1

Business overview & Extension

3P

2

Investment & profit structure

16P

3

Financial operation plan

27P

4

Financial modeling

32P

Classification

Contents

Basic direction

• Create a flexible complex that takes into consideration the high-level plans and surrounding development trends

• Create a pleasant industrial environment by utilizing the most of the existing good forests

• Secure parking lots, green areas and roads that meet various regulations

Classification

Contents

Industrial complex site

• Plan on the right scale so that actual buyers can carry out smooth production activities

• Plant site is composed of offshore plant module and equipment production and assembly facility site

Classification

Contents

Residential site

• Establish residential land for immigrants and workers in the project site

• Apartment housing considering the housing demand in the complex

Classification

Contents

Support facilities site

• The main purpose of the support facility site is to create a welfare cultural center and comprehensive shopping mall to improve the welfare of residents and industrial workers

Classification

Contents

Public facilities site

• Supply Processing Facility: Review and set up joint use with nearby business promotion district

• Road: Create green tract of land considering the blocking function on the side of the main road

Classification

Area(m²)

Composition ratio(%)

Industrial Complex Site

867,214

66.5

Support Facility Site

39,603

3.0

Residential site

Apartment House

20,919

1.6

Residential site

Parking lot

26,162

2.0

Public facilities site

Road

87,010

6.7

Park

12,443

1.0

Green tract of land

227,399

17.4

Pedestrian road

600

0.1

Waste water treatment plant

19,362

1.5

Water supply facility

951

0.1

Reservoir

3,276

0.3

Sub Total

351,041

26.9

Total

1,304,939

100.0

Classification

Supply Area(m²)

Method of disposition

Subject

Remarks

Industrial Facility site

867,214

Sale

End user

End user

953,898 (73.2%) 

Support Facility site

39,603

Sale

Residential site

Apartment house

20,919

Sale

Residential site

Parking lot

26,162

Sale

Public facility site

Green tract of land

227,399

Nil cost

Tongyeong city

351,014 (26.9%)

​

Park

12,443

Nil cost

Tongyeong city

Pedestrian road

600

Nil cost

Tongyeong city

Road

87,010

Nil cost

Tongyeong city

Waste water treatment plant

19,362

Nil cost (national cost)

Tongyeong city

Water supply facility

951

Nil cost

Tongyeong city

Reservoir

3,276

Nil cost

Tongyeong city

Sub Total

351,041

​

​

Total

1,304,939

​

​

 1,304,939(100%)

Site classification

Area (m2)

Remarks

Industrial facility site

867,214

Industrial facilities such as factories

Support facility site

39,603

Industrial Support Facilities

Residential site

20,919

Residential site

Parking lot

26,162

Parking lot

Private land subtotal

953,898

Sale site subtotal

Public facility site

351,041

Public facility site such as green tracts and sewage treatment facilities

TOTAL

1,304,939

​

Classification

2020

2021

2022 ~ 2023

Submission of project

​

​

​

​

​

​

Compensation consultation & payment

​

​

​

​

​

​

Construction start

​

​

​

​

​

​

Site use

​

​

​

​

​

​

Site completion

​

​

​

​

​

​

Project termination

​

​

​

​

​

​

Classification

Use area (m2)

Remarks

Industrial Land A

495,000

Sale confirmed (payment to be received within 6 months after the construction has started)

Industrial Land B

372,214

Sale scheduled (payment to be received from mid 2019)

Support facilities Land

39,603

Sale prior to construction

Housing Land

20,919

Sale prior to construction

Packing Land

26,162

Sale prior to construction

Public facility Land

351,041

TOTAL

1,304,939

Classification

2020

2021

2022

​

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Industrial facility site A

​

​

​

​

​

​

​

​

​

​

​

​

Industrial facility site B

​

​

​

​

​

​

​

​

​

​

​

​

Support facility site

​

​

​

​

​

​

​

​

​

​

​

​

Residential site

​

​

​

​

​

​

​

​

​

​

​

​

Parking lot

​

​

​

​

​

​

​

​

​

​

​

​

Division

Amount(USD)

Ratio

Remarks

Input contents

Construction cost

59,166,910

74.0%

Phase 1 construction cost (90% of Designing cost)

