|
|
|
MIRA INFORM REPORT
|
Report No. : |
487557 |
|
Report Date : |
20.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
COSMO CHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
43, Banpo-Daero, Seocho-Gu, Seoul, 5Fl., Cosmo Bldg., Korea 06671 |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
30.09.2017 |
|
|
|
|
Date of Incorporation : |
12.02.1968 |
|
|
|
|
Com. Reg. No.: |
105-81-33052 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of All Other Chemical Products n.e.c. (Titanium Dioxide, Titanium Oxide, TiO2, Cobalt, Ferrous Sulfate
Heptahydrate, Liquid Ferric Sulfate, Gypsum) |
|
|
|
|
No. of Employees : |
190 |
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 : |
Good |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
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 |
COSMO CHEMICAL CO., LTD. |
|
Registered Address |
43, Banpo-daero, Seocho-gu, Seoul, Korea |
|
Building |
5FL., COSMO Bldg. |
|
Zip Code |
06671 |
|
Tel |
+82-2-2058-9141 |
|
Fax |
+82-2-2058-9119 |
|
E-mail |
shim@cosmochem.co.kr |
|
Website |
www.cosmochem.co.kr |
|
Trading Address |
5FL., COSMO
Bldg., 43, Banpo-daero, Seocho-gu, Seoul, Korea (Old Address System : 5FL., COSMO Bldg., 1534-5, Seocho 3-dong, Seocho-gu, Seoul, Korea) |
|
Tel |
+82-2-2058-9141 |
|
Fax |
+82-2-2058-9119 |
|
Other Address-Incheon Factory |
6, Gaseok-ro, Seo-gu, Incheon 404-812
Korea (Old Address System : 556-1, Gajwa-dong,
Seo-gu, Incheon 404-812 Korea) |
|
Tel |
+82-32-451-6200 |
|
Fax |
+82-32-451-6226 |
|
Other Address-Onsan Factory |
55, Wonbong-ro, Onsan-eup, Ulju-gun, Ulsan, Korea (Old Address System : 891, Wonsan-ri, Onsan-eup, Ulju-gun, Ulsan,
Korea) |
|
Tel |
+82-52-231-6712~5 |
|
Fax |
+82-52-237-2104 |
|
Type |
Export/Import |
|
Industry |
Manufacture of All Other Chemical Products n.e.c. |
|
Main Business |
Titanium Dioxide, Titanium Oxide, TiO2, Cobalt, Ferrous Sulfate
Heptahydrate, Liquid Ferric Sulfate, Gypsum |
|
Sub
Business |
|
|
Established (mm/dd/yyyy) |
02/12/1968 |
Detailed
Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Titanium dioxide(12171604) |
CEO’s
|
Name |
Sung Jun-Kyung |
|
Date of Birth |
01/10/1961 |
|
Title |
Co-President & CEO |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
74,792,220,000 |
|||||||||||||||||||||||||||
|
Employees |
190 |
|||||||||||||||||||||||||||
|
Formation |
Listed Company (Korea Stock Exchange: 005420 ) as of 07/24/1987 |
|||||||||||||||||||||||||||
|
Bank Details |
S.C First Bank of Korea-Dohwa Dong Branch Shinhan Bank KEB Hana Bank Gyungnam Bank Busan Bank |
|||||||||||||||||||||||||||
|
Corporate Registered No. |
110111-0152738 |
|||||||||||||||||||||||||||
|
Business Registered No. |
105-81-33052 |
|||||||||||||||||||||||||||
|
Permit & Licenses |
12/19/2001 ISO 9001 09/2006 ISO 14001 Int’l Trade No.: 438311 |
|||||||||||||||||||||||||||
|
Shareholder Position |
|
|||||||||||||||||||||||||||
|
Company History |
02/12/1968
Incorporated as KOREA JITAN INDUSTRY CO., LTD. 01/1971 Changed the company name to
HANKOOK TITANIUM INDUSTRY CO., LTD. 06/05/2003 Changed the company name to the
present name 03/19/2004 Increased the par value to
5,000 KRW from 500 KRW 03/19/2004 Decreased the authorized shares
