MIRA INFORM REPORT

 

 

Report No. :

341157

Report Date :

12.09.2015

 

IDENTIFICATION DETAILS

 

Name :

DONGKUK R&S CO., LTD.

 

 

Registered Office :

26-29, Sangdong-ro 375beon-gil, Sangdong-myeon, Gimhae-si, Gyeongsangnam-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

01.01.2004

 

 

Com. Reg. No.:

615-81-35770

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Structural Refractory Ceramic Products.

 

 

No. of Employees :

90

 

 

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

DONGKUK R&S CO., LTD.

(English Company Name : DONGKUK REFRACTORIES & STEEL CO., LTD.)

(Korean Company Name : “()동국알앤에스”)

Registered Address

26-29, Sangdong-ro 375beon-gil, Sangdong-myeon, Gimhae-si, Gyeongsangnam-do, Korea

(Old Address System : 411-1, Ugye-ri, Sangdong-myeon, Gimhae-si, Gyeongsangnam-do, Korea)

Building

 

Zip Code

50805

Tel

+82-55-323-6589~90

Fax

+82-55-323-6117

E-mail

kbs@dkref.co.kr;swcho@dkref.co.kr

Website

www.dkref.co.kr

Trading Address

4FL., Hyewon Bldg., 10, Oncheonjang-ro 107beon-gil, Dongnae-gu, Busan, Korea

(Old Address System : 4FL., Hyewon Bldg., 154-68, Oncheon-dong, Dongnae-gu, Busan, Korea)

Tel

+82-51-550-5050 +82-51-550-5010

Fax

+82-51-558-4058

Other Address-Masan Factory

102, Mideodeok-ro Jinjeon-myeon, Masanhappo-gu, Changwon-si, Gyeongsangnam-do, Korea

(Old Address System : 92, Yulti-ri, Jinjeon-myeon, Masan-si, Gyeongsangnam-do, Korea)

Tel

+82-55-271-3450~3

Fax

+82-55-271-4644

Other Address-Incheon Sales Branch

15, Jungbong-daero, Dong-gu, Incheon, Korea

Tel

+82-32-762-8462

Fax

+82-32-762-8463

Other Address-Changwon Sales Branch

12, Gongdan-ro 103beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-262-8044

Fax

+82-55-266-4557

Other Address-Gwangyang Sales Branch

70, Gwangjang-ro, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-3150

Fax

+82-61-792-3149

Other Address-Pohang Sales Branch

195, Cheolgangsandan-ro, Daesong-myeon, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-278-0591

Fax

+82-54-278-4051

Type

Export/Import

Industry

Manufacture of Structural Refractory Ceramic Products

  Main Business

Refractory, Ceramic, Pipe, HGI

  Sub Business

Wholesale of Basic Metals

Established (mm/dd/yyyy)

01/01/2004

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ferrites(32121703)

Sell

Refractories(31370000)

 

 

CEO’s

 

Name

Lee Kang-Hak

Address

 

Date of Birth

09/23/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

18,400,000,000

Employees

90

Formation

Listed Company (KOSDAQ : 075970) as of 02/13/2004

A Company of DONGKUK INDUSTRIES GROUP

Bank Details

Industrial Bank of Korea

Korea Development Bank

Woori Bank

KEB Hana Bank

Busan Bank

Corporate Registered No.

195511-0069249

Business Registered No.

