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MIRA
INFORM REPORT
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Report No. : |
497081 |
|
Report Date : |
10.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
DAECHANG CO., LTD |
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|
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Formerly Known As : |
DAECHANG INDUSTRIAL CO., LTD. |
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|
|
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Registered Office : |
391, Gongdan 1-daero, Siheung-si, Gyeonggi-do, Korea,
4Na-506, Sihwa Industrial Complex, 15076 |
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|
|
|
Country : |
South Korea |
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|
|
|
Financials (as on) : |
31.12.2017 |
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|
|
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Date of Incorporation : |
19.12.1977 |
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|
|
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Com. Reg. No.: |
133-81-23689 |
|
|
|
|
Legal Form : |
Listed Company |
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|
|
|
Line of Business : |
Manufacture of Rolled, Drawn and Folded Products of Copper
Brass Bar, Brass Wire, Copper Anode |
|
|
|
|
No. of Employees : |
377 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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
Basic
|
Company Name |
DAECHANG
CO., LTD. (Ex.
English Company Name : DAECHANG INDUSTRIAL CO., LTD.) |
|
Registered Address |
391, Gongdan 1-daero,
Siheung-si, Gyeonggi-do, Korea |
|
Building |
4Na-506, Sihwa Industrial Complex |
|
Zip Code |
15076 |
|
Tel |
+82-31-496-3000 |
|
Fax |
+82-31-499-2538 |
|
E-mail |
webmaster@brasone.com;export@brasone.com;import@brasone.com |
|
Website |
www.brasone.com |
|
Trading Address |
4Na-506, Sihwa Industrial
Complex, 391, Gongdan 1-daero, Siheung-si, Gyeonggi-do, Korea (Old Address System : 4Na-506,
Sihwa Industrial Complex, 1292-4, Jeongwang 1-dong, Siheung-si, Gyeonggi-do,
Korea |
|
Tel |
+82-31-496-3000 |
|
Fax |
+82-31-499-2538 |
|
Other Address |
19-8, Munrae-dong 5-ga,
Yeongdeungpo-gu,,Seoul, Korea |
|
Tel |
+82-2-2633-1291 |
|
Fax |
+82-2-2633-6133 |
|
Other Address-Busan Sales Office |
1144-10, Jangnim-dong,
Saha-gu, Busan, Korea |
|
Tel |
+82-51-266-7123 |
|
Fax |
+82-51-266-7126 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Rolled, Drawn and Folded Products of Copper |
|
Main Business |
Brass Bar, Brass Wire, Copper Anode |
|
Sub Business |
|
|
Established (mm/dd/yyyy) |
Brass Bar, Brass Wire, Copper Anode |
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Base Metals(11101700) |
|
Sell |
Copper wire(26121517) |
|
Sell |
Electrodes(39121436) |
CEO’s
|
Name |
Cho Si-Young |
|
Date of Birth |
12/15/1944 |
|
Title |
Chairman & CEO |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
45,571,319,500 |
||||||||||||||||||
|
Employees |
377 |
||||||||||||||||||
|
Formation |
Listed Company (Korea Stock Exchange : 012800) as of
12/05/1989 Foreign Direct Investment Corporation |
||||||||||||||||||
|
Bank Details |
Kookmin Bank-Yoido Sales Dept. Industrial Bank of Korea-Shiwha
Industrial Complex Branch KEB Hana Bank |
||||||||||||||||||
|
Corporate Registered No. |
