MIRA INFORM REPORT

 

 

Report No. :

341457

Report Date :

18.09.2015

 

IDENTIFICATION DETAILS

 

Name :

HEARTYCHEM CORP.

 

 

Registered Office :

511, Yeongdong-daero, Gangnam-gu, Seoul, Korea 06164, Rm. 1806, Korea Trade Tower

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

18.08.1995

 

 

Com. Reg. No.:

105-81-73938

 

 

Legal Form :

Co., Ltd By Shares

 

 

Line of Business :

Wholesale of Synthetic Rubber and Plastics Materials.

 

 

No. of Employees :

31

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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

HEARTYCHEM CORP.

(Korean Company Name : “()하티켐”)

Registered Address

511, Yeongdong-daero, Gangnam-gu, Seoul, Korea

Building

Rm. 1806, Korea Trade Tower

Zip Code

06164

Tel

+82-2-6000-0886

Fax

+82-2-6000-0888

E-mail

hearty@hearty.co.kr

Website

www.hearty.co.kr

Trading Address

Rm. 1806, Korea Trade Tower, 511, Yeongdong-daero, Gangnam-gu, Seoul, Korea

(Old Address System : Rm. 1806, Korea Trade Tower, 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-6000-0886

Fax

+82-2-6000-0888

Other Address-Gonjiam Branch

7, Gyeongchung-daero 295beon-gil, Gonjiam-eup, Gwangju-si, Gyeonggi-do, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Wholesale of Synthetic Rubber and Plastics Materials

  Main Business

Synthetic Rubbers, Plastics, Polyurethane

  Sub Business

 

Established (mm/dd/yyyy)

08/18/1995

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Rubber compound(13101607)

Sell

Processed and synthetic rubber(13101600)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

 

 

CEO’s

 

Name

Kim Hyung-Kon

Address

Suite 109-603, 120, Irwon-ro, Gangnam-gu, Seoul, Korea

Date of Birth

08/10/1966

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

450,000,000

Employees

31

Formation

Co., Ltd by shares

Bank Details

KEB Hana Bank-Int’l Trade Branch

SC First Bank of Korea

Kookmin Bank

Woori Bank

Industrial Bank of Korea

Corporate Registered No.

110111-1187601

Business Registered No.

105-81-73938

Permit & Licenses

Int’l Trade No.: 11278485

Shareholder Position

Name

Shares

%

CHO HYUN-IL

42,500

94.44

KIM MI-KYUNG

1,000

2.23

OTHERS

1,500

3.33

TOTAL

45,000

100.00

Company History

08/18/1995 Incorporated as HEARTY &C CORP.

09/04/1999 Moved to the present HQ address from 538, Dohwa-dong, Mapo-gu, Seoul, Korea

09/15/2000 Changed company name to the present name

11/2001 Awarded US$1 Million Export Top Prize

12/26/2008 Increased the authorized shares to 5,000,000 shares from 20,000 shares

11/2008 Awarded US$20 Million Export Top Prize

12/30/2008 Increased capital to 450,000,000 KRW from 50,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Hyung-Kon

Male

Korean

03/25/2008

Director

M/S.

Kim Mi-Kyung

Female

Korean

08/29/2001

Director

Mr.

Cho Hyun-Il

Male

Korean

01/08/2010

Auditor

Mr.

Cho Hyun-Jung

Male

Korean

03/21/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

202,944,897,072

22,336,625,213

-1,727,779,568

2013

237,507,086,781

28,465,238,356

391,111,029

2012

273,769,314,201

22,828,435,239

1,327,558,613

2011

255,911,205,712

25,939,613,389

2,681,788,104

2010

174,626,810,011

15,613,794,894

2,335,523,519

2009

83,438,751,991

14,194,541,177

2,180,925,964

2008

130,767,902,888

9,858,885,423

4,035,414,244

2007

51,955,825,996

7,362,859,919

524,212,489

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

450,000,000

Total Issues Shares

45,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

22,336,625,213

28,465,238,356

22,828,435,239

Current Assets

17,874,552,927

23,835,299,694

18,418,579,535

-Quick Assets

16,749,915,146

22,980,978,642

15,811,096,902

-Inventories

1,124,637,781

854,321,052

2,607,482,633

Fixed Assets

4,462,072,286

4,629,938,662

4,409,855,704

-Investment

590,302,700

569,228,180

668,497,960

-Tangibles

1,780,446,350

1,834,537,919

1,935,664,882

-Intangibles

 

 

 

-Others

2,091,323,236

2,226,172,563

1,805,692,862

Total Liabilities

13,337,848,796

17,780,626,496

12,078,015,980

Current Liabilities

12,200,746,999

16,670,147,833

11,234,970,449

Fixed Liabilities

1,137,101,797

1,110,478,663

843,045,531

Capital Stock

450,000,000

450,000,000

450,000,000

Capital Surplus

 

