MIRA INFORM REPORT
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Report Date : |
13.03.2012 |
IDENTIFICATION DETAILS
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Name : |
BURWILL
RESOURCES LTD. |
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Formerly Known As : |
Burwill Metals
Service Centre 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
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884 (Group Employees) |
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 : |
No Complaints |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
BURWILL RESOURCES LTD.
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$6,080,074,000 (Year ended 31-12-2010)
Group Employees: 884. (As at 30-06-2011)
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) 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.
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 11-08-2011)
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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 ======= |
(As per registry
dated 11-08-2011)
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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. |
(As per registry
dated 11-08-2011)
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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 |
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: 884. (As at 30-06-2011)
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)
HK$3,431,584,000 (6 months ended 30-06-2010) - Unaudited
HK$3,548,318,000 (6 months ended 30-06-2011) - Unaudited
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$36,500,000.00
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 11-08-2011)
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)
HK$517,254,000 (6 months ended 30-06-2010) - Unaudited
(HK$132,360,000) (6 months ended 30-06-2011) - Unaudited
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.
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, 2010, the Group has recorded an enhanced trade volume and turnover in its steel and iron ore business than that of previous 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.
For the first half of 2011, the Group’s sales revenue slightly increased by 3.4% to approximately HK$3,548 million, gross profit rose 5.79% to approximately HK$115 million and operating profit rose 4.34% to approximately HK$38 million, compared to the same period of previous year. Owing to change in fair value of the contingent consideration for the acquisition of magnetite iron ore mining project in Shandong, the Group recorded a non-cash loss of approximately HK$141 million and a loss attributable to shareholders of approximately HK$132 million.
During the period of first half of 2011, the Group was influenced by the economic depression of those export markets in Europe and America, although the management resolved and fine-tuned a series measures such as staff rationalization, cost control and inventories reduction, etc., sales volume, unit selling price and gross profit margin for the Dongguan steel processing plant had fallen compared to the same period previous year.
Following the acquisition of 51% equity interest in Tai Xin Minerals Limited, holding mining companies in the PRC, in March 2010, the Group exercised the call option in June 2011 to further acquire new shares of Tai Xin Minerals Limited at a consideration of HK$259 million. Accordingly, the equity interest in Tai Xin Minerals Ltd. held by the Group was then increased to approximately 70%.
As at 30th June, 2011, the Group employed 884 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.
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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.49.94 |
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UK Pound |
1 |
Rs.78.25 |
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Euro |
1 |
Rs.65.39 |
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.