MIRA INFORM
REPORT
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Report Date : |
02.08.2011 |
IDENTIFICATION DETAILS
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Name : |
BURWILL
RESOURCES LTD. |
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Registered Office : |
c/o Burwill Holdings Ltd., Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai |
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Country : |
Hong Kong |
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Date of Incorporation : |
11.08.1987 |
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Com. Reg. No.: |
11504710 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer
and Exporter of all kinds of steel material |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment
Behaviour : |
Usually 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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Hong Kong |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Bottom of Form
Company name
BURWILL RESOURCES LTD
Company ADDRESS
c/o Burwill Holdings Ltd.
Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.
PHONE: 2877 7368
FAX: 2877 2231, 2877 2282
E-MAIL: bwr@burwill.com
MANAGEMENT
Managing Director: Mr. Sham Kai Man
SUMMARY
Incorporated on: 11th August, 1987.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Steel Trading.
Group Sales: HK$6,080,074,000 (Year ended 31-12-2010)
Group Employees: 820. (As at 31-12-2010)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Company ADDRESS
Registered Head
Office:-
c/o Burwill Holdings Ltd.
Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.
Business Office:-
Room 2604, 26/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong.
[Tel: 2136 6613
Fax: 2877 2282
E-mail: bwr@wellnet.com.hk ]
Immediate Holding
Company:-
Burwill & Co. Ltd., Hong Kong.
Ultimate Holding
Company:-
Burwill Holdings Ltd., Bermuda/Hong Kong.
Affiliated
Companies:-
Burwill Group of
Companies
· Burwill (China) Ltd., Hong Kong.
· Burwill China Portfolio Ltd., British Virgin Islands.
· Burwill HK Portfolio Ltd., British Virgin Islands.
· Burwill Metal Ltd., Hong Kong.
· Burwill Minerals (Turkey) Ltd., Hong Kong.
· Burwill Minerals Ltd., Hong Kong.
· Burwill Nominees Ltd., British Virgin Islands.
· Burwill Properties Ltd., Hong Kong.
· Burwill Resources Spain S.A., Spain.
· Burwill Steel Co. Ltd., British Virgin Islands.
· Burwill Steel Pipes Ltd., Hong Kong.
· Burwill Times Industrial Ltd., Hong Kong.
· Burwill Warehousing (China) Ltd., Hong Kong.
· Burwill Warehousing (Shanghai) Ltd., China.
· China LotSynergy Holdings Ltd., Bermuda.
· Dongguan Hing Wah Metals Factory Ltd., China.
· Dor Uluslararasi Tasimacilik Madencilik ve Dis Ticaret Anonim Sirketi, Turkey.
· Goldenbridge Services Ltd., Hong Kong.
· Hillot Ltd., Hong Kong.
· Hing Wah Metals Factory Ltd., Hong Kong.
· Masteel (Yangzhou) Processing & Distribution Co. Ltd., China.
· Nam Wah Precision Product (BVI) Ltd., British Virgin Islands.
· Smart Task Ltd., British Virgin Islands.
· Tai Xin Minerals Ltd., British Virgin Islands.
· Yinmain Industrial Ltd., Hong Kong.
· Yinmain Metal Ltd., Hong Kong.
etc.
BUSINESS REGISTRATION NUMBER
11504710
COMPANY FILE NUMBER
0195392
MANAGEMENT
· Group Chairman & Managing Director: Mr. Chan Shing
· Group Executive Director & Deputy General Manager: Mr. Sit Hoi Tung
· Managing Director: Mr. Sham Kai Man
CAPITAL
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
SHAREHOLDERS
(As per registry
dated 11-08-2010)
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Name |
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No. of shares |
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Burwill Nominees Ltd. P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands. |
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1 |
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Burwill & Co. Ltd., Hong Kong. |
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999,999 |
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–––––––– |
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Total: |
1,000,000 ======= |
DIRECTORS
(As per registry dated
11-08-2010)
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Name (Nationality) |
Address |
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CHAN Shing (Chinese) |
House 3, 12 Shouson Hill Road, Shouson Hill, Hong Kong. |
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LAU Ting (Chinese) |
House 3, 12 Shouson Hill Road, Shouson Hill, Hong Kong. |
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SIT Hoi Tung (British) |
Flat B, 26/F., Cumine Court, 4 Comfort Terrace, North Point, Hong Kong. |
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SHAM Kai Man |
Flat C, 16/F., Tower 8, Banyan Garden, 863 Lai Chi Kok Road, Cheung Sha Wan, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 11-08-2010)
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Name |
Address |
Co.
