MIRA INFORM REPORT

 

 

Report No. :

323857

Report Date :

22.05.2015

 

IDENTIFICATION DETAILS

 

Name :

KOLON FASHION MATERIAL INC.

 

 

Registered Office :

13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea, 8FL., Kolon Tower, 427-709

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

03.03.2008

 

 

Com. Reg. No.:

138-81-44919

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Fibers

 

 

No. of Employees :

385

 

 

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)

 

 

 

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

 

Company Name

KOLON FASHION MATERIAL INC.

 

Registered Address

13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea

Building

8FL., Kolon Tower

Zip Code

427-709

Tel

+82-2-3677-3706  +82-2-3677-3672

Fax

+82-2-3677-3989

E-mail

joohan76@kolon.com

Website

www.kolonfm.com

Trading Address

8~9FL., Kolon Tower, 13, Kolon-ro, Gwacheon-si, Gyeonggi-do, Korea

(Old Address System : 8~9FL., Kolon Tower, 1-22, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea)

Tel

+82-2-3677-3745

Fax

+82-2-3677-3989

Other Address-Gimcheon Factory

1019, Eungmyeong-dong, Gimcheon-si, Gyeongbuk, Korea

Tel

+82-54-429-7391

Fax

 

Other Address-Gumi Factory

212, Gongdan-dong, Gumi-si, Gyeongbuk, Korea

Tel

+82-54-469-3495

Fax

 

Other Address-Daegu Factory

1217, Chimsan-dong, Buk-gu, Daegu, Korea

Tel

+82-53-350-5501

Fax

 

Other Address-Youngnam Office

8FL., Textile Bldg., Dongsan-dong, Jung-gu, Daegu, Korea

Tel

+82-53-253-0351

Fax

 

Type

Export

Industry

Manufacture of Synthetic Fibers

  Main Business

Nylon Yarns, Polyester Yarns

  Sub Business

 

Established (mm/dd/yyyy)

03/03/2008

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Nylon thread(11151608)

Sell

Polyester yarn(11151703)

Sell

Synthetic yarn(11151709)

Sell

Polyurethane resins(13111061)

 


CEO’s

 

Name

Lee Hae-Un

Address

 

Date of Birth

12/1956

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

45,000,000,000

Employees

385

Formation

Listed Company (Korea Stock Exchange : 144620) as of 04/05/2012

A Company of Kolon Group

Bank Details

Woori Bank

Korea Development Bank

Corporate Registered No.

135311-0011139

Business Registered No.

138-81-44919

Permit & Licenses

Int’l Trade No.: 45341326

Shareholder Position

Name

Shares

%

KOLON INDUSTRIES INC.(135311-0013606)

6,000,000

66.67

SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)

972,356

10.80

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

298,614

3.32

OTHERS

1,729,030

19.21

TOTAL

9,000,000

100.00

Company History

03/03/2008 Incorporated as the present name after spin off Yarn Business Division from KOLON INDUSTRIES INC.(110111-0030528)

08/01/2008 Increased capital to 74,483,385,000 KRW from 50,000,000,000 KRW

08/01/2008 Acquired KOLON HITEX, INC.(135311-0010545)

12/31/2009 Become a Subsidiary of KOLON INDUSTRIES INC.(135311-0013606)

03/17/2011 Increased the authorized shares to 50,000,000 shares from 30,000,000 shares

02/12/2012 Moved to the present HQ address from 7FL., Kolon Tower, 1-23, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea (New Address System : 38, Byeoryang Sangga 2-ro, Gwacheon-si, Gyeonggi-do, Korea)

04/02/2012 Increased capital to 45,000,000,000 KRW from 30,000,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

Vice President & CEO

Mr.

Lee Hae-Un

Male

Korean

1956.12.

Executive Director

Mr.

Cho Choong-Hwan

Male

Korean

1964.03.

Outside Director

Mr.

Jung Tae-Woong

Male

Korean

1949.08.

Auditor

Mr.

Kim Young-Jin

Male

Korean

1954.11.

