|
|
|
MIRA INFORM REPORT
|
Report No. : |
503692 |
|
Report Date : |
14.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
KG CHEMICAL CORPORATION |
|
|
|
|
Formerly Known As : |
KYUNGGI CHEMICAL CORP. |
|
|
|
|
Registered Office : |
322, Dangwol-ro, Onsan-eup, Ulju-gun, Ulsan |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
31.12.1954 |
|
|
|
|
Com. Reg. No.: |
124311-0008999 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of Composite Fertilizers, Composite Fertilizer, Concrete Admixture |
|
|
|
|
No. of Employees : |
221 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
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|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
South Korea |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
SOUTH KOREA - ECONOMIC OVERVIEW
After emerging from the 1950-53 war with North Korea, South Korea emerged as one of the 20th century’s most remarkable economic success stories, becoming a developed, globally connected, high-technology society within decades. In the 1960s, GDP per capita was comparable with levels in the poorest countries in the world. In 2004, South Korea joined the trillion-dollar club of world economies.
Beginning in the 1960s under President PARK Chung-hee, the government promoted the import of raw materials and technology, encouraged saving and investment over consumption, kept wages low, and directed resources to export-oriented industries that remain important to the economy to this day. Growth surged under these policies, and frequently reached double-digits in the 1960s and 1970s. Growth gradually moderated in the 1990s as the economy matured, but remained strong enough to propel South Korea into the ranks of the advanced economies of the OECD by 1997. These policies also led to the emergence of family-owned chaebol conglomerates such as Daewoo, Hyundai, and Samsung, which retained their dominant positions even as the government loosened its grip on the economy amid the political changes of the 1980s and 1990s.
The Asian financial crisis of 1997-98 hit South Korea’s companies hard because of their excessive reliance on short-term borrowing, and GDP ultimately plunged by 7% in 1998. South Korea tackled difficult economic reforms following the crisis, including restructuring some chaebols, increasing labor market flexibility, and opening up to more foreign investment and imports. These steps lead to a relatively rapid economic recovery. South Korea also began expanding its network of free trade agreements to help bolster exports, and has since implemented 16 free trade agreements covering 58 countries—including the United State and China—that collectively cover more than three-quarters of global GDP.
In 2017, the election of President MOON Jae-in brought a surge in consumer confidence, in part, because of his successful efforts to increase wages and government spending. These factors combined with an uptick in export growth to drive real GDP growth to more than 3%, despite disruptions in South Korea’s trade with China over the deployment of a US missile defense system in South Korea.
In 2018 and beyond, South Korea will contend with gradually slowing economic growth - in the 2-3% range - not uncommon for advanced economies. This could be partially offset by efforts to address challenges arising from its rapidly aging population, inflexible labor market, continued dominance of the chaebols, and heavy reliance on exports rather than domestic consumption. Socioeconomic problems also persist, and include rising inequality, poverty among the elderly, high youth unemployment, long working hours, low worker productivity, and corruption.
