Sungwon Pipe Reports Financial Results for First Nine Months of FY 2010

Company reports consolidated revenue growth of approximately 70% year-over-year compared to first nine months of 2009

Dec 09, 2010, 08:30 ET from Sungwon Pipe Co. Ltd.

SEOUL, Republic of Korea, Dec. 9, 2010 /PRNewswire-FirstCall/ -- Sungwon Pipe Co. Ltd. ("Sungwon Pipe" or the "Company") (Pink Sheets: SNGWY), Korea's leading provider of stainless steel pipes, announced today its unaudited financial results for the first nine months ended September 30, 2010.

This earnings release reflects both pro forma and actual financial results due to Sungwon Pipe's acquisition of MS Metal Global Service ("MS Metal") in December 2009. The financial results of both entities have been consolidated beginning January 1, 2010.

Highlights For Nine Months Ended September 30, 2010:

  • Consolidated Revenues of 128.5 million
  • Consolidated EBITDA of $7.7 million
  • Consolidated net income of $6.5 million, or $0.47 per common share based on 130,675,518 shares outstanding

(unaudited) Nine months Ended Sept 30, 2010

SWP

MS Metal

Consolidated

Total Revenues

$84.3 M

$44.2M

$128.5M

EBITDA

$3.2M

$4.5M

$7.7M

Net Income

$3.3M

$3.2M

$6.5M

"We are very pleased to be reporting our first nine months of financial results to the US capital markets," said Mr. Chung Keun Kim, Chief Executive Officer of Sungwon Pipe. "We have achieved some very exciting milestones this year with the listing of our ADRs onto the US markets and completing our first major road show with institutional and retail investors. This year has not only demonstrated our continued leadership in the Korean stainless steel pipe market, but also how we can more effectively capture growth opportunities on the horizon. Year to date, we have delivered EBITDA growth of approximately 70%. We believe this is just the beginning and look forward to updating our shareholders on the progress with our international initiatives and the higher margin businesses that will continue to drive top and bottom line growth."

Management's Discussion & Analysis

Sungwon Pipe's unconsolidated revenues for the first nine months of 2010 were $84.3 million compared to revenues of $77.5 million for the same period in 2009. The increase in revenues does not include revenues in the amount of approximately $9.5 million, which has been deferred to the first quarter of 2011.

Sungwon Pipe's EBITDA for the nine months of 2010 was $3.2 million, up 77% compared to $1.8 million for the same period in 2009. The increase in EBITDA was driven primarily by management's strategic shift to focus on producing higher margin products and outsourcing production of lower margin stainless steel pipes. In addition, the acquisition of MS Metal also attributed to effective cost-cutting initiatives.  

Net income for the nine months ending in September 30, 2010 was $3.3 million, compared to a net loss of $0.7 million for the same period in 2009. The return to profitability was due to reduction in raw material costs, lower production expenses, and additional pricing and cost saving initiatives.

Consolidated revenues which include MS Metal were $128.5 million for the first nine months of 2010. Consolidated EBITDA and net income for the same period were $7.7 million and $6.5 million respectively.

Recent Company Highlights

In September 2010, Sungwon Pipe became the first Korean Depository Receipt issuer to be listed on the OTCQX premier tier market whereby each ADR represents 10 ordinary shares. To further demonstrate the Company's commitment to its US investors, the management team of Sungwon Pipe followed up in November with an extensive investor road show to meet with key institutional and retail investors in New York, Boston, San Francisco and Los Angeles. Through this marketing trip, the Company reaffirmed its strategic vision to expand its global visibility and shareholder base by making its equity more readily available to investors in the US capital markets.

During the third quarter of 2010, KOSDAQ (Korean Securities Dealers Automated Quotations) reported that only three out of seven companies within Kwangju city have reached a sales surplus, with Sungwon Pipe having the largest of all.

Financial Guidance

The following statements are based on current Company expectations. These statements are forward-looking, and actual results may differ materially. These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. For the full year 2010, the Company has provided guidance for total consolidated revenues of approximately $170 million and net income to fall in the range of $13.5-$14.5 million.

