MIRA
INFORM REPORT
|
Report Date : |
24.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
WING HANG DIAMOND
CO. LTD. |
|
|
|
|
Registered Office : |
14/F. - 15/F., Luk Fook Jewellery Centre, 239 Temple Street, Jordan,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
24.11.1999 |
|
|
|
|
Com. Reg. No.: |
30522052 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS, JEWELLERY, PEARLS, ETC. |
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 : |
Usually Correct |
|
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, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name and address
WING HANG DIAMOND CO.
LTD.
ADDRESS: 14/F. - 15/F., Luk Fook
Jewellery Centre, 239 Temple Street, Jordan, Kowloon, Hong Kong.
PHONE: 2526 6512, 2526
6591
FAX: 2868 4988, 2526 6599
E-MAIL: info@winghangdiamond.com
pearl@winghangdiamond.com
MANAGEMENT
Managing Director: Mr. Pong Wing
Chiu, David
SUMMARY
Incorporated on: 24th
November, 1999.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Importer, Exporter and Wholesaler.
Annual Turnover: HK$280~300 million.
Employees:
50. (Hong Kong)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
ADDRESS
Registered Head Office:-
14/F. - 15/F., Luk Fook Jewellery Centre, 239 Temple Street, Jordan,
Kowloon, Hong Kong.
China Offices & Factories:-
Room A602, 6/F., Shanghai Diamond Exchange,
Jin Mao Tower, 1701 Century Avenue, Pudong, Shanghai, China.
Tel: (86-21) 5015 8045
Fax: (86-21) 5015 8045
[Operated by Wing Hang Diamond (Shanghai) Co. Ltd.]
9 Fuqian Road, Qigan Xu, Aotou Town, Conghua
City, Guangzhou, Guangdong Province, China.
Tel: (86-20) 8786 1228
Fax: (86-20) 8786 1208
[Operated by Wing Ziao Diamond Cutting Works]
9 Fuqian Road, Qigan Xu, Aotou Town, Conghua
City, Guangzhou, Guangdong Province, China.
Tel: (86-20) 8786 1088
Fax: (86-20) 8786 1208
[Operated by Wing Hang Diamond Cutting Works]
30 Fong Hang Street, Fuyang Town, Fuchuan
County, Guangxi Province, China.
Tel: (86-774) 788 1688
Fax: (86-774) 788 9113
[Operated by Guang Xi Fu Chuan Wing Hang Co. Ltd.]
Holding Company:-
Wing Hang Holdings Ltd., British Virgin Islands.
Associated/Affiliated Companies:-
Guang Xi Fu Chuan Wing Hang Co. Ltd., China.
Wing Hang Diamond (Shanghai) Co. Ltd., China.
Wing Hang Diamond Cutting Works Ltd., Hong Kong. (Same address)
Wing Hang Diamond Cutting Works, China.
Wing Hang Jewellery Co. Ltd., Hong Kong.
(Same address)
Wing Ziao Diamond Cutting Works, China.
BUSINESS REGISTRATION NUMBER
30522052
COMPANY FILE NUMBER
0695521
MANAGEMENT
Managing Director: Mr. Pong Wing
Chiu, David
Contact Person: Ms. Monica Chan
CAPITAL
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
SHAREHOLDERS
(As per registry dated 24-11-2010)
|
Name |
|
No. of shares |
|
Wing Hang Holdings Ltd. P.O. Box 3340, Road Town, Tortola, British Virgin Islands. |
|
9,999,999 |
|
PONG Yue Ting, Yvonne |
|
1 |
|
|
|
––––––––– |
|
|
Total: |
10,000,000 ======== |
DIRECTORS
(As per registry dated 13-07-2011)
|
Name (Nationality) |
Address |
|
PONG Wing Chiu |
Flat A & B, 15/F., Block 8, Braemar Hill Mansions, 29 Braemar
Hill Road, Hong Kong. |
|
PONG Hang King, Alfred |
Flat B, 15/F., Braemar Hill Mansions, 29 Braemar Hill Road, Hong Kong. |
|
PONG Yue Ting, Yvonne |
Flat A, 18/F., Block E, Wylie Court, 21 Wylie Path, Yau Ma Tei,
Kowloon, Hong Kong. |
|
PONG Lek Hon, Edmond (Previous names: PONG Hang Yu and PANG Lihan) |
Flat A, 30/F., Tower 2, Bel-Air No. 8, Bel-Air on the Peak, 8 Bel-Air
Peak Avenue, Island South, Hong Kong. |
SECRETARY
(As per registry dated 24-11-2010)
|
Name |
Address |
Co. No. |
|
Tricor Tengis Ltd. |
Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong. |
0041027 |
HISTORY
The subject was incorporated on 24th November, 1999 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at 22/F., Crawford House, 70 Queen’s
Road Central, Hong Kong, moved to the present address with effect from
14th March, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds, jewellery, pearls, etc.
