MIRA INFORM REPORT

 

 

Report No. :

341158

Report Date :

15.09.2015

 

IDENTIFICATION DETAILS

 

Name :

HANKUK GLASS INDUSTRIES INC.

 

 

Registered Office :

211, Teheran-Ro, Gangnam-Gu, Seoul, 10FL., Korea Foundation for Advanced Studies Bldg.,  Korea 06141

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

25.03.1957

 

 

Com. Reg. No.:

116-81-00115

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Plate Glass. (Flat Glass, Pair Glass, Automotive Safety Glass, Specialty Glass)

 

 

No. of Employees :

291

 

 

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

HANKUK GLASS INDUSTRIES INC.

Registered Address

211, Teheran-ro, Gangnam-gu, Seoul, Korea

Building

10FL., Korea Foundation for Advanced Studies Bldg.

Zip Code

06141

Tel

+82-2-3706-9114

Fax

+82-2-3706-9363

E-mail

ehjang@hanglas.co.kr;jlmoon@hanglas.co.kr

Website

www.hanglas.co.kr

Trading Address

10FL., Korea Foundation for Advanced Studies Bldg., 211, Teheran-ro, Gangnam-gu, Seoul, Korea

(Old Address System : 10FL., Korea Foundation for Advanced Studies Bldg., 678-39, Yeoksam-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-3706-9114

Fax

+82-2-3706-9363

Other Address-Busan Factory

345, Ilgwang-myeon, Gijang-gun, Busan, Korea

Tel

+82-51-720-4214

Fax

+82-51-721-5697

Other Address-Gunsan Factory

77, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63 -460-4251

Fax

+82-63-462-2151

Other Address-Daejeon Sales Office

20-1, Yongjeon-dong, Dong-gu, Daejeon, Korea

Tel

+82-42-623-4539

Fax

 

Type

Export/Import

Industry

Manufacture of Plate Glass

  Main Business

Flat Glass, Pair Glass, Automotive Safety Glass, Specialty Glass

  Sub Business

 

Established (mm/dd/yyyy)

03/25/1957

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Glass products(30171700)

Sell

Float glass(30171708)

Sell

Safety glass(30171707)

 

 

CEO’s

 

Name

Lee Yong-Sung

Address

 

Date of Birth

12/1966

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

69,882,185,000

Employees

291

Formation

Listed Company (Korea stock Exchange : 002000) as of 06/27/1969

Foreign Direct Investment Corporation(France)

Bank Details

Korea Development Bank-HQ Office

Corporate Registered No.

110111-0027345

Business Registered No.

116-81-00115

Permit & Licenses

Int’l Trade No.: 984676

Shareholder Position

Name

Shares

%

SOFIAG

4,481,748

42.54

NAI

3,474,738

32.98

SGGF

155,000

1.47

LEE SE-WOONG

634,781

6.03

OTHERS

1,788,160

16.97

TOTAL

10,534,427

100.00

Company History

03/25/1957 Incorporated as the present name

04/1971 Registered as a Foreign Direct Investment Corporation(K0000920)

06/16/2014 moved to the present HQ address from 15th Fl., Yeongpung Bldg., 33, Seorin-dong, Jongno-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

 

Title

Name

Nationality

Date of Birth

Education/Career

President & CEO

Mr.

Lee Yong-Sung

Korean

1966.12

CEO of Dow Corning Korea LTD.

Director

Mr.

Usah Soibi

French

1969.08

Ecole Superieur de Physique et

  Chimie Industrielles de Paris, Engineer

-.President of Flat Glass Sector

  Asia-Pacific Region

Director

Mr.

Patrick Dupan

French

1963.12

Saint-Gobain

Director

Mr.

Habie Himeno

French

1964.01

Instituto de Empresa, Economics M.A

Outside Director

Mr.

Philip Ttiro

French

1959.07

-Graduated from ESSEC

-Heidrick & Struggles Seoul Office Managing Partner

-Korn/Ferry International Seoul Office Senior Client Partner

Outside Director

Mr.

Choi Young-Ik

Korean

1963.06.04

Washington University, USA

Auditor

Mr.

Chae Won-Seok

Korean

1954.12.