615-81-35770

Permit & Licenses

11/1999 ISO 9001:2000

11/2003 14001:2004

05/2009 KS Mark

 

Int’l Trade No.: 12170838

Shareholder Position

Name

Shares

%

CHANG SE-HEE

2,226,274

12.10

DONGKUK S&C CO., LTD.(110111-2276784)

4,122,052

22.40

DAEWON STEEL CO., LTD.(120111-0123711)

1,326,175

7.21

BULIWON FOUNDATION(114222-0005772)

880,028

4.78

LEE KEUM-JA

929,304

5.05

CHANG SANG-GEON

786,993

4.28

KIM MYUNG-JA

525,908

2.86

CHANG HYE-WON

387,903

2.11

CHANG HYE-KYUNG

350,302

1.90

CHANG SE-HAN

158,054

0.86

OTHERS

6,707,007

36.45

TOTAL

18,400,000

100.00

Company History

09/21/2012 Sold out the Pohang Factory(Steel Business)

1352-3, Mundeok-ri, Ocheon-eup, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel:+82-54-278-9871~2 Fax:+82-54-278-9873

01/2008 Changed company name to DONGKUK REFRACTORIES & STEEL CO., LTD.(“동국내화()”) from DONGKUK REFRACTORIES CO., LTD.(“()동국알앤에스”)

09/2007 Begin the steel business (Namyang factory)

03/25/2005 Changed English company name to DONGKUK REFRACTORIES CO., LTD. from DONGKUK REFRACTORY CO., LTD.

09/2004 Established Yingkou New East Refactories Co., Ltd

02/2004 Listed KOSDAQ

01/2004 Changed company name to Dongkuk ref co., ltd after spin off from DONGKUK INDUSTRIES COMPANY(110111-0085583)

12/2003 Separate from Dongkuk ind co.,ltd with a rationalization of enterprise

11/2003 Attained 14001:2004

06/2000 Constructed Busan factory for ferrite.

11/1999 Attained ISO 9001:2000

03/1998 Merged with Dongkuk Ind Co., Ltd

02/1996 Constructed kimhae factory for basic unshaped refractroies

10/1987 Constructed ferrite plant in Masan factory.

08/1987 Contracted exclusive license production agreement with TODA KOGYO (JAPAN) for hard ferrite material.

11/1986 Established Technical research Institute

07/1985 Contracted exclusive license production agreement with ASAHI GLASS CO.,LTD(JAPAN) for refractories.

11/1984 Attained Korea Industrial Standard Mark License ( KS ) No. 3685, 3686, 3687, 3688

06/1984 Constructed fine ceramics factory.

08/1983 Attained Korea Industrial Standard Mark Licence ( KS ) No.3179, 3180

06/1983 Changwon ceramic co., ltd renamed changwon co.ltd.

09/1975 Constructed Masan factory.

09/1974 Foundation of Chang won ceramic co., ltd

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Kang-Hak

Korean

1953.09

Yonsei University, Korea

Director

Mr.

Chang Se-Hee

Korean

1968.03.12

Korea university, Korea

Director

Mr.

Kim Young-Hwan

Korean

1961.03

Yonsei University, Korea

Outside Director

Mr.

Nam Jang-Soo

Korean

1949.01.

Seoul National University, Korea

Outside Director

Mr.

LeeJae-Won

Korean

1969.04

Seoul National University, Korea

Executive Director

Mr.

Lee Gang-Hak

Korean

1953.09.23

Yonsei University, Korea

Auditor

Mr.

Lee Dong-Sik

Korean

1928.12.06

Busan National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

48,027,517,514

130,958,067,930

156,123,520

(*)2014

102,228,140,591

128,334,042,356

1,360,794,983

(*)2013

108,707,900,510

131,726,034,746

372,181,943

2012

122,220,583,458

141,505,792,299

255,667,252

2011

117,853,100,963

169,277,794,438

3,058,698,593

2010

169,520,764,727

153,496,727,807

5,400,515,773

2009

160,190,338,199

154,423,925,921

1,442,255,133

2008

145,260,349,725

145,169,002,353

5,586,684,083

2007

66,969,735,970

97,778,618,515

3,096,945,968

2006

49,102,280,524

58,821,846,345

2,842,681,581

2005

48,289,911,648

47,950,386,662

2,024,102,678

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

 

 

Financial Description

 

Authorized Capital(KRW)

55,200,000,000

Paid-Up Capital(KRW)

