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MIRA INFORM REPORT
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Report No. : |
485306 |
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Report Date : |
09.01.2018 |
IDENTIFICATION DETAILS
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Name : |
LOTTE ADVANCED MATERIALS CO., LTD. |
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Formerly Known As : |
SDI CHEMICAL CO., LTD. |
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Registered Office : |
334-27, Yeosusandan-ro,
Yeosu-si, Jeollanam-do, Korea 59616 |
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Country : |
South Korea |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
01.02.2016 |
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Com. Reg. No.: |
823-88-00226 |
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Legal Form : |
Co., Ltd by Shares |
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Line of Business : |
Export/Import, Manufacture of Synthetic
Rubber and Plastics Materials ABS, ABS Alloy, ASA, Transparent PC Resin, PC
Alloy, High Heat Resistant Materials(PPA, PCT), High Performance EP, Premium Sold
Surface, Engineered Stone, Scagliola |
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No. of Employees : |
1,220 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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South Korea |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 2016, the economy experienced slow growth – 2%-3% per year - due to sluggish domestic consumption, a drop in foreign demand for South Korean exports, increased competition from regional rivals such as China and Japan, and declining investment. The administration in 2016 faced the challenge of balancing heavy reliance on exports with domestic restructuring efforts in the country’s shipbuilding and shipping industries.
The South Korean economy's short-term challenges include a potential loss of consumer confidence due to issues with its mobile phone industry, as well as uncertainty stemming from a tumultuous domestic political situation. In the long-term, South Korea must deal with a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and the heavy reliance on exports, which comprise more than 40% of GDP. South Korea’s low overall unemployment rate masks problems with high youth unemployment, low worker productivity, high labor underutilization, and low female participation in the workforce. The government has tried to implement structural reforms, but continues to face significant headwind from vested interests. Finally, the country could eventually face an unprecedented financial burden in the event the unification of the Korean Peninsula were to occur.
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Source
: CIA |
Basic
Information
|
Company Name |
LOTTE ADVANCED MATERIALS CO., LTD. (Ex. Company Name : SDI CHEMICAL CO.,
LTD.,) |
|
Registered Address |
334-27, Yeosusandan-ro, Yeosu-si,
Jeollanam-do, Korea |
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Building |
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Zip Code |
59616 |
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Tel |
+82-31-596-3135 |
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Fax |
+82-31-596-3178 |
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E-mail |
byunkun.lee@lottechem.com |
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Website |
www.lotteadms.com |
|
Trading Address |
334-27, Yeosusandan-ro, Yeosu-si,
Jeollanam-do, Korea (Old Address System : 62, Pyeongyeo-Dong,
Yeosu-si, Jeollanam-do, Korea) |
|
Tel |
+82-31-689-1221 |
|
Fax |
+82-31-689-1144 |
|
Other Address |
56, Gosan-ro, Uiwang-si, Gyeonggi-do, Korea |
|
Tel |
+82-31-596-3408 |
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Fax |
+82-31-596-3490 |
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Other Address-Gwangju Branch |
12FL., Samsung Bldg., 30, Sicheong-ro,
Seo-gu, Gwangju, Korea |
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Tel |
+82-62-945-1352 |
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Fax |
+82-62-945-8858 |
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Other Address-Busan Branch |
8FL., Samsung Bldg., 184, Jungang-daero,
Dong-gu, Busan, Korea |
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Tel |
+82-51-465-6829 |
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Fax |
+82-51-463-9152 |
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Other Address-Gumi Branch |
58, Gumi-daero, Gumi-si, Gyeongsangbuk-do,
Korea |
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Tel |
+82-54-468-2811 |
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Fax |
+82-54-468-2821 |
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Other Address-Ulsan Branch |
8FL., Uanta Securities Bldg., Samsan-ro,
Nam-gu, Ulsan, Korea |
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Tel |
+82-52-267-9808 |
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Fax |
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Type |
Export/Import |
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Industry |
Manufacture of Synthetic Rubber and
Plastics Materials |
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Main
Business |
ABS, ABS Alloy, ASA, Transparent PC Resin,
PC Alloy, High Heat Resistant Materials(PPA, PCT), High Performance EP,
Premium Sold Surface, Engineered Stone, Scagliola |
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Sub
Business |
|
|
Established (mm/dd/yyyy) |
02/01/2016 |
Detailed
Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Thermoplastic plastics(13102000) |
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Sell |
Acrylic resins(13111064) |
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Sell |
Polymethylacrylate(13111053) |
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Sell |
Resins(13111000) |
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Sell |
Stone or tile flooring(30161706) |
CEO’s
|
Name |
Lee Ja-Hyung |
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Date of Birth |
02/24/1957 |