Outsourcing service fee

1,270,000

1.6%

Supervision fee, outsourcing service fee, license fee,… etc

Compensation fee

10,180,000

12.7%

Deposit for compensation, compensation management fee

Additional fee

1,717,000

2.1%

SPC operation fee, tax fee… etc

Reserve fee (others)

7,666,090

9.6%

Reserve

Sum of costs already inputted

80,000,000

100.00%

Division

Rationale

Amount

Ratio

　Remarks

Contraction cost

Direct cost

Phase 1 construction cost (offshore & Reclamation)

59,166.91

74.0%

Included VAT

Sub total

59,166,910

74.0%

Outsourcing service fee

Supervision

Supervision fee

1,020,000

1.3%

Design & License

Design changing & permission, License fee

250,000

0.3%

Sub total

1,270,000

1.6%

Compensation

Compensation

Deposit for fishing right, obstacle, compensation of right

10,000,000

12.5%

compensation management fee

Compensation management fee (Compensation team management fee, appraisal & assessment… etc)

180,000

0.2%

Sub total

10,180,000

12.7%

Additional fee

SPC operation fee

Labor, management, other operation fee

240,000

0.3%

Tax

Various contributions, deposits, other taxes

1,477,000

1.8%

Sub total

1,717,000

2.1%

Reserve fee

Payables

5,500,000

6.9%

50% of payables

Other reserve

2,166,090

2.7%

Sub total

7,666,090

9.6%

TOTAL

80,000,000

100.0%

Item

Details

Amount (1,000USD)

Developing

Field investigation costs, Design in construction, Licensing costs, Cultural properties prospecting survey costs

8,445

Business expense

Construction supervision costs and other service charges

4,905

Compensation fees

Land, Other obstructions

45,818

Fishing right and other

10,909

Movement, management of other compensation

1,818

Construction cost

Based on PPS reviewed cost

211,767

Other operation costs

Selling and administrative expenses

3,636

Finance costs

Interest

16,725

TOTAL

304,050

Total Project Cost Input Schedule (Quarterly) (Unit: USD)

2020

2021

2022

2023

1^st quarter

2^nd quarter

3^rd quarter

4^th quarter

1^st quarter

2^nd quarter

3^rd quarter

4^th quarter

1^st quarter

2^nd quarter

3^rd quarter

4^th quarter

1^st quarter

2^nd quarter

Division

Summary

20/3/31

20/6/30

20/09/30

20/12/31

21/3/31

21/6/30

21/9/30

21/12/31

22/3/31

22/6/30

22/9/30

22/12/31

23/3/31

23/6/30

Total costs

304,052,544

7,364,355

24,300,841

30,126,072

26,879,000

20,834,103

39,895,389

34,217,372

37,925,815

24,730,176

28,963,123

25,631,837

1,387,945

1,569,026

227,491

Land compensation cost

58,547,709

4,544,922

-

9,090,845

3,635,938

908,984

7,272,876

11,181,809

16,272,722

4,900,916

726,988

-

-

11,709

-

Land cost

1,006,966

65,219

372,857

111,775

74,653

37,327

37,327

37,327

74,653

37,327

18,663

55,990

55,990

18,630

9,229

Construction cost

211,767,000

-

17,255,711

18,534,838

19,013,886

16,696,656

30,758,050

21,171,099

19,332,917

18,114,796

26,762,654

24,126,393

-

-

-

Design costs

8,455,000

455,000

3,545,000

273,000

1,909,000

1,364,000

-

-

-

-

-

-

-

909,000

-

Auditing costs

3,685,876

238,727

1,364,796

409,138

273,259

136,630

136,630

136,630

273,259

136,630

68,315

204,945

204,945

68,191

33,782

Other expense related to development

215,993

13,989

79,977

23,976

16,013

8,007

8,007

8,007

16,013

8,007

4,003

12,010

12,010

3,996

1,980

Corporate operating expense

2,734,000

409,461

136,738

136,738

341,844

136,738

136,738

136,738

341,844

136,738

136,738

136,738

273,475

136,738

136,738

Other expense

915,000

137,036

45,763

45,763

114,406

45,763

45,763

45,763

114,406

45,763

45,763

45,763

91,525

45,763

45,763

Interest expense

16,725,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,350,000

1,200,000

1,050,000

750,000

375,000

-

Sales

Marketing

2Q of 2020

Pre-sale before construction

Pricing policy establish

Distribution agency company DB and network build

Selected as a sales and promotion company

3Q of 2020

Start of construction (planned) / Sale start

1Q of 2022

70% complete sale

Strengthen of Support Facility

Partner DB build

Corporate cooperation marketing progressing

Business presentation, advertising by media

1Q of 2023

Completion (planned) / 100% sale completed

Progressing of visitor DB utilization marketing

Find of related demand

Division

Industrial land A

Industrial land B

Support facilities Land

Parking land

Housing land

Total

Sale area(m2)