18,400,000,000

Total Issued Shares

18,400,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

130,958,067,930

128,334,042,356

131,726,034,746

Current Assets

45,957,902,922

44,033,634,349

48,360,928,828

Cash & Cash Equivalents

4,039,835,920

560,508,734

925,791,685

Current Financial Instruments

12,735,000

12,735,000

134,695,000

Trade Receivables

24,903,906,142

21,564,082,667

27,377,126,692

Other Receivables

18,042,815

1,242,460,870

32,055,138

Advance Payments

263,488,469

322,314,955

1,046,981,110

Inventories

16,697,193,719

20,251,359,612

18,752,174,291

Current Non-Financial Instruments

22,700,857

61,844,386

92,104,912

Other Current Finance Assets

 

18,328,125

 

Non-Current Assets

85,000,165,008

84,300,408,007

83,365,105,918

Non-Current Financial Instruments

263,300,000

252,234,000

282,834,000

Marketable Financial Instruments

1,006,999,000

1,006,999,000

1,006,999,000

Investment_Related Companies

23,399,993,580

23,399,993,580

23,399,993,580

Tangibles

58,569,783,526

58,015,201,848

57,182,115,256

Intangibles

511,146,102

511,146,102

511,146,102

Held-to-maturity investments

35,755,000

33,985,000

41,475,000

Other Non-Current Finance Assets

1,213,187,800

1,080,848,477

940,542,980

Total Liabilities

63,206,179,476

59,266,277,422

62,374,383,797

Current Liabilities

47,580,636,154

26,027,805,997

21,668,969,652

Trade Payables & Other Payables

6,856,184,448

9,380,904,528

8,394,369,279

Account Payables

2,366,431,298

1,810,740,026

1,743,960,272

Advance Receipts

575,930,326

307,029,180

934,201,264

Withholdings

70,120,680

161,018,390

40,817,680

Guarantee Deposit Withhold

10,000,000

10,000,000

10,000,000

Accrued Expenses

260,002,297

695,684,589

582,921,409

Short-Term Borrowings

13,200,000,000

5,856,250,239

5,193,408,141

Current Portion of Long-Term Debts

24,000,000,000

7,300,000,000

4,040,000,000

Accrued Income Tax

87,989,694

177,068,116

106,632,471

Other Current Non-Financial Debts

153,977,411

329,110,929

622,659,136

Non-Current Liabilities

15,625,543,322

33,238,471,425

40,705,414,145

Long-Term Borrowings

2,000,000,000

20,000,000,000

27,900,000,000

Leasehold Deposit Received

7,649,651,422

7,466,465,480

6,860,906,570

Provision for Severance & Retirement

670,220,609

397,046,404

236,735,929

Deferred Income Tax Credit

5,305,671,291

5,374,959,541

5,707,771,646

Capital Stock

18,400,000,000

18,400,000,000

18,400,000,000

Capital Surplus

17,660,065,630

17,660,065,630

17,660,065,630

Others

13,573,583,779

13,573,583,779

13,573,583,779

Profit Surplus

18,118,239,045

19,434,115,525

19,718,001,540

Total Equity

67,751,888,454

69,067,764,934

69,351,650,949

Liab. & Shareholder’s Equity

130,958,067,930

128,334,042,356

131,726,034,746

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

48,027,517,514

102,228,140,591

108,707,900,510

Cost of Sold Goods

42,390,975,454

89,017,283,626

95,937,476,140

Gross Profit

5,636,542,060

13,210,856,965

12,770,424,370

Selling & Admin. Expenses

4,927,484,054

10,605,950,668

8,941,915,105

Operating Income

709,058,006

2,604,906,297

3,828,509,265

Other Income

353,499,478

1,164,458,417

320,685,408

Other Expenses

33,746,076

593,493,214

1,412,063,476

Finance Income

44,565,240

220,236,057

229,054,931

Finance Expenses

870,894,220

2,002,210,937

2,528,147,089

Income Before Taxes

202,482,428

1,393,896,620

438,039,039

Income Taxes Expenses

46,358,908

33,101,637

65,857,096

Net Income

156,123,520

1,360,794,983

372,181,943

 

