MIRA INFORM REPORT

 

 

Report No. :

346936  

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

KYUNG DONG PHARMACEUTICAL CO., LTD.

 

 

Registered Office :

224-3, Jeyakdanji-ro, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

12.02.1976

 

 

Com. Reg. No.:

124-81-35518

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Finished Medicaments

 

 

No. of Employees :

503

 

 

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

 

Company Name

KYUNG DONG PHARMACEUTICAL CO., LTD.

(Korean Company Name : “경동제약()”)

Registered Address

224-3, Jeyakdanji-ro, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea

(Old Address System : 535-3, Daeyang-ri, Yanggam-myeon, Hwaseong-si, Gyeonggi-do, Korea)

Building

 

Zip Code

18631

Tel

+82-31-352-0990

Fax

+82-31-352-0991

E-mail

moses@kdpharma.co.kr

Website

www.kdpharma.co.kr

Trading Address

9 FL., Kyung Dong Bldg., 1926, Nambusunhwan-ro, Gwanak-gu, Seoul, Korea

(Old Address System : 9 FL., Kyung Dong Bldg., 1659-5, Inhun-dong, Gwanak-gu, Seoul, Korea)

Tel

+82-2-576-6121~5  +82-2-570-6135

Fax

+82-2-577-5195  +82-2-576-8815

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Finished Medicaments

  Main Business

Anti-Hypertensive Agent, GI Tract Regulator Antiulcerants, Anti-microbials, Circulatory Agents, Non-steroidal Anti-inflammatory Drugs, Psychoneural Agent, Anti-spasmodics, Hepatitis Agent

  Sub Business

 

Established (mm/dd/yyyy)

02/12/1976

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antibiotics(51101500)

Sell

Antimycotics(41106201)

Sell

Diuretics(51191500)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

Sell

Non narcotic analgesics and antipyretics(51142000)

Sell

Antidiabetic agents and hyperglycemic agents(51181500)

Sell

Drugs affecting the gastrointestinal system(51170000)

Buy

Amides or imides(12352111)

Buy

Centrally acting skeletal muscle relaxants(51151900)

Buy

Anti oxidants(12162200)

Buy

Drugs used for gallbladder disease(51172000)

Buy

Terbinafine hydrochloride(51101818)

Buy

Vitamin supplements(51191905)

Buy

Neomycin(51101513)

Buy

Centella asiatica extract(51212002)

Buy

Organic acids or its substitutes(12352106)

Buy

Methocarbamol(51151904)

Buy

Acyclovir(51102301)

Buy

Biochemicals(12352200)

Buy

Amino acids or its derivatives(12352209)

Buy

Chemicals including Bio Chemicals and Gas Materials(12000000)

 

 

CEO’s

 

Name

Ryu Deok-Hee

Address

 

Date of Birth

05/20/1938

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

13,575,000,000

Employees

503

Formation

Listed Company (KOSDAQ : 011040) as of 12/18/1992

Bank Details

Industrial Bank of Korea-Daechi Station Branch

Kookmin Bank

Corporate Registered No.

120111-0003765

Business Registered No.

124-81-35518

Permit & Licenses

Int’l Trade No.: 590754

Shareholder Position

Name

Shares

%

RYU DEOK-HEE

1,323,000

9.97

RYU KI-SUNG

709,368

5.34

KYUNG DONG SONGCHUN FOUNDATION(110222-0006104)

663,750

5.00

DELTA LLOYD AZIE DEELNEMINGEN FONDS N.V

640,998

4.83

LEE SUNG-JA

605,000

4.56

RYU CHAN-HEE

532,000

4.01

TREASURY STOCK

1,465,873

11.04

OTHERS

7,335,011

55.25

TOTAL

13,275,000

100.00

Company History

09/1975 Established as YOOIL Sangsa Co.(Sole Proprietorship)

02/12/1976 Incorporated as the present name

11/2001 Awarded US$1 Million Export Top Prize

11/30/2007 Awarded US$ 3 Million Export top Prize

11/2011 Awarded US$ 5 Million Export Top Prize

12/2013 Awarded US$ 10 Million Export Top Prize

12/2014 Awarded US$ 20 Million Export Top Prize

 

 


Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

Chairman & CEO

Mr.

