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Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
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Name : |
CHII LIH
CO. |
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Registered Office : |
22/F., Metro Loft, 38 Kwai Hei Street, Kwai Chung, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
20.05.2005 |
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Com. Reg. No.: |
35831262-000-05 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of Coral jewellery, fine & imitation jewellery, electronic products, testing instruments, etc. |
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No. of Employees : |
8 |
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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
CHII LIH
CO.
22/F., Metro Loft, 38 Kwai Hei Street, Kwai Chung, New Territories,
Hong Kong.
PHONE: 2311 5254, 2311 9028
FAX: 2311
3780, 2311 9027
E-MAIL: nickhung123@yahoo.com.hk
Manager: Mr. Lu Yu Hsi
Establishment: 20th May, 2005.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Importer, Exporter and Wholesaler.
Employees: 8. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
CHII LIH
CO.
Head
Office:-
22/F., Metro Loft, 38 Kwai Hei Street, Kwai Chung, New
Territories, Hong Kong.
Associated
Companies:-
Chii Lih Coral Co. Ltd., Taiwan.
Chii Lih International Industrial Co. Ltd., Hong
Kong. (Same address)
Chung Lai Trading Co. Ltd., China. (Same address)
Chunglai Hung Probes Manufacturing Co. Ltd., China.
Dongguan Chung Lai Electronic Co. Ltd., China.
Kunshan Zhonglai Electronics Technology Co. Ltd.,
China.
35831262-000-05
Manager: Mr. Lu Yu Hsi
Name: Mr. LU Yu Hsi
Residential Address:
G/F., 7 Chatham Road, Kowloon, Hong Kong.
The subject was established on
20th May, 2005 as a sole proprietorship concern owned by Mr. Lu Yu Hsi under
the Hong Kong Business Registration Regulations.
Apart from these, neither material
change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: Coral jewellery, fine & imitation jewellery, electronic products, testing instruments, etc.
Employees: 8. (Including associates)
Commodities Imported: China, Taiwan, etc.
Markets: Taiwan, India, Japan, South Korea, other Asian countries, Europe, North America, etc.
Terms/Sales: L/C, Advanced T/T, etc.
Terms/Buying: L/C, D/P, O/A, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active 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.
Chii Lih Co. is a sole
proprietorship set up on and owned by Mr. Lu Yu Hsi who is a Taiwan
merchant. Now, he is a Hong Kong ID Card
holder and has got the right to reside in Hong Kong permanently. He is also the manager of the subject.
The subject has had a main
associated company located at its operating address known as Chung Lai Trading
Co. Ltd. [Chung Lai]. Chung Lai and the
subject are engaged in the same lines of business. The subject is trading in the following
commodities:-
Coral jewellery, fine &
imitation jewellery, electronic products, testing instruments, etc.
In China, the subject has
had the following associated companies:-
Chunglai Hung Probes
Manufacturing Co., Ltd.
Kunshan Zhonglai
Electronics Technology Co. Ltd.
Dongguan Chung Lai
Electronic Co. Ltd.
The main products of the
above-mentioned firms are Bare Board Test Probes, Testing Machine Probes,
ICT/FCT Test Probes, Double Ended Probes, Related Parts, Universal Rigid Pin,
etc.
In 2006, Chunglai Hung
started to produce the Pogo pin for semiconductor and IC test to extend the
domestic and overseas market.
In 2010, with improving
production capacity, increasing employees and purchasing new equipment, Taiwan
headquarters moved to the new buying office at Yingge District, New Taipei
City, Taiwan.
The subject and the
above-mentioned firms belong to a Group of companies which are headed by a
Taiwan businesswoman Ms. Hong Ming Li.
The core member of the Group is Chii Lih Coral Co. Ltd. which is in
Taiwan. This firm is engaged in
manufacturing all kinds of coral jewellery and related products. Products are marketed in Taiwan and exported
to the other Asian countries. Business
is active.
As the history of the
subject is over seven years in Hong Kong, on the whole, consider it good for
normal business engagements.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.48 |
|
|
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.72.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
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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.