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Report No. : |
347821 |
|
Report Date : |
04.11.2015 |
IDENTIFICATION DETAILS
|
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 : |
Hongkong |
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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 : |
433 (As at 30-06-2015) (Group) |
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 |
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|
|
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
HONGKONG - 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
has no tariffs on imported goods, and it levies excise duties on only four
commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and
investment leaves it vulnerable to renewed global financial market volatility
or a slowdown in the global economy. 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 12.5% of total system deposits in Hong
Kong by the end of 2014. 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 total trade 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 47.3 million
in 2014, 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 2014 mainland Chinese companies constituted about 50% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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. Credit expansion and tight housing supply conditions have caused Hong
Kong property prices to rise rapidly; consumer prices increased by more than
4.4% in 2014. 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. In 2014, Hong Kong and China signed a new agreement on achieving basic
liberalization of trade in services in Guangdong Province under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong
Kong and the mainland. The new measures, effective from March 2015, cover a
negative list and a most-favored treatment provision, and will improve access
to the mainland's service sector for Hong Kong-based companies.
|
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: 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.
Issued Share Capital: HK$1,000,000.00
Business Category: Steel
Trading.
Group Sales: HK$6,215,085,000 (Year ended 31-12-2014)
Group Employees: 433.
(As at 30-06-2015)
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Registered Office:-
c/o Burwill Holdings Ltd.
Room 1402, 14/F., Office Tower, Convention Plaza, 1
Harbour Road, Wanchai, Hong Kong.
Operating 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) Ltd., Hong Kong.
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 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 Assets Ltd., Hong Kong.
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.
Smart Task Ltd., British Virgin Islands.
T.O.P. (Hong Kong) Investment Co. Ltd., Hong Kong.
Tai Xin Minerals Ltd., British Virgin Islands.
Topyield Ltd., Hong Kong.
Yangzhou Times Industrial Ltd., China.
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
HK$1,000,000.00
(As per registry dated 11-08-2015)
|
Name |
|
No. of shares |
|
Burwill Nominees Ltd. P.O. Box 957, Offshore Incorporations Center, Road
Town, Tortola, British Virgin Islands. |
|
1 |
|
Burwill & Co. Ltd., Hong Kong. |
|
999,999 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry dated 11-08-2015)
|
Name (Nationality) |
Address |
|
CHAN Shing |
Flat A, 42/F., Block T1, The Harbourside, 1 Austin Road
West, Tsimshatsui, Kowloon, Hong Kong. |
|
LAU Ting |
Unit A, 28/F., The Altitude, 20 Shan Kwong Road,
Happy Valley, Hong Kong. |
|
SIT Hoi Tung |
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 11-08-2015)
|
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: 433.
(As at 30-06-2015)
Commodities Imported: Imported
from Russia, India, etc.
Markets: Hong
Kong, China, Asia, Europe and US.
Group Sales: HK$6,036,704,000 (Year ended 31-12-2010) [restated]
HK$7,570,889,000 (Year ended 31-12-2011) [restated]
HK$4,844,364,000 (Year ended 31-12-2012) [restated]
HK$4,466,188,000 (Year ended 31-12-2013) [restated]
HK$6,215,085,000 (Year ended 31-12-2014)
HK$2,976,205,000 (6 months ended 30-06-2014)
HK$2,218,441,000 (6 months ended 30-06-2015)
Terms/Sales: Various terms.
Terms/Buying: As per contracted.
Issued Share Capital: HK$1,000,000.00
Indebtedness: HK$299,427,423.00
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 11-08-2015)
Mortgage or Charge:
(See attachment)
Group Profit/(Loss) Attributable to shareholders:-
HK$508,210,000 (Year ended 31-12-2010) [restated]
(HK$341,425,000) (Year ended 31-12-2011) [restated]
(HK$507,341,000) (Year ended 31-12-2012) [restated]
(HK$ 66,163,000)
(Year ended 31-12-2013) [restated]
(HK$344,813,000) (Year ended 31-12-2014)
(HK$ 46,292,000)
(6 months ended 30-06-2014) [restated]
(HK$ 53,152,000)
(6 months ended 30-06-2015)
Group Total Equity: 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)
HK$1,842,207,000 (As at 31-12-2013)
HK$1,482,784,000 (As at 31-12-2014)
HK$1,482,155,000 (6 months ended 30-06-2015)
Profit or Loss: Group
made losses in past four years.
Condition: Business
is fairly 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: 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/Company/Group when referring to the Company and its associates], 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 trading in 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 subject is one of the largest steel traders in Hong Kong.
On 18 August 2014 BHL
disposed part of its businesses and as a result, BHL restated its turnovers in
the past four years. The restated
figures show that the Group has been suffering from losses since 2011.
In 2014, the Group’s
turnover (including the discontinued operations) increased by 38% to
approximately HK$6.3 billion (2013: HK$4.5 billion) while gross profit
(including the discontinued operations) increased by 14% to approximately
HK$167 million, compared to the same period last year. During the period, steel trading and property
investment businesses recorded a profit of HK$118 million. Due to the impairment losses on property and
intangible assets of the Shandong Magnetite Iron Ore Mine and the fair value
losses on iron ore commodity swap contracts of approximately HK$416 million,
the Group recorded a loss attributable to shareholders of approximately HK$345
million (Loss of 2013: HK$ 66 million).
For the first half of
2015, the Group’s turnover decreased by 25.46% to approximately HK$2,218
million compared to the same period last year which was just HK$2,976
million. Gross profit dropped by 58.8%
to approximately HK$17 million. The Group
recorded a loss attributable to shareholders of approximately HK$53.15 million
(loss of same period of previous year:
HK$ 46.29 million).
In the first half of
2015, amidst a weak global economic backdrop and lingering economic slowdown in
China, demand for steel remained sluggish.
Overcapacity and oversupply have led to a plunge in steel prices since
2014. Despite moderate rebounds during
the period, steel prices have continued to drop up until mid-2015. Most steel product prices have slumped by around
30% to a 6-month low in mid-2015.
Iron ore imports have
been affected by an oversupply of foreign iron mine production as well as weak
market demand, which saw iron ore prices continue to decline in the first half
of 2015. The Platts 62% Fe IODEX fell
from US$71.75 to US$47.75, a decrease of 35%, a steeper decline than even
steel.
The Chinese
Government abolished part of the export tax rebate for steel exports in the
beginning of 2015. However, export
prices remain competitive. According to General Administration of Customs data,
China’s steel exports surged 28.2% to 43.52 million metric tons for the period
January to May 2015.
Despite the
aforementioned challenging environment, the Group’s steel trading operations were
able to maintain stable sales volume compared to the same period last year.
As at 30th June,
2015, the Group employed 433 staff.
The subject is fully
supported by the Burwill Group.
On the whole,
consider the subject good for normal business engagements in moderate credit
amounts.
Brief personal profile of the principal directors:-
Mr. CHAN Shing, aged 59,
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 58,
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 49,
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, in charge 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 48,
joined the Group in 2000 and was appointed as an Executive Director in July
2009. He is the Managing Director of the
subject, in charge 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 |
Description of Instrument |
Mortgagee |
|
02-02-2015 |
Trade Finance Security
Assignment |
Société Générale, Hong Kong Branch. |
|
24-02-2015 |
Deed of Charge |
BNP Paribas, Hong Kong Branch. |
|
24-02-2015 |
Pledge and Master Trust
Receipt |
BNP Paribas, Hong Kong Branch. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.45 |
|
|
1 |
Rs.100.96 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
NIT |
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.