MIRA INFORM REPORT

 

 

Report No. :

346560

Report Date :

21.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HANSOL CHEMICAL CO., LTD.

 

 

Registered Office :

310, Ogeum-Ro, Songpa-Gu, Seoul, 8th Fl., Jungang Daily News Bldg., Korea 05701

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

13.03.1980

 

 

Com. Reg. No.:

102-81-34955

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Basic Inorganic Chemicals.

 

 

No. of Employees :

405

 

 

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 :

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

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. 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

HANSOL CHEMICAL CO., LTD.

Registered Address

310, Ogeum-ro, Songpa-gu, Seoul, Korea

Building

8th Fl., Jungang Daily News Bldg.

Zip Code

05701

Tel

+82-2-2152-2399

Fax

+82-2-2152-2391~2

E-mail

jerry@hansol.co.kr;rodjang@hansol.com;chan@hansol.com;chan@hansol.com

Website

www.hansolchemical.com

Trading Address

8th Fl., Jungang Daily News Bldg., 310, Ogeum-ro, Songpa-gu, Seoul, Korea

(Old Address System : 8th Fl., Jungang Daily News Bldg., 8-2, Garakbon-dong, Songpa-gu, Seoul, Korea)

Tel

+82-2-2152-2399

Fax

+82-2-2152-2391~2

Other Address-Ulsan Factory

231, Yeocheon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-259-8000

Fax

+82-52-267-2644

Other Address-Jeonju Factory

816, Yongam-ri, Bongdong-eup, Wanju-gun, Jeollabuk-do 565-900 Korea

Tel

+82-63-260-8114

Fax

+82-263-261-7237

Type

Export/Import

Industry

Manufacture of Other Basic Inorganic Chemicals

  Main Business

Hydrogen Peroxide, Latex, Benzoyl Peroxide, Sodium Hydrosulphite, Adhesives for Paper, Adhesives for Wood, Fixing Agent, Wet Strength Agent, Retention Aid, Alkaline Sizing Agent, Chelating Agent, Micro Capsule, Insolubilizer, Urea Formaldehyde, Benzoyl Peroxide, Pharmaceutical Fine Chemical

  Sub Business

 

Established (mm/dd/yyyy)

03/13/1980

The Subject owns the premises of Ulsan Factory and Jeonju Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Resins(13111000)

Sell

Films(13111200)

Sell

TMP(Trimethylol propane)

Sell

Benzoyl peroxide(51101525)

Sell

Urea formaldehyde(13111027)

Sell

Curing agents(12162300)

Sell

Bleaches(47131807)

Sell

Inorganic peroxides(12352304)

Sell

Latex rubber(13101501)

 

 

CEO’s

 

Name

Park Won-Hwan

Address

 

Date of Birth

05/08/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

56,475,975,000

Employees

405

Formation

Listed Company (Korea Stock Exchange : 014680) as of 05/20/1989

A Company of Hansol Group

Bank Details

Woori Bank-Teheranro Branch

Nonghyup Bank

Kookmin Bank

Shinhan Bank

Korea Exchange Bank

Corporate Registered No.

110111-0270895

Business Registered No.

102-81-34955

Permit & Licenses

01/1989 KS

11/09/2005 ISO 9001

11/09/2005 ISO 14001

 

Int’l Trade No.: 802923

Shareholder Position

Name

Shares

%

KB ASSET MANAGEMENT CO., LTD.(110111-0572556)

1,832,757

16.23

BARING ASSET MANAGEMENT KOREA LIMITED(110111-0563208)

380,440

3.37

NATIONAL PENSION SERVICE(110171-0007134)

1,652,551

14.63

CHO DONG-KIL

35,479

0.31

HANSOL LOGISTICS CO., LTD.(110111-0150659)

360,573

3.19

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

854,040

7.56

TREASURY STOCK

206,880

1.83

OTHERS

5,972,475

52.88

TOTAL

11,295,195

100.00

Company History

03/1980 Incorporated as Korea Peroxide Co., Ltd.

12/1985 Renamed company to Youngwoo chemical Co., Ltd

05/1989 Listed on the Korean Stock Exchange Market

05/1994 Affiliated to Hansol conglomerate

12/1995 Renamed company to Hansol Chemical Co., Ltd.