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

1,375,193,037

10,362,460,635

6,792,990,403

Cash Flows from Operating

1,579,918,617

10,609,233,835

6,670,303,669

Net Income

156,123,520

1,360,794,983

372,181,943

Adjustment

2,227,714,122

5,235,378,975

5,814,290,852

Changes in Asset/ & Liability

-803,919,025

4,013,059,877

483,830,874

Income Taxes

-204,725,580

-246,773,200

122,686,734

Cash Flows from Investing

-1,896,654,227

-4,047,655,337

4,264,428,608

Cash Flows from Financing

4,000,788,376

-6,680,088,249

-11,368,836,570

Increase/Decrease in Cash

3,479,327,186

-365,282,951

-311,417,559

Cash at the Beginning of Year

560,508,734

925,791,685

1,237,209,244

Cash at the End of Year

4,039,835,920

560,508,734

925,791,685

 

 

Products, Technologies, Services Description

 

Main Products & Services

REFRACTORY

Iron steel refractory : Acid, Neutral and Basic shaped refractory /Monolithic refractory

Incinerator refractory : Shaped / Monolithic refractory Nonferrous metals refractory & etc.: Shaped / Monolithic/ Special refractory

 

FINE CERAMICS

Water/Sanitary faucets

High purity Alumina crucible

Ceramics LINING PIPE & ELBOW

 

HGI

Corrosion Resistance HGI

Formability HGI

 

STEEL PIPE

Structural carbon steel

Structural square shape steel(tube)

Product for temporary construction(pipe support, fence, coupling pin, safe rail)

 

Brand Name : PGT-BT,J-18D, MAGGUN, TUNGUN, Ceramic Disk

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

POSCO(174611-0000741)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

DONGKUK STEEL MILL CO.,LTD.(110111-0031338)

Competitors

POSCO(174611-0000741)

1, GOEDONG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-220-0114  FAX:+82-54-220-6000

 

JINBANG STEEL KOREA CO., LTD.(171711-0060051)

605, HO-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-289-5700  FAX:+82-54-278-0421

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CHOSUN STEELWIRE CO.,LTD(110111-0008486)

DONGKUK S&C CO., LTD.(110111-2276784)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER CO., LTD.(201111-0023666)

GO DEOK WIND POWER CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNGSEOK DEVELOPMENT CO., LTD.(KOREA)

KUMHWA METAL CO., LTD.(KOREA)

DK WIND POWER CO., LTD.(234111-0045158)

NAMWON WIND POWER CO., LTD.(211311-0005428)

 

DONGKUK INDUSTRIES COMPANY(110111-0085583)

(4.02% held by the subject company)

 

DAEWON STEEL CO., LTD.(120111-0123711)

(19.0% held by the subject company)

 

DK DONGSHIN CO., LTD.(110111-3850959)

(4.44% held by the subject company)

 

DK AMERICA, INC.

23133 HAWTHORNE BLVD. STE.301 TORRANCE, CA 90505, USA

TEL : 1-310-375-2222,  FAX : 1-310-375-2221

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

DONGYEON S&T CO., LTD.(110111-3401059)

(100.0% held by the subject company)

 

YOUNGKU SHINDONG REFRACTORIES MATERIALS CO., LTD.(CHINA: 영구신동내화재료())

(56.0% held by the subject company)

 

CHIBAK DONGKUK REFRACTORIES MATERIALS CO., LTD.(CHINA 치박동국내화재료())

(90.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

06/2015

2014

2013

Export

3,932,854

6,657,988

4,416,015

Domestic

44,094,664

95,570,152

104,291,885

Total

48,027,518

102,228,140

108,707,900

The Subject deals with the companies in China, Taiwan, Indonesia and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.39

UK Pound

1

Rs.102.59

Euro

1

Rs.74.90

 

 

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.