Employees: 50. (Hong Kong)
Over 1,500. (China)
Commodities Imported: Imported
from Africa, Russia, India, Israel, Belgium, Tahiti, Indonesia, Philippines,
Australia, Japan, etc.
Markets: USA,
Europe, Taiwan, China and other Southeast Asian countries.
Annual Turnover: HK$280~300 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: Various
terms.
MEMBERSHIP
Diamond Federation of Hong Kong, China Ltd.,
Hong Kong.
Hong Kong Jewellery & Jade Manufacturers
Association, Hong Kong.
Hong Kong Jewelry Manufacturers’
Association, Hong Kong.
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
Indebtedness: HK$10,000,000.00 (Total amount outstanding on all mortgages and
charges as per last Annual Return dated 24-11-2010)
Mortgage or Charge:-
Date of Assignment of Life
Insurance: 31-10-2008
Amount: Secured
Indebtedness
Property: Property
Charged: (i) all the Assignor’s claims, options, privileges, right, title,
interest and benefit in and under the Insurance; and (ii) all the Assignor’s
claims and rights against the issuer of the Policy in respect of the Policy
upon the terms herein set out as a continuing security for the due and punctual
payment of the Secured Indebtedness and the due and punctual performance and
observance by the Borrower of all other obligations of the Borrower contained
in the Facility Letter
Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Profit or Loss: Business
is profitable.
Condition: Keeping
in an active and satisfactory condition.
Facilities: Making
very active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
ABN AMRO Bank N.V., Hong Kong Branch.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Good.
GENERAL
Wing Hang Diamond Co. Ltd. [Wing Hang] was incorporated
in November 1999 as a wholly-owned subsidiary of Wing Hang Holdings Ltd. which
is a BVI-registered firm.
On 28th April, 2010, Ms. Pong Yue Ting and Mr.
Pong Lek Hon were appointed directors of Wing Hang. Wing Hang in fact is a family business of the
Pongs. Wing Hang moved to its new office
in March 2011.
Founded in 1975, Wing Hang started as a small
diamond trading company having just eight employees. With prudent management, Wing Hang has
established a rather strong foothold in the global diamond wholesaling industry
offering a wide range of products in order to meet the demands of its
customers. Headquartered in Hong Kong,
Wing Hang has set up its own production facilities and is currently employing about
1,500 staff members in cutting and polishing plants in the Mainland China. Its plants are located in Conghua, Guangzhou,
Guangdong Province and Fuchuan, Guangxi Province. Wing Hang also has got some contracted factories
engaged in diamonds polishing and cutting.
The sub-contracted factories are able to manufacture jewellery products
for Wing Hang so that it can meet the lead time.
Besides, seizing the opportunities from the
promising pearl trade, Wing Hang expanded its business in 1980 in pearl
wholesaling. Today, it has become a
widely recognized industry leader in the sales of South Sea pearls.
In order to increase the production capacity
of its polished diamonds, Wing Hang has imported advanced polishing
technologies, such as laser cutting machines and computerized bruiting machines
from abroad. Advanced laser-scanning
machines have been installed to maximize the yield from rough diamonds while
professional polishing machines for ideal cuts are imported to strengthen its
capability in producing this category of products.
In 2004, Wing Hang set up an affiliated
company Wing Hang Jewellery Co. Ltd. which is engaged in manufacturing all
kinds of jewellery, diamond and pearl products.