to 40,000,000 shares from 250,000,000 shares 03/01/2006 Moved to the present HQ address
from 292-20, Dohwa-dong, Mapo-gu, Seoul, Korea 04/08/2015 Increased capital to 66,642,220,000 KRW from 65,510,795,000 KRW 07/22/2015 Separated from GS Group of
Companies 08/08/2017
Increased capital to 74,792,220,000 KRW from 66,642,220,000 KRW 11/01/2017 Split off Battery Materials
Business, and established COSMO ECO-TECH CO., LTD. |
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
Co-President & CEO |
Sung Jun-Kyung |
Korean |
01/10/1961 |
09/22/2014 |
|
Co-President & CEO |
Ham Jae-Kyung |
Korean |
01/01/1957 |
03/24/2017 |
|
Executive Director |
Hur Kyung-Soo |
Korean |
01/01/1957 |
09/18/2015 |
|
Director |
Ahn Sung-Duck |
Korean |
05/30/1956 |
09/22/2014 |
|
Director |
Lim Hyun-Sung |
Korean |
02/18/1973 |
09/18/2015 |
|
Outside Director / Auditor |
Yoon Ki-Jong |
Korean |
03/07/1955 |
03/19/2004 |
|
Outside Director / Auditor |
Kim Woo-Yeol |
Korean |
11/19/1956 |
03/25/2014 |
|
Outside Director / Auditor |
Park Hee-Gap |
Korean |
02/24/1955 |
08/08/2014 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
09/2017 |
76,562,440,988 |
257,451,042,710 |
19,874,198,457 |
|
2016 |
96,237,733,955 |
262,201,763,809 |
-74,551,434,595 |
|
2015 |
121,158,817,418 |
421,946,224,279 |
-98,093,827,760 |
|
2014 |
136,173,515,024 |
558,677,059,541 |
-43,966,549,087 |
|
2013 |
162,610,083,279 |
513,672,333,987 |
3,517,840,055 |
|
2012 |
180,206,641,655 |
499,545,376,305 |
-4,974,083,389 |
|
2011 |
172,362,820,557 |
527,599,742,901 |
14,009,755,698 |
|
2010 |
124,716,323,966 |
434,697,330,834 |
30,909,429,018 |
|
2009 |
110,563,823,762 |
344,800,742,063 |
2,215,584,933 |
|
2008 |
103,633,429,228 |
355,162,352,763 |
-4,839,976,985 |
|
2007 |
86,532,948,911 |
159,852,368,906 |
-17,557,348,588 |
|
2006 |
75,589,485,141 |
162,600,789,392 |
-25,672,824,529 |
|
2005 |
71,850,382,047 |
167,703,584,113 |
777,761,918 |
|
2004 |
69,695,899,720 |
160,817,254,026 |
-34,598,411,728 |
|
2003 |
65,089,347,760 |
175,939,224,137 |
33,489,491,663 |
Financial
Description
|
Authorized Capital(KRW) |
200,000,000,000 |
|
Paid-Up Capital(KRW) |
74,792,220,000 |
|
Total Issued Shares |
14,958,444 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total
Assets |
257,451,042,710 |
262,201,763,809 |
421,946,224,279 |
|
Current Assets |
38,115,853,971 |
36,464,668,101 |
129,264,581,111 |
|
Cash
& Cash Equivalents |
4,557,198,624 |
266,621,603 |
88,297,958 |
|
Current
Financial Instruments |
2,000,000,000 |
|
5,554,204,422 |
|
Trade
Receivables & Other Receivables |
13,876,640,757 |
26,798,816,606 |
12,731,657,599 |
|
Inventories |
11,256,231,101 |
5,751,879,942 |
21,692,691,406 |
|
Other
Current Assets |
6,425,783,489 |
3,647,349,950 |
3,617,501,105 |
|
Non-Current Assets to be Sold |
|
|
85,580,228,621 |
|
Non-Current Assets |
219,335,188,739 |
225,737,095,708 |
292,681,643,168 |
|
Marketable
Financial Instruments |
291,000,000 |
291,000,000 |
377,073,109 |
|
Investment_Subsidiaries |
17,276,149,023 |
13,512,375,800 |
13,512,375,800 |
|
Investment_Related
Companies |
|
4,322,968,350 |
4,322,968,350 |
|
Tangibles |
198,599,111,612 |
204,473,734,454 |
272,945,090,059 |