Safe Harbor Statement

The matters discussed in this press release contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release are based on current Company expectations and are subject to numerous risks, uncertainties and assumptions. Any forward-looking statements are not guarantees of future performance and actual results of operations, financial condition and liquidity. The Company undertakes no obligation and disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

About Sungwon Pipe Co. Ltd.

Sungwon Pipe Co., Ltd. is a Korea-based company that is primarily involved in the production and supply of stainless steel pipes used in different industrial applications. Sungwon Pipe Co. Ltd. is Korea's number one stainless steel pipe manufacturing company. In December 2009, it acquired MS Metal, the stockist and distributor as a wholly-owned subsidiary to become Korea's first and largest total stainless steel pipe Company. The Company's products are used in paper manufacturing, petrochemical industry, food processing, heat exchangers, industrial structural products and shipbuilding. Sungwon Pipe distributes its products in domestic markets and recently announced an initiative to focus on the overseas markets with current contracts in the United States and Middle East. Its major customers include Samsung, Hyundai, Daewoo, etc.

Sungwon Pipe

Unaudited Balance Sheets

(Units in USD : 1 USD = 1,120 KWR)

Accounts

FY  2010

FY  2009

Assets

Current Assets

32,724,777

31,765,784

  Quick Assets

19,406,783

15,799,590

     Cash and Cash Equivalents

534,362

750,484

     Government Subsidy for Cash and Cash Equivalents

93,229

116,496

     Short-term Financial Instruments

-

32,143

     Short-term Investment Assets

897,612

897,674

        Available-for-Sale Securities Current

4,754

4,754

        Short-term Loans

892,857

892,920

     Trade Receivable

13,014,094

14,226,411

     Allowance for Doubtful Accounts for Trade Receivables

756,583

701,258

     Other Receivables

27,914

13,708

     Accrued Income

506,212

303,569

     Advance Payments

4,867,293

126,679

     Prepaid Expenses Total

12,225

12,660

     Prepaid Value Added Tax

-

41,329

     Prepaid Income Taxes

5,388

-

     Deferred Income Taxes Assets Current

391,497

212,687

  Inventories

13,317,994

15,966,194

     Merchandises

985,839

710,644

     Finished Goods

5,998,888

8,332,290

     Works in Process

1,399,403

969,280

     Raw Materials

4,852,535

5,876,165

     Supplies

81,329

77,815

Non-current Assets

97,560,654

104,252,431

  Investment Assets

58,425,549

64,119,820

     Long-term Financial Instruments

267,857

535,714

     Long-term Investment in Securities

13,013,494

16,351,563

        Available-for-Sale Securities in Investment Assets

8,144,414

10,143,197

        Held-to-Maturity Securities in Investment Assets

4,869,080

6,208,366

     Equity Method Securities

45,070,435

47,137,665

     Long-term Loans

42,054

63,170

     Investment in Properties

31,709

31,709

  Property, Plant and Equipment

37,438,527

38,330,830

     Land

23,265,058

23,265,058

     Buildings

16,444,529

16,444,529

     Accumulated Depreciation for Buildings

4,117,591

3,500,921

     Machinery

11,838,018

11,805,340

     Accumulated Depreciation for Machinery

10,288,716

9,878,244

     Tools

150,905

150,905

     Accumulated Depreciation for Tools

150,891

150,891

     Office Equipment

1,087,807

1,082,200