01/2000 Renamed company to Hansol Chemience Co., Ltd.

01/2000 Established Pharmaceutical Fine Chemical R&D center

02/2001 Expanded THP factory)

09/2001 Expanded SB-LATEX factory

10/2001 Expanded new regeneration process of hydrogen peroxide factory

04/2002 Consecutive 3,340days accident-free operation in Jeonju, Ulsan plant

10/2002 Established joint venture on ink cartridge factory in China

04/2003 Designated Bulk Good Manufacturing Practice awarding Korea Food & Drug Administration

06/2003 Established joint venture of Trimethylolpropane business with Perstorp

09/2003 Designated new labor-management culture awarding Ministry of Labor in Chonju plant

10/2003 Completed joint venture factory of ink cartridge in China

03/2004 Renamed company to Hansol Chemical Co., Ltd.

06/2004 Acquired INNOPTIX Co., Ltd.

09/2004 Received the Minister's Award from Ministry of Commerce, Industry and Energy for productivity improvement in Ulsan Plant

04/2005 Expanded half pure Hydrogen Peroxide plant in Ulsan

09/2006 Consecutive 5520 days accident-free operation in Ulsan plant

12/2007 Acquired C&P Chemical Co.,Ltd

12/2008 Update the Credit Rating (BBB0 → BBB+)

02/2009 Moved to the present HQ address from 18FL., Hansol Bldg., 736-1, Yeoksam 1-dong, Gangnam-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

 

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Park Won-Hwan

Korean

1954.05.08

Hanyang University, Korea

Chairman

Mr.

Cho Dong-Hyuck

Korean

1950.11.22

Middlebury University

Director

Mr.

Kim Hwa-Joo

Korean

1964.06.

Kyungbuk National University, Korea

Director

M/S.

Cho Yeon-Joo

Korean

1979.10.

University of Pennsylvania, USA

Outside Director / Auditor

Mr.

Seo Jung-Ho

Korean

1969.08.

Seoul National University, Korea

Outside Director / Auditor

Mr.

Cho Nam-Shin

Korean

1955.06.

University of Pennsylvania, Wharton School

Outside Director / Auditor

Mr.

Choi Jong-Yeon

Korean

1955.03.

Univ. of Pittsburgh, USA

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

142,791,754,558

414,943,069,512

18,560,923,737

(*)2014

277,931,458,795

371,589,223,347

22,253,003,478

(*)2013

286,157,034,520

344,585,590,175

21,039,693,711

(*)2012

293,809,915,235

329,487,453,499

31,162,345,055

(*)2011

278,623,403,000

304,880,910,000

13,311,992,000

(*)2010

228,250,587,000

252,155,500,000

14,130,749,000

2009

192,376,780,000

199,337,702,000

16,959,424,000

2008

190,168,994,000

180,507,244,000

3,159,769,000

2007

157,934,388,723

190,563,710,819

5,286,916,106

2006

154,626,000,938

187,921,821,032

11,338,886,237

2005

164,774,204,000

199,920,288,000

12,303,753,000

2004

161,892,863,000

193,123,644,000

10,060,139,000

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

 

 

Financial Description

 

Authorized Capital(KRW)

150,000,000,000

Paid-Up Capital(KRW)