495,000

372,214

39,603

26,162

20,919

953,898

Sale unit price (USD)

385.7

385.7

689

220

551

397

Sale rate (%)

100%

100%

100%

100%

100%

100%

Sale price (1000 USD)

190,910

143,616

27,273

5,727

11,546

379,072

Sale start date

Sale Confirmed

July 01, 2020

July 01, 2021

December, 2020

​

Sale schedule

Sale Confirmed

Sale Confirmed

Best Competitive Bidding (Individuals, Corporations)

​

Input date

Industrial land A

Industrial land B

Support facilities Land

Parking land

Housing land

Total

March 31, 2020

​

​

​

​

545.5

546

June 30, 2020

​

​

​

​

1,636.4

1,636

September 30, 2020

19,090.9

​

​

​

​

19,091

December 31, 2020

​

​

​

​

​

-

January 31, 2021

38,181.8

​

​

​

​

38,182

June 30, 2021

​

28,717.3

​

​

​

28,717

September 30, 2021

38,181.8

​

​

​

​

38,182

December 31, 2021

​

43,090.9

​

​

​

43,091

March 31, 2022

38,181.8

​

​

​

​

38,182

June 30, 2122

​

43,090.9

​

​

​

43,091

September 30, 2022

38,181.8

​

​

​

​

38,182

December 31, 2022

​

​

19,090.9

2,727.3

​

21,818

March 31, 2023

19,090.9

28,717.3

8,181.8

3,000

9,363.6

68,354

Total

190,909

143,545

27,273

5,727

11,545

379,071

Time

Borrowing

Property Sales

Total

June 30, 2020

100,000,000

100,000,000

September 30, 2020

545,500

545,500

December 31, 2020

1,636,400

1,636,400

January 31, 2021

19,090,900

19,090,900

June 30, 2021

-

-

September 30, 2021

38,181,800

38,181,800

December 31, 2021

28,717,300

28,717,300

March 31, 2022

38,181,800

38,181,800

June 30, 2122

43,090,900

43,090,900

September 30, 2022

38,181,800

38,181,800

December 31, 2022

43,090,900

43,090,900

March 31, 2023

38,181,800

38,181,800

June 30, 2023

21,818,200

21,818,200

September 30, 2023

68,353,600

68,353,600

Total

100,000,000

379,070,900

479,070,900

Repayment time

Borrowing

Repayment

Financial costs

Balance

June 30, 2020

100,000,000

​

​

100,000,000

September 30, 2020

​

​

1,500,000

100,000,000

December 31, 2020

​

​

1,500,000

100,000,000

January 31, 2021

​

​

1,500,000

100,000,000

June 30, 2021

​

​

1,500,000

100,000,000

September 30, 2021

​

​

1,500,000

100,000,000

December 31, 2021

​

​

1,500,000

100,000,000

March 31, 2022

차입금 대환

​

1,500,000

100,000,000

June 30, 2122

​

10,000,000

1,500,000

90,000,000

September 30, 2022

​

10,000,000

1,350,000

80,000,000

December 31, 2022

​

10,000,000

1,200,000

70,000,000

March 31, 2023

​

20,000,000

1,050,000

50,000,000

June 30, 2023

​

25,000,000

750,000

25,000,000

September 30, 2023

​

25,000,000

375,000

-

Total

100,000,000

100,000,000

16,725,000

​

Usage time

Compensation Cost

Cost of construction

Investigation and design

Additional cost

Financial costs

Other costs

Total

June 30, 2020

4,545

​

455

318

1,500

545

5,864

September 30, 2020

17,254

3,545

1,818

1,500

182

24,300

December 31, 2020

9,091

18,533

273

545

1,500

182

30,123

January 31, 2021

3,636

19,012

1,909

364

1,500

455

25,876

June 30, 2021

909

16,695

1,364

182

1,500

182

20,832

September 30, 2021

7,273

30,755

​

182

1,500

182

39,891

December 31, 2021

11,182

21,169

​

182

1,500

182

34,214

March 31, 2022

16,273

19,331

​

364

1,500

455

37,922

June 30, 2122

4,901

18,113

​

182

1,350

182

24,088

September 30, 2022

727

26,760