Ryu Deok-Hee

Korean

1938. 05. 20

Sungkyunkwan University, Korea

President & CEO

Mr.

Lee Byeong-Seok

Korean

1953. 12. 28

Sungkyunkwan University, Korea

Vice President & CEO

Mr.

Ryu Ki-Sung

Korean

1982. 06. 21

Gangnam University, Korea

Sr. Executive Director

Mr.

Nam Ki-Cheol

Korean

1957. 10. 11

Kyung Dong College, Korea

Outside Director

Mr.

Lee Soon-Bo

Korean

1944. 06. 04

Prof., of Sungkyunkwan University, Korea

Outside Director

Mr.

Cha Dong-Ok

Korean

1955. 12. 16

Prof., of Sungkyunkwan University, Korea

Auditor

Mr.

Lee Jae-Bok

Korean

1940. 01. 06

Sungkyunkwan University, Korea

Auditor

M/S.

Lee Sung-Ja

Korean

1944.01

Gaphyung High, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

72,446,124,145

230,147,494,901

10,327,830,951

(*)2014

152,237,085,914

223,515,358,821

24,960,169,920

(*)2013

132,437,150,528

196,693,747,473

18,742,272,734

(*)2012

122,700,571,017

185,621,030,826

7,961,490,781

(*)2011

127,481,498,458

185,585,286,709

20,243,397,618

(*)2010

124,208,804,478

170,978,576,471

19,164,049,976

2009

104,209,578,276

159,958,722,100

13,475,481,524

2008

81,300,438,387

122,925,203,001

11,434,908,292

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

 

