MIRA INFORM REPORT

 

 

Report Date :

11.05.2012

 

IDENTIFICATION DETAILS

 

Name :

CHEUNG  NING  CO.  LTD.

 

 

Formerly Known As :

Cheung Fat Trading (China) Ltd

 

 

Registered Office :

Room 607, 6/F., Yu To Sang Building, 37 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

30.04.2003

 

 

Com. Reg. No.:

33604532

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds jewellery products

 

 

No. of Employees :

08

 

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

 

CheUNG  NING  CO.  LTD.

 

 

Company ADDRESS

 

Room 607, 6/F., Yu To Sang Building, 37 Queen’s Road Central, Hong Kong.

PHONE:            3590 5998

FAX:                 3590 5997

 

 

MANAGEMENT

 

Managing Director:  Mr. Wang Ning

 

 

SUMMARY

 

Incorporated on:             30th April, 2003.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$2,340,000.00

Issued:              HK$2,340,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   8.

 

Main Dealing Banker:     Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room 607, 6/F., Yu To Sang Building, 37 Queen’s Road Central, Hong Kong.

 

Business Name:-

Asia Diamond Exchange Centre, Hong Kong.  (Same BR No.)

 

Associated Companies:-

Cheung Ning JB Co. Ltd., Hong Kong.  (Same address)

Cheung Ning Trading Co. Ltd., Hong Kong.  (Same address)

Shenzhen Cheung Ning Diamond Co. Ltd.

3/F., Cuijing Building, Tianbei 4th Road, Luohu District, Shenzhen Special Economic Zone, China.

[Tel: 86-755-2582 7008;  Fax: 86-755-2582 7000]

Shenzhen Cheung Ning Jewellery Co. Ltd., China.

 

 

BUSINESS REGISTRATION NUMBER

 

33604532

 

 

COMPANY FILE NUMBER

 

0846305

 

 

MANAGEMENT

 

Managing Director:  Mr. Wang Ning

 

 

CAPITAL

 

Nominal Share Capital:   HK$2,340,000.00 (Divided into 2,340,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2,340,000.00

 


 

SHAREHOLDER

(As per registry dated 30-04-2011)

 

Name

 

No. of shares

WANG Ning (Previous name: WANG Lanning)

 

2,340,000

=======

 

 

DIRECTOR

(As per registry dated 30-04-2011)

 

Name

(Nationality)

 

Address

WANG Ning (Previous name: WANG Lanning)

27 E5, Ming Yue Wanshida Garden, Tai Ning Road, Luohu District 518020, Shenzhen, China.

 

 

SECRETARY

(As per registry dated 30-04-2011)

 

Name

Address

Co. No.

Uni-1 Corporate Services Ltd.

Room 1502, 15/F., The Chinese Building,
61-65 Des Voeux Road Central, Hong Kong.

0785985

 

 

HISTORY

 

The subject was incorporated on 30th April, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Cheung Fat Trading (China) Ltd., name changed to the present style on 17th October, 2003.

Formerly the subject was located at Room 607, 6/F., Yu To Sang Building, 37 Queen’s Road Central, Hong Kong, moved to Room 705, 7/F. of the same building with effect from 16th December, 2008.  It moved back to Room 607, 6/F. of the same building in October 2009.  The subject moved to the present address with effect from 8th October, 2011.

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

 

OPERATIONS

                        

Activities:                      Importer, Exporter and Wholesaler.

           

Lines:                           All kinds jewellery products.

 

Employees:                   8.

 

Commodities Imported:   India, Belgium, other European countries, etc.

 

Markets:                       Japan, China, Southeast Asia, Europe, Middle East, etc.

 

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

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$2,340,000.00 (Divided into 2,340,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$2,340,000.00

 

Indebtedness:                            HK$3,750,000.00  (Total amount outstanding on all mortgages and charges as

per last Annual Return dated 30-04-2011)

 

Mortgage or Charge (since 26-04-2011):  (See attachment)

 

Profit or Loss:                            Making a small profit every year.

 

Condition:                                  Keeping in an active manner.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  Met trade commitments as contracted.

 

Commercial Morality:                 Satisfactory.

 

Bankers:-

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:  Normal.