|
Source : CIA |
Basic
Information
|
Company Name |
KG CHEMICAL CORPORATION (Korean Company Name : “KG케미칼(주)”) |
|
Registered Address |
322, Dangwol-ro, Onsan-eup, Ulju-gun, Ulsan, Korea (Old Address System : 220, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea) |
|
Building |
|
|
Zip Code |
689-892 |
|
Tel |
+82-2-2680-4114 |
|
Fax |
+82-2-2680-4328 |
|
E-mail |
jwkim@kgchem.co.kr;edward@kgchem.co.kr |
|
Website |
www.kgchem.co.kr |
|
Trading Address |
Rm.603, Pangyo TechnoValley U-Space, 607, Sampyeong-dong, Bundang-gu,
Seongnam-si, Gyeonggi-do, Korea |
|
Tel |
+82-2-2680-4114 |
|
Fax |
+82-2-2680-4328 |
|
Other Address-Incheon Factory |
108B-4L, Namdong Industrial Complex, 658-1, Gojan-dong, Namdong-gu,
Incheon, Korea |
|
Tel |
+82-32-819-0147 |
|
Fax |
+82-32-821-0078 |
|
Other Address-Onsan Factory |
220, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea |
|
Tel |
+82-52-231-1710 |
|
Fax |
+82-52-231-1719 |
|
Other Address-Jeju Factory |
407-14, Geumneung-ri, Hallim-eub, Jeju-si, Jeju-do, Korea |
|
Tel |
+82-64-773-2020 |
|
Fax |
|
|
Other Address-Seosan Factory |
936-9, Hwagok-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea |
|
Tel |
|
|
Fax |
|
|
Type |
Export/Import |
|
Industry |
Manufacture of Composite Fertilizers |
|
Main Business |
Composite Fertilizer, Concrete Admixture |
|
Sub
Business |
|
|
Established (mm/dd/yyyy) |
12/31/1954 |
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Nitrogen Phosphorous Potassium Mixtures NPK(10171605) |
|
Sell |
Organic fertilizers and plant nutrients(10171500) |
|
Sell |
Flocculents(47101608) |
|
Sell |
Cement accelerators(12162302) |
|
Sell |
Concrete and mortars(30111500) |
|
Sell |
Chemical fertilizers and plant nutrients(10171600) |
CEO’s
|
Name |
Kim Kyung-Mook |
|
Date of Birth |
02/04/1969 |
|
Title |
President & CEO |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
56,600,210,000 |
|||||||||||||||||||||||||||||||||
|
Employees |
221 |
|||||||||||||||||||||||||||||||||
|
Formation |
Listed Company (Korea Stock
Exchange : 001390) as of 08/1989 A Company of KG Chemical Group |
|||||||||||||||||||||||||||||||||
|
Bank Details |
Korea Development Bank KEB Hana Bank Kookmin Bank |
|||||||||||||||||||||||||||||||||
|
Corporate Registered No. |
124311-0008999 |
|||||||||||||||||||||||||||||||||
|
Business Registered No. |
130-81-09693 |
|||||||||||||||||||||||||||||||||
|
Permit & Licenses |
Int’l Trade No.: 438988 |
|||||||||||||||||||||||||||||||||
|
Shareholder Position |
|
|||||||||||||||||||||||||||||||||
|
Company History |
12/31/1954 Incorporated as KYUNGGI CHEMICAL CORP. 09/08/2003 Changed company name to the present name 03/21/2011 Acquired KG L&B CO., LTD. 02/17/2011 Decide to acquire KG BATECH
CO., LTD.(230111-0114501) as of 03/18/2011 03/29/2013 Moved to the present HQ address from 429-1, Okgil-dong,
Sosa-gu, Bucheon-si, Gyeonggi-do, Korea 07/30/2015 Acquired KG JEJU CO., LTD. 01/05/2018 Increased capital to
64,397,225,000 KRW from 64,175,290,000 KRW 01/09/2018 Increased capital to 64,434,955,000
KRW from 64,397,225,000 KRW 01/17/2018 Increased capital to
64,472,685,000 KRW from 64,434,955,000 KRW |
Detailed
Information
Management
|
Job
Description |
Name |
Nationality |
Date of
Birth |
Inauguration
Date |
|
President & CEO |
Kim Kyung-Mook |
Korean |
02/04/1969 |
03/28/2018 |
|
Director |
Kwak Jae-Sun |
Korean |
01/15/1959 |
03/28/2014 |
|
Executive Director |
Kwak Jung-Hyun |
Korean |
01/14/1982 |
03/25/2016 |
|
Outside Director |
Lim Dong-Yeol |
Korean |
06/19/1963 |
03/31/2017 |
|
Auditor |
Byun Yong-Kwan |
Korean |
03/16/1952 |
03/28/2018 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
2017 |
167,310,908,108 |
