MIRA INFORM REPORT

 

 

Report No. :

323355

Report Date :

21.05.2015

 

IDENTIFICATION DETAILS

 

Name :

DONGBANG TEXTILE AND MART CO., LTD.

 

 

Registered Office :

182, 5sandan-ro, Susin-myeon, Dongnam-gu, Cheonan-si, Chungcheongnam-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

14.02.1973

 

 

Com. Reg. No.:

312-81-00765

 

 

Legal Form :

Company Limited By Shares

 

 

Line of Business :

Subject is engaged in Cotton of Spinning

 

 

No. of Employees :

29

 

 

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)

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

DONGBANG TEXTILE AND MART CO., LTD.

(Korean Company Name : “()동방생활산업”)

Registered Address

182, 5sandan-ro, Susin-myeon, Dongnam-gu, Cheonan-si, Chungcheongnam-do, Korea

(Old Address System : 168-1, Sinpung-ri, Susin-myeon, Dongnam-gu, Cheonan-si, Chungcheongnam-do, Korea)

Building

 

Zip Code

330-882

Tel

+82-41-620-2500

Fax

+82-41-620-2520

E-mail

hej7435@dongbangtextile.com

Website

www.dongbangtextile.com

Trading Address

6FL., Hanlim Bldg., 336, Dongho-ro, Jung-gu, Seoul, Korea

(Old Address System : 6FL., Hanlim Bldg., 146-7, Ssangnim-dong, Jung-gu, Seoul, Korea)

Tel

+82-2-2190-8200  +82-2-2190-8224

Fax

+82-2-2190-8239

Other Address

118, Namdaemunno 2-ga, Jung-gu, Seoul, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Cotton of Spinning

  Main Business

Combed Cotton Yarn, Melange, Acryl, Polyester Fabrics, Cotton Fabrics

  Sub Business

 

Established (mm/dd/yyyy)

02/14/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Threads(11151600)

Sell

Synthetic yarn(11151709)

Sell

Cotton thread(11151601)

Sell

Synthetic fabrics(11161800)

Sell

Cotton fabrics(11161700)

Buy

Cotton(11121802)

 

 

CEO’s

 

Name

Kim Kye-Hwan

Address

Suite 6-501, 265, Seombat-ro, Nowon-gu, Seoul, Korea

Date of Birth

11/30/1961

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

18,977,910,000

Employees

29

Formation

Co., Ltd by Shares

A Company of Dongbang Group

Bank Details

Industrial Bank of Korea

Nonghyup Bank

Woori Bank

Hana Bank

Corporate Registered No.

164811-0000244

Business Registered No.

312-81-00765

Permit & Licenses

01/2007 ISO 14001

01/2006 ISO 9001

 

Int’l Trade No.: 760364

Shareholder Position

Name

Shares

%

DONGBANG TRANSPORT LOGISTICS CO., LTD.(110111-0124521)

2,047,930

84.78

INSAN JANGHAK FOUNDATION(110122-0022780)

99,522

4.12

YUANTA SECURITIES KOREA CO., LTD.(110111-0042492)

171,506

7.10

OTHERS

96,623

3.98

TOTAL

2,415,582

100.00

(*)The list is based as of 12/31/2014.

Company History

02/14/1973 Incorporated as Kukje Textile Co., Ltd.

01/1993 Changed company name to Dongbang Textile Co.l, Ltd.

05/1997 Changed company name to Dongbang T&C CO., Ltd.

03/2000 Changed company name to the present name

03/31/2005 Moved to the present HQ address from 515, Jangjae-ri, Baebang-eup, Asan-si, Chungcheongnam-do, Korea

02/25/2009 Designated as a Venture Business

03/28/2015 Increased capital to 18,977,910,000 KRW from 12,077,910,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Kye-Hwan

Male

Korean

03/26/2014

Director

Mr.

Lee Dal-Keun

Male

Korean

03/24/2005

Director

Mr.

Kim Hyung-Kon

Male

Korean

03/24/2006

Director

Mr.

Cho Byung-Sun

Male

Korean

03/25/2015

Auditor

Mr.

