MIRA INFORM REPORT

 

 

Report No. :

347638

Report Date :

29.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HOONG A CORPORATION

 

 

Registered Office :

55, Saneop-ro 7beon-gil, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea, 14441

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

17.12.1991

 

 

Com. Reg. No.:

130-81-33247

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Packing Machinery and Containers Cleaning Machinery

 

 

No. of Employees :

102

 

 

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

HOONG A CORPORATION

(Korean Company Name : “()흥아기연”)

Registered Address

55, Saneop-ro 7beon-gil, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea

Building

 

Zip Code

14441

Tel

+82-32-675-1511

Fax

+82-32-675-1512  +82-32-675-9200

E-mail

sales@hoonga.com;tsales@hoonga.com

Website

www.hoonga.com

Trading Address

55, Saneop-ro 7beon-gil, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea

(Old Address System : 758-6/7/8, Ojeong-dong, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea)

Tel

+82-32-675-1511

Fax

+82-32-675-1512  +82-32-675-9200

Other Address-Branch

72, Pyeongcheon-ro 850beon-gil, Wonmi-gu, Bucheon-si, Gyeonggi-do 14487 Korea

(Old Address System : 83-6, Dodang-dong, Wonmi-gu, Bucheon-si, Gyeonggi-do 14487 Korea)

Tel

+82-32-682-4355

Fax

+82-32-675-1525

Type

Export/Import

Industry

Manufacture of Packing Machinery and Containers Cleaning Machinery

  Main Business

Blister Packaging Systems, Cartoning Machine, Inspector, Push Through Pack(P.T.P) Machinery

  Sub Business

 

Established (mm/dd/yyyy)

12/17/1991

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Packaging machinery(23152900)

Sell

Cartoning machinery(24102107)

Sell

Sifters(23151608)

 

 

CEO’s

 

Name

Kang Shin-Young

Address

Suite 1411-902, 329, Sinjeong-dong, Yangcheon-gu, Seoul 158-070 Korea

Date of Birth

04/17/1958

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

600,000,000

Employees

102

Formation

Co., Ltd by shares

Bank Details

Korea Exchange Bank-Dodang Dong Branch

Corporate Registered No.

124311-0033988

Business Registered No.

130-81-33247

Permit & Licenses

03/05/1996 EM Mark

02/23/2000 CE Mark

11/29/2001 EM Mark

04/03/2002 ISO 9001

11/12/2002 ISO 14001

11/14/2002 CE Mark

07/02/2004 ISO 9001

07/02/2004 ISO 14001

07/26/2004 CE Mark

11/29/2005 EM Mark

 

Int’l Trade No.: 223461

Shareholder Position

Name

Shares

%

KANG SHIN-YOUNG & HIS FAMILY(7)

60,000

100.00

TOTAL

60,000

100.00

Company History

12/01/1970 Established as HOONG A Trade Co.(Sole Proprietorship)

07/01/1981 Changed company name to HOONG A MACHINERY CO.

12/17/1991 Incorporated as the present name

09/01/1998 Designated as a Venture Business

06/11/2002 Increased the authorized shares to 240,000 shares from 40,000 shares

06/12/2002 Increased capital to 600,000,000 KRW from 300,000,000 KRW

11/11/2004 Designated as a Venture Business again

11/30/2006 Awarded US$ 10 Million Export Top Prize

11/2009 Awarded US$ 20 Million Export Top Prize

02/14/2011 Moved to the present HQ address from 83-6, Dodang-dong, Wonmi-gu, Bucheon-si, Gyeonggi-do, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kang Shin-Young

Male

Korean

03/31/2003

Chairman & CEO

Mr.

Kang Dae-Hee

Male

Korean

03/27/2000

Outside Director

M/S.

Kang Shin-Won

Female

Korean

03/27/2000

Director

M/S.

Yeon Jung-Eun

Female

Korean

03/31/2009

Auditor

M/S.

Jeong Tae-Yong

Female

Korean

03/27/2000

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

37,559,398,969

47,035,461,137

4,844,520,822

2013

30,546,148,846

42,076,195,215

4,620,025,879

2012

30,720,316,195

38,802,726,775

2,537,043,401

2011

28,707,733,090

38,526,780,239

3,390,223,710

2010

25,664,346,979

33,772,483,686

3,920,950,343

2009

27,432,676,555

26,430,774,869

5,979,746,921

2008

20,967,337,219

19,046,066,105

2,794,751,175

2007

16,244,639,542

14,065,569,692

1,215,061,957

2006

14,570,958,765

13,747,289,321

1,316,527,163

2005

11,336,570,931

10,695,174,582

947,730,212

2004

12,420,404,604

9,527,586,853

1,286,075,610

 

 

Financial Description

 

Authorized Capital(KRW)

2,400,000,000

Paid-Up Capital(KRW)

600,000,000

Total Issues Shares

60,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

47,035,461,137

42,076,195,215

38,802,726,775

Current Assets

28,830,327,369

23,419,907,460

19,780,319,907

-Quick Assets

21,440,221,278

14,762,955,518

11,428,551,719

-Inventories

7,390,106,091

8,656,951,942

8,351,768,188

Fixed Assets

18,205,133,768

18,656,287,755

19,022,406,868

-Investment

576,698,566

638,004,018

523,432,528

-Tangibles

16,633,265,571

16,974,686,345

17,393,858,626

-Intangibles

110,367,533

158,995,294

225,213,616

-Others

884,802,098

884,602,098

879,902,098

Total Liabilities

11,396,032,790

10,981,287,690

12,127,845,129

Current Liabilities

11,216,032,790

10,801,287,690

8,208,901,145

Fixed Liabilities

180,000,000

180,000,000

3,918,943,984

Capital Stock

600,000,000

600,000,000

600,000,000

Capital Surplus

 