309,977,830,579 |
5,789,730,225 |
|
2016 |
164,826,987,847 |
277,129,875,555 |
10,876,387,565 |
|
2015 |
167,351,997,377 |
271,433,384,134 |
7,592,100,637 |
|
2014 |
168,409,372,730 |
271,032,887,124 |
5,472,670,748 |
|
2013 |
201,160,693,308 |
286,621,672,527 |
-8,625,639,499 |
|
2012 |
287,878,691,507 |
429,801,796,713 |
-12,539,862,190 |
|
2011 |
278,260,696,355 |
486,757,586,867 |
-6,528,365,848 |
|
2010 |
263,124,281,769 |
408,839,384,801 |
3,720,859,611 |
|
2009 |
266,805,076,655 |
348,960,618,395 |
8,492,774,504 |
|
2008 |
303,233,116,234 |
340,586,810,851 |
5,903,054,600 |
|
2007 |
243,302,739,676 |
195,197,832,741 |
-3,695,607,229 |
|
2006 |
226,640,136,977 |
198,510,487,718 |
11,300,162,414 |
|
2005 |
227,202,444,066 |
179,934,912,795 |
9,639,921,857 |
|
2004 |
196,530,577,957 |
151,956,611,146 |
6,463,251,114 |
|
2003 |
140,013,369,392 |
131,518,710,018 |
18,794,913,014 |
Financial Description
|
Authorized Capital(KRW) |
75,000,000,000 |
|
Paid-Up Capital(KRW) |
56,600,210,000 |
|
Total Issues Shares |
10,858,393 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total
Assets |
309,977,830,579 |
277,129,875,555 |
271,433,384,134 |
|
Current Assets |
83,344,061,903 |
89,220,815,089 |
87,924,986,332 |
|
Cash
& Cash Equivalents |
2,885,387,357 |
13,088,878,561 |
9,079,041,969 |
|
Trade
Receivables & Other Receivables |
38,691,724,967 |
39,439,750,985 |
37,238,294,498 |
|
Inventories |
36,117,167,735 |
32,793,716,723 |
37,052,078,364 |
|
Other
Financial Assets |
|
1,579,952,076 |
3,362,113,902 |
|
Other
Current Assets |
5,649,781,844 |
2,318,516,744 |
1,193,457,599 |
|
Non-Current Assets |
226,633,768,676 |
187,909,060,466 |
183,508,397,802 |
|
Long-Term
Trade Receivables & Other Receivables |
1,483,940,000 |
1,717,140,000 |
1,554,573,953 |
|
Long-Term
Financial Instruments |
8,718,204 |
10,500,000 |
4,500,000 |
|
Investment_Related
Companies |
169,809,442,308 |
133,723,015,148 |
133,723,015,148 |
|
Investment_Real
Estates |
3,643,302,860 |
3,664,852,852 |
506,223,030 |
|
Tangibles |
45,201,379,994 |
43,528,809,185 |
45,774,940,386 |
|
Intangibles |
760,759,234 |
894,948,203 |
1,342,561,905 |
|
Non-Current
Financial Instruments |
5,505,167,373 |
4,369,795,078 |
602,583,380 |
|
Other
Non-Current Assets |
221,058,703 |
|
|
|
Total Liabilities |
119,795,672,569 |
105,451,345,789 |
107,981,747,146 |
|
Current Liabilities |
110,708,137,833 |
97,788,495,046 |
99,011,201,514 |
|
Trade
Payables & Other Payables |
29,748,923,449 |
21,841,568,302 |
20,631,809,399 |
|
Short-Term
Borrowings |
79,990,445,772 |
73,149,901,219 |
76,857,768,810 |
|
Current
Portion of Provisions |
112,869,301 |
|
|
|
Deferred
Income Tax Credit |
388,175,907 |
1,958,959,029 |
1,215,715,412 |
|
Other
Current Financial Debts |
24,149,902 |
|
|
|
Other
Current Liabilities |
443,573,502 |
838,066,496 |
305,907,893 |
|
Non-Current Liabilities |
9,087,534,736 |
7,662,850,743 |
8,970,545,632 |
|
Long-Term
Trade Payables & Other Payables |
183,034,681 |
133,034,681 |
266,534,681 |
|
Confirmed
Salaries |
|
1,337,940,037 |
2,654,728,590 |
|
Other
Non-Current Financial Debts |
2,176,000,000 |
|
|
|
Other
Non-Current Liabilities |
197,801,941 |
130,772,266 |
|
|
Deferred
Income Tax Credit |
6,530,698,114 |
6,061,103,759 |
6,049,282,361 |
|
Capital Stock |
64,175,290,000 |
60,193,085,000 |
59,702,595,000 |
|
Capital
Surplus |
21,749,971,667 |
13,827,289,510 |
13,022,066,904 |
|
Capital
Adjustment |
-2,081,454,080 |
-5,461,317,545 |
-5,461,317,545 |
|
Others |
-4,402,708 |
-3,913,099 |
-3,716,418 |
|
Profit
Surplus |
106,342,753,131 |
103,123,385,900 |
96,192,009,047 |
|
Total
Equity |
190,182,158,010 |
171,678,529,766 |
163,451,636,988 |
|
Liab.
