MIRA INFORM REPORT

 

 

Report No. :

341162

Report Date :

12.09.2015

 

IDENTIFICATION DETAILS

 

Name :

WELCRON KANGWON CO., LTD.

 

 

Registered Office :

919-18, Poseungjangan-ro, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

06.02.1976

 

 

Com. Reg. No.:

124-81-46960

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Nuclear Reactors and Steam Generators

 

 

No. of Employees :

138

 

 

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

WELCRON KANGWON CO., LTD.

(Ex. Company Name : KANGWON B&E CO., LTD., “강원비앤이()”

(Korean Company Name : “()웰크론강원”)

Registered Address

919-18, Poseungjangan-ro, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea

(Old Address System : 580-1, Jang-an-ri, Jang-an-myeon, Hwaseong-si, Gyeonggi-do, Korea)

Building

 

Zip Code

18586

Tel

+82-31-358-7683

Fax

+82-31-358-8676

E-mail

kwb21@kwb21.com

Website

www.kwb21.com

Trading Address

4FL., Welcron Bldg., 212-24, Guro-dong, Guro-gu, Seoul, Korea

Tel

+82-2-6670-9000

Fax

+82-2-2108-4611

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Nuclear Reactors and Steam Generators

  Main Business

Industrial Boilers, HRSG, Heat Exchangers, Incinerators, Furnaces, Fired Heater, Direct Fired Incinerator, Catalytic Oxidizer

  Sub Business

Manufacture of Central Heating Boilers and Radiators

Established (mm/dd/yyyy)

02/06/1976

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Boilers(40102000)

Sell

Fire tube boilers(40102001)

Sell

Water tube boiler(40102002)

Sell

Convection heaters(40101811)

 

 

CEO’s

 

Name

Lee Young-Kyu

Address

 

Date of Birth

11/10/1959

Title

President & CEO

Sex

Male

Nationality

Korean

Profiles

 

Capital (KRW)

7,626,515,000

Employees

138

Formation

Listed Company (KOSDAQ : 114190) as of 11/20/2009

Bank Details

Industrial Bank of Korea-Gaebong Branch

Corporate Registered No.

110111-0191398

Business Registered No.

124-81-46960

Permit & Licenses

12/21/1997 ISO 9001

12/27/1997 EM Mark

04/23/2001 ISO 14001

 

Int’l Trade No.: 175272

Shareholder Position

Name

Shares

%

WELCRON HANTEC CO., LTD. (110111-1118276)

6,185,468

40.55

LEE YOUNG-KYU

1,728,227

11.33

LEE HYO-KOOK

72,000

0.47

SOHN KI-TAE

69,678

0.46

SHIN JUNG-JAE

9,264

0.06

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

431,739

2.83

OTHERS

6,756,654

44.30

TOTAL

15,253,030

100.00

Company History

03/1971 Established as KANGWON BOILER CO.(Sole Proprietorship)

02/06/1976 Incorporated as KANGWON BOILER MANUFACTURING CO., LTD.

11/2001 Awarded US$ 5 Million Export Top Prize

11/2007 Awarded US$ 10 Million Export Top Prize

06/2008 Changed company name to KANGWON B&E CO., LTD.

11/30/2011 Awarded US$ 20 Million Export Top Prize

03/23/2012 Changed company name to the present name

12/2013 awarded US$ 50 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Lee Young-Kyu

Korean

1959.11.10

-

Vice Chairman

Mr.

Lee Hyo-Kook

Korean

1949.02.16

Lusiana State University, USA

Vice President & CEO

Mr.

Sohn Ki-Tae

Korean

1966.10

-

Executive Director

Mr.

Lee Hun-Kyu

Korean

1963.08.

-

Director

Mr.

Jung Sung-Sik

Korean

1968.05.03

-

Auditor

Mr.

Song Young-Sub

Korean

1961.09.06

Korea University, Korea

Outside Director

Mr.

Lee Bum-Yong

Korean

1958.03

-

Outside Director

Mr.

Jung Ui-Kyun

Korean

1947.11

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

21,266,668,131

66,116,471,487

-345,640,195

(*)12/2014

51,481,321,298

67,037,638,566

1,123,194,300

(*)12/2013

50,660,658,965

72,441,332,830

3,922,207,543

(*)12/2012

106,471,213,705

89,258,207,531

8,974,548,879

12/2011

5,803,423,154

59,922,123,862

921,015,620

11/2011

50,222,892,047

53,719,067,042

5,754,714,777

11/2010

30,619,298,393

28,677,831,553

1,716,785,857

11/2009

38,673,259,927

31,707,898,689

2,590,391,566

11/2008

49,499,532,666

29,219,823,693

2,333,829,008

11/2007

31,479,842,441

22,319,635,110

2,334,372,519

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

 

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

7,626,515,000

Total Issues Shares

15,253,030

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

66,116,471,487

67,037,638,566

72,441,332,830

Current Assets

45,830,526,599

48,800,730,307

61,556,227,707

Cash & Cash Equivalents

13,881,139,878

11,986,632,999

29,503,809,105

Other Financial Assets

900,000,000

2,530,000,000

8,866,600,000

Marketable Financial Instruments

3,926,283,798

3,919,654,152

2,335,067,972

Current Financial Instruments

 

 