56,475,975,000

Total Issues Shares

11,295,195

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

414,943,069,512

371,589,223,347

344,585,590,175

Current Assets

84,373,089,753

71,363,593,221

63,779,621,038

Cash & Cash Equivalents

414,720,719

5,618,711,559

1,057,430,996

Trade Receivables & Other Receivables

55,609,559,505

40,557,893,700

43,388,604,227

Inventories

24,881,594,199

20,774,417,915

19,137,589,933

Current Financial Instruments

1,486,107,940

2,018,841,654

4,727,891

Other Current Assets

1,981,107,390

2,393,728,393

191,267,991

Non-Current Assets

330,569,979,759

300,225,630,126

280,805,969,137

Non-Current Financial Instruments

25,500,000

25,500,000

26,000,000

Long-Term Trade Receivables & Other Receivables

10,970,372,752

11,824,048,872

12,257,086,081

Marketable Financial Instruments

19,610,587,301

11,995,912,077

12,966,880,242

Investment_Subsidiaries

34,596,524,000

34,596,524,000

34,596,524,000

Investment_Related Companies

14,805,183,017

16,338,364,496

16,338,364,496

Tangibles

237,962,733,035

211,924,967,539

188,015,653,073

Intangibles

11,637,834,654

12,924,068,142

14,078,391,832

Other Financial Assets

961,245,000

596,245,000

2,527,069,413

Total Liabilities

195,738,083,257

168,338,192,787

156,818,514,722

Current Liabilities

86,991,511,862

61,186,971,763

88,844,263,769

Trade Payables & Other Payables

58,793,772,890

44,970,156,403

43,713,678,397

Short-Term Borrowings

12,696,386,767

2,257,190,839

2,046,347,532

Current Portion of Long-Term Debts

10,000,000,000

10,000,000,000

 

Deferred Income Tax Credit

4,628,074,224

2,208,979,571

2,153,965,442

Current Portion of Debentures

 

 

39,954,429,113

Other Current Financial Debts

272,965,970

155,174,153

47,742,553

Other Current Liabilities

600,312,011

1,595,470,797

928,100,732

Non-Current Liabilities

108,746,571,395

107,151,221,024

67,974,250,953

Debentures

89,743,532,871

89,681,805,471

39,808,272,804

Long-Term Borrowings

10,000,000,000

10,000,000,000

20,000,000,000

Provision for Severance & Retirement

3,299,664,410

1,749,262,293

1,337,647,646

Deferred Income Tax Credit

3,232,572,013

2,785,738,309

3,111,539,079

Provision for Severance & Retirement

45,000,000

45,000,000

45,000,000

Other Non-Current Financial Debts

2,425,802,101

2,889,414,951

3,671,791,424

Capital Stock

56,475,975,000

56,475,975,000

56,475,975,000

Capital Surplus

28,594,265,985

28,548,977,000

28,661,401,156

Others

9,745,383,983

5,720,837,838

6,268,085,019

Profit Surplus

124,389,361,287

112,505,240,722

96,361,614,278

Total Equity

219,204,986,255

203,251,030,560

187,767,075,453

Liab. & Shareholder’s Equity

414,943,069,512

371,589,223,347

344,585,590,175

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

142,791,754,558

277,931,458,795

286,157,034,520

Cost of Sold Goods

108,057,571,732

221,680,774,953

234,707,031,397

Gross Profit

34,734,182,826

56,250,683,842

51,450,003,123

Selling Expenses

6,193,230,108

13,232,345,594

12,010,345,001

Admin. Expenses

6,884,013,405

14,823,025,065

12,607,994,099

Operating Income

21,656,939,313

28,195,313,183

26,831,664,023

Finance Income

799,012,143

1,572,659,429

1,183,901,238

Finance Expenses

2,897,452,278

5,800,852,452

5,813,626,747

Other Non-Operating Income

1,969,364,973

3,207,704,147

4,739,988,558

Other Non-Operating Expenses

634,149,147

1,118,470,607

1,780,896,634

Profits from Investment on Related Companies

1,613,791,200

 

 

Income Before Taxes

22,507,506,204

26,056,353,700

25,161,030,438

Income Taxes Expenses

3,946,582,467

3,803,350,222

4,121,336,727

Net Income

18,560,923,737

22,253,003,478

21,039,693,711

 

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

25,042,087,635

38,135,968,578

40,233,784,298

Net Income

18,560,923,737

22,253,003,478

21,039,693,711

Adjustment

14,238,733,146

23,002,842,680

20,046,001,323

Changes in Asset/ & Liability

-4,968,625,126

-1,170,986,106

8,854,711,651

Interests Received

592,825

131,462,389

48,267,339

Interests Paid

-2,377,302,582

-5,036,280,943

-5,607,862,276

Dividends Received

1,796,831,326

2,716,291,280

4,087,694,988

Income Taxes

-2,209,065,691

-3,760,364,200

-8,234,722,438

Cash Flows from Investing

-34,036,255,531

-37,984,521,238

-41,072,867,657

Cash Flows from Financing

1,778,204,398

4,458,543,307

-9,701,180,946

Increase/Decrease in Cash

-7,215,963,498

4,609,990,647

-10,540,264,305

Cash at the Beginning of Year

5,618,711,559

1,057,430,996

11,601,831,028

Cash at the End of Year

-1,593,341,011

5,618,711,559

1,057,430,996

 