Wing Hang is trading in the following
products:-
|
Product/Service |
Product/Service Remarks |
|
Pearl |
Include south sea pearl stands from Japan and Tahiti |
|
South Sea Pearl |
Include black, white, golden south sea pearl strands from Japan,
Tahitian and Australia |
|
Stone Polishing and Cutting |
For diamond |
|
Diamond |
From Africa, Russia (Importer) From India, Israel and Belgium, UK (Exporter) |
|
Loose Diamond |
|
Wing Hang has long been an experienced
wholesaler and manufacturer of brilliant-cut rounds. Each round brilliant has 57 or 58 facets, which
is precisely angled to reflect and refract the maximum bundles of light. To meet the growing demand from consumers in
South East Asia and China, Wing Hang has boosted the production of
heart-and-arrow cut diamonds. With finer
polish, symmetry and proportion, such diamonds can reflect a perfectly balanced
set of eight hearts and eight arrows from their tables and bottom facets under
a specially designed loupe. Wing Hang
also excels in the ideal cut, through which a diamond can reveal its greatest
brilliance, dispersion and scintillation.
Most of the ideal-cut diamonds are above 20 points with good colour and
good clarity. Besides rounds, Wing Hang
also produces a full range of fancy-shaped diamonds, particularly princess
cuts. Its professionalism is likewise
demonstrated in single cut for watches.
Wing Hang is the supplier, importer and
exporter of versatile range of diamonds in a wide variety like rose cut
diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose
cut marquise, fancy cut and fancy colour diamonds, briollets beads, old mine
cut diamonds, round brilliant cut diamonds, marquise, pears ,oval, heart, and
emeralad.
Wing Hang’s polished products include diamonds
ranging from 0.03 to 1.5 carats, with the majority ranges from 0.03 to 0.75
carats. The greatest demand is for I, J
and higher colours and clarity grade is VS or better, as more and more
customers in the cities of China begin to appreciate the handicraft. In addition to high-end products, Wing Hang
also provides a wide variety of polished diamonds of different size and colour
to meet the needs of different clients, especially those from China.
As the demand of diamonds in the worldwide
market continues to grow, Wing Hang has been participating in international trade
fairs and exhibitions in order to promote sales.
For instance, it is going to take part in
“HKTDC Hong Kong International Jewellery Show 2012” which will be held in
Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
Wing Hang’s products are exported to Europe,
the United States, China, Japan, South Korea, Taiwan and Southeast Asia, the
Middle East, etc. It is also aiming to
penetrate the China market further.
Besides cutting its own diamond roughs sourced
from the DTC and Europe, Wing Hang also processes rough diamonds for its
clients in Belgium, Israel, Australia, Hong Kong and Japan.
According to Wing Hang, it has exported the
largest volume of polished diamonds (in terms of weight) among all diamond
wholesalers in Hong Kong.
The annual sales turnover of Wing Hang ranges
from HK$280 to 300 million. Business is
profitable.
As the history of Wing Hang in Hong Kong is
over 35 years, on the whole, consider it good for normal business engagements.
DIAMOND INDUSTRY –
INDIA
-
From time
immemorial, India is well known in the world as the birthplace for
diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The
achievement of the Indian diamond industry was possible only due to combination
of the manufacturing skills of the Indian workforce and the untiring and
unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
-
The area
of study of family owned diamond businesses derives its importance from the
huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
-
Some of
the basic traits of family run business enterprises include spirit of entrepreneurship,
mutual trust lowers transaction costs, small, nimble and quick to react,
information as a source of advantage and philanthropy.
-
Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
-
The
diamond jewellery industry in India today may be more than Rs 60000 mil and is
rated amongst the fastest growing in the world. Indi ranks third in the
world in domestic diamond consumption.
-
Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company
transactions, financially assisted by banks. In the process, several public
sector banks lost several hundred million rupees. They mostly diverted borrowed
money for diamond business into real estate and capital markets.
-
Excerpts
from Times of India dated 30th October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK
WITH 2K CR DEBT
This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.
-
Most of
the money borrowed from the banks in the name of their diamond business has
been diverted in real estate and the share market. The banks are not in a
position to seize their properties because in many cases, these were purchased
in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.06 |
|
|
1 |
Rs.79.15 |
|
Euro |
1 |
Rs.69.03 |
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.