MIRA INFORM REPORT

 

 

Report No. :

322804

Report Date :

19.05.2015

 

IDENTIFICATION DETAILS

 

Name :

SHINWON CORPORATION

 

 

Registered Office :

328, Dongmak-ro, Mapo-gu, Seoul, Korea 7th Fl., Sinwon Bldg. 121-729

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

26.09.1973

 

 

Com. Reg. No.:

105-81-11908

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Women's Suits and Coats

 

 

No. of Employees :

595

 

 

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 :

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)

South Korea

 

 

 

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

SHINWON CORPORATION

Registered Address

328, Dongmak-ro, Mapo-gu, Seoul, Korea

Building

7th Fl., Sinwon Bldg.

Zip Code

121-729

Tel

+82-2-3274-5000

Fax

+82-2-3274-5611

E-mail

scpark@sw.co.kr

Website

www.sw.co.kr

Trading Address

7th Fl., Sinwon Bldg., 328, Dongmak-ro, Mapo-gu, Seoul, Korea

(Old Address System : 7th Fl., Sinwon Bldg., 532, Dohwa-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-3274-5000

Fax

+82-2-3274-5611

Other Address-Logistics Center

226-1, Jangji-dong, Gwangju-si, Gyeonggi-Do, Korea

Tel

+82-31-765-9416

Fax

+82-31-765-9434

Other Address-Ebenezer Fashion Mall

53-14, Myeong-dong 2-ga, Jung-gu, Seoul, 100-022 Korea

Tel

+82-2-775-6300

Fax

+82-2-775-6181

Other Address-Gwangju Fashion Mall

6-3, Chungjangno 3-ga, Dong-gu, Gwangju 501-013 Korea

Tel

+82-62-231-0700

Fax

+82-62-234-8832

Other Address-Daegu Fashion Mall

125, Dongseongno 2-ga, Jung-gu, Daegu 700-092 Korea

Tel

+82-53-428-3000

Fax

 

Other Address-Pohang Fashion Mall

466-16, Sangwon-dong, Buk-gu Pohang-si, Gyeongbuk-do 791-090 Korea

Tel

+82-54-243-9000

Fax

 

Type

Export

Industry

Manufacture of Women's Suits and Coats

  Main Business

Dress Suit, Casual Wear, Bag, Handbag, Fashion, Knit, Sweater

  Sub Business

Wholesale of Shirts and Outer Garments

Established (mm/dd/yyyy)

09/26/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Clothing(53100000)

Sell

Womens suits(53101904)

Sell

Clothing(53100000)

Sell

Mens Clothing

 

 

CEO’s

 

Name

Kim Jung-Pyo

Address

 

Date of Birth

10/1960

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

31,697,055,000

Employees

595

Formation

Listed Company (Korea Stock Exchange: 009270) as of 08/24/1988

Bank Details

Hana Bnak

Korea Export-Import Bank

Korea Exchange Bank

Corporate Registered No.

110111-0152770

Business Registered No.

105-81-11908

Permit & Licenses

Int’l Trade No.: 731733

Shareholder Position

Name

Shares

%

T&M COMMUNICATIONS CO., LTD.(110111-2223694)

17,988,210

28.38

TRUSTON ASSET MANAGEMENT CO., LTD.(110111-1531519)

3,165,916

4.99

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

6,230,230

9.83

TREASURY STOCK

7,282,820

11.49

OTHERS

28,726,934

45.31

TOTAL

63,394,110

100.00

Company History

09/26/1973 Incorporated as the present name

12/01/1998 Agreed on 1st Work-Out Procedure Agreement with the Creditors Association

12/30/1999 Agreed on 2nd Work-Out Procedure Agreement with the Creditors Association

10/16/1998~05/16/2003 Under the Collateral Management by Creditors Financial Institutes

05/19/2003 Finished Work-Out Procedure

2008 Spin off the par value to 500 KRW from 5,000 KRW

05/19/2010 Decided to spin off the company into the subject company, and SHINWON LGS CO., LTD.(110111-4382919 : Newly established company) as of 06/30/2010

 

 


Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman

Mr.

Park Sung-Chul

Korean

1940.06.24

Seoul National University, Korea

President & CEO / Management

Mr.

Kim Jung-Pyo

Korean

1960.10.

-

Outside Director

Mr.

Noh Seung-Sook

Korean

1945.08.05

Yonsei University, Korea

Auditor

Mr.

Ahn Jae-Sun

Korean

1948.07.