& Shareholder’s Equity |
309,977,830,579 |
277,129,875,555 |
271,433,384,134 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
167,310,908,108 |
164,826,987,847 |
167,351,997,377 |
|
Cost
of Sold Goods |
136,639,225,259 |
132,644,500,110 |
128,171,488,213 |
|
Gross
Profit |
30,671,682,849 |
32,182,487,737 |
39,180,509,164 |
|
Selling
& Admin. Expenses |
27,199,897,415 |
27,167,010,702 |
29,504,557,611 |
|
Operating
Income |
3,471,785,434 |
5,015,477,035 |
9,675,951,553 |
|
Finance
Income |
7,957,170,711 |
13,265,604,100 |
159,831,185 |
|
Finance
Expenses |
3,637,110,289 |
5,712,700,657 |
3,681,719,499 |
|
Other
Income |
390,132,763 |
2,369,906,060 |
6,341,902,989 |
|
Other
Expenses |
1,420,412,911 |
1,290,072,219 |
3,195,032,989 |
|
Income
Before Taxes |
6,761,565,708 |
13,648,214,319 |
9,300,933,239 |
|
Income
Taxes Expenses |
971,835,483 |
2,771,826,754 |
1,708,832,602 |
|
Net
Income |
5,789,730,225 |
10,876,387,565 |
7,592,100,637 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating Activities Cash Flows |
2,054,226,121 |
9,225,264,052 |
13,795,120,141 |
|
Net
Income |
5,789,730,225 |
10,876,387,565 |
7,592,100,637 |
|
Adjustment |
-1,085,942,430 |
288,079,401 |
8,132,126,883 |
|
Interests
Received |
14,123,142 |
14,892,332 |
43,115,185 |
|
Interests
Paid |
-1,942,250,297 |
-1,877,435,666 |
-1,993,147,691 |
|
Dividends
Received |
2,246,904,500 |
1,905,086,200 |
|
|
Income
Taxes |
-2,968,339,019 |
-1,981,745,780 |
20,925,127 |
|
Cash
Flows from Investing |
-31,167,218,921 |
1,242,166,871 |
-3,549,500,925 |
|
Cash
Flows from Financing |
18,920,906,165 |
-6,682,401,502 |
-11,622,109,074 |
|
Increase/Decrease
in Cash |
-10,203,491,204 |
3,830,996,898 |
-1,376,489,858 |
|
Cash
at the Beginning of Year |
13,088,878,561 |
9,257,881,663 |
10,634,371,521 |
|
Cash
at the End of Year |
2,885,387,357 |
13,088,878,561 |
9,257,881,663 |
Products, Technologies, Services
Description
|
Main Products & Services |
Bio-Agr Compound fertilizer Bulk blending fertilizer(made-to-order) Fertigation & Soilless culture
fertilizer Slow-release fertilizer Phosphate fertilizer Potassium fertilizer Construction Materials POWERCON is a PNS(polynaphthalene
sulfonate) type superplasticizer which has made it possible to make
high-performance concrete. By using POWERCON in making concrete, the
properties of fresh concrete(workability) and hardened concrete(compressive
strength and durability) improve.. Environmental Started to supply Mg(OH)2 in 1991, which is
most economical Flue Gas Desulfurization, Poly Aluminium Silicate
Sulfate(PASS) in 1992, and more updated Poly Aluminium Chloride
Silicate(PACS) in 1993. Over 44 % of the doestic market share in
this coagulant field at present. and 45% of the market share in the Mg(OH)2
field. |
||||||||||||||||||||||||||
|
Detailed Products Spec. |
The Subject has been producing and
supplying the compounded fertilizer which is exclusively used for fruit trees
and vegetables. Since 1996, The Subject, as a company in
the fertilizer industry with the market share by 40%, has also made a contribution
to boost the farmer’s income and keep remaining fertile soil by developing
and supplying the customized, environment-friendly B.B. that is suitable for soil and the crops and eventually
enables environmental farming and precise fertilization.