     Accumulated Depreciation for Office Equipment

1,045,980

1,026,383

     Vehicles

390,750

251,799

     Accumulated Depreciation for Vehicles

135,380

112,580

     Other Property Plant Equipment

444,838

444,838

     Accumulated Depreciation for Other Tangible Assets

444,820

444,820

     Construction in Progress

-

-

  Other Non-current Assets

1,696,578

1,801,781

     Deposits Provided

1,494,245

1,437,190

     Long-term Trade Receivables

1,731,652

1,525,066

     Allowance for Doubtful Accounts for Long-term Trade Receivables

1,529,319

1,160,476

     Deferred Income Taxes Assets Non-current

-

-

Total Assets

130,285,431

136,018,215

Liabilities

-

-

Current Liabilities

30,767,264

41,205,282

  Trade Payable

14,537,480

7,887,785

  Short-term Borrowings

7,410,714

27,232,143

  Other Payables

758,322

325,279

  Advance for Customers

1,622,432

12,475

  Withholdings

53,498

48,493

  Accrued Expenses

277,916

281,714

  Income Taxes Payable

484,547

5,897

  Value Added Tax Withheld

247,353

-

  Withholdings Guarantee Deposits

196,429

196,429

  Current Portion of Long-term Liabilities

5,178,571

5,178,571

  Bonds With Stock Warrants for Current Liabilities

-

37,500

  Current Portion of Yield to Maturity Premium on Bonds of Current Portion of Long-term Liabilities

-

3,477

  Discount on Bonds of Current Portion of Long-term Liabilities

-

110

  Stock Warrants Adjustment for Bonds

-

4,371

  Deferred Income Taxes Liabilities Current

-

-

Non-current Liabilities

1,810,846

1,996,542

  Long-term Borrowings

-

-

  Provisions for Retirement and Severance Benefits

2,156,544

1,763,077

  Plan Assets

1,733,799

1,710,010

  Deferred Income Taxes Liabilities Non-current

1,388,101

1,943,475

Total Liabilities

32,578,110

43,201,824

Stockholders' Equity

-

-

Capital Stock

58,337,285

53,872,999

  Common Stock

58,337,285

53,872,999

Capital Surplus

11,707,017

11,730,429

  Additional Paid-in Capital

9,943,466

9,966,878

  Other Capital Surplus

1,763,551

1,763,551

     Consideration for Stock Warrants in Capital Surplus

1,763,551

1,763,551

Capital Adjustments

- 306,034

83,542

  Stock Options in Other Capital Adjustments

1,102,730

939,735

  Other Capital Adjustments in Capital Adjustments

-1,408,764

-856,193

Accumulated Other Comprehensive Income

3,547,324

6,016,131

  Gains on Valuation of Available for Sale Securities in Capital Adjustments

-

370,538

  Losses on Valuation of Available for Sale Securities in Capital Adjustments

3,890,390

2,170,336

  Losses on Valuation of Equity Method Securities

1,444,001

1,065,786

  Asset Revaluation Reserve Other Comprehensive Income

8,881,715

8,881,715

Retained Earnings or Accumulated Deficit

24,421,728

21,113,289

  Appropriated Retained Earnings for Statutory Reserve

650,000

650,000

     Appropriated Retained Earnings for Legal Reserve

650,000

650,000

  Appropriated Retained Earnings for Voluntary Reserves

23,172,417

24,065,274

     Appropriated Retained Earnings for Business Stabilization

47,417

47,417

     Other Appropriated Retained Earnings Voluntary Reserves

23,125,000

24,017,857

  Retained Earnings Before Appropriations or Accumulated Deficit Before Disposition on Balance Sheet

599,312

-3,601,985

Total Stockholders Equity

97,707,321

92,816,390

Total Liabilities and Stockholders Equity

130,285,431

136,018,215

Sungwon Pipe

Unaudited Statements of Operation

(Units in USD : 1 USD = 1,120 KWR)

