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Report Date : |
06.10.2012 |
IDENTIFICATION DETAILS
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Name : |
LEGEND JEWELRY CO. LTD. |
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Registered Office : |
Unit M, 4/F., Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon |
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Country : |
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Date of Incorporation : |
18.06.1992 |
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Com. Reg. No.: |
15824758 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer and Exporter of Diamond jewellery, gemset jewellery, platinum jewellery, gold set jewellery with diamond/colour stone/semi-precious/pearl tanzanite which include bridal sets, wedding rings, earrings, necklace, pendants, clasps, bracelets, bangles, etc. |
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No. of Employees : |
27 (Hong Kong) |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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
LEGEND JEWELRY
CO. LTD.
ADDRESS: Unit M, 4/F., Kaiser Estate,
Phase 3, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2330 2362
FAX: 2365 4493
E-MAIL: sales.mc@legend-jewelry.com
mktg.mc@legend-jewelry.com
legend@legendhk.com
Managing Director: Mr. Luk Wing
Tong, Patrick
Incorporated on: 18th
June, 1992.
Organization: Private
Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Jewellery Manufacturer and Exporter.
Annual Turnover: HK$160-180
million.
Employees:
27. (Hong Kong)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office & Workshop:-
Unit M, 4/F., Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom,
Kowloon, Hong Kong.
China Factory:-
28 Hao Gang Road, Dagang, Panyu, 511470 Guangzhou, Guangdong Province,
China.
[Tel: 86-20-3493 5900; Fax:
86-20-3493 6030]
Associated Companies:-
Legend (Guangzhou) Jewelry Co. Ltd., China.
Legend Jewelry Co. Ltd. (Macao Commercial Offshore), Macau.
Legend Jewelry Co. Ltd. New York Office, USA.
Legend Jewelry Co. Ltd. Seattle Office, USA.
Legend Jewelry Holdings Ltd., British Virgin Islands.
Splendor Jewelry Co. Ltd., China.
15824758
0363054
Managing Director: Mr. Luk Wing
Tong, Patrick
Contact Person and Supervisor:
Ms. Miu Wong
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 18-06-2012)
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Name |
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No. of shares |
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LUK Kam Tong, Benjamin |
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155,000 |
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LUK Wai Tong |
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155,000 |
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LUK Wing Tong |
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535,000 |
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LUK Yum Tong |
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155,000 |
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–––––––– |
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Total: |
1,000,000 ======= |
(As per registry dated 18-06-2012)
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Name (Nationality) |
Address |
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LUK Wing Tong |
Flat M, 4/F., 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong. |
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LUK Yum Tong |
House 22, Stage 1, Marina Cove, Sai Kung, New Territories, Hong
Kong. |
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LUK Kam Tong, Benjamin |
Flat A, 19/F., Queen’s Heights, Shatin 33, Sui Wo Road, Fo Tan,
Shatin, New Territories, Hong Kong. |
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LUK Wai Tong |
Flat C, 25/F., Tower 18, Laguna Grande, Laguna Verde, Hunghom,
Kowloon, Hong Kong. |
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CHIU Man Kam |
Flat M, 4/F., 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 18-06-2012)
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Name |
Address |
Co. No. |
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Smart Fortune Consultants Ltd. |
Room 1109, 11/F., 118 Connaught Road West, Hong Kong. |
0392466 |
The subject was incorporated on 18th June, 1992 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: Manufacturer
and Exporter.
Lines: Diamond
jewellery, gemset jewellery, platinum jewellery, gold set jewellery with
diamond/colour stone/semi-precious/pearl tanzanite which include bridal sets,
wedding rings, earrings, necklace, pendants, clasps, bracelets, bangles, etc.
Employees: 27.
(Hong Kong)
300. (China)
Commodities Imported:-
Diamond – India
and Israel.
Colour stone –
Thailand and Myanmar.
Gold ingot –
Europe.
Markets: USA,
Europe, Australia. Asia Pacific, etc.
Terms/Sales:
T/T or L/C.
Terms/Buying: T/T,
L/C, O/A, etc.
Federation of Hong Kong Industries,
Hong Kong. [Member No. A8839]
Hong Kong Jewelry Manufacturers’
Association, Hong Kong.
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Traded at a profitable angle.
Condition:
Keeping in a
satisfactory manner.
Facilities:
Making active
use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
Bank of China (Hong Kong) Ltd.,
Hong Kong.
The Bank of East Asia Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd.,
Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Standing:
Very Good.
Legend Jewelry Co. Ltd. was incorporated in 1992 as a jewellery
manufacturer and exporter. It is owned
by the Luk family. The subject is a
significant jewellery product manufacturer and trader in Hong Kong.