​

91

1,200

182

29,110

December 31, 2022

​

24,124

​

273

1,050

182

26,233

March 31, 2023

​

​

​

273

750

364

1,686

June 30, 2023

​

909

91

375

182

2,295

September 30, 2023

11 　

​

​

45

​

182

602

Total

58,548

211,767

8,455

4,909

16,725

3,636

304,037

2020

2021

Division

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Revenue

Capital

Industrial complex A

19,091

38,182

Industrial complex B

28,717

Residential site

546

1,636

Support facility site

Parking lot

Borrowing

100,000

Total

100,000

546

1,636

19,091

0

38,182

28,717

Input

Compensation cost

4,545

9,091

3,636

909

7,273

11,182

Cost of construction

17,254

18,533

19,012

16,695

30,755

21,169

Investigation and design

455

3,545

273

1,909

1,364

Additional cost

318

1,818

545

364

182

182

182

Financial costs

1,500

1,500

1,500

1,500

1,500

1,500

Other expenses such as operating expenses

545

182

182

455

182

182

182

Debt repayment

Total

5,863

24,299

30,124

26,876

20,832

39,892

34,215

Balance

94,137

-23,753

-28,488

-7,785

-20,832

-1,710

-5,498

2022

2023

Total

Division

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Revenue

​

Capital

Industrial complex A

38,182

38,182

38,182

19,091

190,910

Industrial complex B

43,091

43,091

28,717

143,616

Residential site

9,364

11,546

Support facility site

19,091

8,182

27,273

Parking lot

2,727

3,000

5,727

Borrowing

100,000

Total

38,182

43,091

38,182

43,091

38,182

21,818

68,354

479,072

Input

Compensation cost

16,273

4,901

727

​

11

58,548

Cost of construction

19,331

18,113

26,760

24,124

211,746

Investigation and design

909

8,455

Additional cost

364

182

91

273

273

91

45

4,910

Financial costs

1,500

1,500

1,350

1,200

1,050

750

375

16,725

Other expenses such as operating expenses

455

182

182

182

364

182

182

3,639

Debt repayment

10,000

10,000

10,000

20,000

25,000

25,000

100,000

Total

37,923

34,878

39,110

37,779

21,687

26,943

25,602

404,023

Balance

259

8,213

-928

7,312

16,495

-5,125

42,752

75,049

1. Statement of financial position

​

​

​

​

(Unit: USD)

2020

2021

2022

2023

2024

Division

20/12/31

21/12/31

22/12/31

23/12/31

24/12/31

Asset

Ⅰ. Current Asset

109,417,678

158,362,395

81,532,245

1,125,000

1,125,000

　 (1) Quick Asset

32,619,688

38,012,311

30,380,935

1,125,000

1,125,000

　　1. Cash and cash equivalents

31,119,688

36,512,311

28,880,935

-

-

　　2. DSRA (Interest hold account)

1,500,000

1,500,000

1,500,000

1,125,000

1,125,000

　 (2) Inventory

76,797,990

120,350,084

51,151,310

-

-

　　1. Land

16,950,541

35,492,201

10,920,797

-

-

　　2. Construction in progress

59,847,449

84,857,883

40,230,514

-

-

Total asset

109,417,678

158,362,395

81,532,245

1,125,000

1,125,000

Liability

 Ⅰ. Current Liability

15,266,869

56,742,294

10,981,039

-

-

　　1. Sales advance received

15,266,869

53,464,857

1,410,756

-

-

　　2. Income tax payable

0

3,277,436

9,570,283

-

-

 Ⅱ. Non-current Liability

100,000,000

90,000,000

25,000,000

-

-

　　1. Unsubordinated loans

100,000,000

90,000,000

25,000,000

-

-

Total liability

115,266,869

146,742,294

35,981,039

-

-

Equity

 Ⅰ. Capital stocks

-

-

-

-

-

　　1. Capital common stock

-

-

-

-

-

 Ⅱ. Earned surplus

(5,849,191)