George Washington University, USA

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

102,847,564,528

563,852,812,283

18,583,786,618

(*)2014

227,499,819,868

533,628,198,044

7,297,519,636

(*)2013

234,479,118,180

544,765,663,035

2,272,238,182

(*)2012

258,488,834,123

536,571,911,820

-74,306,420,209

(*)2011

354,479,707,478

652,963,045,453

22,018,101,468

(*)2010

353,017,520,957

654,782,811,523

25,902,141,596

2009

309,822,051,222

600,719,614,799

-20,095,103,232

2008

292,656,073,346

675,782,377,349

-11,113,718,884

2007

277,062,714,570

670,584,494,901

-20,378,650,026

2006

251,831,658,380

699,197,875,716

-537,068,788

2005

280,231,652,564

710,696,709,754

1,949,742,825

2004

 315,908,369,459

 729,615,173,663

 18,135,325,537

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

 

 

Financial Description

 

Authorized Capital(KRW)

120,000,000,000

Paid-Up Capital(KRW)

69,882,185,000

Total Issues Shares

10,534,427(Common : 10,079,660 / Preferable ; 454,767)

 

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

563,852,812,283

533,628,198,044

544,765,663,035

Current Assets

117,299,193,430

111,138,639,396

117,310,276,276

Cash & Cash Equivalents

48,677,091,943

40,353,097,323

36,994,955,964

Trade Receivables

13,853,784,815

17,137,892,114

25,736,937,922

Current Financial Instruments

1,096,800,372

2,550,665,509

1,955,144,024

Derivatives

611,999,170

53,692,005

905,431

Inventories

51,668,627,189

49,793,520,210

51,260,640,882

Other Current Assets

1,390,889,941

1,249,772,235

1,361,692,053

Current Assets to be Sold

33,552,276,785

33,746,805,328

0

Non-Current Assets

413,001,342,068

388,742,753,320

427,455,386,759

Marketable Financial Instruments

40,129,836,407

1,712,847,978

1,698,673,688

Investment_Related Companies

199,580,952,770

209,095,959,751

211,791,194,279

Tangibles

169,425,783,095

166,394,476,341

199,853,048,371

Intangibles

1,956,951,596

1,999,320,401

2,188,837,561

Non-Current Financial Instruments

1,840,887,090

1,817,602,240

1,833,608,596

Other Non-Current Assets

66,931,110

133,753,988

70,481,775

Deferred Income Assets

0

7,588,792,621

10,019,542,489

Total Liabilities

64,188,233,625

75,655,263,276

94,222,868,474

Current Liabilities

45,254,263,615

58,483,732,804

76,047,109,210

Trade Payables

17,372,869,586

23,753,987,855

22,203,329,384

Other Current Financial Debts

24,540,981,241

30,163,164,272

47,990,456,347

Derivatives

31,405,070

99,155,371

36,250,345

Other Current Liabilities

3,309,007,718

4,467,425,306

5,817,073,134

Non-Current Liabilities

18,933,970,010

17,171,530,472

18,175,759,264

Confirmed Salaries

4,270,259,130

3,572,169,039

4,319,582,651

Other Long-Term Salaries

668,644,001

746,077,488

891,024,297

Non-Current Finance Liabilities

10,276,259,588

10,671,853,166

10,919,828,180

Other Provisions

2,286,269,635

2,181,430,779

2,045,324,136

Deferred Income Tax Credit

1,432,537,656

0

0

Capital Stock

69,882,185,000

69,882,185,000

69,882,185,000

Capital Surplus

71,305,322,633

71,305,322,633

71,305,322,633

Profit Surplus

23,067,749,764

5,560,144,196

-1,858,940,065

Others

335,409,321,261

311,225,282,939

311,214,226,993

Total Equity

499,664,578,658

457,972,934,768

450,542,794,561

Liab. & Shareholder’s Equity

563,852,812,283

533,628,198,044

544,765,663,035

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

102,847,564,528

227,499,819,868

234,479,118,180

Cost of Sold Goods

86,475,721,619

190,205,387,452

214,454,289,625

Gross Profit

16,371,842,909

37,294,432,416

20,024,828,555

Selling & Admin. Expenses

13,873,899,331

31,529,100,374

49,453,635,221

Operating Income

2,497,943,578

5,765,332,042

-29,428,806,666

Other Non-Operating Income

4,581,198,740

3,644,394,075

7,908,512,323

Other Non-Operating Expenses

1,674,577,222

4,018,224,243

19,645,149,413

Profits from Investment on Related Companies

0

0

35,789,615,371

Finance Income

15,613,932,048

4,786,598,779

3,567,238,855

Finance Expenses

234,519,263

545,484,056

611,733,253

Income Before Taxes

20,783,977,881

9,632,616,597

-2,420,322,783

Income Taxes Expenses

2,200,191,263

2,335,096,961

-4,692,560,965

Net Income

18,583,786,618

7,297,519,636

2,272,238,182

 

