MIRA INFORM REPORT

 

 

Report Date :

19.04.2012

 

IDENTIFICATION DETAILS

 

Name :

LEE  HENG  DIAMOND  CO.  LTD.

 

 

Registered Office :

6/F., Sino Plaza, 256 Gloucester Road, Causeway Bay

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.02.1977

 

 

Com. Reg. No.:

05073606

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter, Wholesaler and Retailer of all kinds diamond and jewellery products, gemsets, etc.

 

 

No. of Employees :

12.  (Head office only)

 

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, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

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

 

LEE  HENG  DIAMOND  CO.  LTD.

 

 

Company address

 

Room 1201, 12/F., China Building,

29 Queen’s Road Central,

Hong Kong.

 

(Head Office)

6/F., Sino Plaza,

256 Gloucester Road,

Causeway Bay,

Hong Kong.

(Registered Office)

 

PHONE:            2526 1167,  2971 2200

 

FAX:                 2868 0170

 

E-MAIL:            lhdgroup@leeheng.com

support@leehengdiamond.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Ma Chun Wai, Franklin

 

 

SUMMARY

 

Incorporated on:             8th February, 1977.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$120,000,000.00

Issued:              HK$120,000,000.00

 

Business Category:        Jewellery Trader and Retailer.

 

Employees:                   12.  (Head office only)

 

Main Dealing Banker:     Hang Seng Bank Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


company ADDRESS

 

Registered Office:-

6/F., Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong.

 

Head Office:-

Room 1201, 12/F., China Building, 29 Queen’s Road Central, Hong Kong.

 

Holding Company:-

Lee Heng Jewellery Group Of Companies Ltd., Hong Kong. (Same address)

 

Associated/Affiliated Companies:-

Lee Heng Diamond Group

Ablemaster Jewellery Manufacturing Co. Ltd., Hong Kong.

Dorical Ltd., Hong Kong.

Falconer Jewellers Ltd., Hong Kong.

IAD Jewellery Ltd., Hong Kong.

MaBelle Jewellery Co. Ltd., Hong Kong.

Mabros Gold Co. Ltd., Hong Kong.

Mabros Jewellery Co. Ltd., Hong Kong.

Madia Jewellery International Co. Ltd., Hong Kong.

Profit Famous Ltd., Hong Kong.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

 05073606

 

 

COMPANY FILE NUMBER

 

0051535

 

 

MANAGEMENT

 

Group Chairman:            Mr. Ma Charn Yui, Michael

Managing Director:         Mr. Ma Chun Wai, Franklin

Contact Persons:           Mr. Stephen Lee

Mr. Eddie Choi

 

 


CAPITAL

 

Nominal Share Capital: HK$120,000,000.00 (Divided into 240,000 shares of HK$500.00 each)

 

Issued Share Capital: HK$120,000,000.00

 

 

SHAREHOLDER

(As per registry dated 08-02-2011)

 

Name

Occupation

No. of shares

Lee Heng Jewellery Group Of Companies Ltd., Hong Kong.

Corporation

240,000

======

 

 

DIRECTORS  

(As per registry dated 28-03-2011)

 

Name

(Nationality)

 

Address

MA Yan, Calvin Ronald

House C, 66 Deep Water Bay Road, Hong Kong.

 

MA Yung Kit

House D, 66 Deep Water Bay Road, Hong Kong.

 

MA Yung Yi

House C, 66 Deep Water Bay Road, Hong Kong.

 

CHAN Mee Ngan, Anna

Flat A, 4/F., Block 1, Ruby Court, 55 South Bay Road, Hong Kong.

 

MA Chun Wai, Franklin

House A, 66 Deep Water Bay Road, Hong Kong.

 

HO Man Kwong

Flat D, 17/F., Tower B, Hollywood Terrace, 268 Queen’s Road Central, Sheung Wan, Hong Kong.

 

CHENG Tak Wai, David

Room 2608, Tsui Ning House, Tsui Wan Estate, Chai Wan, Hong Kong.

 

MA Charn Yui, Michael

Flat A, 4/F., Block 1, Ruby Court, 55 South Bay Road, Hong Kong.

 

 


SECRETARY

(As per registry dated 08-02-2011)

 

Name

Address

Co. No.

Eunica Co. Ltd.

6/F., Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong.

0454936

 

 

HISTORY

 

The subject was incorporated on 8th February, 1977 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject moved its registered address to the present location in February 2006.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter, Wholesaler and Retailer.

 

Lines:                           All kinds diamond and jewellery products, gemsets, etc.

 

Employees:                   12.  (Head office only)

 

Commodities Imported:   India, Thailand, Europe, etc.

 

Markets:                       Asia, Europe, Middle East, US, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, D/P, O/A, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$120,000,000.00 (Divided into 240,000 shares of HK$500.00 each)

 

Issued Share Capital:     HK$120,000,000.00

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active condition.

 

Facilities:                       Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Hang Seng Bank Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Having issued 240,000 ordinary shares of HK$500.00 each, Lee Heng Diamond Co. Ltd. is a wholly owned subsidiary of Lee Heng Jewellery Group Of Companies Ltd. which is a Hong Kong-based firm located at the operating office of the subject.  The operating address of the Group is located at Room 1201, 12/F., China Building, 29 Queen’s Road Central, Hong Kong.

The subject is the origin and key member of the Lee Heng Diamond Group which consists of twelve different diamond and jewellery companies — from handling polished diamond, manufacturing jewellery, to wholesaling, retailing and distributing diamonds and jewellery products.

The subject is one of the core members of the Group.  According to the subject, its predecessor started operation in 1949.  The subject is trading in the following products:-

Diamond gold jewellery

Diamond platinum jewellery

Gemset gold jewellery — 18 karat

Gemset jewellery

Gold chain, etc.

Commodities and raw materials are imported from Italy, France, other European countries, some Asian countries such as India, etc.  Prime markets are Hong Kong, China, other Asian countries, Europe, the Middle East, etc.  Overall business is rather active.

In Hong Kong, the subject has had four affiliated retailers and one in China.  Names of the retailers are Mabros, Falconer Jewellers, Madia, MaBelle and MaBelle (China).  The MaBelle shop was established in Shanghai, China in 2001.

The subject and its affiliates Mabros Gold, IAD Jewellery are wholesalers.  The manufacturers of the Group are “Ablemaster Jewellery Manufacturing Co. Ltd.” and “Profit Famous”.

The Group has ten retail shops in Hong Kong.  Mabros Jewellery Co. Ltd. is one of the retailing shops of the Group which is retailing “Marbos” brand jewellery products.  The Group also markets its products via the following two websites: “Mabelle.com” and “Dorical”.

Three of the subject’s directors Ma Yung Yi, Michael Ma Charn Yui and Ma Yung Kit are also directors of Ablemaster Jewellery, a Hong Kong-registered firm incorporated on 17th March, 1992.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities.

For instance, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2012” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012.

As the history of the subject in Hong Kong is over thirty-four years and ten months, on the whole, consider it good for normal business engagements.

 


REMARK

 

Property information of affiliate:-

Property Location:          Workshop Unit 10, 11, 12 & 13 on 2/F. of Block A,
Focal Industrial Centre, 21 Man Lok Street, Kowloon, Hong Kong.

Owner:  Ablemaster Jewellery Manufacturing Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

01-12-1992

-

Dah Sing Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

 


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.51.50

UK Pound

1

Rs.81.99

Euro

1

Rs.67.54

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.