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Report Date : |
10.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
BRI-STAR JEWELLERS LTD. |
|
|
|
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Registered Office : |
Room 205, 2/F., Tower 2, Harbour Centre, 8 Hok Cheung
Street, Hunghom, Kowloon |
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|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
01.09.2003 |
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|
|
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Com. Reg. No.: |
33936092 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Manufacturer, Importer, Exporter and Retailer of kinds of
diamonds and jewellery products, emerald, precious stones |
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|
|
|
No. of Employees : |
20 |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 levies
excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012,
an increase of 59% from the previous 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 34.9
million in 2012, 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 2012 mainland Chinese companies constituted about
46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for
about 57.4% 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, and less than 2% in 2012.
Credit expansion and tight housing supply conditions caused Hong Kong property
prices to rise rapidly and inflation to rise 4.1% in 2012. 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
BRI-STAR JEWELLERS
LTD.
ADDRESS: Room 205, 2/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2180 8881, 6283 3832
FAX: 852-2121 8884
E-MAIL: info@bri-star.com
info@brilliantstarhk.com
sales@bri-star.com
Managing Director: Mr. Yep Mau Koung, Ben
Incorporated on: 1st September, 2003.
Organization: Private Limited Company.
Capital: Nominal:HK$100,000.00
Issued: HK$50,000.00
Business Category: Manufacturer, Importer, Exporter and Retailer.
Annual Turnover: HK$300 to 350 million.
Employees: 20. (Hong Kong)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 205, 2/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
The Landmark Flagship
Store:-
Ben Yep
Shop 302 and 303, 3/F., The Landmark, Central, Hong Kong.
[Tel: 852-2522 3663; E-mail: info@townandcountryhk.com]
China Stores:-
Shenzhen Store & Showroom
1A010, Jinli International Jewellery Exchange Centre, 48 Beili Road
South, Shenzhen, China. [Tel:
(86-755) 2587 7820]
Kunming Store
1F-15, Vogue Plaza, 41 Tongren Street, Kunming, Yunnan Province, China. [Tel: (86-871) 3620 396]
China Factory: Foshan, Guangdong, China.
Holding Company:-
Great Allied Profits Ltd., British Virgin Islands.
Associated
Companies:-
Ben Yep, Hong Kong.
Bri-Star Jewelry International Ltd., Hong Kong. [Dissolved]
Bri-Star Jewelry Manufacturing Ltd., Hong Kong.
Goalmark Ltd., Hong Kong. [Dissolved]
Smartrend (Hong Kong) Ltd., China.
Unique Design Inc., USA.
33936092
0859662
Managing Director: Mr. Yep Mau Koung, Ben (Mobile Phone: 6283 3832)
General Manager: Ms. Suda Yep
Contact Person: Ms. Crystal Wong
Nominal Share Capital: HK$100,000.00 (Divided into 1,000,000 shares of HK$0.10 each)
Issued Share Capital: HK$50,000.00
SHAREHOLDERS: (As per registry dated 01-09-2013)
|
Name |
|
No. of shares |
|
Great Allied Profits Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
|
499,999 |
|
New Atlantic Assets Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
|
1 |
|
|
|
––––––– |
|
|
Total: |
500,000 ====== |
DIRECTORS: (As per registry dated 01-09-2013)
|
Name (Nationality) |
Address |
|
YEP Mau Koung |
Room 803, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong. |
|
Great Allied Profits Ltd. |
P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
SECRETARY: (As per registry dated 01-09-2013)
|
Name |
Address |
Co. No. |
|
Royal Honour Consultants Ltd. |
Room 702, 7/F., Tung Yip Commercial Building, 244 Des Voeux Road Central, Hong Kong. |
0764691 |
The subject was incorporated on 1st September, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Brilliant Star Jewellers Ltd., name changed to the present style on 7th April, 2005.
Formerly the subject was located at Room 803, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to the present address in July 2012.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer, Importer, Exporter and Retailer.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones
Brand Name: Ben Yep, Sierra, Mist.
