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Report Date : |
03.12.2012 |
IDENTIFICATION DETAILS
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Name : |
GEMDEM DIAMOND
& JEWELRY HONG
KONG LTD. |
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Registered Office : |
Unit 08B, 13/F., Block B, Hunghom Commercial Centre, |
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Country : |
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Date of Incorporation : |
26.01.2010 |
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Com. Reg. No.: |
51739074 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter
and Wholesaler of all Kinds of Loose Diamonds, etc. |
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No. of Employees : |
3 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Moderate |
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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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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 |
GEMDEM DIAMOND &
JEWELRY HONG KONG
LTD.
ADDRESS: Unit 08B, 13/F., Block B, Hunghom
Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 3151 7020
FAX: 3151 7021
Managing
Director: Mr. Wang Xi Guang
Incorporated
on: 26th January, 2010.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10.000.00
Business
Category: Importer, Exporter
and Wholesaler.
Employees: 3.
Main Dealing
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Registered Head Office:-
Unit 08B, 13/F.,
Block B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon,
Hong Kong.
Shanghai Gemdem
Diamond Co. Ltd., China.
Shanghai Gemdem
Diamond Co. Ltd. Shenzhen Co.
Flat D, 27/F.,
Baishida Building, Second Phase, Baishida Dongdu Square, Taining Road, Luohu
District, Shenzhen Special Economic Zone, China.
[Tel: 755-2550
0322; Fax: 755-2550 0322]
51739074
1415745
Managing
Director: Mr. Wang Xi Guang
Nominal Share
Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10.000.00
(As per registry dated 01-11-2012)
|
Name |
|
No.
of shares |
|
Shanghai Gemdem Diamond Co. Ltd. Room 803B, Block A, No. 1701 Century Boulevard, Pudong New Area,
Shanghai, China. |
|
10,000 ===== |
(As per registry dated 26-01-2012)
|
Name (Nationality) |
Address |
|
WANG Xi Guang |
Room 13D, Block 3A, Luohu Qu, Color World
Garden, Shenzhen, China. |
|
CHEN Bao Kang |
Room 504, Block 2, Yue Cheng Qu Da Cheng
Wan, No. 4 Construction Co., Shaoxing, Zhejiang, China. |
(As per registry dated 27-04-2012)
|
Name |
Address |
Co.
No. |
|
Excel
Concept Consultants Ltd. |
Unit 1210, 12/F., COL Tower, Wharf T&T Square, 123 Hoi Bun Road,
Kwun Tong, Kowloon, Hong Kong. |
0936900 |
The
subject was incorporated on 26th January, 2010 as a private limited liability company
under the Hong Kong Companies Ordinance.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All kinds of
loose diamonds, etc.
Employees: 3.
Commodities
Imported: India, China, etc.
Markets: China, Hong Kong,
other Asian countries, Europe, North America, etc.
Terms/Sales: COD
or as per contracted.
Terms/Buying: L/C,
T/T, D/A, O/A, etc.
Nominal Share
Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$10.000.00
Profit or Loss:Too
early to offer an opinion.
Condition:
Business is under development.
Facilities: Is making
use of general banking facilities.
Payment: Met trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
Having
issued 10,000 ordinary shares of HK$1.00 each, Gemdem Diamond & Jewelry
Hong Kong Ltd. is wholly owned by Shanghai Gemdem Diamond Co. Ltd. [Shanghai
Gemdem] which is a China-based firm.
The
directors of the subject Mr. Wang Xi Guang and Mr. Chen Bao Kang are China
merchants. Both are China passport
holders and do not have the right to reside in Hong Kong permanently. Wang is a significant character in the field
of jewellery manufacturing industry in China.
The
subject is a loose diamond trader. Its
products bear the trade mark “Gemdem”.
Wang
is a native of Hunan Province. Graduated
from Hunan Normal University Department of English Language in 1997, he came to
Shenzhen Special Economic Zone in 2004 and set up his business Shenzhen
Euro-Light Jewellery Co. Ltd. [Euro-Light].
Very soon, Euro-Light has become a partner of Dimexon Eurostar which is
a diamond giant trader. Euro-Light
marketed Dimexon Eurostar’s diamonds in Southern China.
In
June 2009, Wang made investments in Shanghai Gemdem and became a principal
shareholder of it. Now, he is the
Executive Director of Shanghai Gemdem which was set up in about 2005. Now, Euro-Light has merged into Shanghai
Gemdem.
According
to Wang, he has been in diamond trading for over twelve years. He is dealing with those diamond merchants in
Israel, Belgium India, the United States, Japan and Hong Kong.
Now,
Shanghai Gemdem is a business partner of Israel L.L.D. Diamond which has its
own diamond mines.
Shanghai
Gemdem is a member of Shanghai Diamond Exchange. Now, Shanghai Gemdem has set up branch office
in Shenzhen Special Economic Zone and an office in Nanjing City, Jiangsu
Province.
The
annual turnover of Shanghai Gemdem ranges from RMB300 to 350 million Yuan in
China.
The
subject is fully supported by Shanghai Gemdem.
History in Hong Kong is just over two years and ten months.
On
the whole, since the history of the subject is short, consider it good for
normal business engagements on L/C basis.
DIAMOND INDUSTRY –
-
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.
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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.
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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.
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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.
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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.
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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.54.52 |
|
UK Pound |
1 |
Rs.87.48 |
|
Euro |
1 |
Rs.70.88 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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.