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

91,067,618,188

298,245,972,585

-841,328,860

(*)2014

479,688,874,559

294,658,992,640

-9,967,706,633

(*)2013

546,898,861,771

302,392,637,198

8,192,132,159

(*)2012

543,954,891,197

294,214,138,925

3,270,645,761

(*)2011

641,234,837,999

278,212,497,806

18,497,079,221

(*)2010

516,245,052,479

260,233,840,906

22,259,226,784

2009

396,074,673,096

207,641,558,806

13,037,464,854

2008

281,838,579,107

215,552,707,180

7,170,061,357

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

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

45,000,000,000

Total Issues Shares

96,000,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

298,245,972,585

294,658,992,640

302,392,637,198

Current Assets

127,191,741,434

123,947,438,633

138,626,675,043

Cash & Cash Equivalents

1,564,956,588

900,621,594

8,183,340,844

Other Financial Assets

 

 

5,000,000,000

Trade Receivables & Other Receivables

59,027,750,451

61,099,091,287

63,774,576,886

Inventories

64,303,572,725

59,715,802,951

59,545,158,875

Prepaid Taxes

240,651,552

240,526,022

 

Other Current Assets

2,054,810,118

1,991,396,779

2,123,598,438

Non-Current Assets

171,054,231,151

170,711,554,007

163,765,962,155

Long-Term Trade Receivables & Other Long-Term Receivables

1,814,631,007

998,206,112

1,158,373,771

Non-Current Financial Instruments

4,000,000

4,000,000

4,000,000

Marketable Financial Instruments

17,033,374,180

17,494,146,658

17,794,261,279

Investment_Related Companies

635,666,779

683,752,386

842,169,770

Tangibles

135,662,492,183

135,592,993,883

129,057,076,072

Intangibles

15,861,463,095

15,882,473,364

14,910,081,263

Deferred Income Tax Assets

42,603,907

55,981,604

 

Total Liabilities

106,219,052,457

101,431,341,119

97,529,489,957

Current Liabilities

101,076,285,043

96,248,175,918

96,264,965,839

Trade Payables & Other Payables

62,721,952,738

65,130,390,521

82,712,960,931

Short-Term Borrowings

36,626,711,301

30,194,539,687

10,219,371,067

Accrued Income Tax

 

 

1,609,845,613

Other Current Liabilities

1,727,621,004

923,245,710

1,722,788,228

Non-Current Liabilities

5,142,767,414

5,183,165,201

1,264,524,118

Long-Term Trade Payables & Other Long-Term Payables

221,197,935

964,611,845

123,197,935

Confirmed Salaries

4,921,569,479

4,218,553,356

556,770,838

Deferred Income Tax Credit

 

 

584,555,345

Capital Stock

45,000,000,000

45,000,000,000

45,000,000,000

Capital Surplus

89,631,470,863

89,631,470,863

89,631,470,863

Others

-3,095,705,201

-2,736,302,668

-3,415,757,064

Profit Surplus

60,491,154,466

61,332,483,326

73,647,433,442

Total Equity

192,026,920,128

193,227,651,521

204,863,147,241

Liab. & Shareholder’s Equity

298,245,972,585

294,658,992,640

302,392,637,198

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

91,067,618,188

479,688,874,559

546,898,861,771

Cost of Sold Goods

84,664,557,193

457,386,145,760

505,665,929,193

Gross Profit

6,403,060,995

22,302,728,799

41,232,932,578

Selling & Admin. Expenses

7,268,177,391

29,081,516,440

30,081,599,117

Operating Income

-865,116,396

-6,778,787,641

11,151,333,461

Other Income

1,393,911,953

3,874,275,395

4,715,265,850

Other Expenses

891,651,534

5,593,559,648

5,145,107,650

Finance Income

831,506

153,028,363

775,413,720

Finance Expenses

316,471,140

414,633,316

124,170,044

Losses from Investment on Related Companies

48,085,607

158,417,384

287,651,254

Income Before Taxes

-726,581,218

-8,918,094,231

11,085,084,083

Income Taxes Expenses

-114,747,642

1,049,612,402

2,892,951,924

Net Income

-841,328,860

-9,967,706,633

8,192,132,159

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

-3,210,607,974

-20,068,950,318

17,414,710,429

Net Income

-841,328,860

-9,967,706,633

8,192,132,159

Adjustment

2,601,122,096

8,736,813,835

11,171,703,075

Changes in Asset/ & Liability

-4,970,401,210

-15,500,772,300

-571,274,518

Income Taxes

 

-3,337,285,220

-1,377,850,287

Cash Flows from Investing

-2,256,919,464

-4,967,300,002

-16,194,333,361

Cash Flows from Financing

6,133,817,885

17,754,887,339

-851,375,900

Increase/Decrease in Cash

666,290,447

-7,281,362,981

369,001,168

Cash at the Beginning of Year

900,621,594

8,183,340,844

7,810,067,612

Cash at the End of Year

1,564,956,588

900,621,594

8,183,340,844

 

