MIRA INFORM REPORT

 

 

Report No. :

322140

Report Date :

12.05.2015

 

IDENTIFICATION DETAILS

 

Name :

M CORPORATION

 

 

Registered Office :

49, Dongmak-ro 8-gil, Mapo-gu, Seoul

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

13.12.1996

 

 

Com. Reg. No.:

107-81-58156

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Wholesale of Other Chemical Materials and Chemical Products.

 

 

No. of Employee :

20

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

KOREA (SOUTH) 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

 

Basic

 

Company Name

M CORPORATION

 

Registered Address

49, Dongmak-ro 8-gil, Mapo-gu, Seoul, Korea

Building

10th Fl., Uni Tower

Zip Code

121-883

Tel

+82-2-337-9660

Fax

+82-2-337-1711

E-mail

kkpk12@mcorporation.kr

Website

www.m-chemicals.com

www.mcorporation.kr

Trading Address

10th Fl., Uni Tower, 49, Dongmak-ro 8-gil, Mapo-gu, Seoul, Korea

(Old Address System : 10th Fl., Uni Tower, 358-6, Hapjeong-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-337-9662

Fax

+82-2-337-1711

Other Address-Incheon Factory

434-117, Oryu-dong, Seo-gu, Incheon, Korea

Tel

+82-32-561-1700~9

Fax

+82-32-561-1708

Other Address-Iksan Factory

641, Seogam-dong, Iksan-si, Jeollabuk-do, , Korea

Tel

+82-63-835-9620

Fax

+82-63-835-9622

Type

Export/Import

Industry

Wholesale of Other Chemical Materials and Chemical Products

  Main Business

Acetone, Ketone, Acetate, Glycol, Alcohol, Chloride, Phenol, Resin, Monomer, Retardant, Celosolve, Hexane, BTX

  Sub Business

 

Established (mm/dd/yyyy)

12/13/1996

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ethers or its substitutes(12352112)

Sell

Aromatic or heterocyclic compounds(12352005)

 

 

CEO’s

 

Name

Lee Kang-Hoon

Address

7-5, Ilsan-ro 297beon-gil, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea

Date of Birth

12/13/1996

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

2,233,630,000

Employees

20

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Kookmin Bank

SC First Bank of Korea

Corporate Registered No.

110111-1352329

Business Registered No.

107-81-58156

Permit & Licenses

Int’l Trade No.: 11385907

Shareholder Position

Name

Shares

%

LEE KANG-HOON

1,988,200

44.51

LEE KANG-JIN

237,800

5.32

OTHERS(46)

2,241,260

50.17

TOTAL

4,467,260

100.00

Company History

12/13/1996 Incorporated as HOYEON CHEMICAL CO., LTD.

04/25/1998 Changed company name to HOYEON GT CO., LTD.

03/20/2000 Changed company name to M CHEMICALS CO., LTD.

11/26/2007 Acquired SANGHWA CO., LTD.

12/27/2007 Moved to the present HQ address from 358-6, Hapjeong-dong, Mapo-gu, Seoul, Korea

02/29/2008 Changed company name to the present name

05/22/2008 Increased the authorized shares to 20,000,000 shares from 1,000,000 shares

05/22/2008 Increased capital to 2,233,630,000 KRW from 1,993,630,000 KRW

06/30/2008 Spin off the par value to 500 KRW from 10,000 KRW

01/04/2010 Split off into the Subject company, and newly established company(M NEO MATERIALS CORPORATION(120111-0520082))

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Kang-Hoon

Male

Korean

12/13/1996

Director

Mr.

Kim Kyung-Soo

Male

Korean

03/31/2014

Director

Mr.

Park Jong-Phil

Male

Korean

10/05/2010

Auditor

Mr.

Seo Chun-Ho

Male

Korean

07/30/2005

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

228,906,838,629

59,120,693,789

337,719,020

2013

215,517,753,319

62,500,857,171

-2,814,820,648

2012

205,826,098,490

52,455,737,133

-472,635,928

2011

178,774,817,050

57,815,061,883

-4,738,701,341

2010

140,928,586,520

54,547,499,138

1,847,845,317

2009

145,673,979,232

54,163,514,947

4,035,075,434

2008

173,159,286,394

42,325,746,308

1,056,334,831

2007

163,532,441,236

27,670,409,237

1,482,334,077

2006

154,050,265,755

29,147,141,715

257,623,951

 

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

2,233,630,000

Total Issues Shares

4,467,260

 

 

BALANCE SHEET

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

59,120,693,789

62,500,857,171

52,455,737,133

Current Assets

37,904,662,755

40,171,727,545

30,197,972,346

-Quick Assets

23,188,190,855

24,641,318,962

23,197,179,867

-Inventories

14,716,471,900

15,530,408,583

7,000,792,479

Fixed Assets

21,216,031,034

22,329,129,626

22,257,764,787

-Investment

13,990,372,491

14,996,761,600

15,149,999,473

-Tangibles

5,708,734,869

5,771,697,343

5,489,624,350

-Intangibles

111,394,965

153,447,969

195,500,973

-Others

1,405,528,709

1,407,222,714

1,422,639,991

Total Liabilities

57,343,827,794

61,853,081,565

49,083,287,613

Current Liabilities

57,232,999,924

61,738,160,205

47,635,597,839

Fixed Liabilities

110,827,870

114,921,360

1,447,689,774

Capital Stock

2,233,630,000

2,233,630,000

2,233,630,000

Capital Surplus

2,222,260

2,222,260

2,222,260

Profit Surplus

-273,073,485

-610,792,505

2,282,207,025

Capital Adjustment

-185,912,780

-977,284,149

-1,145,609,765

Total Equity

1,776,865,995

647,775,606

3,372,449,520

Liab. & Shareholder’s Equity

59,120,693,789

62,500,857,171

52,455,737,133

 