Employees: 20. (Hong Kong)
1,600. (China)
Materials/Commodities: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, Middle East, Europe, North America, etc.
Annual Turnover: HK$300 to 350 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
MEMBERSHIP: Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$100,000.00 (Divided into 1,000,000 shares of HK$0.10 each)
Issued Share Capital: HK$50,000.00
Mortgage or Charge:-
Date of Assignment of Life Insurance: 19-03-2008
Amount: Secured Indebtedness
Property: (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 (Bri-Star Jewelry Manufacturing Ltd.) of all other obligations of the Borrower contained in the Facility Letter
Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Profit or Loss: Making a small profit every year.
Condition: Business is active.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Bri-Star Jewellers Ltd. is a wholly-owned subsidiary of Great Allied Profits Ltd. which is a BVI-registered firm.
The subject is chiefly controlled by the Yep family. Director is Mr. Ben Yep Mau Koung who is a Hong Kong merchant.
The subject is a diamond and colour stone jewellery trader. Most of its products are designed by Ben Yep. The subject is a rather fast-growing and creative manufacturer and exporter of diamond and colour stone jewellery, mainly in 10K-18K gold, sterling silver and platinum.
The followings are the main products of the subject:-
v Finished Jewellery
1) Diamond Jewellery
· White Diamond Jewellery
· Colour Diamond Jewellery
· Gem Set Jewellery
· Emerald Jewellery
· Ruby Jewellery
· Sapphire Jewellery
· Semi precious Gemstone Jewellery
· Others
· Gold Jewellery
· 14K Gold Jewellery
· 18K Gold Jewellery
· 24K Gold Jewellery
· Fineness not Specified
Silver Jewellery
Fineness not Specified
Platinum Jewellery
Pt 950 Platinum Jewellery
Pearl Jewellery
South Sea Pearl Jewellery
Tahitian Pearl Jewellery
Other Jewellery
Others
The subject’s main factory is in Foshan City, Guangdong Province, China. The main products of the factory are earrings, diamond pendant, diamond ring, necklace etc.
The subject has about 1,600 employees in its manufacturing facilities located in China.
Having over 30 years of designing experience, Ben Yep, has launched a new line of fine jewellery, the “BEN YEP Collection” in 2006. This collection has been aired on one of the largest TV network in the United Stated.
The subject’s products also bear the brand names of Sierra, and Mist besides BEN YEP.
Ben’s jewellery design career was first started in Hong Kong and quickly dot promoted as chief designer in a top jewellery manufacturer. In order to maximize his potential, he went to America where he became a GIA certified designer and gemmologist. After working for an internationally renowned luxury jeweller in New York, he started his own business in jewellery designing and manufacturing.
The subject’s sister company Unique Design Inc. [UD] is based in New York, the United States. UD is engaged in distributing jewellery and diamond products. Its customer base is the top 20 largest retail chain stores, department stores and TV shopping networks nationwide.
The subject also has got its own retailing shop in Hong Kong known as Ben Yep. The former name of this firm was “Town and Country”. This shop is one of the earliest luxury jewellery shops in Hong Kong. Having a history of over 50 years, Ben Yep is located at Shop 302 and 303, 3/F., The Landmark, Central, Hong Kong.
The subject also has set up a showroom and retailing shop in Shenzhen Special Economic Zone, as well as a store in Kunming City of Yunnan Province of China.
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 such as Las Vegas, Basel, Tokyo, Shenzhen Special Economic Zone, etc. For instance, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014. Its booth No. is CEC 1A-C02.
The subject’s annual sales turnover of the subject ranges from HK$300 to 350 million. History in Hong Kong is over ten years and three months.
On the whole, consider the subject 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.
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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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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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started falling
month-wise after the imposition of 2 % of import duty on the polished diamonds.
But February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.18 |
|
|
1 |
Rs.100.01 |
|
Euro |
1 |
Rs.83.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.