130111-0007137 |
||||||||||||||||||
|
Business Registered No. |
133-81-23689 |
||||||||||||||||||
|
Permit & Licenses |
11/2002 ISO 9001 02/2005 ISO14001 07/05/2004 TUV Mark Int’l Trade No.: 978187 |
||||||||||||||||||
|
Shareholder Position |
|
||||||||||||||||||
|
Company History |
04/16/1974
Established as DAECHANG INDUSTRIAL(Sole Proprietorship) 12/19/1977 Incorporated as DAECHANG INDUSTRIAL CO., LTD. 11/26/2004
Awarded US$100 Million Export Top Prize 11/20/2006
Awarded US$200 Million Export Top Prize 02/29/2008
Spin off the par value to 500 KRW from 5,000 KRW 12/02/2008
Awarded US$300 Million Export Top Prize 03/02/2010
Changed company name to the present
name from DAECHANG INDUSTRIAL CO., LTD.( 09/30/2010 Increased capital to 45,571,319,500
KRW from 44,179,514,000 KRW |
Detailed Information
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
Chairman & CEO |
Cho Si-Young |
Korean |
12/25/1944 |
03/13/2001 |
|
President & CEO |
Kim Ok-Ryeol |
Korean |
07/20/1957 |
02/27/2010 |
|
Director |
Cho Hyung-Ho |
Korean |
08/22/1960 |
03/25/2016 |
|
Director |
Song Young-Soo |
Korean |
11/11/1960 |
03/25/2016 |
|
Auditor |
Jung Bang-Woo |
Korean |
03/10/1946 |
11/14/2014 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
2017 |
442,632,336,794 |
388,455,904,940 |
5,500,582,084 |
|
2016 |
371,558,720,770 |
362,199,211,614 |
1,531,417,379 |
|
2015 |
590,375,055,356 |
419,858,894,241 |
-49,500,125,026 |
|
2014 |
759,271,053,747 |
502,738,710,558 |
-124,897,048 |
|
2013 |
731,584,710,959 |
491,396,483,392 |
-12,080,808,970 |
|
2012 |
760,552,549,456 |
467,913,418,491 |
10,326,454,173 |
|
2011 |
847,602,152,271 |
467,584,792,105 |
-4,085,032,894 |
|
2010 |
791,532,522,278 |
437,895,963,622 |
31,086,298,177 |
|
2009 |
504,614,774,047 |
390,708,456,736 |
36,209,566,255 |
|
2008 |
546,525,490,302 |
323,457,315,016 |
-47,226,464,274 |
|
2007 |
541,716,599,798 |
257,912,564,888 |
1,626,454,256 |
|
2006 |
521,358,600,715 |
268,623,390,637 |
10,511,800,324 |
|
2005 |
331,186,501,679 |
208,247,729,442 |
4,888,864,539 |
|
2004 |
318,858,916,903 |
208,449,702,324 |
5,249,766,468 |
Financial Description
|
Authorized Capital(KRW) |
130,000,000,000 |
|
Paid-Up Capital(KRW) |
45,571,319,500 |
|
Total Issued Shares |
91,142,639(Common
: 91,140,499 / Preferable : 2,140) |
|
Balance Sheet |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total Assets |
388,455,904,940 |
362,199,211,614 |
419,858,894,241 |
|
Current Assets |
190,896,850,274 |
169,263,882,117 |
241,884,191,074 |
|
Cash & Cash Equivalents |
6,961,192,045 |
1,765,885,307 |
34,694,963,907 |
|
Trade Receivables |
78,969,985,751 |
55,158,510,706 |
103,512,304,704 |
|
Other Receivables |
1,759,104,752 |
4,325,629,829 |
3,862,606,629 |
|
Other Financial Assets |
3,328,916,029 |
2,950,353,007 |
554,472,312 |
|
Inventories |
94,388,842,008 |
85,114,488,008 |
69,976,970,626 |
|
Other Current Assets |
599,732,810 |
1,356,345,767 |
924,386,259 |
|
Others |
|
|
58,500,000 |
|
Non-Current Assets to be Sold |
4,889,076,879 |
18,592,669,493 |
28,299,986,637 |
|
Non-Current Assets |
197,559,054,666 |
192,935,329,497 |
177,974,703,167 |
|
Other Financial Assets |
789,502,291 |
539,871,025 |
1,758,103,973 |
|
Investment_Related Companies |
58,779,252,540 |
59,361,887,664 |
37,281,776,254 |
|
Investment_Real Estates |
|
|
1,225,284,256 |
