MIRA INFORM REPORT

Report No. :	346498
Report Date :	20.10.2015

IDENTIFICATION DETAILS

Name :	YOUNG POONG CORPORATION

Registered Office :	542, Gangnam-daero, Gangnam-gu, Seoul, Korea, 06110, Youngpoong Bldg.

Country :	South Korea

Financials (as on) :	30.06.2015

Date of Incorporation :	25.11.1949

Com. Reg. No.:	211-81-11275

Legal Form :	Listed Company

Line of Business :	Manufacture of Smelting, Refining and Alloys of Lead, Zinc and Tin.

No. of Employees :	612

RATING & COMMENTS

MIRA’s Rating :

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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. 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 slow growth due to sluggish domestic consumption and investment. 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. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

Source : CIA

Basic Information

Company Name	YOUNG POONG CORPORATION (Korean Company Name : “(주)영풍”)
Registered Address	542, Gangnam-daero, Gangnam-gu, Seoul, Korea
Building	Youngpoong Bldg.
Zip Code	06110
Tel	+82-2-519-3314
Fax	+82-2-548-8505
E-mail	webmaster@ypzinc.co.kr
Website	www.ypzinc.co.kr
Trading Address	Youngpoong Bldg., 542, Gangnam-daero, Gangnam-gu, Seoul, Korea (Old Address System : Youngpoong Bldg., 142, Nonhyeon 1-dong, Gangnam-gu, Seoul, Korea)
Tel	+82-2-519-3314
Fax	+82-2-548-8505
Other Address-Anseong Battery Factory	282, Naegacheon-ri, Wongok-myeon, Anseong-si, Gyeonggi-do, Korea
Tel	+82-31-656-6501~8
Fax	+82-31-656-6505
Other Address-Sukpo Zinc Refinery	555, Seokpo-ri, Seokpo-myeon, Bonghwa-gun, Gyeongsangbuk-do, Korea
Tel	+82-54-679-7200
Fax	+82-54-672-3815
Other Address-Branch	San 68-7, Sanha-ri, Wongok-myeon, Anseong-si, Gyeonggi-do, Korea
Tel	+82-31-611-5793
Fax	+82-31-611-5796
Type	Export/Import
Industry	Manufacture of Smelting, Refining and Alloys of Lead, Zinc and Tin
Main Business	Zinc Ingot, Batteries, Sulfuric Acid, Alksline Battery, Ni-MH Battery, Operating Highway Service Station
Sub Business	Manufacture of Accumulators
Established (mm/dd/yyyy)	11/25/1949

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Cafeteria services(90101700)
Sell	Rechargeable batteries(26111701)
Sell	Inorganic acids(12352301)
Sell	Zinc ingots(30103404)
Sell	Chemicals including Bio Chemicals and Gas Materials(12000000)
Sell	Alkaline batteries(26111702)
Sell	Rechargeable batteries(26111701)
Sell	Dry cell batteries(26111705)

CEO’s

Name	Kim Myung-Soo
Address
Date of Birth	08/13/1952
Title	Vice President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

9,210,200,000

Employees

612

Formation

Listed Company (Korea Stock Exchange : 000670) as of 06/13/1976

A Company of YOUNG POONG GROUP

Bank Details

Shinhan Bank-Nonhyun Dong Branch

Kookmin Bank

Woori Bank

Corporate Registered No.

110111-0003824

Business Registered No.

211-81-11275

Permit & Licenses

Int’l Trade No.: 670076

Shareholder Position

Name	Shares	%
CHANG SE-JOON	311,193	16.89
CHANG SE-HWAN	205,479	11.15
CHOI CHANG-YOUNG	76,299	4.14
CHOI CHANG-KEUN	68,700	3.73
CHOI CHANG-KYU	52,539	2.85
KYUNGWON CULTURAL FOUNDATION(114222-0000574)	13,965	0.76
YOUNG POONG DEVELOPMENT CO., LTD.(110111-0612914)	260,975	14.17
SORIN CORPORATION(110111-0365068)	190,820	10.36
YOUNG POONG PRECISION CORPORATION(110111-0342496)	80,850	4.39
TREASURY STOCK	121,906	6.62
OTHERS	459,314	24.94
TOTAL	1,842,040	100.00

Company History

11/25/1949 Incorporated as Young Poong Industry(Partnership Company)

10/1970 Changed company name to Young Poong Commerce, Co., Ltd.