 

 

Profit Surplus

8,602,658,022

10,330,437,590

10,389,326,561

Capital Adjustment

-53,881,605

-95,825,730

-88,907,302

Total Equity

8,998,776,417

10,684,611,860

10,750,419,259

Liab. & Shareholder’s Equity

22,336,625,213

28,465,238,356

22,828,435,239

 

Current Liabilities

12,200,746,999

16,670,147,833

11,234,970,449

Trade Payables

5,395,342,948

8,251,271,244

7,492,906,188

Short-Term Borrowings

5,595,237,730

6,040,210,289

1,590,080,638

Account Payables

996,254,425

1,213,624,260

977,327,519

Accrued Income Tax

-

49,174,930

57,992,270

Advance Receipts

105,671,768

968,773,958

939,149,613

Withholdings

91,667,760

123,611,590

151,841,900

Deferred Income Taxes

16,572,368

23,481,562

25,672,321

Fixed Liabilities

1,137,101,797

1,110,478,663

843,045,531

Leasehold Deposit Received

3,600,000

3,600,000

-

Provision for Severance & Retirement

1,133,501,797

1,106,878,663

843,045,531

 

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

202,944,897,072

237,507,086,781

273,769,314,201

Cost of Sold Goods

189,989,998,755

222,370,269,864

256,915,657,752

Gross Profit

12,954,898,317

15,136,816,917

16,853,656,449

Selling & Admin. Expenses

14,613,064,662

14,079,558,284

14,522,197,206

Operating Income

-1,658,166,345

1,057,258,633

2,331,459,243

Non-Operating Income

2,897,926,957

3,410,504,866

2,431,621,940

Non-Operating Expenses

3,011,072,422

3,791,182,605

3,081,155,218

Income Before Taxes

-1,771,311,810

676,580,894

1,681,925,965

Income Taxes Expenses

-43,532,242

285,469,865

354,367,352

Net Income

-1,727,779,568

391,111,029

1,327,558,613

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

976,340,501

-2,664,202,452

3,752,807,202

-Net Income

-1,727,779,568

391,111,029

1,327,558,613

-Exp. without Cash Outflow

293,927,334

1,075,453,220

898,850,374

-Revenue without Cash Inflows

-100,066,137

-94,104,739

-89,293,624

-Changes in Asset/ & Liability

2,510,258,872

-4,036,661,962

1,615,691,839

Cash Flows from Investing

-80,900,173

-731,255,400

-2,894,666,737

-Cash Inflow from Investing

3,063,793,780

2,543,874,000

2,352,967,273

-Cash Outflows for Investing

-3,144,693,953

-3,275,129,400

-5,247,634,010

Cash Flows from Financing

-462,710,808

4,029,377,194

-1,376,348,506

-Cash Inflows from Financing

6,239,059,843

4,691,926,507

542,121,245

-Cash Outflows from Financing

-6,701,770,651

-662,549,313

-1,918,469,751

Increase/Decrease in Cash

432,729,520

633,919,342

-518,208,041

Cash at the Beginning of Year

1,963,907,382

1,329,988,040

1,848,196,081

Cash at the End of Year

2,396,636,902

1,963,907,382

1,329,988,040

 

 

Products, Technologies, Services Description

 

Main Products & Services

Synthetic Rubber

Reprocess Rubbers

Detergent Chemicals

Feed Additives

Non-Ferrous Metal Products

Other Chemicals

Nitrogen Fertilizers

Phosphate Fertilizers

Potash Fertilizers

NP/NK/NPK Fertilizers

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

DYM CO., LTD.

624-2, EOPSEONG-DONG, SEOBUK-GU, CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-621-6250  FAX:+82-41-621-8420

 

JUNGWOO TRADING CO., LTD.

869-11, EOGOK-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-386-5003  FAX:+82-55-364-1778

 

HUMADE CORPORATION

RM. 2310, MASTERS TOWER BLDG., 553, DOHWA 1-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-3275-5155~8  FAX:+82-2-3275-5157

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HEARTYCHEM ASIA LTD.(HONG KONG)

RM.4206, FAREAST FINANCIAL CENTER, 16, HARCOURT ROAD, ADMIRALTY, HONG KONG

TEL:+852-2861-1761 FAX:+852-2861-1760

 

THE EIGHT H CORPORATION(110111-4384246)

(49.3.% held by the subject company)

 

FLOGIS INTERNATIONAL CORP.(110111-3954230)

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to China, Taiwan, Indonesia, Italy and Japan, and it imports from Russia.

Court Action

 

No.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.50

UK Pound

1

Rs.102.00

Euro

1

Rs.75.03

 

 

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.