Lee Jung-Hern

Male

Korean

03/26/2014

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

74,760,310,345

69,423,044,451

-3,341,247,835

2013

84,259,953,968

68,452,756,168

2,697,302,167

2012

91,004,527,993

92,070,237,677

-240,703,827

2011

105,582,282,666

83,095,285,596

1,369,523,871

2010

100,194,462,390

70,251,303,920

1,816,804,136

 

 

Financial Description

 

Authorized Capital(KRW)

40,000,000,000

Paid-Up Capital(KRW)

18,977,910,000

Total Issued Shares

3,795,582

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

69,423,044,451

68,452,756,168

92,070,237,677

Current Assets

51,992,532,050

50,253,820,583

52,140,877,452

Cash & Cash Equivalents

222,619,948

2,064,184,151

1,251,430,903

Current Financial Instruments

380,000,000

1,730,000,000

990,000,000

Trade Receivables

22,134,498,661

15,018,146,245

17,601,060,580

Other Receivables

1,396,915,468

2,565,748,078

3,817,053,866

Short-Term Receivables

-

7,600,000

13,100,000

Unearned Income

19,601,303

42,778,481

39,300,120

Inventories

25,519,929,757

27,938,239,870

27,310,684,774

Other Current Assets

2,318,966,913

887,123,758

1,118,247,209

Non-Current Assets

17,430,512,401

18,198,935,585

39,929,360,225

Non-Current Financial Instruments

76,000,000

236,000,000

656,000,000

Marketable Financial Instruments

977,622,046

1,144,417,246

1,386,643,596

Investment_Real Estates

9,890,984,366

9,890,984,366

30,465,121,581

Tangibles

4,973,929,896

5,420,103,196

6,029,174,076

Deferred Income Tax Assets

983,151,519

979,337,203

890,341,398

Other Non-Current Assets

528,824,574

528,093,574

502,079,574

Total Liabilities

68,053,116,634

63,654,588,661

88,353,676,112

Current Liabilities

65,239,141,757

54,993,805,442

78,018,208,434

Trade Payables

2,814,785,209

2,195,336,409

2,941,509,915

Short-Term Borrowings

54,701,773,614

49,255,839,087

70,558,222,554

Account Payables

1,381,649,442

1,483,899,438

1,973,281,999

Advance Receipts

96,647,166

71,015,212

69,773,437

Accrued Expenses

156,928,001

327,414,486

297,358,414

Current Portion of Long-Term Debts

5,724,058,998

1,375,160,976

1,892,149,660

Other Current Liabilities

363,299,327

285,139,834

285,912,455

Non-Current Liabilities

2,813,974,877

8,660,783,219

10,335,467,678

Debentures

-

4,490,411,025

4,485,346,553

Long-Term Borrowings

1,833,333,340

2,328,073,290

3,014,054,120

Finance Lease Debts

901,012,478

1,634,510,294

2,323,690,440

Provision for Severance & Retirement

79,629,059

207,788,610

512,376,565

Capital Stock

12,077,910,000

12,077,910,000

12,077,910,000

Profit Surplus

-11,039,417,398

-7,635,977,964

-10,177,408,224

Total Equity

1,369,927,817

4,798,167,507

3,716,561,565

Liab. & Shareholder’s Equity

69,423,044,451

68,452,756,168

92,070,237,677

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

74,760,310,345

84,259,953,968

91,004,527,993

Cost of Sold Goods

74,496,794,524

79,251,494,027

82,138,499,267

Gross Profit

263,515,821

5,008,459,941

8,866,028,726

Selling & Admin. Expenses

3,883,842,189

3,311,535,697

3,591,644,369

Operating Income

-3,620,326,368

1,696,924,244

5,274,384,357

Finance Income

1,782,194,468

1,164,889,590

1,855,095,594

Finance Expenses

5,242,589,935

5,865,744,182

6,735,620,826

Profits from Investment on Related Companies

-125,613,170

10,984,140,609

3,032,850

Other Income

4,007,371,232

24,697,129

64,537,248

Other Expenses

121,562,214

4,940,891,836

874,922,844

Income Before Taxes

-3,320,525,987

3,064,015,554

-413,493,621

Income Taxes Expenses

