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Report Date : |
27.12.2012 |
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 materials. |
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No. of Employees : |
792 Group |
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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 : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
HONG KONG - ECONOMIC OVERVIEW
Hong Kong has a free market economy,
highly dependent on international trade and finance - the value of goods and
services trade, including the sizable share of re-exports, is about four times
GDP. Hong Kong's open economy left it exposed to the global economic slowdown
that began in 2008. Although increasing integration with China, through trade,
tourism, and financial links, helped it to make an initial recovery more
quickly than many observers anticipated, it again faces a possible slowdown as
exports to the Euro zone and US slump. The Hong Kong government is promoting
the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB)
internationalization. Hong Kong residents are allowed to establish
RMB-denominated savings accounts; RMB-denominated corporate and Chinese
government bonds have been issued in Hong Kong; and RMB trade settlement is
allowed. The territory far exceeded the RMB conversion quota set by Beijing for
trade settlements in 2010 due to the growth of earnings from exports to the
mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong
Kong by the end of 2011, an increase of over 59% since the beginning of the
year. The government is pursuing efforts to introduce additional use of RMB in
Hong Kong financial markets and is seeking to expand the RMB quota. The
mainland has long been Hong Kong's largest trading partner, accounting for
about half of Hong Kong's exports by value. Hong Kong's natural resources are
limited, and food and raw materials must be imported. As a result of China's easing
of travel restrictions, the number of mainland tourists to the territory has
surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors
from all other countries combined. Hong Kong has also established itself as the
premier stock market for Chinese firms seeking to list abroad. In 2011 mainland
Chinese companies constituted about 43% of the firms listed on the Hong Kong
Stock Exchange and accounted for about 56% of the Exchange's market
capitalization. During the past decade, as Hong Kong's manufacturing industry
moved to the mainland, its service industry has grown rapidly. Growth slowed to
5% in 2011. Credit expansion and tight housing supply conditions caused Hong
Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in
2011. Lower and middle income segments of the population are increasingly
unable to afford adequate housing. Hong Kong continues to link its currency
closely to the US dollar, maintaining an arrangement established in 1983.
Source : CIA
BURWILL RESOURCES
LTD.
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
Managing Director: Mr. Sham Kai
Man
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$7,623,154,000 (Year ended 31-12-2011)
Group Employees: 769. (As at 30-06-2012)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
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 Portfolio Ltd., British Virgin Islands.
Burwill Commercail Holdings Ltd., Hong Kong.
Burwill HK Portfolio Ltd., British Virgin Islands.
Burwill Minerals Ltd., Hong Kong.
Burwill Nominees Ltd., British Virgin Islands.
Burwill Resources Europe S.A., Spain.
Burwill Steel Co. Ltd., British Virgin Islands.
Burwill Steel Pipes Ltd., Hong Kong.
Burwill Times Industrial Ltd., Hong Kong.
Burwill Warehousing (Shanghai) Ltd., China.
Dongguan Hingwah Metals Factory Ltd., China.
Hillot Ltd., Hong Kong.
Hing Wah Metals Factory Ltd., Hong Kong.
Smart Task Ltd., British Virgin Islands.
Tai Xin Minerals Ltd., British Virgin Islands.
Yinmain Industrial Ltd., Hong Kong.
etc.
11504710
0195392
Group Chairman & Managing Director:
Mr. Chan Shing
Group Executive Director & Deputy General Manager: Mr. Sit Hoi Tung
Managing Director: Mr. Sham Kai
Man
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
(As per registry dated 11-08-2012)
|
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 ======= |
(As per registry dated 11-08-2012)
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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, 37/F., Tower 1, The Pacifica, 9 Sham Shing Road, Cheung Sha
Wan, Kowloon, Hong Kong. |
(As per registry dated 11-08-2012)
|
Name |
Address |
Co. No. |
|
Hardworkers (H.K.) Ltd. |
Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road,
Wanchai, Hong Kong. |
0236145 |
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.
Activities: Importer
and Exporter.
Lines: All
kinds of steel materials.
Group Employees: 792. (As at
31-12-2011)
Commodities Imported: Imported from Russia, India, etc.
Markets: Hong
Kong, China, Asia, Europe and USA.