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

13,575,000,000

Total Issues Shares

13,275,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

230,147,494,901

223,515,358,821

196,693,747,473

Current Assets

90,880,505,384

99,222,872,771

103,300,773,572

Cash & Cash Equivalents

15,971,315,095

18,253,789,036

20,894,007,884

Current Financial Instruments

29,578,887,010

36,978,887,010

44,556,622,125

Trade Receivables

14,361,546,648

17,751,431,030

14,462,449,699

Other Receivables

3,599,875,654

3,794,731,214

1,964,592,462

Inventories

26,868,228,260

22,380,470,384

21,368,600,444

Other Current Assets

500,652,717

63,564,097

54,500,958

Non-Current Assets

139,266,989,517

124,292,486,050

93,392,973,901

Non-Current Financial Instruments

35,850,678,700

23,815,712,500

10,502,511,782

Other Receivables

89,000,000

60,000,000

315,000,000

Tangibles

68,151,859,799

65,308,380,925

47,661,436,513

Investment_Real Estates

27,809,024,909

27,944,657,538

29,027,158,780

Intangibles

3,827,408,398

3,599,922,856

3,041,054,595

Investment_Subsidiaries

3,529,291,684

3,529,291,684

2,761,291,684

Other Non-Current Assets

9,726,027

34,520,547

84,520,547

Total Liabilities

31,238,020,139

33,057,903,147

27,365,854,078

Current Liabilities

24,031,695,445

27,829,254,877

22,706,559,620

Trade Payables

6,119,490,363

10,925,520,167

7,725,828,760

Other Payables

7,791,478,975

6,964,919,291

4,993,541,586

Short-Term Borrowings

93,036,361

71,885,030

99,565,444

Deferred Income Tax Credit

6,183,699,159

5,974,595,539

5,371,997,000

Provisions

1,908,464,016

1,541,183,616

1,849,837,647

Other Current Liabilities

1,935,526,571

2,351,151,234

2,665,789,183

Non-Current Liabilities

7,206,324,694

5,228,648,270

4,659,294,458

Other Non-Current Liabilities

1,227,819,872

879,425,097

1,989,862,655

Confirmed Salaries

2,069,361,393

1,534,510,154

27,712,613

Deferred Income Tax Credit

3,909,143,429

2,814,713,019

2,641,719,190

Capital Stock

13,575,000,000

13,575,000,000

13,575,000,000

Capital Surplus

7,497,029,610

7,497,029,610

7,497,029,610

Others

-21,423,156,714

-21,423,156,714

-21,423,156,714

Installments

11,727,736,606

7,698,984,969

3,504,620,613

Profit Surplus

187,532,865,260

183,109,597,809

166,174,399,886

Total Equity

198,909,474,762

190,457,455,674

169,327,893,395

Liab. & Shareholder’s Equity

230,147,494,901

223,515,358,821

196,693,747,473

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

72,446,124,145

152,237,085,914

132,437,150,528

Cost of Sold Goods

26,793,690,632

62,155,426,659

52,516,477,113

Gross Profit

45,652,433,513

90,081,659,255

79,920,673,415

R&D

2,036,012,283

4,178,293,383

3,665,993,929

Selling & Admin. Expenses

27,372,869,311

50,710,996,621

45,716,698,269

Operating Income

16,243,551,919

35,192,369,251

30,537,981,217

Other Income

231,905,221

278,913,369

5,047,804,887

Other Expenses

1,278,370,233

2,903,727,063

6,483,646,112

Finance Income

962,146,599

2,061,546,352

2,416,478,564

Finance Expenses

50,726,437

241,067,548

218,615,680

Income Before Taxes

16,108,507,069

34,388,034,361

31,300,002,876

Income Taxes Expenses

5,780,676,118

9,427,864,441

12,557,730,142

Net Income

10,327,830,951

24,960,169,920

18,742,272,734

 

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

7,839,264,999

23,787,212,620

15,641,665,292

Net Income

10,327,830,951

24,960,169,920

18,742,272,734

Adjustment

3,124,890,699

8,397,354,623

16,668,823,886

Income Taxes

-5,613,456,651

-9,570,311,923

-19,769,431,328

Cash Flows from Investing

-5,373,059,312

-21,349,439,192

-6,432,549,679

Cash Flows from Financing

-4,765,719,888

-5,078,113,223

-3,569,908,878

Increase/Decrease in Cash

-2,282,473,941

-2,640,218,848

5,633,961,270

Cash at the Beginning of Year

18,253,789,036

20,894,007,884

15,260,046,614

Cash at the End of Year

15,971,315,095

18,253,789,036

20,894,007,884

 

 

Products, Technologies, Services Description

 

Main Products & Services

Anti-Hypertensive Agent, GI Tract Regulator Antiulcerants, Anti-microbials, Circulatory Agents, Non-steroidal Anti-inflammatory Drugs, Psychoneural Agent, Anti-spasmodics, Hepatitis Agent

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

DAEWOONG PHARMA CO., LTD.(134811-0075342)

223-23, SANGDAEWON 1-DONG, JUNGWON-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-741-7700~4  FAX:+82-31-749-5535

 

ILDONG PHARMACEUTICAL CO., LTD(110111-0012776)

60, YANGJAE 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-526-3114  FAX:+82-2-526-3030

 

DONGWHA PHARM IND CO., LTD.(110111-0043870)

5, SUNHWA-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2021-9300  FAX:+82-2-776-7873

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JCPHARM CO., LTD.(135511-0164372)

DAE IL YANG HANG CO., LTD.(130111-0217839)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

BUZRUN CO., LTD.(110111-1329584)

(67.0% held by the subject company)

 

RYUIL INTERNATIONAL,INC(USA)

(100.0% held by the subject company)

 

KD PHARMA CO., LTD.(134811-0263377)

(73.0% held by the subject company)

 

KYUNG DONG SPORTS CO., LTD.(110111-1329584)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

8,421

9,408

 

Domestic

84,205

118,073

 

Total

92,626

127,481

 

The Subject deals with the companies in China, India, Japan, Pakistan, Phi8lippines, Vietnam and UAE.

 

 

Court Action

 

No.

 

 

News Clipping

 

--------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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.