02/1978 Changed company name to the present name

12/2008 Awarded US$ 500 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Vice President & CEO	Mr.	Kim Myung-Soo	Korean	1952.08.13	Kyungbuk University, Korea
Sr. Executive Director & CEO	Mr.	Kang Young-Cheol	Korean	1955.01.	Hanyang University, Korea
Director	Mr.	Choi Chang-Gul	Korean	1941.11.11	Seoul National University, Korea
Sr. Executive Director	Mr.	Kang Sung-Doo	Korean	1959.11.	Seoul National University, Korea
Outside Director	Mr.	Chang Sung-Ki	Korean	1941.09.19	Kunkook University, Korea
Outside Director	Mr.	Shin Jung-Soo	Korean	1954.07.	-
Auditor	Mr.	Kim Jung-Won	Korean	1962.10.	Hanyang University, Korea
Auditor	Mr.	Sung Byung-Joon	Korean	1958.09.	-

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2015	510,487,734,764	2,155,284,786,419	54,677,519,429
(*)2014	1,103,441,138,729	1,998,526,424,956	33,446,448,057
(*)2013	1,054,283,881,050	1,980,714,663,210	71,428,566,104
(*)2012	1,106,795,683,457	1,994,976,031,372	104,130,469,571
(*)2011	1,036,692,168,293	1,975,179,569,166	54,676,295,949
2010	879,813,737,152	1,739,675,782,527	188,586,461,217
2009	669,989,894,563	1,497,046,652,997	143,815,215,647
2008	750,085,073,287	1,306,747,185,873	141,190,794,480
2007	904,109,352,670	1,276,075,609,330	165,073,011,820
2006	769,496,121,327	1,304,947,449,864	113,665,662,196
2005	410,585,587,289	970,866,998,934	32,488,156,007
2004	367,943,059,994	815,293,998,888	51,384,055,063

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

Financial Description

Authorized Capital(KRW)	35,000,000,000
Paid-Up Capital(KRW)	9,210,200,000
Total Issued Shares	1,842,040

Balance Sheet
Unit : Korean Won	01/01/2015~06/30/2015	As of 12/31/2014	As of 12/31/2013
Total Assets	2,155,284,786,419	1,998,526,424,956	1,980,714,663,210
Current Assets	469,389,403,767	289,687,739,411	266,782,383,639
Cash & Cash Equivalents	63,170,036,510	53,319,105,523	27,228,039,582
Other Financial Assets	81,278,295,900	50,715,523,612	38,768,266,256
Trade Receivables & Other Receivables	58,161,832,838	41,159,660,472	24,338,416,914
Other Current Assets	14,235,558,550	3,494,554,464	16,797,964,893
Inventories	252,543,679,969	140,998,895,340	159,649,695,994
Non-Current Assets	1,685,895,382,652	1,708,838,685,545	1,713,932,279,571
Marketable Financial Instruments	15,668,964,328	18,434,398,728	22,425,327,476
Other Financial Assets	7,706,298,811	7,605,505,177	7,424,075,303
Investment_Related Companies	774,402,428,278	774,402,428,278	774,402,428,278
Investment_Real Estates	476,159,454,457	477,645,383,613	480,617,241,930
Tangibles	405,058,771,088	423,487,789,560	421,315,234,555
Intangibles	6,819,085,554	7,153,894,881	7,506,477,629
Other Non-Current Assets	80,380,136	109,285,308	241,494,400
Total Liabilities	516,187,968,562	402,693,202,123	404,899,188,024
Current Liabilities	185,744,203,415	63,844,004,385	57,980,200,180
Trade Payables & Other Payables	69,603,417,451	26,091,189,553	43,637,061,562
Short-Term Borrowings	92,261,399,585	28,557,169,573	7,226,897,500
Other Current Financial Debts	2,612,805,668	1,434,232,249	1,634,984,053
Other Current Liabilities	6,061,143,317	936,282,806	1,815,828,159
Deferred Income Tax Credit	15,205,437,394	6,825,130,204	3,665,428,906
Non-Current Liabilities	330,443,765,147	338,849,197,738	346,918,987,844
Long-Term Borrowings	48,271,092,500	54,142,522,000	63,510,147,000
Other Non-Current Financial Debts	32,384,492,432	34,848,425,943	30,008,114,418
Provision for Severance & Retirement	6,596,247,602	5,317,825,731	3,518,466,163
Deferred Income Tax Credit	243,191,932,613	244,540,424,064	249,882,260,263
Capital Stock	9,210,200,000	9,210,200,000	9,210,200,000
Capital Surplus	1,807,717,500	1,807,717,500	1,807,717,500
Treasury Stock	-17,461,324,328	-17,461,324,328	-17,461,324,328
Profit Surplus	1,639,560,849,834	1,597,784,335,405	1,578,342,849,532
Others	5,979,374,851	4,492,294,256	3,916,032,482
Total Equity	1,639,096,817,857	1,595,833,222,833	1,575,815,475,186
Liab. & Shareholder’s Equity	2,155,284,786,419	1,998,526,424,956	1,980,714,663,210