 

 

Profit Surplus

35,039,428,347

30,494,907,525

26,074,881,646

Capital Adjustment

 

 

 

Total Equity

35,639,428,347

31,094,907,525

26,674,881,646

Liab. & Shareholder’s Equity

47,035,461,137

42,076,195,215

38,802,726,775

 

Current Liabilities

11,216,032,790

10,801,287,690

8,208,901,145

Trade Payables

1,287,443,964

1,034,240,901

1,255,491,561

Account Payables

1,138,350,159

1,295,591,286

904,157,858

Short-Term Borrowings

1,041,540,640

-

 

Advance Receipts

4,239,468,034

6,110,089,933

3,406,856,779

Withholdings

51,663,512

10,479,834

16,070,643

Accrued Expenses

2,649,796,121

2,007,655,726

2,007,361,094

Accrued Income Tax

807,770,360

343,230,010

168,963,210

Current Portion of Long-Term Debts

 

 

450,000,000

Fixed Liabilities

180,000,000

180,000,000

3,918,943,984

Long-Term Borrowings

 

 

2,550,000,000

Provision for Severance & Retirement

 

 

1,270,554,414

Leasehold Deposit Received

180,000,000

180,000,000

180,000,000

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

37,559,398,969

30,546,148,846

30,720,316,195

Cost of Sold Goods

25,958,760,221

20,724,087,873

21,632,534,875

Gross Profit

11,600,638,748

9,822,060,973

9,087,781,320

Selling & Admin. Expenses

6,383,492,769

5,048,318,564

6,294,492,992

Operating Income

5,217,145,979

4,773,742,409

2,793,288,328

Non-Operating Income

1,032,092,766

704,415,116

751,151,257

Non-Operating Expenses

332,807,043

321,067,271

601,180,664

Income Before Taxes

5,916,431,702

5,157,090,254

2,943,258,921

Income Taxes Expenses

1,071,910,880

537,064,375

406,215,520

Net Income

4,844,520,822

4,620,025,879

2,537,043,401

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

4,606,824,449

5,816,699,366

709,055,860

-Net Income

4,844,520,822

4,620,025,879

2,537,043,401

-Exp. without Cash Outflow

407,368,794

641,200,576

1,149,686,899

-Revenue without Cash Inflows

-20,052,820

-34,412,109

-154,053,478

-Changes in Asset/ & Liability

-625,012,347

589,885,020

-2,823,620,962

Cash Flows from Investing

58,290,462

418,512,617

-1,236,796,590

-Cash Inflow from Investing

1,041,889,164

590,879,091

372,812,247

-Cash Outflows for Investing

-983,598,702

-172,366,474

-1,609,608,837

Cash Flows from Financing

741,540,640

-3,200,000,000

-750,000,000

-Cash Inflows from Financing

1,041,540,640

-

-

-Cash Outflows from Financing

-300,000,000

-3,200,000,000

-750,000,000

Increase/Decrease in Cash

5,406,655,551

3,035,211,983

-1,277,740,730

Cash at the Beginning of Year

7,162,541,328

4,127,329,345

5,405,070,075

Cash at the End of Year

12,569,196,879

7,162,541,328

4,127,329,345

 

 

Products, Technologies, Services Description

 

Main Products & Services

Blister Packaging Machine

Cartoning Machine

End Packaging Machine

Tablet Capsule Inspector

Tablet Capsule Lifter

Petrochemical raw materials

Food industry machinery

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

BOUCHERIE

CHAIST

PERRY INDUSTRIES

Customers

AVENTIS

PFIZER

COLGATE-PALMOLIVE

ORAL-B

ENERGIZER

SCHIFFER

Competitors

DAE SUNG MACHINERY CO., LTD.

407-5, CHEONGCHEON 2-DONG, BUPYEONG-GU, INCHEON, KOREA

TEL:+82-32-513-8004  FAX:+82-32-511-9693

 

WOOK IL MACHINERY CO., LTD.

1447-5, SEONGSAN-RI, SEONGJU-EUP, SEONGJU-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-931-6162~6  FAX:+82-54-931-6106~9

 

KYONGJIN SYSTEM

9B-50L, BANWOL INDUSTRIAL COMPLEX, 653, CHOJI-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-494-9822  FAX:+82-31-494-9885

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

H&K CORPORATION

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

HOONG A AMERICA CO.

(100.0% held by the subject company)

TEL: +1-56-407-9317 FAX: +1-562-407-9327

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

2011

2010

2009

Export

20,637,371,690

17,735,910,129

21,907,102,103

Domestic

8,070,361,400

7,928,436,850

5,414,113,592

Others

 

 

111,460,860

Total

28,707,733,090

25,664,346,979

27,432,676,555

The subject deals with the companies in China, India, Iran, Sweden and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.04

UK Pound

1

Rs.99.58

Euro

1

Rs.71.75

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.