663,080,000

Trade Receivables

22,128,632,594

25,063,243,950

15,820,368,644

Other Receivables

3,038,803,339

3,221,972,772

134,374,552

Inventories

1,395,493,949

1,736,908,938

2,086,978,152

Other Current Assets

560,173,041

342,317,496

2,145,949,282

Non-Current Assets

20,285,944,888

18,236,908,259

10,885,105,123

Marketable Financial Instruments

5,498,863,620

4,209,934,695

2,940,244,370

Non-Current Financial Instruments

250,862,151

162,513,216

36,599,309

Tangibles

10,187,410,561

10,004,091,478

4,787,447,597

Intangibles

1,657,088,746

1,724,088,746

928,500,746

Investment_Related Companies

 

 

759,351,330

Other Non-Current Receivables

1,026,782,380

50,334,300

50,334,300

Other Non-Current Assets

1,664,937,430

1,688,937,430

1,181,867,000

Deferred Income Tax Credit

 

397,008,394

200,760,471

Total Liabilities

11,815,396,704

16,592,147,200

26,564,177,500

Current Liabilities

11,787,733,878

16,587,078,415

26,561,223,546

Trade Payables

6,013,395,243

8,949,783,920

6,911,586,660

Other Current Liabilities

5,774,338,635

7,637,294,495

16,497,111,417

Current Portion of Bonds with Warrant

 

 

3,152,525,469

Non-Current Liabilities

27,662,826

5,068,785

2,953,954

Deferred Income Tax

13,088,520

 

 

Provision for Severance & Retirement

14,574,306

5,068,785

2,953,954

Capital Stock

7,626,515,000

7,195,481,000

6,333,413,000

Capital Surplus

14,503,666,250

13,082,610,512

9,180,043,766

Installments

1,841,770,354

-177,386,840

-271,781,148

Others

955,348,250

625,371,570

1,659,254,108

Profit Surplus

29,373,774,929

29,719,415,124

28,976,225,604

Total Equity

54,301,074,783

50,445,491,366

45,877,155,330

Liab. & Shareholder’s Equity

66,116,471,487

67,037,638,566

72,441,332,830

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

21,266,668,131

51,481,321,298

50,660,658,965

Cost of Sold Goods

17,571,396,525

40,566,048,909

38,917,146,707

Gross Profit

3,695,271,606

10,915,272,389

11,743,512,258

Selling & Admin. Expenses

3,981,955,837

9,288,975,799

8,509,281,977

Operating Income

-286,684,231

1,626,296,590

3,234,230,281

Other Non-Operating Income

379,111,044

1,354,778,606

2,322,884,807

Other Non-Operating Expenses

844,545,915

2,691,234,227

2,727,615,742

Finance Income

437,382,864

1,307,804,492

3,054,503,831

Finance Expenses

100,087,546

456,995,133

667,111,319

Income Before Taxes

-414,823,784

1,140,650,328

5,216,891,858

Income Taxes Expenses

-69,183,589

17,456,028

1,294,684,315

Net Income

-345,640,195

1,123,194,300

3,922,207,543

 

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

-1,945,235,967

-14,600,421,349

16,975,955,445

Net Income

-345,640,195

1,123,194,300

3,922,207,543

Adjustment

356,763,302

2,806,916,320

2,266,109,540

Changes in Asset/ & Liability

-1,888,709,727

-17,996,423,566

13,067,612,470

Income Taxes

-67,649,347

-534,108,403

-2,279,974,108

Cash Flows from Investing

1,726,537,249

-2,463,292,155

10,839,413,934

-Cash Inflow from Investing

4,168,079,361

42,617,766,150

37,196,940,698

-Cash Outflows for Investing

-2,441,542,112

-45,081,058,305

-26,357,526,764

Cash Flows from Financing

2,041,427,595

-390,858,700

-3,777,017,067

-Cash Inflows from Financing

2,042,239,092

3,999,995,520

 

-Cash Outflows from Financing

-811,497

-4,390,854,220

-3,777,017,067

Increase/Decrease in Cash

1,894,506,879

-17,517,176,106

23,862,235,822

Cash at the Beginning of Year

11,986,632,999

29,503,809,105

5,641,573,283

Cash at the End of Year

13,881,139,878

11,986,632,999

29,503,809,105

 

 

Products, Technologies, Services Description

 

Main Products & Services

Industrial Boilers, HRSG, Heat Exchangers, Incinerators, Furnaces, Fired Heater, Direct Fired Incinerator, Catalytic Oxidizer

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

Customers

 

Competitors

SEENTEC CO., LTD.(194211-0046004)

TODAYSURE PROJECT(USA)

ENERCON SYSTEM(UK)

HS THERMAL ENGINEERING(UK)

GEM CANADA(CANADA)

MACCI(ITALY)

CELICES(MEXICO)

THERMAX(INDIA)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

WELCRON HANTEC CO., LTD. (Ex. HANTEC ENGINEERING CO., LTD. 110111-1118276)

WELCRON COMPANY LIMITED(110111-0860216)

WELCRON HEALTHCARE CO. LTD.,(120111-0296039)

Overseas Office

 

Liaison Office

 

Overseas Branch

WELCRON GLOBAL VIETNAM JOINT STOCK COMPANY

(23.46% held by the subject company)

Joint Venture

 

Subsidiary

JEJU GREEN POWER CO., LTD.(220111-0132000)

(52.8% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

06/2015

2014

2013

Export

12,205,525,384

34,764,178,381

40,757,156,615

Domestic

9,061,142,747

16,717,142,917

9,903,502,350

Total

21,266,668,131

51,481,321,298

50,660,658,965

The Subject exports to China, Germany, Indonesia, Iran, Japan, Philippines, Russia, Thailand and Egypt.

 

 

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.