|
Report Date : |
17.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
BURWILL RESOURCES LTD. |
|
|
|
|
Registered Office : |
c/o Burwill Holdings Ltd. Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road,
Wanchai |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
11.08.1987 |
|
|
|
|
Com. Reg. No.: |
11504710 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Exporter of All kinds of steel materials. |
|
|
|
|
No. of Employees : |
534 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 levies excise
duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon
oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of
total system deposits in Hong Kong by the end of 2012, an increase of 59% from
the previous 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 34.9 million in
2012, 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 2012 mainland Chinese companies constituted about 46.6% of
the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4%
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, and less than 2% in 2012. Credit
expansion and tight housing supply conditions caused Hong Kong property prices
to rise rapidly and inflation to rise 4.1% in 2012. 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.
c/o Burwill Holdings Ltd.
Room 1402, 14/F., Office Tower, Convention Plaza, 1 Harbour Road,
Wanchai, Hong Kong.
PHONE: 852-2877 7368
FAX: 852-2877
2231, 852-2877 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$4,916,324,000 (Year ended 31-12-2012)
Group Employees: 534.
(As at 31-12-2012)
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
BURWILL RESOURCES
LTD.
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/Associated
Companies:-
Burwill Group of Companies
Burwill China Portfolio Ltd., British Virgin Islands.
Burwill Commercial 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.
China Land Holdings International Ltd., Hong Kong.
Dongguan Hingwah Metals Factory Ltd., China.
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 Virigin Islands.
Smart Task Ltd., British Virgin Islands.
T.O.P. (Hong Kong) Investment Co. Ltd., Hong Kong.
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 |
|
No. of shares |
|
Burwill Nominees Ltd. P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin
Islands. |
|
1 |
|
Burwill & Co. Ltd., Hong Kong. |
|
999,999 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry dated 31-12-2012)
|
Name (Nationality) |
Address |
|
CHAN Shing (Chinese) |
House 3, 12 Shouson Hill Road, Shouson Hill, Hong Kong. |
|
LAU Ting (Chinese) |
Unit A, 28/F., The Altitude, 20 Shan Kwong Road, Happy Valley,
Hong Kong. |
|
SIT Hoi Tung (British) |
Flat B, 26/F., Cumine Court, 4 Comfort Terrace, North Point, Hong
Kong. |
|
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: 534. (As at 31-12-2012)
Commodities Imported: Imported from
Russia, India, etc.
Markets: Hong
Kong, China, Asia, Europe and USA.
Group Sales: 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$4,916,324,000 (Year ended 31-12-2012)
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$215,547,000 (Year ended 31-12-2008)
HK$
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$
7,013,000) (Year ended 31-12-2012)
Group Total Equity: 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$1,742,977,000 (As at 31-12-2012)
Profit or Loss: Group
made a loss in 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, 2012, the Group recorded approximately HK$4,916.3
million (2011: HK$7,623.2 million), decreased by 35.5%. The Group made a loss of HK$7.0 million in
the FY2010 as compared with a profit of HK$60.6 million in previous year.
The year 2012 was an extremely tough year for the Group. Due to slump of commodity prices, the Group
recorded a 35.5% decrease in turnover of approximately HK$2,707 million,
compared with previous year. Gross
profit, compared with last year, dropped 46.8%, a decrease of approximately
HK$83.8 million. In addition, with
impairment losses on goodwill on the magnetite iron ore mining project in
Shandong of approximately HK$394 million, the Group recorded loss attributable
to shareholders of approximately HK$465 million, which was very exceptional in
past ten years.
During the period of FY 2012, save for a temporary rise in the first
quarter of 2012, China steel prices dropped almost throughout the year, up to
25% decline and slump continued for a long time, which was seldom seen over the
years. Slower than expected recovery in
peripheral economies; weak domestic currencies in markets such as the European
Union, India and Vietnam including an almost 20% depreciation in India Rupees;
rise in trade protectionism; and more anti dumping investigations and
arbitrations against China, all led China’s steel product exports squeezed and
the whole industry comprehensively loss making, a situation which was even
worse than that of the financial tsunami in 2008.
The iron ore trading was drastically affected. Iron ore imports were stuck in China’s major
ports for several months, accumulating a high level stock of over 100 million
tons iron ore. Affected by such huge
stock of iron ore and the sale and purchase of steel products remaining weak,
iron ore prices were dramatically dropped 40% from high to low.
Under such circumstances, the Group’s sales volume was comparatively
lower than that of previous year. With
decrease in steel transaction amount per ton at the same time, turnover dropped
substantially. Relatively great loss
making in execution of certain contracts under such volatile market
dramatically affected the overall performance of this business segment.
During the FY 2012, overall sales volume of the Group’s steel processing
plant in Dongguan rose slightly compared with the same period of previous
year. Inventories had been drastically
reduced and cost was cut. However, due
to export business to the United States and the European markets remained
fragile, the Group recorded a loss in this business segment.
Stepping into 2013, in respect to the steel trading business, the Group
will continue to extend its business globally, strengthen resource procurement
and sales network in China and abroad, strictly control operating costs,
strengthen end-user base, develop those higher stabilization business such as
high-end products, in order to mitigate market risk and achieve better
operating results.
As at 31st December, 2012, the Group employed 534 staff.
The subject is fully supported by the Burwill Group.
On the whole, consider the subject good for normal business engagements.
Brief personal profile of the principal directors:-
Mr. CHAN Shing, aged 57, 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.
Ms. LAU Ting, aged 56, joined the Group as an Executive
Director in 1998. Ms. Lau has over 20
years of experience in business development and strategic planning, project
investment and financial management. She
is the spouse of Mr. Chan Shing. Ms. Lau
is also the Chairman and the Chief Executive Officer of China LotSynergy
Holdings Ltd.
Mr. SIT Hoi Tung, aged 47, 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 19 years’
experience in international metal trading and import/export bills operation.
Mr. SHAM Kai Man, aged 46, 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.
|
Date |
Particulars |
Amount |
|
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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
|
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.