|
Intangibles |
896,206,643 |
896,206,643 |
938,498,850 |
|
Other
Non-Current Assets |
2,272,721,461 |
2,240,810,461 |
585,637,000 |
|
Total Liabilities |
162,129,687,960 |
196,219,305,074 |
303,542,234,748 |
|
Current Liabilities |
120,111,102,690 |
152,665,157,899 |
220,968,176,412 |
|
Trade
Payables & Other Payables |
17,451,944,059 |
51,332,011,176 |
60,131,843,970 |
|
Short-Term
Borrowings |
88,697,139,837 |
80,233,682,666 |
118,047,742,594 |
|
Current
Portion of Long-Term Debts |
8,108,800,000 |
10,075,547,337 |
19,888,800,000 |
|
Current
Portion of Bond with Warrant |
|
|
10,808,610,074 |
|
Current
Portion of Account Payables |
3,648,816,821 |
7,605,581,609 |
6,693,795,212 |
|
Other
Current Liabilities |
2,204,401,973 |
3,418,335,111 |
5,397,384,562 |
|
Non-Current Liabilities |
42,018,585,270 |
43,554,147,175 |
82,574,058,336 |
|
Long-Term
Borrowings |
641,950,000 |
858,550,000 |
3,572,350,000 |
|
Convertible
Bonds |
7,280,405,620 |
6,957,116,442 |
14,694,959,761 |
|
Long-Term
Account Payables |
2,751,332,802 |
5,050,466,154 |
7,207,577,045 |
|
Leasehold Deposits |
|
|
2,264,996,660 |
|
Provisions |
560,366,365 |
970,983,604 |
369,770,281 |
|
Deferred
Income Tax Credit |
21,871,868,963 |
21,871,868,963 |
45,772,839,940 |
|
Provision
for Severance & Retirement |
8,912,661,520 |
7,845,162,012 |
8,691,564,649 |
|
Capital Stock |
74,792,220,000 |
66,642,220,000 |
66,642,220,000 |
|
Capital
Surplus |
29,739,587,514 |
28,402,150,463 |
28,402,150,463 |
|
Capital
Adjustment |
-177,049,855 |
-177,049,855 |
-177,049,855 |
|
Others |
77,545,717,232 |
77,545,717,232 |
162,285,523,425 |
|
Profit
Surplus |
-86,579,120,141 |
-106,430,579,105 |
-138,748,854,502 |
|
Total
Equity |
95,321,354,750 |
65,982,458,735 |
118,403,989,531 |
|
Liab.
& Shareholder’s Equity |
257,451,042,710 |
262,201,763,809 |
421,946,224,279 |
|
Income Statement |
|||
|
Unit : Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
76,562,440,988 |
96,237,733,955 |
121,158,817,418 |
|
Cost
of Sold Goods |
59,139,733,264 |
96,160,301,277 |
137,877,365,958 |
|
Gross
Profit |
17,422,707,724 |
77,432,678 |
-16,718,548,540 |
|
Selling
& Admin. Expenses |
8,421,323,667 |
19,095,196,812 |
15,512,591,740 |
|
Operating
Income |
9,001,384,057 |
-19,017,764,134 |
-32,231,140,280 |
|
Finance
Income |
22,156,267,707 |
5,569,598,928 |
2,323,938,963 |
|
Finance
Expenses |
6,154,308,232 |
22,935,655,493 |
27,741,726,230 |
|
Other
Income |
|
3,278,954,667 |
9,205,614,558 |
|
Other
Expenses |
-4,842,909,835 |
41,446,568,563 |
49,650,514,771 |
|
Income
Before Taxes |
20,160,433,697 |
-74,551,434,595 |
-98,093,827,760 |
|
Income
Taxes Expenses |
286,235,240 |
0 |
0 |
|
Income
from Continuous Business |
19,874,198,457 |
-74,551,434,595 |
-98,093,827,760 |
|
Income
from Stopped Business |
0 |
0 |
0 |
|
Net
Income |
19,874,198,457 |
-74,551,434,595 |
-98,093,827,760 |
|
Cash Flows |
|||
|
Unit : Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating Activities Cash Flows |
-19,864,194,792 |
-27,545,319,357 |
-12,535,820,432 |
|
Cash
Flows from Operating |
-18,396,863,543 |
-20,271,699,716 |
-4,941,358,301 |
|
-Net
Income |
19,874,198,458 |
-74,551,434,595 |
-98,093,827,760 |
|
-Exp.
