Assets	27,158,822,698	25,356,299,118	26,077,547,899
Tangibles	23,416,460,470	21,645,045,486	21,844,429,736
Intangibles	2,614,765,539	2,980,035,272	3,268,346,348
Other Financial Assets	222,287,670	194,959,670	247,374,550
Deferred Income Tax Assets	905,309,019	536,258,690	717,397,265
Total Liabilities	19,295,367,695	18,316,950,636	20,300,641,827
Current Liabilities	17,292,444,833	8,447,267,366	15,267,782,562
Trade Payables	534,872,495	442,238,702	496,324,462
Short-Term Borrowings	9,633,300,000	7,000,000,000	9,828,934,881
Bond with Warrant	4,230,746,977		4,140,260,965
Other Current Financial Debts	2,051,939,801	676,070,831	581,304,105
Other Current Liabilities	841,585,560	328,957,833	220,958,149
Non-Current Liabilities	2,002,922,862	9,869,683,270	5,032,859,265
Long-Term Borrowings	499,980,000	3,149,733,669	4,148,992,009
Bond with Warrant		4,411,385,097
Provision for Severance & Retirement	1,491,042,862	915,156,188	783,867,256
Other Non-Current Financial Debts	11,900,000	1,393,408,316	100,000,000
Capital Stock	3,425,081,500	2,892,044,000	2,750,000,000
Capital Surplus	12,922,484,386	9,370,390,007	8,147,672,449
Others	-2,011,958,050	-2,011,958,050	-2,011,958,050
Profit Surplus	23,781,487,543	20,638,978,074	17,877,016,174
Total Equity	38,117,095,379	30,889,454,031	26,762,730,573
Liab. & Shareholder’s Equity	57,412,463,074	49,206,404,667	47,063,372,400

Income Statement
Unit : Korean Won	As of 12/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	29,771,485,693	28,083,016,329	24,360,748,077
Cost of Sold Goods	18,055,605,773	17,386,066,122	14,883,878,463
Gross Profit	11,715,879,920	10,696,950,207	9,476,869,614
Selling & Admin. Expenses	7,292,617,504	7,283,144,459	6,618,219,260
Operating Income	4,423,262,416	3,413,805,748	2,858,650,354
Other Income	453,720,120	388,511,770	307,403,021
Other Expenses	695,031,997	700,585,105	404,557,674
Finance Income	477,620,938	482,337,821	518,292,969
Finance Expenses	1,027,466,225	1,114,364,613	1,099,870,278
Income Before Taxes	3,632,105,252	2,469,705,621	2,179,918,392
Income Taxes Expenses	276,223,881	2,354,713	164,265,641
Net Income	3,355,881,371	2,467,350,908	2,015,652,751

Cash Flows
Unit : Korean Won	As of 12/31/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	5,431,490,550	3,563,747,684	1,626,096,504
Cash Flows from Operating	5,878,867,497	4,194,731,954	2,227,363,437
Interests Paid	-444,254,131	-633,075,260	-623,780,773
Income Taxes	-3,122,816	2,090,990	22,513,840
Cash Flows from Investing	-4,515,483,428	-2,478,308,910	-1,369,598,258
Cash Flows from Financing	3,358,678,210	-889,243,741	1,107,906,186
Increase/Decrease in Cash	4,274,685,332	196,195,033	1,364,404,432
Cash at the Beginning of Year	4,868,625,056	4,672,563,776	3,413,750,849
Cash at the End of Year	9,213,720,600	4,868,625,056	4,672,563,776

Products, Technologies, Services Description

Main Products & Services	Pearl Pigment
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers
Customers	SUN CHEMICAL S A UREKOTE THAI CO., LTD. RIVERSON AND CO., LTD. SUN CHEMICAL CORP. U TURN CO., LTD. DS&G CO., LTD.(Korea) AIJ CO., LTD.(Korea) M&E CO., LTD.(Korea) J&J CO., LTD.(Korea)
Competitors	MERCK BASF ECKART SUDARSAN(INDIA) POLYPEARL(ARGENTINA) DR.YANG(TAIWAN)

Sales by Region (Activity & Markets)

The Subject deals with the companies in USA, India and Taiwan.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.64
UK Pound	1	Rs.96.81
Euro	1	Rs.71.51

INFORMATION DETAILS

Analysis Done by :	RAS
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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