After completing POWERCON plant in 1993,
The Subject has been keeping the largest production capacity over 90 thousand
ton per year in the world. |
||||||||||||||||||||||||||
|
Technologies Acquired |
|
Trade
Partners & Competitors
|
Suppliers |
CAPRO CORPORATION(110111-0111825) POSCO(174611-0000741) OCI COMPANY LTD.(174611-0000981) SK ENERGY CO., LTD.(110111-3710385) |
|
Customers |
NONGHYUP GYUNGBUK APPLE ASSOCIATION DONGBU HANNONG CHEMICAL POONGNONG CHOBI CO.,LTD NAMHAE CHEMICAL CORPORATION Sales Channel Nonghyup: The Subject sells its products to
Nonghup’s local branches through Nonghyup. Factory=> Local Nonghyup
Branches=>Farmers Factory=> Customers Export: Sells through int’l trading
companies by local L/C. Payment Condition: Nonghyup: Cash within 91 days Others: Normally cash within 3 Months to 6
Months |
|
Competitors |
NAMHAE CHEMICAL DONGBU HANNONG CHEMICAL POONGNONG CHOBI The Subject’s fertilizer is ranked as 2nd player next to NAMHAE CHEMICAL in terms of domestic market share. JMC The Subject’s CTC is ranked the 1st player
in terms of domestic market share. The domestic market share of the Subject’s POWERCON is about 60%. |
Related Parties (Subsidiaries,
Joint-Venture & Affiliates)
|
Affiliates |
KG JEJU CO., LTD.(220111-0058016) KG ALMATERA CO., LTD.(181211-0041140) ONE PAYMENT ALLIANCE CORPORATION KG PASSONE CO., LTD.(110111-1959183) KG EASYCON CO., LTD.(211211-0007640) BEIJING MOBILIANS ADVISORY CO., LTD.(CHINA) |
|
Subsidiary |
KGETS CO., LTD.(110111-1799183) (4.97% held by the subject company) KG INICIS CO., LTD.(110111-1602667) (32.80% held by the subject company) KG CORP.(135511-0207370) (84.50% held by the subject company) EDAILY CO., LTD.(110111-1853608) (4.27% held by the subject company) KG ENERCHEM CO., LTD.(194311-0030550) (60.00% held by the subject company) KOREA ENVIRONMENTAL ENERGY CO., LTD.(131411-0163924) KG YELLOWCAP CO., LTD.(110111-2092205) KG MOBILIANS CO., LTD.(110111-1911050) M&C PAYMENT CO., LTD.(110114-0077162) EDAILY TV CO., LTD.(110111-2810128) KG ZEROIN CO., LTD.(110111-1269540) |
Sales
by Region (Activity & Markets)
|
Sales/ Unit :Thousand KRW |
2017 |
2016 |
2015 |
|
Export |
50,408,236 |
49,800,671 |
43,609,881 |
|
Domestic |
116,902,672 |
115,026,317 |
123,742,116 |
|
Total |
167,310,908 |
164,826,988 |
167,351,997 |
The Subject imports the raw materials from China, Malaysia, Russia,
Israel and Jordan.
Court
Action
There are 9 cases filed
as Defendant(s)/
Debtor(s)/ Respondent(s) amounting 13,589,494,000 KRW as of 12/31/2017.
News Clipping
--
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.22 |
|
|
1 |
INR 92.77 |
|
Euro |
1 |
INR 80.34 |
|
KRW |
1 |
INR 0.061 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.