Accounts

FY  2010

FY  2009

Quarter ended Sept 30

Nine months ended Sept 30

Quarter ended Sept 30

Nine months ended Sept 30

Sales Revenue

27,481,348

84,389,251

33,098,908

83,097,051

  Sales Revenue of Finished Goods

25,791,231

75,297,744

30,779,986

77,433,578

  Sales Revenue of Merchandises

1,395,965

8,275,122

1,976,468

4,907,465

  Other Sales Revenue

294,152

816,386

342,453

756,007

Costs of Goods and Services Sold

24,876,159

76,480,732

30,031,916

77,983,466

  Cost of Finished Goods Sold

23,500,710

68,496,000

28,198,168

73,324,638

     Beginning Inventory of Finished Goods

7,930,787

8,332,290

7,956,670

8,474,771

     Cost of Finished Goods

21,568,812

66,162,599

27,948,836

72,557,204

     Ending Inventory of Finished Goods

5,998,888

5,998,888

7,707,338

7,707,338

  Cost of Merchandises Sold

1,352,851

7,945,748

1,803,923

4,592,919

     Beginning Inventory of Merchandises

553,178

710,644

567,871

210,550

     Cost of Merchandises Purchased

1,785,512

8,220,942

1,714,126

4,860,444

     Ending Inventory of Merchandises

985,839

985,839

478,075

478,075

  Cost of Other Goods Sold

22,597

38,984

29,826

65,909

Gross Profit or Loss

2,605,189

7,908,519

3,066,992

5,113,584

Selling and Administrative Expenses

1,390,583

4,732,225

1,390,031

3,236,646

  Salaries and Wages

497,095

1,487,611

414,814

1,232,689

  Retirement and Severance Benefits

29,042

164,079

37,499

91,856

  Employee Benefits

80,529

293,095

98,770

220,191

  Training Expenses

0

336

0

0

  Travel Expenses

86,102

166,813

41,895

99,577

  Vehicle Maintenance Expenses

24,506

88,704

37,999

106,413

  Communication Expenses

9,020

24,571

7,785

23,439

  Utility Expenses

1,600

5,076

2,022

5,895

  Supply Expenses

1,874

5,082

5,486

8,082

  Publication Expenses

2,710

4,426

887

4,751

  Office Supply Expenses

677

2,981

1,842

4,368

  Rental Expenses

34,128

90,056

15,356

39,944

  Depreciation

70,213

224,574

64,794

194,382

  Repair Expenses

0

0

0

0

  Development Expenses

-22,392

24,865

8,866

8,866

  Insurance Premiums

3,957

15,964

6,887

9,730

  Commissions

187,221

342,685

41,866

141,632

  Packaging Expenses

64,913

220,668

57,232

125,343

  Taxes and Dues

18,568

139,197

22,097

25,869

  Entertainment Expenses

82,448

187,760

35,990

121,539

  Advertising Expenses

18,571

22,411

11,232

20,250

  Freight Expenses

199,801

634,110

476,712

751,828

  Expenses of Allowance for Doubtful Accounts

0

424,168

0

0

  Compensations Expenses Associated with Stock Options

0

162,995

0

0

Operating Income or Loss

1,214,607

3,176,294

1,676,961

1,876,938

Non-Operating Revenues

159,597

2,805,121

237,022

961,565

  Interest Income

12,386

412,155

11,208

219,674

  Rental Income

107,255

333,051

107,602

313,883

  Gains on Foreign Currency Transactions

3,506

13,392

9,265

40,280

  Dividend Income

0

0

0

84,373

  Gains on Valuation of Equity Method Securities

0

1,484,484

0

30,399

  Gains on Sale of Equity Method Securities

0

472,555

0

0

  Gains on Sale of Available for Sale Securities in Investment Assets

0

0

0

12,969

  Gains on Sale of Property, Plant and Equipment

0

11,606

0

23,212

  Gains on Sale of Investment Assets

0

0

0

0

  Gains on Derivatives Transactions

30,938

30,938

62,616

87,902

     Gains on Other Derivative Transactions

30,938

30,938

62,616

87,902