without Cash Outflow |
17,365,151,373 |
75,825,078,207 |
99,461,452,288 |
|
-Revenue
without Cash Inflows |
-22,254,038,791 |
-7,149,834,845 |
-9,015,124,217 |
|
-Changes
in Asset/ & Liability |
-33,382,174,583 |
-14,395,508,483 |
2,706,141,388 |
|
Interests
Received |
5,002,385,850 |
95,603,169 |
393,043,173 |
|
Interests
Paid |
-6,484,377,299 |
-7,414,577,280 |
-8,056,181,960 |
|
Income
Taxes |
14,660,200 |
45,354,470 |
68,676,656 |
|
Cash Flows from Investing |
8,987,342,811 |
103,113,326,114 |
35,070,159,972 |
|
Cash
Inflow from Investing |
54,166,310,824 |
132,072,393,000 |
51,461,488,871 |
|
Cash
Outflows for Investing |
-45,178,968,013 |
-28,959,066,886 |
-16,391,328,899 |
|
Cash Flows from Financing |
15,262,942,839 |
-75,382,677,959 |
-24,663,836,351 |
|
Cash
Inflows from Financing |
75,059,180,346 |
103,548,938,791 |
186,381,565,977 |
|
Cash
Outflows from Financing |
-59,796,237,507 |
-178,931,616,750 |
-211,045,402,328 |
|
Increase/Decrease in Cash |
4,290,589,364 |
178,323,645 |
-2,129,493,162 |
|
Cash at the Beginning of Year |
266,621,603 |
88,297,958 |
2,217,791,120 |
|
Cash at the End of Year |
4,557,210,967 |
266,621,603 |
88,297,958 |
Products, Technologies, Services
Description
|
Main Products & Services |
TiO2 is very stable material in physical
and chemical terms and has superior coverage and staining power because it has
the highest refractive index among white pigments and accurate particle sizes
and dispensability. It is used to remove gloss from chemical textiles and
improve abrasion resistance of chemical textiles as well as for pigment.
Moreover, it is widely used in various areas such as electronic materials, TV
brawn tubes and welding rod coverings using electronic characteristics. TiO2 Environment & Construction Materials Ferrous Sulfate Poly Ferric Sulfate Solution Ferrous Sulfate Solution HISOL Gypsum Brand Name: COTIOX, COCOS |
Trade
Partners & Competitors
|
Suppliers |
COSMO CORPORATION CO., LTD.(110111-2559354) COSMO FINE CHEMICALS
CO.,LTD.(110111-0531205) |
|
Customers |
COSMO FINE CHEMICALS
CO.,LTD.(110111-0531205) CHEMTECH INTERNATIONAL CO., LTD.(110111-1967730) |
|
Competitors |
WE INTERNATIONAL CO., LTD. RM. 1402, BYEOKSAN GWANGHWAMUN SIDAE
OFFICETEL, 74, NAESU-DONG, JONGNO-GU, SEOUL, KOREA TEL:+82-2-2195-4281~3 FAX:+82-2-2185-4280 TMC CO., LTD. NAJEON INDUSTRIAL COMPLEX, 554-5, NAJEON-RI,
SAENGNIM-MYEON, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA TEL:+82-55-323-3663 FAX:+82-55-323-3687 NANO CO., LTD. 1108-1, BONGGOK-RI, SABONG-MYEON, JINJU-SI,
GYEONGSANGNAM-DO, KOREA TEL:+82-55-762-8887 FAX:+82-55-755-6755 |
Related Parties (Subsidiaries,
Joint-Venture & Affiliates)
|
Affiliates |
XEBIO KOREA CO., LTD.(110111-4853035) COSMO CORPORATION CO., LTD.(110111-2559354) (33.0% held by the subject company) MARUMAN KOREA CO., LTD.(131111-0093953) (30.0% held by the subject company) COSMO & COMPANY, INC.(110111-0298243) COSMO FINE CHEMICALS CO., LTD.(110111-0531205) JEONGSAN & COMPANY INC.(110111-5743714) |
|
Subsidiary |
COSMO ADVANCED MATERIALS & TECHNOLOGY CO., LTD.(120111-0018251) (39.2% held by the subject company) COSMO FINE CHEMICALS CO.,LTD.(110111-0531205) |
|
Corporate Ownership |
COSMO TURNAROUND
LIMITED(110114-0164141) |
|
Major Shareholders |
COSMO TURNAROUND
LIMITED(110114-0164141) |
Sales
by Region (Activity & Markets)
|
Sales/ Unit :Mil
KRW |
09/2017 |
2016 |
2015 |
|
Export |
45,160 |
54,623 |
72,548 |
|
Domestic |
31,403 |
41,615 |
48,610 |
|
Total |
76,562 |
96,238 |
121,159 |
The Subject imports raw materials from India and Vietnam, and exports
USA, Japan, Europe and South-East Countries. 65% out of total sales accounts for
exporting and 35% is for domestic sales.
Court
Action
No.
News
Clipping
---------
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.72 |
|
|
1 |
INR 88.64 |
|
Euro |
1 |
INR 78.14 |
|
KRW |
1 |
INR 0.060 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
NIT |
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.