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

17,301,893,715

7,788,973,006

-17,910,261,396

Net Income

20,783,977,881

9,632,616,597

-2,420,322,783

Adjustment

-13,867,096,327

7,795,426,438

-12,967,036,401

Changes in Asset/ & Liability

-4,968,374,481

-14,004,043,713

-6,029,493,250

Interests Received

207,713,980

570,771,114

664,651,795

Dividends Received

15,311,140,461

3,715,378,716

2,536,044,997

Income Taxes

-165,467,799

78,823,854

305,894,246

Cash Flows from Investing

-7,901,718,045

-4,430,831,647

-10,325,859,070

Cash Flows from Financing

-1,076,181,050

0

0

Increase/Decrease in Cash

8,323,994,620

3,358,141,359

-28,236,120,466

Cash at the Beginning of Year

40,353,097,323

36,994,955,964

65,231,076,430

Cash at the End of Year

48,677,091,943

40,353,097,323

36,994,955,964

 

 

Products, Technologies, Services Description

 

Main Products & Services

Flat Glass

Automotive Glass

Specialty Glass

 

Brand Name : HANGLAS

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

KOREA AUTOGLASS CORPORATION

1B, JEONUI INDUSTRIAL COMPLEX, 613, SINJEONG-RI, JEONUI-MYEON, YEONGI-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-860-5000~9  FAX:+82-41-860-5030

 

DONG-KUK GLASS INDUSTRY CO., LTD.

10-14, YANGJAE 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-576-3855  FAX:+82-2-573-3891

 

KEUM SUNG GLASS TECH CO., LTD.

594-1, SINJIN-RI, GWANGCHEON-EUP, HONGSEONG-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-641-6263  FAX:+82-41-641-6267

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

HANKUK SECKURIT LIMITED(120111-0008294)

(49.94% held by the subject company)

55 SORYONG-DONG, GUNSAN, JEOLLABUK-DO, KOREA

TEL:+82-63-469-2315 FAX:+82-63-469-2324

Affiliates-Overseas

SAINT-GOBAIN CENTRAL SEKURIT (QINGDAO) CO., LTD.

(25.0% held by the subject company)

 

SAINT-GOBAIN INNOVATIVE MA TERIALS POLSKA SP. Z. O. O.(POLAND)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

SAINT-GOBAIN HANGLAS SEKURIT (SHANGHAI) CO., LTD.(CHINA)

(50.0% held by the subject company)

 

SAINT-GOBAIN GLASS QINGDAO CO., LTD.(CHINA)

(50.0% held by the subject company)

 

SAINT-GOBAIN GLASS CO., LTD.(CHINA)

(50.0% held by the subject company)

 

SAINT-GOBAIN HANGLAS (JAPAN) KK((JAPAN)

(50.0% held by the subject company)

 

SAINT-GOBAIN HANGLAS (SHANGHAI) CONSULTING CO., LTD.(CHINA)

(50.0% held by the subject company)

Subsidiary

HANKUK HANISO CO., LTD.(120111-0164351)

(100.00% held by the subject company)

585-14 GAJWA-DONG, SEO-GU, INCHEON, KOREA

TEL : +82-32-580-0371 FAX:+82-32-580-0319

 

KUNSHAN YONGXIN GLASSWARE CO., LTD.(YXG)

(60.0% held by the subject company)

222 KUNTAI ROAD, KUNSHAN CITY, JIANGSU PROVINCE, CHINA

TEL:+86-520-766-1077 FAX:+86-520-766-4219

Corporate Ownership

COMPAGNIE DE SAINT-GOBAIN

SOFIAG

Major Shareholders

 

Cooperative Enterprise

-Technical Support from

PILKINGTON PLC(UK)

BOC TECH LTD AIRCO, YNC

RESEARCH FRONTIERS INC.

PPG INDUSTRIES INC.

SAINT-GOBAIN VITRAGE S.A

SAINT-GOBAIN GLASS FRANCE

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2013

2012

2011

Export

6,582

8,845

14,020

Domestic

237,087

342,006

449,849

Total

243,669

350,851

463,869

The Subject deals with the companies in China and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.37

UK Pound

1

Rs.102.54

Euro

1

Rs.75.32

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.