Group Sales: 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)
HK$7,623,154,000 (Year ended 31-12-2011)
HK$3,548,318,000 (6 months ended 30-06-2011)
HK$3,055,409,000 (6 months ended 30-06-2012)
Terms/Sales:
On various terms.
Terms/Buying: As
per contracted.
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$4,000,000.00 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 11-08-2012)
Mortgage or Charge: (See
attachment)
Group Operating Profit/(Loss):
HK$120,539,000 (Year ended 31-12-2007)
HK$215,547,000 (Year ended 31-12-2008)
HK$ 67,227,000
(Year ended 31-12-2009)
HK$ 81,918,000
(Year ended 31-12-2010)
HK$ 60,612,000
(Year ended 31-12-2011)
(HK$127,450,000)
(6 months ended 30-06-2011)
(HK$ 25,197,000) (6 months ended 30-06-2012)
Group Total Equity: HK$1,251,968,000 (As
at 31-12-2007)
HK$1,469,321,000 (As at 31-12-2008)
HK$1,588,051,000 (As at 31-12-2009)
HK$2,261,266,000 (As at 31-12-2010)
HK$2,266,593,000 (As at 31-12-2011)
HK$2,241,930,000 (6 months ended 30-06-2012)
Profit or Loss: Group made a loss in the first half of 2012.
Condition: Business
is active.
Facilities: Adequate
for current running.
Payment:
Met trade
commitments 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:
Good.
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 USA, 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, 2011, the Group recorded approximately HK$7.62 billion
(2010: HK$6.08 billion) and HK$60.6 million (2010: HK$81.9 million) in sales
and profit, an increase of 25.3% and a decrease of 26.0% respectively compared
with the previous year.
For the first half of 2012, the Group’s sales revenue slightly decreased
by 13.9% to approximately HK$3,055 million, while gross profit fell 42.2% to
approximately HK$66 million, compared with the same period last year. Amid the
European sovereign debt crisis, falling price of global bulk cargo, the Group
recorded a loss attributable to shareholders of approximately HK$18.6 million.
Due to the change in the fair value of the contingent consideration regarding
the acquisition of a magnetite iron ore mining project in Shandong, a non-cash
gain of approximately HK$11.7 million was recorded for the first half of 2012.
During the period under review, due to sluggish US and European markets,
the overall sales volume and revenue of the Dongguan steel processing plant
recorded a flat growth or rose slightly compared with the same period of
previous year. The export business
remained fragile though inventories had been reduced drastically. The Group recorded a loss in this segment.
For the Tai Xin minerals project which the Group holds 70% of its equity
interest, restructuring its management was completed at the end of previous
year. During the review period,
heightening and reinforcement works of its tailing warehouse have been
undertaken as required by the rectification opinion of the domestic safety
supervision department.
After safety inspection successfully passed by an independent third
party expertise from the safety supervision department in June 2012, a safety
production permit has been obtained on 2nd August 2012. The plant is currently at the preparatory
stage to resume production.
As at 30th June, 2012, the Group employed 769 staff.
The subject is fully supported by the Burwill Group.
On the whole, consider the subject good for normal business engagements.
Brief information of
the principal directors:-
Mr. CHAN Shing, aged 56, 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. Ms. Lau Ting is the
spouse of Mr. Chan.
Mr. SIT Hoi Tung, aged 46, 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 18 years’
experience in international metal trading and import/export bills operation.
Mr. SHAM Kai Man, aged 45, 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
19 years extensive experience in steel trading and gains good international
connections.
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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 |
|
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$30,000,000) Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
Pursuant to the Amended and Restated Security Assignment, to secure
for the payment of all Secured Liabilities |
|
04-06-2012 |
Instrument: Second Supplemental Deed to Trade
Finance Security Assignment dated 16-07-2009 Property: By way of absolute assignment to the Lender all rights, title,
interests and benefits of the Existing Borrower, as at the date of the
Security Assignment and thereafter, in and to the Assigned Assets; and 2) By way of first fixed
charge to the Lender all rights, title, interests and benefits of the
Existing Borrower, as at the date of the Security Assignment and thereafter,
in and to the Borrower Account (US$ Denominated 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.96 |
|
|
1 |
Rs.88.68 |
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Euro |
1 |
Rs.72.45 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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.