Income Statement
Unit : Korean Won	01/01/2015~06/30/2015	As of 12/31/2014	As of 12/31/2013
Sales	510,487,734,764	1,103,441,138,729	1,054,283,881,050
Cost of Sold Goods	448,951,946,286	1,035,959,163,267	962,423,252,479
Gross Profit	61,535,788,478	67,481,975,462	91,860,628,571
Selling & Admin. Expenses	26,007,378,575	47,596,583,747	41,024,054,861
Operating Income	35,528,409,903	19,885,391,715	50,836,573,710
Other Income	4,588,696,251	10,742,902,916	15,823,273,120
Other Expenses	5,285,659,508	16,623,518,986	13,341,323,496
Finance Income	36,396,607,911	31,216,741,949	38,569,572,228
Finance Expenses	2,847,738,701	4,918,752,892	1,685,414,812
Income Before Taxes	68,380,315,856	40,302,764,702	90,202,680,750
Income Taxes Expenses	13,702,796,427	6,856,316,645	18,774,114,646
Net Income	54,677,519,429	33,446,448,057	71,428,566,104

Cash Flows
Unit : Korean Won	01/01/2015~06/30/2015	As of 12/31/2014	As of 12/31/2013
Operating Activities Cash Flows	1,379,611,168	89,235,570,388	88,902,763,799
Net Income	54,677,519,429	33,446,448,057	71,428,566,104
Adjustment	10,685,656,013	34,780,552,755	40,352,970,754
Changes in Asset/ & Liability	-92,317,077,092	13,787,859,031	-5,651,322,990
Interests Received	1,900,879,343	2,628,824,907	5,364,615,250
Interests Paid	-1,067,359,026	-711,147,579	-1,653,532,187
Dividends Received	34,618,060,605	26,768,642,315	25,914,168,650
Dividends Paid		-12,901,005,000	-12,901,005,000
Income Taxes	-7,118,068,104	-8,564,604,098	-33,951,696,782
Cash Flows from Investing	-34,763,175,277	-75,132,350,467	-49,639,371,904
Cash Inflow from Investing	3,011,800,326	40,531,320,847	175,146,366,904
Cash Outflows for Investing	-37,774,975,603	-115,663,671,314	-224,785,738,808
Cash Flows from Financing	43,092,931,628	11,990,687,728	-39,465,631,349
Cash Inflows from Financing	231,588,763,228	354,307,152,774	65,504,176,800
Cash Outflows from Financing	-188,495,831,600	-342,316,465,046	-104,969,808,149
Increase/Decrease in Cash	9,709,367,519	26,093,907,649	-202,239,454
Cash at the Beginning of Year	53,319,105,523	27,228,039,582	27,430,403,260
Cash at the End of Year	63,170,036,510	53,319,105,523	27,228,039,582

Products, Technologies, Services Description

Main Products & Services

Non-Ferrous Metal Refinery

-Zinc Ingot

-Zinc Alloy for Galvanizing

-Zinc Alloy for Die Casting

-Sulfuric Acid

-Cadmium Stick

-Copper Sulfate

Rechargeable Batteries

-Alkaline Battery

-Ni-MH Battery

-Manganese Battery

Detailed Products Spec.

Technologies Acquired

Trade Partners & Competitors

Suppliers

BAIKSAN METAL CO., LTD.(180111-0076091)

Customers

Competitors

POONG JEON NONFERROUS METAL CO., LTD.

8B-4L, 680-3, GYEONGSEO-DONG, SEO-GU, INCHEON, KOREA

TEL:+82-32-561-9111 FAX:+82-32-561-9118

SANGSHIN METALLIC CO., LTD.

4MA-402-2, SIHWA INDUSTRIAL COMPLEX, 701-3, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-4011 FAX:+82-31-499-4016

PJ ALTEK CO., LTD.