|
Tangibles |
135,753,754,704 |
130,774,177,891 |
134,232,244,068 |
|
Intangibles |
1,509,379,117 |
1,537,379,117 |
2,750,280,816 |
|
Guarantee |
727,013,800 |
722,013,800 |
727,013,800 |
|
Other Long-Term Receivables |
152,214 |
- |
|
|
Total Liabilities |
235,714,445,694 |
216,376,180,452 |
275,143,959,033 |
|
Current Liabilities |
198,893,687,671 |
193,888,158,697 |
252,813,852,106 |
|
Trade Payables |
9,321,329,874 |
8,263,055,727 |
9,286,514,429 |
|
Short-Term Borrowings |
173,606,273,174 |
173,442,667,711 |
232,679,235,056 |
|
Current Portion of Long-Term Debts |
4,515,599,996 |
1,041,600,000 |
1,041,600,000 |
|
Account Payables |
4,041,812,614 |
3,671,947,079 |
4,484,228,984 |
|
Deferred Income Tax Credit |
2,268,486,645 |
- |
|
|
Other Current Financial Debts |
664,011,473 |
2,890,826,930 |
1,799,470,288 |
|
Other Current Liabilities |
4,476,173,895 |
4,578,061,250 |
3,522,803,349 |
|
Non-Current Liabilities |
36,820,758,023 |
22,488,021,755 |
22,330,106,927 |
|
Long-Term Borrowings |
20,854,133,340 |
6,162,400,000 |
7,204,000,000 |
|
Other Non-Current Financial Debts |
311,000,000 |
740,000,000 |
389,000,000 |
|
Deferred Income Tax Credit |
15,655,624,683 |
15,585,621,755 |
14,737,106,927 |
|
Capital Stock |
45,571,319,500 |
45,571,319,500 |
45,571,319,500 |
|
Capital Surplus |
28,568,636,611 |
28,568,636,611 |
28,568,636,611 |
|
Profit Surplus |
62,632,791,369 |
56,677,603,075 |
55,252,396,734 |
|
Others |
15,968,711,766 |
15,005,471,976 |
15,322,582,363 |
|
Total Equity |
152,741,459,246 |
145,823,031,162 |
144,714,935,208 |
|
Liab. & Shareholder’s Equity |
388,455,904,940 |
362,199,211,614 |
419,858,894,241 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
442,632,336,794 |
371,558,720,770 |
590,375,055,356 |
|
Cost of Sold Goods |
400,900,937,424 |
341,609,366,850 |
580,005,000,021 |
|
Gross Profit |
41,731,399,370 |
29,949,353,920 |
10,370,055,335 |
|
Selling & Admin. Expenses |
19,569,695,315 |
17,979,416,966 |
26,432,437,558 |
|
Operating Income |
22,161,704,055 |
11,969,936,954 |
-16,062,382,223 |
|
Non-Operating Profits |
-14,620,239,678 |
-9,385,352,550 |
-35,462,479,968 |
|
Finance Income |
1,854,771,340 |
7,758,906,487 |
10,202,632,523 |
|
Finance Expenses |
-13,418,670,563 |
-17,065,818,448 |
-22,603,895,121 |
|
Other Operating Income |
3,584,127,918 |
6,105,095,123 |
11,856,171,011 |
|
Other Operating Expenses |
-6,640,468,373 |
-6,183,535,712 |
-34,917,388,381 |
|
Income Before Taxes |
7,541,464,377 |
2,584,584,404 |
-51,524,862,191 |
|
Income Taxes Expenses |
2,040,882,293 |
1,053,167,025 |
-2,024,737,165 |
|
Net Income |
5,500,582,084 |
1,531,417,379 |
-49,500,125,026 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating Activities Cash Flows |
-14,228,724,868 |
43,806,167,540 |
80,847,211,255 |
|
Cash Flows from Operating |
-6,288,178,274 |
51,986,222,579 |
89,455,107,817 |
|
Net Income |
5,500,582,084 |
1,531,417,379 |
-49,500,125,026 |
|
Adjustment |
24,426,161,067 |
12,014,019,665 |
43,735,468,370 |
|
Changes in Asset/ & Liability |
-36,214,921,425 |
38,440,785,535 |
95,219,764,473 |
|
Interests Received |
385,238,771 |
449,303,470 |
1,902,507,397 |
|
Interests Paid |
-8,223,690,440 |
-8,594,268,679 |
-10,338,927,299 |
|
Income Taxes |
-102,094,925 |
-35,089,830 |
-171,476,660 |
|
Cash Flows from Investing |