  Reversal of Allowance for Doubtful Accounts

0

0

0

20,789

  Miscellaneous Income

5,511

46,939

46,330

128,086

Non-Operating Expenses

711,330

2,634,023

859,714

3,911,772

  Interest Expenses

379,823

1,388,449

425,934

1,536,523

  Losses on Sale of Trade Receivable

272,423

844,800

297,348

702,521

  Losses on Foreign Currency Transactions

15,346

23,019

119,030

131,169

  Losses on Sale of Property, Plant and Equipment

0

0

0

4,123

  Losses on Valuation of Equity Method Securities

0

297,517

0

587,926

  Losses on Sale of Available for Sale Securities in Investment Assets

0

0

0

0

  Losses on Redemption of Bonds

0

0

191

869,526

  Losses on Sale of Investment Assets

21,966

21,966

0

0

  Miscellaneous Losses

21,772

58,272

17,211

79,984

Income Loss Before Income Taxes Expenses

662,874

3,347,391

1,054,269

-1,073,269

Income Taxes Expenses

0

38,952

0

-322,306

Net Income or Loss

662,874

3,308,440

1,054,269

-750,963

Earnings or Losses Per Share

0

0

0

0

  Basic and Diluted Earnings or Losses Per Share

0.01

0.03

0.01

-0.01

MS Metal

Unaudited Balance Sheet

FY 2010 Nine months ended Sept. 30

(Units in USD : 1 USD = 1,120 KWR)

I. Current Assets

36,836,444

 

(1)Quick Assets

28,489,919

 

1.Cash and Cash Assets

 

 

 

3,845,419

 

2.Short-term Deposit

 

 

 

 

 

357,143

 

3.Marketable securities

 

 

 

 

-

 

4.Trade Accounts Receivables

 

 

10,991,203

 

5.Short-term loans

 

 

 

 

 

 

13,003,759

 

   Stockholders Executives       Affiliated Company

30,473

 

   Other

 

 

 

 

 

 

 

 

12,973,286

 

6.Receivables

 

 

 

 

 

 

 

68,803

 

   Receivables from Real-estate Sales

-

 

   Receivables from Construction     Contracts

-

 

   Other

68,803

 

7.Advance Payments

 

 

 

 

 

22,442

 

8.Deferred Income Tax Assets

 

 

 

-

 

9.Other

 

 

 

 

 

 

 

 

 

201,151

 

(2)Inventories

8,346,525

 

 

1.Merchandise

8,034,604

 

 

2.Finished Goods

-

 

 

3.Semi-finished Goods

-

 

 

4.Work-in-process

-

 

 

5.Raw Materials

-

 

 

6.Temporary Establishment

-

 

 

7.Supplies

-

 

 

8.Merchandise (materials) in Transition

311,920

 

 

9. Finished Housing

-

 

 

10.Unfinished Housing

-

 

 

11.Land (for Construction)

-

 

 

12.Uncompleted Constructions

-

 

 

13.Other

-

 

 

 

-

II. Non-current Assets

24,683,384

 

(1)Investment Assets

13,036,723

 

 

1.Long-term Deposit

-

 

 

2.Long-term Investment Securities

13,036,723

 

 

3.Securities on Equity Method

-

 

 

4.Long-term Loans

-

 

 

   Loans of Affiliated Companies

-

 

 

   Loans to Stockholders     Executives Employees

-

 

 

   Other

-

 

 

5.Investment in Real Estates

-

 

 

6.Other

-

 

(2)Tangible Assets

11,066,125

 

 

1.Land

7,425,582

 

 

2.Buildings

3,322,159

 

 

3.Structures

-

 

 

4.Machinery

43,177

 

 

5.Ships Airplanes

-

 

 

6.Construction in progress

-

 

 

7.Vehicles and Transportation  Equipment

22,275

 

 

8.Construction in progress

-

 

 

9.Other

252,933

 

(3)Intangible Assets

2,113

 

 

1.Goodwill

-

 

 

2.Industrial Property Rights

-

 

 

3.Mining Rights

-

 

 

4.Fishing Rights

-

 

 

5.Land Use Rights

-

 

 

6.Organization Costs

-

 

 

7.R & D Costs

-

 

 

8.Usable and Profitable   Donation Assets

-

 

 

9.Business Commencement Costs

-

 

 

10.Debenture Issuance Costs

-

 

 