20,721,848

366,713,387

-172,789,794

Net Income

-3,341,247,835

2,697,302,167

-240,703,827

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

-6,930,576,256

-5,645,949,554

-12,187,893,416

Cash Flows from Operating

-3,301,183,478

-1,584,490,928

-7,239,006,104

Net Income

-3,341,247,835

2,697,302,167

-240,703,827

Adjustment

4,970,674,123

-1,140,441,181

5,845,274,593

Changes in Asset/ & Liability

-4,930,609,766

-3,141,351,914

-12,843,576,870

Interests Received

91,019,134

79,961,316

122,922,976

Interests Paid

-3,726,354,482

-4,162,259,701

-5,060,839,169

Dividends Received

9,386,830

10,802,049

3,032,850

Income Taxes

-3,444,260

10,037,710

-14,003,969

Cash Flows from Investing

1,430,046,254

29,556,222,471

4,584,836,356

Cash Flows from Financing

3,658,498,729

-23,097,495,811

8,189,600,580

Increase/Decrease in Cash

-1,842,031,273

812,777,106

586,543,520

Cash at the Beginning of Year

2,064,184,151

1,251,430,903

665,129,457

Cash at the End of Year

222,619,948

2,064,184,151

1,251,430,903

 

 

Products, Technologies, Services Description

 

Main Products & Services

Combed Cotton Yarn, Melange, Acryl, Polyester Fabrics, Cotton Fabrics

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

TRENDY YARN CORPORATION

5215 S. BOYLE AVE.,VERNON, CA 90058 USA

Competitors

CHONBANG CO., LTD.

12~13TH FI., CHUNGJEONG TOWER BLDG., 464, CHUNGJEONGNO 3-GA, SEODAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2122-6000  FAX:+82-2-392-3923

 

DONGIL CORPORATION(110111-0019219)

8TH FL., JEONG-HEON BLDG., 944-1, DAECHI 3-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2222-3071  FAX:+82-2-2222-3280

 

ILSHIN SPINNING CO.,LTD(110111-0041717)

ILSHIN BLDG., 15-15, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

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

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGBANG TRANSPORT LOGISTICS CO., LTD.(110111-0124521)

DONGBANK METAL INDUSTRY CO., LTD.(174611-0006301)

DONGBANG SYSTEM CO., LTD.(110111-0609698)

DONGBANG LOGISTICS CENTER CO., LTD.(180111-0589359)

DONGBANG KWANGYANG LOGISTICS CO., LTD.(204611-0025685)

DONGBANG CONTAINER TERMINAL CO., LTD.(230111-0155860)

D&C CENTER CO., LTD.(KOREA)

U&CT CO., LTD.(110111-2770851)

KWANGYANG SHIP CO., LTD.(204611-0000497)

ILLJO KUKJE FERRY CO., LTD.(131311-0101827)

YANGSAN ICD CO., LTD.(184511-0008703)

PYUNGTAIK PORT CO., LTD.( 131311-0026984)

INCEHON PORT 2 OPERATION CO., LTD.(120111-0191776)

MASAN PORT 2 OPERATION CO., LTD.(190111-0035433)

DAEIN FERRY CO., LTD.(110111-1130923)

PYUNGTAIK PORT CAR FERRY FREIGHT TERMINAL CO., LTD.(131311-0062079)

ULSAN PORT 67 OPERATION CO., LTD.(230111-0057800)

YEOMPO PORT OPERATION CO., LTD.(230111-0174365)

DAESAN PORT OPERATION CO., LTD.(161411-0025756)

POHANG YEONGILMAN PORT OPERATING CO., LTD.(171711-0095636)

 

DAIRYMEN DONGBANG HYUNDAI TRANSPORT LOGISTICS CO., LTD.(CHINA)

DONGBANG LOGISTICS VINA

 

SHIMYANG DONGBANG TEXTILE CO., LTD.(CHINA)

(22.02% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

DONGBANG TRANSPORT LOGISTICS CO., LTD.(110111-0124521)

Major Shareholders

DONGBANG TRANSPORT LOGISTICS CO., LTD.(110111-0124521)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO.,LTD.(110111-0095285)

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Russia, USA, Australia, India, Japan, China and Pakistan.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.87

UK Pound

1

Rs.98.89

Euro

1

Rs.70.73

 

 

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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