360,382,757 |
-15,746,685,163 |
-23,238,151,557 |
|
Cash Flows from Financing |
19,063,648,849 |
-60,988,560,977 |
-25,710,885,801 |
|
Increase/Decrease in Cash |
5,195,306,738 |
-32,929,078,600 |
31,898,173,897 |
|
Cash at the Beginning of Year |
1,765,885,307 |
34,694,963,907 |
2,796,790,010 |
|
Cash at the End of Year |
6,961,192,045 |
1,765,885,307 |
34,694,963,907 |
Products,
Technologies, Services Description
|
Main Products & Services |
Brass Bar, Brass Wire, Copper
Anode, Copper Alloy Ingot Forging Brass Free-cutting Brass Yellow Brass Bronze Ingot for Casting High-Strength Brass Copper Anode Dezincification-Resistance
Brass Lead-Free Brass Terminator Feed Through Reel Thermostat Fuel Pressure Control Sensor Thermal Sensor Switch Brass Wire Zinc Coated Wire Fire Hydrant Fire Nazzle One Touch Fitting Speed Control Air Gun Valve Door Lock Brand Name : Brasone |
|
Detailed Products Spec. |
|
|
Technologies Acquired |
|
Trade Partners &
Competitors
|
Suppliers |
|
|
Customers |
ESSEN TECH CO., LTD.(120111-0087834) SEOWON CO., LTD.(135011-0029881) |
|
Competitors |
POONGSAN
CORPORATION(131311-0083497) 680-1, NAEGI-RI, POSEUNG-EUP,
PYEONGTAEK-SI, GYEONGGI-DO, KOREA TEL:+82-31-650-7500 FAX:+82-31-650-7511 KUKIL METAL CO.,
LTD.(120111-0082793) 33B-6L, NAMDONG INDUSTRIAL
COMPLEX, 613-5, NAMCHON-DONG, NAMDONG-GU, INCHEON, KOREA TEL:+82-32-814-9192 FAX:+82-32-814-9195 YDC CORPORATION(110111-1626865) |
Related Parties
(Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates-Domestic |
GAEPYUNG DAECHANG CO., LTD.(CHINA) (43.75% held by the subject company) GUANGZHOU BOSE DAECHANG TRADING CO., LTD. (50.00% held by the subject company) ASIA UNION CO., LTD.(111511-0010664) (29.41% held by the subject company) |
|
Overseas Office |
|
|
Liaison Office |
|
|
Overseas Branch |
|
|
Joint Venture |
|
|
Subsidiary |
IN STEEL CO., LTD.(135011-0039898) (80.9% held by the subject company) TAEWOO CO., LTD.(120111-0044595) (78.45% held by the subject company) ESSEN TECH CO., LTD.(120111-0087834) (34.02% held by the subject company) DGSC CO., LTD.(HONG KONG) (90.0% held by the subject
company) DAECHANG AMERICA CO(USA) (100.0% held by the subject
company) DAECHANG SEOWON (SHANGHAI) CO., LTD.(CHINA) (100.0% held by the subject
company) PT TOP BRASS INDONESIA (95.00% held
by the subject company) |
|
Corporate Ownership |
|
|
Major Shareholders |
|
|
Cooperative Enterprise |
-Insured Company KB INSURANCE CO., LTD.(110111-0017859) |
Sales by Region
(Activity & Markets)
|
Sales/ Unit : Thousand KRW |
2017 |
2016 |
2015 |
|
Export |
216,110,785 |
131,267,273 |
|
|
Domestic |
226,521,551 |
240,291,448 |
|
|
Total |
442,632,336 |
371,558,721 |
|
The
Subject deals with the companies in China, Malaysia, Philippines and Indonesia.
Court Action
|
Case No. |
Court |
Plaintiff(s)/
Creditor(s)/ Applicant(s) |
Defendant(s)/
Debtor(s)/ Respondent(s) |
Cause |
Amount (KRW) |
Status |
|
|
|
MASCO CORPORATION & BRASSCRAFT MANUFACTURING COMPANY |
The Subject Company |
Claim for Compensation |
15,908,200,000 |
Filed as of 09/13/2017 Proceeding |
News Clipping
--
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.08 |
|
|
1 |
INR 89.85 |
|
Euro |
1 |
INR 80.16 |
|
KRW |
1 |
INR 0.061 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
KET |
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.