No. |
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Hardworkers (H.K.) Ltd. |
Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong. |
0236145 |
HISTORY
The subject was incorporated on 11th August, 1987 as a private limited liability company under the Hong Kong Companies Ordinance.
It was originally registered under the name of Joinkind Ltd., name changed to Burwill Metals Service Centre Ltd. on 29th December, 1987, and the present style was adopted on 15th May, 1998.
Formerly the subject was located at Room 1208-1210, 12/F., East Wing, New World Centre, 24 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in March 1998.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer and Exporter.
Lines: All kinds of steel materials.
Group Employees: 820. (As at 31-12-2010)
Commodities Imported: Imported from Russia, India, etc.
Markets: Hong Kong, China, Asia, Europe and USA.
Group Sales: HK$4,793,364,000 (Year ended 31-12-2006)
HK$5,452,012,000 (Year ended 31-12-2007)
HK$8,334,596,000 (Year ended 31-12-2008)
HK$3,256,714,000 (Year ended 31-12-2009)
HK$6,080,074,000 (Year ended 31-12-2010)
Terms/Sales: On various terms.
Terms/Buying: As per contracted.
FINANCIAL INFORMATION
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Indebtedness: US$54,000,000.00 (Total amount outstanding on all mortgages and charges as per last
Annual Return dated 11-08-2010)
Mortgage or Charge: (See attachment)
Group Profit/(Loss) Attributable to Equity Holders:-
HK$149,380,000 (Year ended 31-12-2006)
HK$ 86,307,000 (Year ended 31-12-2007)
(HK$148,808,000) (Year ended 31-12-2008)
(HK$ 4,646,000) (Year ended 31-12-2009)
HK$549,444,000 (Year ended 31-12-2010)
Profit or Loss: Group business is profitable in 2010.
Condition: Business improved in 2010.
Facilities: Adequate for current running.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
· Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
· Taishin International Bank Co. Ltd., Hong Kong Branch.
· Bank of China (Hong Kong) Ltd., Hong Kong.
· CITIC Bank International Ltd., Hong Kong.
· Natixis, Hong Kong Branch.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
etc.
Standing: Normal.
GENERAL
Burwill Resources Ltd. was incorporated in August 1987 as a wholly-owned subsidiary of Burwill & Co. Ltd., Hong Kong which is in turn a subsidiary of Burwill Holdings Ltd. [BHL], a Bermuda-incorporated company. BHL is the holding company of the Burwill Group.
Burwill Group was founded in 1949 and BHL was listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 24 in August 1983. A listing status in The Stock Exchange of Singapore Ltd. was obtained in May 1990. However, the Group has been delisted from The Stock Exchange of Singapore Ltd. since 9th September, 2010.
Burwill Group’s activities comprise international steel trading and manufacturing of steel products, high-technology investment, property investment and development. Market coverage of the Group has been expanded to Hong Kong, China, Asia, Australia and Europe.
The subject, a core member of the Burwill Group, is primarily engaged in the trading of steel products such as steel ingots, pig iron, steel billets and slabs, hot-rolled/cold-rolled sheets/coils and steel scrap. These are generally imported from Japan, Russia, Ukraine and Korea and are sold in Asia, Europe and the US, in particular to the leading steel mills and steel processing and manufacturing factories in China. Moreover, the subject enjoys a competitive edge in China steel exports where the subject has maintained good business relationship with established steel mills such as Angang, Pangang and Jigang. The average monthly exports of China steel products amounted to about 50,000 tons. The subject is one of the largest steel traders in Hong Kong.
As of 31st December, 2010, the Group has recorded an enhanced trade volume and turnover in its steel and iron ore business than that of last year. With improved profit levels, the Group managed to swing into profit. The Group recorded approximately HK$6.08 billion and HK$157 million in sales and gross profit, an increase of 87% and 60% respectively compared with the last corresponding year. Profit attributable to shareholders was approximately HK$549 million.
In the first quarter of 2010, the global economy started to recover gradually and liquidity improved. A solid global demand for steel had been driving up prices. Demand for steel has increased further despite policies by the Chinese government in energy conservation and emission reductions, as well as production capacity controls in steel. Domestic demand had also surged because of urbanisation, construction of high-speed railway and rural policies over home appliances. In addition, as negotiations of iron ore prices came to a halt, the traditional annual price fixing mechanism was actually abolished. The big three mining companies have now adopted a quarterly price fixing mechanism which boosts iron ore prices considerably, driving up the production cost of steel enterprises and therefore steel prices. The Group’s international trading business recorded satisfactory results in the first quarter.