Current Liabilities

57,232,999,924

61,738,160,205

47,635,597,839

Trade Payables

30,380,834,893

31,272,153,672

21,003,939,422

Short-Term Borrowings

21,779,319,242

25,303,498,903

26,041,844,202

Account Payables

1,187,799,002

1,096,190,253

471,175,467

Accrued Expenses

49,584,942

206,257,969

56,758,835

Advance Receipts

3,816,119,403

2,396,998,239

19,343,987

Withholdings

18,355,652

62,766,372

41,549,136

Accrued Dividends

986,790

986,790

986,790

Current Portion of Debentures

-

1,400,000,000

-

Fixed Liabilities

110,827,870

114,921,360

1,447,689,774

Debentures

 

 

1,400,000,000

Provision for Severance & Retirement

438,454,610

491,845,220

495,287,175

Leasehold Deposit Received

17,000,000

17,000,000

17,000,000

 

 

INCOME STATEMENT

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

228,906,838,629

215,517,753,319

205,826,098,490

Cost of Sold Goods

221,656,474,793

209,360,507,898

197,856,904,899

Gross Profit

7,250,363,836

6,157,245,421

7,969,193,591

Selling & Admin. Expenses

4,560,386,257

6,051,379,023

7,250,780,638

Operating Income

2,689,977,579

105,866,398

718,412,953

Non-Operating Income

2,117,662,018

2,986,641,559

2,971,912,160

Non-Operating Expenses

4,469,920,577

6,107,650,485

4,162,961,041

Income Before Taxes

337,719,020

-3,015,142,528

-472,635,928

Income Taxes Expenses

-

-200,321,880

-

Net Income

337,719,020

-2,814,820,648

-472,635,928

 

 

CASH FLOWS

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

4,693,633,733

-907,998,751

1,087,693,864

-Net Income

337,719,020

-2,814,820,648

-472,635,928

-Exp. without Cash Outflow

1,172,651,365

1,936,562,531

1,368,968,246

-Revenue without Cash Inflows

-1,441,939,745

-1,533,365,797

-1,422,097,167

-Changes in Asset/ & Liability

4,625,203,093

1,503,625,163

1,613,458,713

Cash Flows from Investing

894,477,057

1,843,172,143

2,088,533,990

-Cash Inflow from Investing

2,821,001,138

2,771,925,981

23,406,216,349

-Cash Outflows for Investing

-1,926,524,081

-928,753,838

-21,317,682,359

Cash Flows from Financing

-5,282,131,721

-738,345,299

-3,479,994,509

-Cash Inflows from Financing

176,349,168,803

137,585,832,358

118,483,282,199

-Cash Outflows from Financing

-181,631,300,524

-138,324,177,657

-121,963,276,708

Increase/Decrease in Cash

305,979,069

196,828,093

-303,766,655

Cash at the Beginning of Year

230,948,378

34,120,285

337,886,940

Cash at the End of Year

536,927,447

230,948,378

34,120,285

 

 

Products, Technologies, Services Description

 

Main Products & Services

Acetone, Ketone, Acetate, Glycol, Alcohol, Chloride, Phenol, Resin, Monomer, Retardant, Celosolve, Hexane, BTX

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

LG CHEM LTD.(110111-2207995)

Customers

 

Competitors

DOUGLAS CHEM INC

RM. 812, DAEWOO BLDG. BOKAP-DONG, 167, NAESU-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-6272-7130  FAX:+82-2-6272-7131

 

MYOUNGJI CHEMICAL CO., LTD.

RM. 1001, DAEWOO OFFICETEL, 45-5, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-761-6660 FAX:+82-2-761-0337

 

CHEMICAL NETWORKS CO., LTD.

753-14, WONSAN-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-237-6111  FAX:+82-52-237-6110

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

M-CHEMICALS QINGDAO CO., LTD.(CHINA)

 

INTERCHEM KOREA CO., LTD.(KOREA)

(49.2% held by the subject company)

 

M ECO O&T CO., LTD.(110111-4059526)

(73.39% held by the subject company)

 

E&M GLOBAL CO., LTD.(110111-1470139)

(64.05% held by the subject company)

 

M NEO MATERIALS (QINGDAO) CO., LTD.(CHINA)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

M ENERGY CO., LTD.(110111-1983546)

(50.07% held by the subject company)

 

M NEO MATERIALS CORPORATION(120111-0520082)

(100.0% held by the subject company)

 

M-CHEMICALS INTERNATIONAL TRADE(SHANGHAI) CO., LTD.

(100.0% held by the subject company)

 

LEE & CHEMICAL INC.

(97.0% held by the subject company)

 

M ECO O&T CO., LTD.(110111-4059526)

(73.39% held by the subject company)

 

MRI CO., LTD.(KOREA)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in China and Vietnam.

 

 


Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.85

UK Pound

1

Rs.98.47

Euro

1

Rs.71.51

 

 

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%)

 

 

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.