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Title |
President & CEO |
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Nationality |
Korean |
Profiles
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Capital (KRW) |
50,000,000,000 |
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Employees |
1,220 |
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Formation |
Co., Ltd by Shares A Company of Lotte Group |
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Bank Details |
Woori Bank-Samsung Center Branch KEB Hana Bank Shinhan Bank Kookmin Bank |
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Corporate Registered No. |
206211-0057775 |
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Business Registered No. |
823-88-00226 |
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Permit & Licenses |
Int'l Trade No.: 45502709 |
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Shareholder Position |
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Company History |
02/01/2016 Incorporated as SDI CHEMICAL CO.,
LTD., after split off from SAMSUNG SDI CO., LTD.(110111-0394174) 04/29/2016 Changed company name to the
present name |
Detailed
Information
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
President & CEO |
Lee Ja-Hyung |
Korean |
02/24/1957 |
04/29/2016 |
|
Director |
Lee Kyu-Cheol |
Korean |
01/03/1962 |
02/01/2016 |
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Director |
Kim Yeon-Sub |
Korean |
10/06/1963 |
04/29/2016 |
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Director |
Lee Young-Joon |
Korean |
09/13/1965 |
03/22/2017 |
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Auditor |
Park In-Koo |
Korean |
10/01/1967 |
03/22/2017 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
2016 |
2,249,031,114,615 |
1,747,349,226,747 |
223,079,926,354 |
Financial
Description
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Authorized Capital(KRW) |
1,000,000,000,000 |
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Paid-Up Capital(KRW) |
50,000,000,000 |
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Total Issued Shares |
10,000,000 |
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Balance
Sheet |
|||
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Unit
: Korean Won |
As
of 12/31/2016 |
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|
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Total
Assets |
1,747,349,226,747 |
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|
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Current
Assets |
831,214,028,316 |
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|
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Cash
& Cash Equivalents |
278,921,032,310 |
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|
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Trade
Receivables & Other Receivables |
353,587,917,508 |
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|
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Inventories |
183,445,380,075 |
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|
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Other
Financial Assets |
428,702,353 |
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Other
Current Assets |
14,830,996,070 |
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Non-Current
Assets |
916,135,198,431 |
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Non-Current
Financial Instruments |
6,000,000 |
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Marketable
Financial Instruments |
889,435,740 |
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Investment_Subsidiaries |
62,925,719,064 |
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Tangibles |
653,534,009,218 |
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Investment_Real
Estates |
18,493,632,400 |
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Intangibles |
168,919,516,161 |
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Other
Non-Current Financial Assets |
3,189,731,985 |
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Other
Non-Current Assets |
979,598,232 |
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Deferred
Income Tax Assets |
7,197,555,631 |
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Total
Liabilities |
427,324,920,460 |
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Current
Liabilities |
427,310,797,910 |
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|
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Trade
Payables & Other Payables |
183,817,558,751 |
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|
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Short-Term
Borrowings |
166,997,373,036 |
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|
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Deferred
Income Tax Credit |
22,726,580,166 |
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|
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Other
Current Financial Debts |
37,151,147,750 |
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|
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Other
Current Liabilities |
16,618,138,207 |
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Non-Current
Liabilities |
14,122,550 |
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|
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Other
Non-Current Financial Debts |
14,122,550 |
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|
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Capital
Stock |
50,000,000,000 |
|
|
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Capital
Surplus |
1,053,256,391,352 |
|
|
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Others |
281,663 |
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|
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Profit
Surplus |
216,767,633,272 |
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|
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Total
Equity |
1,320,024,306,287 |
|
|
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Liab.