11.Other

2,113

 

(4)Other Non-current Assets

578,422

 

 

1.Long-term Trade Receivables

-

 

 

2.Long-term Receivables

-

 

 

3.Long-term Prepaid expenses

-

 

 

4.Guarantee Deposit

578,422

 

 

5.Deferred Income Tax Assets

-

 

 

6.Other

-

 

 

Total Assets(I+II)

61,519,827

I. Current Liabilities

30,340,500

 

1.Trade Accounts Payables

7,407,465

 

2.Short-term Borrowings

7,811,143

 

3.Income Taxes Payables

171,552

 

4.Dividends Payable

-

 

5.Advances From Customers

3,987,164

 

 

 Advances from Construction   Contracts

-

 

 

 Advances from Real-estate Sales

-

 

 

 Other

3,987,164

 

6.Current Maturities of Long-term Debts

859,375

 

7.Provision for Construction Losses

-

 

8.Allowance for Repairs

-

 

9.Deferred Income Tax Liabilities

-

 

10.Other

10,103,800

II. Non-current Liabilities

10,662,454

 

1.Debentures

3,571,429

 

2.New Debentures such as   Convertible Bonds

-

 

3.Long-term Borrowings

7,098,214

 

 

 Affiliated Companies

-

 

 

 Stockholders Executives Employees

-

 

 

 Other

7,098,214

 

4.Long-term Trade Accounts payables

-

 

5.Allowance for Retirement Benefits

        7,188

 

6.Provision for Group Retirement Benefits

-

 

7.Long-term Warranty Provision

-

 

8.Allowance for Other

-

 

9.reserves

-

 

10.Deferred Income Tax liabilities

-

 

11.Long-term Advances from    Construction Contracts

-

 

12.Other

-

Total Liabilities(I+II)

41,002,954

III. Stockholders' Equity

937,500

 

1.Common Stock

937,500

 

2.Preferred Stock

-

IV. Capital Surplus

 

 

1.Paid-in Capital in Excess of   Par Value

 

 

2.Gains on Capital Reduction

 

 

3.Gains from Merger

 

 

4.Assets Revaluation Surplus

 

 

5.Other Capital Surplus

 

V. Capital Adjustment

 

 

1.Discounts on Stock Issuance

-

 

2.Pre-operating Dividends

-

 

3.Treasury Stock

-

 

4.Unissued Stock Dividends

-

 

5.Other

-

VI. Accumulated Other    Comprehensive Income

-

 

1.Gains(losses) on Valuation of   Available-for -sale Securities

-

 

2.Overseas Operations   Translation Credit (Debit)

-

 

3.Valuations of Securities from    Using the Equity Method

-

 

4.Gains (Losses) on Valuation of   Derivatives

-

 

5.Other

-

VII. Retained Earnings

19,579,373

 

1.Legal Reserve

912,914

 

2.Reserve for Business   Rationalization

-

 

3.Reserve for improvements of   Financial Structure

-

 

4.Reserve of under Restriction   of Special Taxation Act

-

 

5.Other Discretionary Appropriated   Retained Earnings

-

 

6.Retained Earnings of Deficit   before Appropriation

18,666,459

Total Stockholders' Equity(III+-VII)

20,516,873

 

-

Total Liabilities and Stockholders' Equity

61,519,827

MS Metal

Unaudited Statement of Operation

FY 2010 Nine months ended Sept. 30

(Units in USD : 1 USD = 1,120 KRW)

Description

Amount

I. Sales

            44,179,631

 

1.Sales-Merchandise

            44,179,051

 

2. Sales-finished goods

                        -

 

3. Construction Revenue

                        -

 

4. Freight Revenue

                        -

 

5. Rental Income

                        -

 

6. Sales -real-estate

                        -

 

7. Other

                     579

II. Cost of Sales

            37,751,696

 (1)Cost of Merchandise Sold

            37,751,696

 

1.Beginning Inventory

             4,919,562

 

2.Current Cost of Purchase

            40,866,738

 