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2014

426,560,638,122

470,361,479,603

730,708,028

(*)2013

569,338,984,413

439,263,980,118

-3,981,823,787

(*)2012

559,822,343,455

431,462,973,255

-6,163,588,831

(*)2011

526,884,280,265

396,958,636,586

6,512,855,802

(*)2010

504,363,383,005

348,673,803,522

7,654,513,574

2009

442,927,702,954

232,174,532,774

31,097,238,091

2008

401,414,593,810

186,888,307,112

31,029,275,117

2007

329,783,449,464

157,906,125,391

25,363,089,777

2006

346,438,668,520

176,042,619,204

11,018,005,293

2005

335,871,531,260

182,065,212,185

21,398,530,024

2004

367,371,416,520

182,513,883,298

-18,601,534,881

2003

381,501,100,491

223,919,218,731

4,066,284,444

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

 

 

Financial Description

 

Authorized Capital(KRW)

200,000,000,000

Paid-Up Capital(KRW)

31,697,055,000

Total Issued Shares

63,394,110

 

Balance Sheet

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

470,361,479,603

439,263,980,118

431,462,973,255

Current Assets

273,789,438,203

247,050,764,561

241,565,740,160

Cash & Cash Equivalents

14,548,305,308

6,232,476,114

12,507,304,437

Current Financial Instruments

1,542,000,000

1,053,000,000

40,000,000

Trade Receivables & Other Receivables

91,266,369,445

91,358,798,919

93,900,751,049

Inventories

145,268,038,073

126,361,715,852

111,317,556,393

Other Current Assets

21,164,725,377

22,044,773,676

23,800,128,281

Non-Current Assets

196,572,041,400

192,213,215,557

189,897,233,095

Non-Current Financial Instruments

505,000,000

588,000,000

508,000,000

Other Receivables

55,416,850,283

49,596,335,933

47,198,586,569

Marketable Financial Instruments

2,378,359,241

1,738,918,382

1,714,122,680

Investment_Subsidiaries

123,406,745,859

123,406,745,859

123,406,745,859

Tangibles

10,498,773,882

12,228,361,159

12,987,182,499

Investment_Real Estates

253,110,140

253,110,140

253,110,140

Intangibles

3,012,336,939

3,038,861,720

3,315,591,561

Deferred Income Tax Assets

738,784,772

937,462,791

0

Other Non-Current Assets

362,080,284

425,419,573

513,893,787

Total Liabilities

284,540,354,263

254,173,094,150

240,998,837,688

Current Liabilities

247,238,220,575

181,904,537,247

166,686,756,458

Trade Payables & Other Payables

62,126,641,459

64,819,775,271

60,411,418,686

Short-Term Borrowings

126,564,371,619

111,151,389,604

68,248,020,535

Current Portion of Long-Term Debts

5,710,440,000

3,569,125,000

4,927,750,000

Current Portion of Debentures

49,937,927,948

0

29,984,442,942

Accrued Income Tax

0

0

812,633,805

Other Current Liabilities

2,898,839,549

2,364,247,372

2,302,490,490

Non-Current Liabilities

37,302,133,688

72,268,556,903

74,312,081,230

Other Non-Current Financial Debts

218,758,750

173,441,429

71,792,326

Long-Term Borrowings

0

5,170,970,000

8,837,265,000

Debentures

19,951,790,323

49,889,378,773

49,827,659,018

Provision for Severance & Retirement

15,374,988,831

15,127,058,639

12,884,975,711

Deferred Income Tax Credit

0

0

784,566,771

Other Non-Current Liabilities

1,756,595,784

1,907,708,062

1,905,822,404

Capital Stock

31,697,055,000

31,697,055,000

31,697,055,000

Capital Surplus

17,566,145,632

17,566,145,632

17,569,891,582

Installments

104,164,640

73,400,770

54,060,122

Profit Surplus

146,345,129,011

145,645,653,509

151,149,800,306

Others

-9,891,368,943

-9,891,368,943

-10,006,671,443

Total Equity

185,821,125,340

185,090,885,968

190,464,135,567

Liab. & Shareholder’s Equity

470,361,479,603

439,263,980,118

431,462,973,255

 

Income Statement

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

426,560,638,122

569,338,984,413

559,822,343,455

Cost of Sold Goods

312,660,552,973

408,052,491,612

394,743,441,917

Gross Profit

113,900,085,149

161,286,492,801

165,078,901,538

Selling & Admin. Expenses

109,921,627,908

157,242,704,506

164,339,297,637

Operating Income

3,978,457,241

4,043,788,295

739,603,901

Finance Income

1,946,331,255

2,584,420,682

3,001,180,320

Finance Expenses

5,684,067,020

7,048,321,440

7,694,872,816

Non-Operating Income

9,664,750,495

8,347,251,399

11,534,661,767

Non-Operating Expenses

8,975,984,837

13,231,578,187

13,524,302,868

Income Before Taxes

929,487,134

-5,304,439,251

-5,943,729,696

Income Taxes Expenses

198,779,106

-1,322,615,464

219,859,135

Net Income

730,708,028

-3,981,823,787

-6,163,588,831

 

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

-11,902,120,437

-5,061,325,199

-18,562,225,665

Net Income

730,708,028

-3,981,823,787

-6,163,588,831

Adjustment

-12,632,828,465

-1,079,501,412

-12,398,636,834

Cash Flows from Investing

-6,742,747,109

-2,511,900,794

-24,592,553,227

Cash Flows from Financing

26,501,480,095

1,086,074,939

43,599,392,373

Increase/Decrease in Cash

7,856,612,549

-6,487,151,054

444,613,481

Cash at the Beginning of Year

6,232,476,114

12,507,304,437

11,622,267,478

Cash at the End of Year

14,548,305,308

6,232,476,114

12,507,304,437

 

