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MIRA INFORM REPORT
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Report No. : |
491964 |
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Report Date : |
13.02.2018 |
IDENTIFICATION DETAILS
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Name : |
BURWILL RESOURCES LIMITED |
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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, lithium-related business |
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No. of Employees : |
283 (Group) (As at 30-06-2017) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but 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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 4.4% in 2014, but slowed to 2.9% in 2015. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.
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Source
: CIA |
Company
name and address
BURWILL RESOURCES
LIMITED
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
MANAGEMENT:
Managing Director: Mr. Sham Kai Man
SUMMARY
Incorporated on: 11th
August, 1987.
Organization:
Private Limited
Company.
Issued Share Capital: HK$41,000,000.00
Business Category: Steel Trading.
Group Sales:
HK$2,685.1
million (Year ended 31-12-2016)
Group Employees: 283. (As at 30-06-2017)
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
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 Commercial Holdings Ltd., Hong Kong.
Burwill HK Portfolio Ltd., British Virgin
Islands.
Burwill Minerals Ltd., Hong Kong.
Burwill Network Investment 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.
Dongguan Hingwah Metals Factory Ltd., China.
Golden Time Holding Ltd., Samoa.
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.
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
ISSUED
SHARE CAPITAL
HK$41,000,000.00
SHAREHOLDERS
(As per registry dated 10-04-2017)
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Name |
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No. of shares |
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Burwill Nominees Ltd. P.O. Box 957, Offshore Incorporations
Center, Road Town, Tortola, British Virgin Islands. |
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1 |
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Burwill & Co. Ltd., Hong Kong. |
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40,999,999 |
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––––––––– |
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Total: |
41,000,000 ======== |
DIRECTORS
(As per registry dated 11-08-2016)
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Name (Nationality) |
Address |
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CHAN Shing |
Flat A, 42/F., Block T1, The Harbourside, 1
Austin Road West, Tsimshatsui, Kowloon, Hong Kong. |
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LAU Ting |
Unit A, 28/F., The Altitude, 20 Shan Kwong
Road, Happy Valley, Hong Kong. |
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SIT Hoi Tung |
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. |
SECRETARY
(As per registry dated 11-08-2016)
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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, lithium-related business
Group Employees: 283. (As at 30-06-2017)
Commodities Imported: Imported from Russia, India, etc.
Markets: Hong
Kong, China, Asia, Europe and US.
Group Sales: HK$4,844.4
million (Year ended 31-12-2012)
HK$4,466.2
million (Year ended 31-12-2013)
HK$6,215.1
million (Year ended 31-12-2014)
HK$4,618.7
million (Year ended 31-12-2015)
HK$2,685.1
million (Year ended 31-12-2016)
HK$1,526.9
million (6 months ended 30-06-2016)
HK$1,277.4
million (6 months ended 30-06-2017)
Terms/Sales: Various
terms.
Terms/Buying:
As per contracted.
FINANCIAL
INFORMATION
Issued Share Capital: HK$41,000,000.00
Indebtedness:
HK$224,190,834.05
(Total amount outstanding on all mortgages and charges as per last
Annual
Return dated 11-08-2016)
Mortgage or Charge: (See
attachment)
Group Profit/(Loss) Attributable to
shareholders:-
(HK$507.3 million) (Year ended 31-12-2012)
(HK$
66.2 million) (Year ended
31-12-2013)
(HK$344.8 million) (Year ended 31-12-2014)
(HK$151.8 million) (Year ended 31-12-2015)
(HK$209.5 million) (Year ended 31-12-2016)
(HK$
5.5 million) (6 months ended
30-06-2016)
HK$124.1 million (6 months ended 30-06-2017)
Group Total Equity: HK$1,743.0 million (As
at 31-12-2012)
HK$1,842.2
million (As at 31-12-2013)
HK$1,482.8
million (As at 31-12-2014)
HK$1,474.1
million (As at 31-12-2015)
HK$ 933.3 million (As at 31-12-2016)
HK$1,073.6
million (6 months ended 30-06-2017)
Profit or Loss: Group made losses in past years but made a profit in
the first half of 2017.
Condition: Business
is fairly active.
Facilities: Adequate
for current running.
Payment:
Slow but
Correct.
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 Limited 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.
All the directors of the subject are in Hong Kong.
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.
Burwill Group’s activities comprise international steel trading
and manufacturing of steel products, high-technology investment, property
investment and development.
The Group is organised into three major operating units:
(i) steel trading; (ii) steel processing; and (iii) mineral
resources.
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.
During the year 2016, the Group’s turnover decreased by 42% to
approximately HK$2,685 million compared to the same period last year which was
HK$4,619 million. The Group recorded a
loss attributable to owners of the Company of approximately HK$209 million
(loss of 2015: HK$152 million).
For the first half of 2017, the Group’s turnover decreased by
16.4% to approximately HK$1,277 million compared to the same period last year
which was HK$1,527 million. The Group
recorded a profit attributable to shareholders of approximately HK$124 million
(loss of same period of previous year:
HK$5.5 million).
Steel prices recorded significant growth in 2017 after an on-going
plunge since 2015, indirectly reducing the volume of steel product exports from
China.
As a result of the Chinese Government’s strict policy to reduce
excessive steel capacity, more than 600 poor quality steel plants were banned
nationwide, causing a disruption in overall domestic supply and demand. Steel prices escalated with some steel
product prices rising nearly 30% since the beginning of 2017 to the end of
June.
In addition, the governments of China’s major steel export
markets, including the United States, the European Union, India, Turkey,
Thailand, Indonesia, Malaysia and Taiwan, have all erected a series of
anti-dumping policies and trade restrictions on Chinese steel products that
further reduce the market share of China’s steel exports.
In response to these circumstances, the Group has developed a series
of measures, which include: active access to steel resources outside China to
compensate for the reduction of Chinese steel exports; imposing strict risk
management and reducing the trade in price-sensitive steel types; focusing more
on high value-added steel products with relatively stable prices; and
participating in projects that show a solid demand.
As at 30th June, 2017, the Group employed 283 staff.
The subject is fully supported by the Burwill Group.
On the whole, consider the subject good for normal business
engagements on L/C basis or in very small credit amounts since the Group has
been suffering from losses for a long time.
REMARKS
Brief personal profile of the principal directors:-
Mr. CHAN Shing, aged 61, 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 51, 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 20 years’ experience in international metal trading and import/export
bills operation.
Mr. SHAM Kai Man, aged 50, 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
20 years extensive experience in steel trading and gains good international
connections.
MORTGAGE
OR CHARGE
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Date |
Description of Instrument |
Mortgagee |
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02-02-2015 |
Trade Finance
Security Assignment |
Société Générale, Hong Kong Branch. |
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24-02-2015 |
Deed of Charge |
BNP Paribas, Hong Kong Branch. |
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24-02-2015 |
Pledge and
Master Trust Receipt |
BNP Paribas, Hong Kong Branch. |
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07-01-2016 |
Trade Finance
Security Deed |
Banque Cantonale Vaudoise |
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21-08-2017 |
Trade Finance
Security Assignment |
United Overseas Bank Ltd. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.28 |
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1 |
INR 89.02 |
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Euro |
1 |
INR 78.89 |
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HKD |
1 |
INR 8.21 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.