The subject manufactures diamond jewellery, gemset jewellery, platinum
jewellery, gold set jewellery with diamond/colour stone/semi-precious/pearl
tanzanite, etc. The followings are its
main products:-
Bridal sets, wedding rings, diamond rings, diamond earrings, diamond
necklaces, silver necklaces, adore necklaces, pendants, clasps, bracelets, and
bangles
Products are mainly exported to China, Japan, South Korea, the United
States, Europe, Australia, the Middle East, South Africa and the Asia Pacific
region. The United States is the
subject’s largest market which accounts for about 70% of its exports. It is therefore the subject has set up two
offices in the United States.
The subject has got a factory in China located at Panyu, Guangzhou City,
Guangdong Province. The China factory
covers an area of about 16,000 sq.m. and has been equipped with the latest
machinery and equipment.
Currently, the China factory has about 300 workers who are responsible
for the low to middle-end jewellery products.
Business is active.
The products bear the brand names of “Adore” and “Solo”. Raw materials are imported from India, Sri
Lanka, other Asian countries, Europe, the United States, etc.
Mr. Patrick Luk Wing Tong, the Managing Director of the subject, has won
the “Young Industrialist Award of Hong Kong”.
He had been elected as the Chairman of Hong Kong Jewelry Manufacturers
Association from 2001 to 2003.
In 2009, the subject got the “Hang Seng Pearl River Delta Environmental
Award”. The subject got ISO 9001:2008 in
March 2010.
So far, the subject has set up retailing China shops in Panyu, Foshan,
Changsha and Kunming. The shops bear
either the name of Splendor Jewelry or Splendor.
In order to penetrate the international market further, Legend Jewelry
has taken part in fairs and exhibitions held in Hong Kong and other foreign
large cities. For instance, it has taken
part in the following exhibitions or shows:-
United States
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JCK Las Vegas show
Europe
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Vicenzaoro First, Italy;
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Baselworld, Switzerland;
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Vicenzaoro Charm, Italy; &
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Vicenzaoro Choice, Italy.
Hong Kong
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HK International Jewellery Show;
·
HK Jewellery & Gem Fair.
It is going to take part in “HKTDC Hong Kong International Jewellery
Show 2013” which will be held in Hong Kong Convention and Exhibition Centre,
Wanchai, Hong Kong during the period of 5th to 9th March, 2013.
Products are exported to Japan, South Korea, Eastern and Western Europe,
the Middle East, North America, etc. The
annual sales turnover of the subject is very significant, ranges from
HK$160-180 million. It is fully
supported by Legend Jewelry. History in
Hong Kong is over 20 years.
The contact person of the subject is Ms. Miu Wong.
On the whole, in view of the subject’s background and reputation,
consider it good for normal business engagements.
Property information of
the company:-
Property Location: Unit M and Flat Roof M on 4/F. and
Private Car Parking Space No. C9 on Lower G/F., Kaiser Estate 3rd Phase, 9-11A
Hok Yuen Street / 18 Man Lok Street, Kowloon, Hong Kong.
Owner: Legend Jewelry Co. Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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06-12-1996 |
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Kwong On Bank Ltd., Hong Kong.
[Renamed to DBS Kwong On Bank Ltd. but merged into DBS Bank
(Hong Kong) Ltd.] |
Legal charge to secure general banking facilities |
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Date |
Particulars |
Amount |
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03-08-1996 |
Instrument: Security Over Deposit As Borrower or
Guarantor Property: Fixed Deposit A/C No. 59-503-7153-1 for HK$1,000,000.00 due on
03-09-1996 Mortgagee: Dah Sing Bank Ltd., Hong Kong. |
General banking facilities |
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06-12-1996 |
Instrument: Legal Charge Property: 123/5,000th parts or shares of and in Section I of Kowloon Marine Lot
No. 40 and Subsection 1 of Section H of Kowloon Marine Lot No. 40 (Unit M and
Flat Roof M on 4/F. and Private Car Parking Space No. C9 on Lower G/F. of
Kaiser Estate 3rd Phase at 9-11A Hok Yuen Street / 18 Man Lok Street,
Kowloon, Hong Kong.) Mortgagee: Kwong On Bank Ltd.,
Hong Kong. [Renamed to DBS Kwong
On Bank Ltd. but merged into DBS Bank (Hong Kong) Ltd.] |
All monies |
DIAMOND INDUSTRY –
INDIA
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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.
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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.
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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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.51.62 |
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1 |
Rs.83.57 |
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Euro |
1 |
Rs.67.17 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.