Steel production capacity reached a historic high of 1.4 billion tonnes in 2010, up 15% year-on-year. In China, steel exports surpassed 42 million tonnes, up 73% year-on-year. Benefiting from the improved economic environment and the steady execution of the long-term iron-ore contract signed with an Australian mine, the Group’s steel trading volume and turnover were better in 2010 than the previous year, contributing to profit levels.
Looking forward to 2011, the global economy will be facing both challenges and opportunities. On the international front, the eurozone debt crisis, the political instability in North Africa and the Middle East, continued international anti-dumping pressure and the cancellation of export tax rebate of certain steel commodities have hindered steel export in China.
On 11th March this year, a magnitude 9 earthquake hit the Eastern part of Japan which triggered tsunami, destroying part of the ports and steel plant facilities. It is estimated that not less than 30 million tons of steel capacity would be affected. The prices of iron ore, scrap and steel will fluctuate due to short-term imbalance of supply and demand and the reconstruction will also contribute to the increasing demand for steel. The Group will actively monitor and seek possible trading opportunities.
Over the years, the Group is actively pursuing business opportunities worldwide. The target is to build up its resources and sales network in markets besides China. Currently, the Group has established trading businesses in Asia, Central and Southern Europe, the Middle East, North Africa, North America and Latin America. Short-term instability in individual markets will not influence the Group’s overall business substantially.
As at 31st December, 2010, the Group employed 820 staff.
The subject is fully supported by the Burwill Group.
On the whole, consider the subject good for normal business engagements.
REMARKS:
Brief information of the principal directors:-
Mr. CHAN Shing, aged 55, joined the Group as Chairman and Managing Director in 1998. Mr. Chan has over 20 years of experience in international trading of metal, the processing and manufacturing of related products, the management of industrial enterprises, the investment in industrial and commercial properties, and corporate planning and management. Mr. Chan is also an Executive Director of China LotSynergy Holdings Ltd. Ms. Lau Ting is the spouse of Mr. Chan.
Mr. SIT Hoi Tung, aged 45, joined the Group in 1998 and was appointed as an Executive Director in 2000. He was promoted to Deputy General Manager in 2006. Mr. Sit is also a Director of the subject, incharge of contracts and import/export bills operation for metal trading. He graduated from the Finance Department of Jinan University in Guangzhou. He had worked for banking sector and metal trading companies and has over 16 years’ experience in international metal trading and import/export bills operation.
Mr. SHAM Kai Man, aged 44, joined the Group in 2000 and was appointed as an Executive Director in July 2009. He is the Managing Director of the subject, incharge of the Group’s steel and mineral trading business. Mr. Sham graduated from The University of Hong Kong and, prior to joining the Group, had worked for a multinational steel trading company for 7 years. He has over 16 years extensive experience in steel trading and gains good international connections.
MORTGAGE OR CHARGE
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Date |
Particulars |
Amount |
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16-07-2009 |
Instrument: Trade Finance Security Assignment Property: 1) By way of absolute assignment to the Lender all rights, title, interests and benefits of the Borrower, as at the date of the Assignment and thereafter, in and to the Assigned Assets; and 2) By way of first fixed charge to the Lender all rights, title, interests and benefits of the Borrower, as at the date of the Assignment and thereafter, in and to the Borrower Account (No. 44716881562 for US$30,000,000) Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure for the payment of all Secured Liabilities |
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02-06-2010 |
Instrument: Supplemental Deed to Trade Finance Security Assignment dated 16-07-2009 Property: 1) By way of absolute assignment to the Lender all rights, title, interests and benefits of the Existing Borrower, as at the date of the Security Assignment and thereafter, in and to the Assigned Assets; and 2) By way of first fixed charge to the Lender all rights, title, interests and benefits of the Existing Borrower, as at the date of the Security Assignment and thereafter, in and to the Borrower Account (No. 44716881562 for US$30,000,000) Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Pursuant to the Amended and Restated Security Assignment, to secure for the payment of all Secured Liabilities |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.05 |
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UK Pound |
1 |
Rs.72.40 |
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Euro |
1 |
Rs.63.46 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.