1B-4L, INCHEON WEST INDUSTRIAL COMPLEX, 682-3, GYEONGSEO-DONG, SEO-GU, INCHEON, KOREA

TEL:+82-32-561-0787 FAX:+82-32-561-0789

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic	KOREA ZINC INC.(110111-0168404) (26.91% held by the subject company) KOREA NICKEL CORP.(110111-0529482) (13.0% held by the subject company) KOREA CIRCUIT CO., LTD.(130111-0026749) (32.39% held by the subject company) INTERFLEX CO., LTD.(135011-0042924) (17.67% held by the subject company) YOUNG POONG ELECTRONICS CO., LTD.(135011-0032106) (100.0% held by the subject company) YOUNG POONG BOOK STORE CO., LTD.(110111-0855530) (34.0% held by the subject company) SIGNETICS CORP.(110111-0070815) (25.58% held by the subject company) KG INTERNATIONAL CORPORATION(110111-4252807) SORIN I & T CO., LTD.(110111-1260077) KG GREENTECH CO.,LTD.(230111-0164077) STI CORP.(115611-0019652) CLEAN KOREA CO., LTD.(134711-0004996) YOUNGPOONG CORPORATION(110111-0003824) YOUNG POONG PRECISION CORPORATION(110111-0342496) SEWON TEXTILE CO., LTD.(110111-0318760) TERRANIX CO., LTD.(135011-0042950) SORIN CORPORATION(110111-0365068) YOUNG POONG DEVELOPMENT CO., LTD.(110111-0612914) YOOMI DEVELOPMENT CO., LTD.(110111-0235542) SORIN INVESTMENT DEVELOPMENT CORPORATION(110111-0074544) KORYO HEAVY EQUIPMENT CO., LTD.(181211-0020558) KG ENGINEERING CO., LTD.(110111-2102153) ALANTUM CORPORATION(131111-0215078) XMETECH CO., LTD.(131111-0238400)
Affiliates-Overseas	YP JAPAN CORP.(JAPAN) (100.0% held by the subject company) CHINA CIRCUIT(TIANJIN) CO., LTD.(CHINA) KZ - PRANDA CO., LTD.(THAILAND) KZ MINERALS BOLIVIA S.A.(BOLIVIA) PAN PACIFIC METAL MINING CORP.(CANADA) COLWELL KENNEDY AUSTRALIA PTY., LTD.(AUSTRALIA) SUN METALS HOLDING PTY., LTD.(AUSTRALIA) SUN METALS CORP., PTY., LTD.(AUSTRALIA) ALANTUM EUROPE GMBH(GERMANY) IATM(DALIAN) CO., LTD.(CHINA) IATM(SHENYANG) CO., LTD.(CHINA) ALANTUM ADVANCED MATERIAL AND TECHNOLOGY (SHANGHAI) CO.,LTD, AATM(DALIAN) CO.,LTD. AATM(SHENYANG) CO.,LTD. KZI SINGAPORE PTE. LTD. PT. KZI INDONESIA
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary	YOUNG POONG ELECTRONICS CO., LTD.(135011-0032106) (100.0% held by the subject company) YOUNG POONG BOOK STORE CO., LTD.(110111-0855530) (34.0% held by the subject company) YOUNG POONG DEVELOPMENT CO., LTD.(110111-0612914) SIGNETICS CORP.(110111-0070815) (25.58% held by the subject company) KOREA CIRCUIT CO., LTD.(130111-0026749) (32.39% held by the subject company) INTERFLEX CO., LTD.(135011-0042924) (17.67% held by the subject company) TERRANIX CO., LTD.(135011-0042950) YP JAPAN CORP.(JAPAN) (100.0% held by the subject company) FL.8TH.KOGYO BLDG. KANDA, HIGASHI MATSUSHITA-CHO, CHIYODA-KU, TOKYO, JAPAN CHINA CIRCUIT(TIANJIN) CO., LTD.(CHINA) DAGANG ECONOMIC TECH-NOLOGY DEVELOPMENT AREA,TAINJIN, CHINA
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	09/2011	2010	2009
Export	417,152	479,641	383,975
Domestic	357,800	400,173	286,015
Total	774,952	879,814	669,990

The Subject imports from Australia, Peru and USA, and it exports to Asia, Europe, Africa and North America.

Court Action

No.

News Clipping

-----

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.82
UK Pound	1	Rs.100.12
Euro	1	Rs.73.75

INFORMATION DETAILS

Analysis Done by :	KAS

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.