3.Ending Inventory

             8,034,604

 

4.Transfer to Other Accounts

                        -

 (2)Manufacturing, Construction, Lease, Transportation, Other Cost

                        -

 

1.Beginning Inventory

                        -

 

2.Current Cost  (a schedule Attached)

                        -

 

3.Ending Inventory

                        -

 

4.Transfer to Other Accounts

                        -

III. Gross Profit and Losses on Sales

             6,427,935

IV. Selling and Administrative Expenses

             1,924,832

 

1.Salaries

                984,559

 

2.Retirement Allowance

                        -

 

3.Insurance

                        -

 

4.Other Employee Benefits

                215,634

 

5.Travel Expenses

                 73,199

 

6.Rental Expenses

                128,054

 

7.Entertainment Expenses

                159,923

 

8.Depreciation

                        -

 

9.Amortization on Intangible  (or Deferred) Assets

                        -

 

10.Taxes and Dues

                 19,959

 

11.Advertising

                   3,567

 

12.Vehicle Maintenance Expenses

                 67,854

 

13.Research Expenses

                        -

 

14.Ordinary Development Expenses

                        -

 

15.Bad debt Expenses

                        -

 

16.Administrative Expenses for Unsold    Houses and Offices

                        -

 

17.Promotional Expenses

                        -

 

18.Other Selling and Administrative Expenses

                272,083

V. Operating Profit and Losses

             4,503,102

VI. Non-Operating Income

                226,302

 

1.Interest Income

                   7,519

 

2.Dividend Income

                        -

 

3.Rental Income

                 48,214

 

4.Gains on Disposal of Securities

                              -

 

5.Gains on Valuation of Securities

                              -

 

6.Gains on Foreign Currency Transactions

                     160,764

 

7.Gains on Foreign currency Translations

                              -

 

8.Gains on Valuation of Investment   using Equity Method

                              -

 

9.Recovery on Investment Securities   impairment Losses

                              -

 

10.Gains on Disposal of Investment Assets

                              -

 

11.Gains on Disposal of Tangible    (intangible ) Assets

                              -

 

12.Gains from Redemption of Bonds

                              -

 

13.Income Tax Refunds

                              -

 

14.Reversal of Allowances and Reserves

                              -

 

15.Gains on Prior Period Error Correction

                              -

 

16.Gains from assets Contributes

                              -

 

17.Gains on Exemption of Debts

                              -

 

18.Gains on insurance settlement

                              -

 

19.Other Non-operating Expenses

                        9,805

 

 

 

                              -

 

 

 

                              -

 

 

 

                              -

 

 

 

                        9,805

VII. Non-operating Expenses

                   1,548,201

 

1.Interest Expenses

                     860,775

 

2.Other Bad debt Expenses

                              -

 

3.Losses on Disposal of Securities

                              -

 

4.Losses on Valuation of Securities

                              -

 

5.Losses on Valuation of Inventories

                              -

 

6.Losses on Foreign Currency Transactions

                     383,841

 

7.Losses on Foreign Currency Translations.

                              -

 

8.Losses on Valuation of Investment   Securities using Equity Method

                              -

 

9.Losses on Investment Securities   Impairment

                              -

 

10.Losses on Disposal of Investment     Assets

                     198,859

 

11.Losses on Disposal of Tangible    (intangible) Assets

                       39,738

 

12.Donations

                              -

 

13.Losses From Redemption Of Bonds

                              -

 

14.Reimbursed Expenses (Construction)

                              -

 

15.Supplementary payment of income taxes

                              -

 

16.Transfer to Reserves or Others

                              -

 

17.Losses on Prior Period Error Correction

                              -

 

18.Casualty Losses

                              -

 

19.Other

                       64,988

 

                              -

VIII. Net Income (Losses)     before Income Tax

                   3,181,204

IX. Income Tax Expenses

                              -

X. Net Income (Net Losses)

                   3,181,204

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SOURCE Sungwon Pipe Co. Ltd.



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