 

Products, Technologies, Services Description

 

Main Products & Services

Women's Suits and Coats

Sweater

Knit

Handbag

Leather Jacket

 

Brand: BESTI BELLI, SI, VIKI, ISABEY, SIEG, SIEG FAHRENHEIT, VanHart di Albazar, Brioni

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

DAEYU COMPANY

274-28 EULJIRO 5-GA JUNG-KU SEOUL 100-195 KOREA

TEL:+82-2-2272-8666  FAX:+82-2-2274-8666

INDUSTRY: WHOLESALE OF OTHER INDUSTRIAL MACHINERY AND EQUIPMENT

 

LICHANG YARN SPINNING CO., LTD.

118-3 MAAM-RI BUBAL-EUP ICHEON-SI GYEONGGI-DO 467-863 KOREA

TEL:+82-31-633-5761  FAX:+82-31-633-5671

INDUSTRY: WOOL SPINNING

 

ILSHIN SPINNING CO., LTD.

ILSIN BLDG. 15-15 YEOEUIDO-DONG YEONGDEUNGPO-KU SEOUL 150-872 KOREA

TEL:+82-2-3774-0114  FAX:+82-2-786-5891~3

INDUSTRY: COTTON SPINNING

 

DAINONG CORP. LTD.

DAINONG BLDG. 33-1 MAPO-DONG MAPO-KU SEOUL 121-708 KOREA

TEL:+82-2-3270-3500  FAX:+82-2-3270-3950

INDUSTRY: MANUFACTURE OF MAN-MADE FIBER FABRICS

 

PMK

443-26 SEOKTAN-RI HASEONG-MYEON GIMPO-SI GYEONGGI-DO 415-884 KOREA

TEL:+82-31-491-2141  FAX:+82-31-491-2144

INDUSTRY: TREATING OF RAW HIDES AND SKINS

 

SHINOH CO., LTD.

727 WONSI-DONG DANWON-KU ANSAN-SI GYEONGGI-DO 425-090 KOREA

TEL:+82-31-4918137  FAX:+82-31-491-9227

INDUSTRY: TREATING OF RAW HIDES AND SKINS

 

WOOSUNG TEXTILE CO., LTD.

 

YEONG HWA INTERNATIONAL CO

493-35 GOAM-DONG YANGJU-SI GYEONGGI-DO 482-010 KOREA

TEL:+82-31-858-4800  FAX:+82-31-859-5883

INDUSTRY: MANUFACTURE OF ALL OTHER FABRICATED METAL PRODUCTS N.E.C.

 

NAM KWANG TEXTILE CO., LTD.

Customers

OEM(Original Equipment Manufacturing)

TARGET

WAL-MART

GAP

Competitors

BABA FASHION CO., LTD.

6TH FL., CHEONG-GU BLDG., 517-5, SINSA-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-512-6341  FAX:+82-2-512-3033

 

WOOJIN FASHION BIZ, INC.

216-1, SANGHA-DONG, GIHEUNG-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-281-2260  FAX:+82-31-281-2261

 

BILTMORE CO., LTD.

8TH FL., HYUNDAI TOPICS, 44-3, BANGI 2-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-420-7136  FAX:+82-2-422-7500

 

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

 

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

SW SHENGGENA CORPORATION(110111-3759218)

(100.0% held by the subject company)

 

SHINWON GLOBAL CO., LTD.(110111-4144715)

(50.0% held by the subject company)

 

SHINWON NETWORKS CORPORATION(110111-4319649)

(100.0% held by the subject company)

 

SHINWON GLS CO., LTD.(110111-4382919)

(100.0% held by the subject company)

 

SHINWON GUATEMALA S.A(GUATEMALA)

(97.0% held by the subject company)

 

SHINWON EBENEZER VIETNAM CO.,LTD(VIETNAM)

(100.0% held by the subject company)

 

SHINWON EBENEZER HANOI CO.,LTD(VIETNAM)

(100.0% held by the subject company)

 

PT. SHINWON INDONESIAINDONESIA

(99.0% held by the subject company)

 

PT. SHINWON EBENEZERINDONESIA

(99.0% held by the subject company)

 

QINGDAO SHINWON EBENEZER CO., LTD(CHINA)

(100.0% held by the subject company)

 

SHANGHAI SHINWON EBENEZER CO. LTD(CHINA)

(100.0% held by the subject company)

 

SHINWON EBENEZER GAE-SEONG(NORTH KOREA)

(100.0% held by the subject company)

 

SHINWON EBENEZER GAE-SEONG (NORTH KOREA)

(33.0% held by the subject company)

 

SA MILANO S.R.L.(ITALY)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject exports knit, sweater and hand bag to USA and Europe.

 

 

News Clipping

 

---

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.55

UK Pound

1

Rs.99.86

Euro

1

Rs.72.67

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.