 

Products, Technologies, Services Description

 

Main Products & Services

Hydrogen Peroxide

SB-Latex

Fixing Agent

Wet Strength Agent

Retention Aid

Alkaline Sizing Agent

Chelating Agent

Micro Capsule

Insolubilizer

Organic Coagulant

Polyacrylamide

Decolorizing Agent

Benzoyl Peroxide

Sodium Hydrosulfite

Dye Sublimation Ribbon

Inkjet Printer Ink

 

Brand Name : Hitex, Han-Floc, Superox

Annual Production Capacity

(Unit : 1,000 Ton)

Factory

03/2011

2010

2009

Ulsan Factory

9.9

39

36

Jeonju Factory

63.3

235.3

224

Total

73.2

274.3

260

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG FINE CHEMICALS CO., LTD.(181211-0000013)

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

HUCHEMSFINECHEMICALCORPORATION(110111-2611906)

LS-NIKKO COPPER INC.(230111-0058436)

Customers

HANSOL PAPER CO., LTD.(110111-0017867)

HANSOL HOMEDECO CO., LTD.(110111-0825624)

SAMYOUNG PURE CHEMICALS CO., LTD.(110111-0655378)

JEONJU PAPER CORPORATION(210111-0022435)

TECHNOSEMICHEM CO., LTD.(110111-0610083)

Competitors

KOREA KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

ULSAN PACIFIC CHEMICAL CORP.(110111-0011309)

LG CHEM LTD.(110111-2207995)

DONG HWA ENTERPRISE CO., LTD.(160111-0018104)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANSOL HOLDINGS CO., LTD.(Ex. HANSOL PAPER CO., LTD.(110111-0017867)

HANSOL LOGISTICS CO., LTD.(110111-0150659)

HANSOL HOMEDECO CO.,LTD.(110111-0825624)

HANSOL CHEMICAL CO., LTD(110111-0270895)

HANSOL LIGHTING INC.(110111-3626003)

HANSOL CONSTRUCTION CO.,LTD.(110111-2664400)

HANSOL DEVELOPMENT CO., LTD.(141211-0005540)

HANSOL LCD INC.(110111-0004682)

HANSOL CSN CO.,LTD(110111-0150659)

INNOPTIX CO.,LTD(110111-2296253)

HANSOL PNS CO.,LTD. (110111-0175970)

SEOUL PAPER CO., LTD.(110111-0990609)

CNP CHEMICAL CO., LTD.(124411-0043349)

E-SERVICE CO.,LTD.(284311-0011634)

HANSOL LIGHTING INC.(110111-3626003)

SEOUL PAPER CO.,LTD.(110111-0990609)

MUNGYEONG ESCO CO.,LTD.(131311-0079553)

HANSOL INTICUBE CO., LTD.(110111-2915605)

MAUL SOUP CO., LTD.(110111-3858078)

ARTONE PAPER MFG. CO.,LTD.(134811-0000034)

HANSOL PAPERTECH CO.,LTD.(204311-0008603)

HANSOL TECHNICS CO., LTD.(110111-0004682)

SAMYOUNG PURE CHEMICALS CO., LTD.(110111-0655378)

 

 

Subsidiary

HANSOL CNP CO., LTD.(124411-0043349)

 

TIANJIN C&P CHEMICAL CO., LTD.

NO 28B. 2ROAD XIAOZHAN INDUSTRY PARK, JINNAN QU, TIANJIN, CHINA

 

HANSOL CNP VINA CO., LTD.

LOT D, ROAD N2, DAI DONG - HOAN SON INDUSTRIAL ZONE, HOAN SON COMMUNE, TIEN DU DISTRICT, BAC NIHN PROVINCE, VIETNAM

 

HANSOL ELECTRONIC MATERIALS(XI'AN) CO., LTD.(CHINA)

GREENPOINT GLOBAL MITTELSTAND FUND SPECIAL PURPOSE VEHICLE I, LLC(USA)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2011

2010

2009

Export

29,746

26,785

23,833

Domestic

248,878

201,466

168,543

Total

278,623

228,251

192,377

The subject deals with the companies in China, Hong Kong and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

-------------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.89

UK Pound

1

Rs.100.39

Euro

1

Rs.73.52

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

               

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.