GENERAL

Having issued 2,340,000 ordinary shares of HK$1.00 each, Cheung Ning Co. Ltd. was jointly owned by Mr. Frankie Chan Fat Kee, holding 51% interests; and Mr. Wang Ning, holding 49%.  Now, Chan has transferred all his shares to Wang.  At present, the subject is wholly-owned by Wang who is also the only director of the subject.  He is a China merchant who is also a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject’s business name is splendid: Asia Diamond Exchange Centre, Hong Kong.

The subject is a diamond and jewellery trader.  Most of its products bear the trademark “ADIAMOND”.

The subject’s main associated company is Shenzhen Cheung Ning Diamond Co. Ltd. [Shenzhen Cheung Ning] which is a China-based firm.  At present, Shenzhen Cheung Ning has set up offices in India, Belgium, and large cities of China such as Tianjin, Dalian, Wuhan, besides the subject in Hong Kong.

Shenzhen Cheung Ning is the supplier, importer and exporter of a wide range of diamonds in a wide variety like rose cut diamonds, rose cut heart, princesses square cut, water drop cut, 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, emeralad, etc.  Shenzhen Cheung Ning is using JGS system to sort its diamonds.  Worldwide customers can place their order online.

Shenzhen Cheung Ning is cooperating with J. B. & Brothers of India to set up a joint venture known as Cheung Ning- J. B. & Brothers Group to develop diamond wholesaling and retailing business.  According to Shenzhen Cheung Ning, it has got a number of rough diamond suppliers in India and Europe.  Besides, the Group’s products are in conformity with the international standards of NGTC, GIA, IGI, etc.

J. B. & Brothers is specialized in 0.30 cts to 10.00 cts polish diamonds from IF to I2 clarity, D-N & all fancy colours, in all shapes like round (brilliant), marquise, princess, pears, oval, emerald, square emerald, radiant, square radiant, heart, triangle, trilliant, etc.

J. B. & Brothers have special makes like princess, square radiant, radiant, square brilliant, rectangle brilliant, etc.

Shenzhen Cheung Ning is a member of Shanghai Diamond Exchange [SDE].  Wang Ning is also the General Manager of Shenzhen Cheung Ning.

Shenzhen Cheung Ning has set up an office in Shanghai Diamond Exchange.

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

J. B. & Brothers is one of the suppliers of the subject which is fully supported by Shenzhen Cheung Ning.

The business of the subject is active.  History in Hong Kong is over nine years.

On the whole, consider the subject good for normal business engagements.

 

REMARKS:

 

Property information of the company:-

1.     Property Location:       Flat D on 30/F. of Tower M8, Yoho Midtown, 9 Yuen Long Street, Yuen Long, New Territories, Hong Kong.

Owner:     Cheung Ning Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

26-04-2011

-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Mortgage to secure general banking facilities

 

2.     Property Location:       Unit 4 on 5/F., Wing On Plaza, 62 Mody Road, Kowloon, Hong Kong.

Owner:     Cheung Ning Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

01-06-2011

-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Mortgage to secure general banking facilities


MORTGAGE OR CHARGE

(Since 26-04-2011)

 

Date

Particulars

Amount

26-04-2011

Instrument:      Mortgage

Property:

1,608/3,172,953rd parts or shares of and in Yuen Long Town Lot No. 504 (Flat D on 30/F. of Tower M8 of Yoho Midtown, 9 Yuen Long Street, Yuen Long, New Territories, Hong Kong.)

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

To secure all sums in respect of general banking facilities

01-06-2011

Instrument:      Mortgage

Property:

56/26,500th parts or shares of and in Kowloon Inland Lot No. 10586 [Unit 4 on 5/F. of Wing On Plaza (formerly known as Ocean Square), 62 Mody Road, Kowloon, Hong Kong.]

Mortgagee:      The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

To secure all sums in respect of general banking facilities

27-06-2011

Instrument:      Trade Finance Security Assignment

Property:

The Borrower as beneficial owner and as security for the payment of all Secured Liabilities:-

a)   assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Export Credits; (ii) the Export Collection Bills; (iii) the Sales Contracts; (iv) the Export Invoice Receivables; (v) the Insurances; (vi) the Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing;

b)   charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; (ii) the Pledged Goods; (iii) the Deposit; and (iv) to the extent any Security Assets is not effectively assigned under sub-clause (a), such Security Asset; and

c)   pledges and agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the possession of the Bank

Mortgagee:      Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

All obligations and liabilities

 


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.53.34

UK Pound

1

Rs.86.11

Euro

1

Rs.69.07

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.