Products, Technologies, Services Description

 

Main Products & Services

FIBER

-Nylon Products

-Polyester Products

 

FABRICS

 

Brand Name : Coolon, Duramax, Aquaroad, Pyrocle, Ecofren, Rojel, Dycel, Cypan, Hipan, Hipora

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

KOLON INDUSTRIES INC.(135311-0013606)

KOREA EPLATFORM CO., LTD.(110111-2008921)

Customers

KOLON I' NETWORKS CORP.(110111-0712350)

Competitors

HUVIS CORPORATION(110111-2102070)

HYOSUNG CORPORATION(110111-0030497)

TK CHEMICAL CORPORATION(110111-3783457)

DAEHAN SYNTHETIC FIBER CO., LTD.(110111-0012437)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOLON INDUSTRIES, INC.(135311-0013606)

KOLON PHARMACEUTICAL CO., LTD.(110111-0256259)

KOLON CORPORATION(110111-0030528)

KTP INDUSTRIES INC.(171311-0003504)

KOLON GLOTECH INC. (110111-0524838)

KOLON FASHION CORPORATION(110111-2127292)

NEOVIEWKOLON CO., LTD (134211-0040660)

KF&T INDUSTRIES INC.(230111-0091824)

KOLON LIFE SCIENCE CO., LTD.(110111-1948277)

CELLVIC DEVELOPMENT CORPORATION(131111-0031292)

CRYOTECH CO., LTD.(191211-0010226)

KOLON FASHION MATERIAL INC.(135311-0011139)

KOLON EVERAY CO., LTD.(176011-0054417)

FNC KOLON CORP.(110111-0003973)

CAMBRIDGE MEMBERS CO., LTD.(134111-0000517)

KOLONWELLCARE CO., LTD.(110111-2930299)

SWEET MEAL CO., LTD.(110111-2925604)

SURPLUS GLOBAL, INC.(110111-1921140)

KOLON MOTORS CO., LTD.(131111-0209708)

KOLON ENGINEERING & CONSTRUCTION CO., LTD.(110111-0036502)

KOLON CONSTRUCTION & CONSULTING CO., LTD.(170111-0230756)

I PACIFIC PARTNERS INC.(110111-1902786)

KOLON I' NETWORKS CORP.(110111-0712350)

DEOK PYEONG LAND CO., LTD.(134411-0024149)

KOLON ENVIRONMENTAL SERVICE CO., LTD.(135311-0005893)

GREEN NARAE INC(161511-0078133)

KESCO LANDSCAPE CO., LTD.(135311-0009572)

KOLON BENIT CO., LTD.(135311-0003920)

MAUNA OCEAN DEVELOPMENT CO., LTD.(171211-0045128)

EFMC(ENVIRONMENTAL FACILITIES MANAGEMENT CORPORATION 110111-1458739 )

ENVY SYSTEM INC.(110111-1028798)

GREEN HWASUN INC.(160111-0199459)

GREEN GYEONGSAN INC.(160111-0203622)

GREEN SUNCHANG INC.(160111-0134942)

ON ORGANICNANO ELECTROIC SYSEMS INC.(200111-0255228)

KOREA EPLATFORM CO., LTD.(110111-2008921)

Overseas Office

USA OFFICE

442 POST STREET, SUITE 601, SAN FRANCISCO, CA 94102 USA

TEL:+1-415-772-1940

 

HONG KONG OFFICE

RM.608, 6FL., HARBOUR CRYSTAL CENTER, 100 GRANVILLE ROAD, TSIM SHA TSUI EAST, KOWLOON, HONG KONG

TEL:+852-2529-7613

Liaison Office

 

Overseas Branch

 

Joint Venture

NANOPORA CO., LTD.(210111-0080714)

(48.97% held by the subject company)

Subsidiary

 

Corporate Ownership

KOLON CORPORATION(110111-0030528)

KOLON INDUSTRIES INC.(135311-0013606)

Major Shareholders

KOLON INDUSTRIES INC.(135311-0013606)

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2015

2014

2013

Export

61,070

317,559

341,365

Domestic

29,998

162,130

205,534

Total

91,068

479,689

546,899

The Subject deals with the companies in USA and Hong Kong.

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.70

UK Pound

1

Rs.98.92

Euro

1

Rs.70.67

 

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.