11,620,102

45,551,206

(23,875,000)

(23,875,000)

　　1. Earned surplus reserve

-

-

-

-

-

　 2. Retained earnings before disposal

(5,849,191)

11,620,102

45,551,206

(23,875,000)

(23,875,000)

Total equity

(5,849,191)

11,620,102

45,551,206

(23,875,000)

(23,875,000)

Total liability and equity

109,417,678

158,362,395

81,532,245

(23,875,000)

(23,875,000)

2. Income Statement

​

​

​

​

(Unit: USD)

2020

2021

2022

2023

Division

Total

20/12/31

21/12/31

22/12/31

23/12/31

Sales

379,311,664

6,023,087

110,067,314

193,413,243

69,808,020

Cost of sales

283,678,544

4,504,529

82,316,834

144,649,354

52,207,827

Gross sales profit

95,633,120

1,518,558

27,750,480

48,763,889

17,600,194

Selling and administrative expenses

3,649,000

1,367,748

1,003,751

912,501

365,000

Operating profit

91,984,120

150,809

26,746,729

47,851,388

17,235,193

Non-operating income

-

-

-

-

-

Non-operating expense (Including

operating interest expense)

16,725,000

6,000,000

6,000,000

4,350,000

375,000

Income and loss before income taxes

75,259,120

(5,849,191)

20,746,729

43,501,388

16,860,193

Corporate Taxes

16,556,940

-

3,277,436

9,570,283

3,709,221

Net Income

58,702,179

(5,849,191)

17,469,292

33,931,105

13,150,973

3. Cash flow statement

​

​

​

​

(Unit: USD)

2020

2021

2022

2023

Division

Total

20/12/31

21/12/31

22/12/31

23/12/31

Ⅰ. Cashflows from operating activities

58,702,179

(67,380,312)

15,392,623

57,368,624

53,321,244

1. Cash inflows from operating activities

379,311,664

21,289,956

148,265,302

141,359,141

68,397,265

A. Cash inflows from sales proceeds

379,311,664

21,289,956

148,265,302

141,359,141

68,397,265

2. Cash outflows from operating activities

320,609,485

88,670,268

132,872,679

83,990,517

15,076,021

A. Land Costs

58,547,709

17,271,705

35,636,391

5,627,904

11,709

B. Land charge

1,006,966

624,504

186,633

167,970

27,859

C. Composition cost

224,123,869

63,406,310

90,045,904

69,654,706

1,016,949

D. General maintenance expenses

2,734,000

1,024,780

752,057

683,688

273,475

E. Other expenses

915,000

342,968

251,694

228,813

91,525

F. Interest expenses

16,725,000

6,000,000

6,000,000

4,350,000

375,000

G. Corporate taxes

16,556,940

-

-

3,277,436

13,279,504

Ⅱ. Cashflows from investing activities

-

-

-

-

-

Ⅲ. Cashflows from financing activities

(58,702,179)

98,500,000

(10,000,000)

(65,000,000)

(82,202,179)

1. Cash inflows from financing activities

125,375,000

100,000,000

-

-

25,375,000

A. Increase in unsubordinated loans

100,000,000

100,000,000

-

-

-

B. Decrease in loan redemption account

25,000,000

-

-

-

25,000,000

C. Decrease in account for construction cost

-

-

-

-

-

D. Decrease in DSRA

375,000

-

-

-

375,000

E. Capital increase with consideration

-

-

-

-

-

2. Cash outflows from financing activities

184,077,179

1,500,000

10,000,000

65,000,000

105,577,179

A. Unsubordinated Loan Return

100,000,000

-

10,000,000

65,000,000

25,000,000

B. Increase in DSRA

1,500,000

1,500,000

-

-

-

C. Increase in Dividends

82,577,179

-

-

-

82,577,179

Ⅳ. Changes in Cash

-

31,119,688

5,392,623

(7,631,376)

(28,880,935)

Ⅴ. Beginning Balance of Cash

57,998,688

41,335,745

33,440,120

Ⅵ. Ending Balance of Cash

31,119,688

36,512,311

28,880,935

-

4. Funds receipts and disbursement

​

​

​

​

(Unit: USD)

2020

2021

2022

2023

Division

Total

20/12/31

21/12/31

22/12/31

23/12/31

Cash Inflows

504,686,664