& Shareholder’s Equity |
1,747,349,226,747 |
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|
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Income
Statement |
|||
|
Unit
: Korean Won |
As
of 12/31/2016 |
|
|
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Sales |
2,249,031,114,615 |
|
|
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Cost
of Sold Goods |
1,704,830,526,299 |
|
|
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Gross
Profit |
544,200,588,316 |
|
|
|
Selling
& Admin. Expenses |
281,168,420,242 |
|
|
|
Operating
Income |
263,032,168,074 |
|
|
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Other
Income |
72,379,192,596 |
|
|
|
Other
Expenses |
43,303,982,102 |
|
|
|
Finance
Income |
14,956,648,201 |
|
|
|
Finance
Expenses |
18,413,190,596 |
|
|
|
Income
Before Taxes |
288,650,836,173 |
|
|
|
Income
Taxes Expenses |
65,570,909,819 |
|
|
|
Net
Income |
223,079,926,354 |
|
|
|
Cash
Flows |
|||
|
Unit
: Korean Won |
As
of 12/31/2016 |
|
|
|
Operating
Activities Cash Flows |
319,867,020,176 |
|
|
|
Cash
Flows from Operating |
364,141,012,849 |
|
|
|
Net
Income |
223,079,926,354 |
|
|
|
Adjustment |
127,016,154,732 |
|
|
|
Changes
in Asset/ & Liability |
14,044,931,763 |
|
|
|
Income
Taxes |
-44,273,992,673 |
|
|
|
Cash
Flows from Investing |
-38,899,464,763 |
|
|
|
Cash
Inflow from Investing |
27,612,271,493 |
|
|
|
Cash
Outflows for Investing |
-66,511,736,256 |
|
|
|
Cash
Flows from Financing |
-2,046,523,103 |
|
|
|
Cash
Inflows from Financing |
50,014,259,639 |
|
|
|
Cash
Outflows from Financing |
-52,060,782,742 |
|
|
|
Increase/Decrease
in Cash |
278,921,032,310 |
|
|
|
Cash
at the Beginning of Year |
- |
|
|
|
Cash
at the End of Year |
278,921,032,310 |
|
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Products,
Technologies, Services Description
|
Main Products & Services |
ABS, ABS Alloy, ASA, Transparent PC Resin, PC
Alloy, High Heat Resistant Materials(PPA, PCT), High Performance EP, Premium
Sold Surface, Engineered Stone Brand Name : Starex, INFINO, Staron,
Radianz |
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Detailed Products Spec. |
|
|
Technologies Acquired |
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Trade
Partners & Competitors
|
Customers |
|
|
Competitors |
KOLON PLASTICS, INC. 64, GONGDAN 3-GIL, GIMCHEON-SI,
GYEONGSANGBUK-DO, KOREA TEL:+82-54-420-8351 +82-54-420-8371 FAX:+82-54-420-8360 KYUNG WON NEW MATERIALS INC. 329-1, BOCHE-RI, MIYANG-MYEON, ANSEONG-SI,
GYEONGGI-DO, KOREA TEL:+82-31-677-7411~5 FAX:+82-31-677-7410 JINDO CHEMICAL CO., LTD. 1MA-210, SIHWA INDUSTRIAL COMPLEX, 1352,
JEONGWANG-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA TEL:+82-31-499-9933 FAX:+82-31-499-9937 |
Related
Parties
(Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates-Domestic |
LOTTE SAMKANG
CO., LTD(110111-0033722) LOTTE
CHILSUNG BEVERAGE CO., LTD(110111-0003684) LOTTE CONFECTIONERY CO.,
LTD.(110111-0076300) LOTTE DATA COMMUNICATION CO., LTD.(110111-1358343) LOTTE MIDOPA
CO., LTD(110111-0045983) LOTTE
NON-LIFE INSURANCE CO., LTD.(110111-0014459) LOTTE HAM
CO., LTD.(110111-0229371) LOTTERIA CO.,
LTD.(110111-0262850) LOTTE FRESH
DELICA CO., LTD.(134511-0034295) LOTTE
BOULANGERIE CO., LTD(135511-0109807) LOTTE PHARM
CO., LTD.(110111-0657788) FOOD STAR,
INC.(110111-1739155) CINEMA
TRADING CO., LTD(110111-3180918) WELLGA
INC.(184511-0000379) SANJUNG
BEVERAGE CO., LTD.(111511-0013288) CHANG DAE
TRADING CO., LTD.(110111-0904907) HOTEL LOTTE
CO., LTD.(110111-0145410) LOTTE GIANTS
BASEBALL CLUB(110111-0317556) HOTEL LOTTE
PUSAN CO., LTD(180111-0053461) LOTTE MOOLSAN
CO., LTD.(110111-0320707) LOTTE JTB
CO., LTD(110111-3685710) THE CINEMA OF
KOREA(110111-3837501) LOTTE CITY
HOTEL CO., LTD(110111-3946518) LOTTE TRADING
CO., LTD(110111-0159099) LOTTE LOGISTICS
CORP.(110111-0040446) KOREA SEVEN
CO., LTD.(110111-0899976) LOTTE.COM
INC(110111-1843972) LOTTE ASAHI
LIQUOR COMPANY LTD.(110111-0530033) WOORI HOME
SHOPPING(110111-2248957) KP
CHEMTECH(230111-0100443) DAESAN MMA
CORPORATION(161411-0016995) KOREA FUJIFILM
CO., LTD(110111-0042715) HOWTECH
CORPORATION(110111-2110114) LOTTE
ALUMINUM CO., LTD.(110111-0003121) LOTTE
ENGINEERING & MACHINERY MFG. CO., LTD.(110111-0154560) LOTTE ASSET
DEVELOPMENT CO., LTD(110111-2394263) DAEHONG COMMUNICATIONS
INC.(110111-0249981) FRL KOREA
CO., LTD.(110111-3133298) LOTTE CAPITAL
CO., LTD.(110111-1217416) LOTTE CARD
CO., LTD.(110111-0641434) CHEONGNA
ENERGY CO., LTD.(110111-3256818) LOTTE MILK
CO., LTD.(110111-3650838) LOTTE STATION
BUILDING CO., LTD.(110111-0505903) LOTTE
SHOPPING CO., LTD.(110111-0000086) CANON KOREA
BUSINESS SOLUTIONS INC.(130111-0007666) LOTTE
ENGINEERING & CONSTRUCTION CO., LTD(110111-0014764) LOTTE MEMBERS CO., LTD.(110111-5605790) IGIS I CORPORATION(110111-5513175) HYUNDAI LOGISTICS CO., LTD.(110111-0578231) HYUNDAI COSCO LOGISTICS CO.,
LTD.(180111-0684282) |
|
Affiliates-Overseas |
LOTTE CHEMICAL TITAN HOLDING SDN. BHD. LOTTE CHEMICAL TRADING (SHANGHAI) CORP. LOTTE CHEMICAL ENGINEERING PLASTICS
(JIAXING) CO., LTD. LOTTE CHEMICAL (JIAXING) CORP. LOTTE CHEMICAL ALABAMA CORP. LOTTE CHEMICAL ENGINEERING PLASTICS(HEFEI)
CO., LTD. LOTTE CHEMICAL PAKISTAN LIMITED LOTTE CHEMICAL UK LIMITED LOTTE CHEMICAL POLAND SP. ZO.O. LOTTE CHEMICAL USA CORP. LOTTE CHEMICAL ENGINEERING PLASTICS
(SHENYANG) CO., LTD. LOTTE SANJIANG CHEMICAL CO.,LTD. LOTTE UBE SYNTHETIC RUBBER SDN. BHD. KOR-UZ GAS CHEMICAL INVESTMENT LTD. WEIFANG YAXING HONAM CHEMICAL CO., LTD. |
|
Overseas Office |
LOTTE ADVANCED MATERIALS HUNGARY LLC. |
|
Liaison Office |
|
|
Overseas Branch |
|
|
Joint Venture |
|
|
Subsidiary |
LOTTE ADVANCED MATERIALS EUROPE
GMBH(Germany) (100.00% held by the subject company) LOTTE ADVANCED MATERIALS USA INC.(USA) (100.00% held by the subject company) LOTTE ADVANCED MATERIALS SHANGHAI CO.,
LTD.(CHINA) (100.00% held by the subject company) LOTTE ADVANCED MATERIALS THAILAND CO.,
LTD.(THAILAND) (59.44% held by the subject company) LOTTE ADVANCED MATERIALS TIANJIN CO.,
LTD.(CHINA) (100.00% held by the subject company) LOTTE ADVANCED MATERIALS HUNGARY
LLC.(HUNGARY) (100.00% held by the subject company) LOTTE ADVANCED MATERIALS DONGGUAN CO.,
LTD.(CHINA) (100.00% held by the subject company) LOTTE ADVANCED MATERIALS JAPAN CO.,
LTD.(JAPAN) (100.00% held by the subject company) |
|
Corporate Ownership |
LOTTE CHEMICAL CORPORATION(110111-0193196) |
|
Major Shareholders |
LOTTE CHEMICAL CORPORATION(110111-0193196) |
|
Cooperative Enterprise |
-Technical Support from ASAHI KASEI CORPORATION(JAPAN) -Insured Company LOTTE NON-LIFE INSURANCE CO.,
LTD.(110111-0014459) |
Sales
by Region (Activity & Markets)
Not Available.
Court
Action
No.
News
Clipping
-------
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.35 |
|
|
1 |
INR 85.89 |
|
Euro |
1 |
INR 76.15 |
|
KRW |
1 |
INR 0.059 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.