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Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHEUNG FAT DIAMOND
LTD. |
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Registered Office : |
Room 601-602, 6/F., Yu To Sang Building, 37 Queen’s Road Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.02.2000 |
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Com. Reg. No.: |
30749070 |
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Legal Form : |
Private Limited Company. |
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL
KINDS’ DIAMOND AND JEWELLERY PRODUCTS. |
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No. of Employees : |
13 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Usually correct |
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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 |
CHEUNG
FAT DIAMOND LTD.
Room 601-602, 6/F.,
Yu To Sang Building, 37 Queen’s Road Central, Hong Kong.
PHONE: 2523 1733
FAX: 2523 1182
E-MAIL: cftc@netvigator.com
Managing
Director: Mr. Chan Fat Kee, Frankie
Incorporated on: 14th February, 2000.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Employees: 13. (Including associated company)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
CHEUNG
FAT DIAMOND LTD.
Registered
Head Office:-
Room 601-602,
6/F., Yu To Sang Building, 37 Queen’s Road Central, Hong Kong.
Trading
As:-
Cheung Fat Trading
Co., Hong Kong. [BR No. 30749070-001]
Associated/Affiliated
Companies:-
Cheung Fat Trading
Co., Hong Kong. [BR No. 21268528-000]
Cheung Ning Co.
Ltd., Hong Kong.
Cheungning-J.B.
& Brothers Group, China.
Shenzhen Cheung Ning
Diamond Co. Ltd., China.
Shenzhen Cheung
Ning Jewellery Co. Ltd., China.
30749070
0704146
Managing
Director: Mr. Chan Fat Kee, Frankie
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 14-02-2013)
|
Name |
|
No.
of shares |
|
CHAN
Fat Kee, Frankie |
|
650,000 |
|
HONG Shuk Yee, Anita |
|
350,000 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry dated 14-02-2013)
|
Name (Nationality) |
Address |
|
CHAN
HONG Shuk Yee, Anita |
Room 601-602, 6/F., Yu To Sang Building, 37
Queen’s Road Central, Hong Kong. |
|
CHAN Fat Kee,
Frankie |
Room 601-602, 6/F., Yu To Sang Building,
37 Queen’s Road Central, Hong Kong. |
(As per registry dated 14-02-2013)
|
Name |
Address |
Co.
No. |
|
Shing
Yip Consultants Ltd. |
Room 901, 9/F., HSH Mongkok Plaza, 794‑802 Nathan Road, Kowloon,
Hong Kong. |
0662656 |
The
subject was incorporated on 14th February, 2000 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Fafa Co. Ltd., name changed to the
present style on 16th September, 2009.
Formerly
the subject was located at Room 607, 6/F., Yu To Sang Building, 37 Queen’s
Road Central, Hong Kong, moved to the present address with effect from 21st
September, 2009.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds jewellery products.
Employees: 13. (Including associated company)
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.
MEMBERSHIP: Diamond Federation of Hong Kong, China Ltd., 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
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 required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Having
issued 1 million ordinary shares of HK$1.00 each, Cheung Fat Diamond Ltd. is
jointly owned by Mr. Frankie Chan Fat Kee, holding 65% interests; and Ms. Anita
Hong Shuk Yee, holding 35%. Seemed to be
a couple, Hong and Chan are also the directors of the subject.
The
subject has got an associated company Cheung Ning Co. Ltd. [Cheung Ning]
located at its operating address.
Having
issued 2,340,000 ordinary shares of HK$1.00 each, Cheung Ning is jointly owned
by Mr. Frankie Chan Fat Kee, holding 51% interest; and Mr. Wang Ning,
holding 49%. Wang is also the director
of Cheung Ning.
The
subject and Cheung Ning are engaged in the same lines of business.
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, etc.
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, emerald,
etc.
Shenzhen
Cheung Ning is a member of Shanghai Diamond Exchange [SDE], also a member of
Shenzhen Gold and Jewellery Joint Association.
Mr.
Wang Ning is also the General Manager of Shenzhen Cheung Ning.
According
to the subject, Mr. Frankie Chan Fat Kee has been engaged in jewellery
education and wholesaling business for more than 30 years. He has developed long terms business ties
with a number of suppliers and customers both in China and foreign countries.
Shenzhen
Cheung Ning is a business partner of J. B. & Brothers [JB] of India. Shenzhen Cheung Ning and JB has set up a joint
venture known as Cheungning-J.B. & Brothers Group which is trading in
diamonds and jewellery products.
Besides,
Shenzhen Cheung Ning has been cooperating with famous international diamond
institutes such as NGTC, GIA, IGI, etc.
In
2010, the subject set up another associated company Shenzhen Cheung Ning
Jewellery Co. Ltd. in Shenzhen Special Economic Zone, China.
In
order to penetrate the international market further, Cheung Ning has taken part
in fairs and exhibitions held in Hong Kong, China and other foreign large
cities.
The
business of the subject is active.
History in Hong Kong is over thirteen years.
On the whole,
consider it 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.
-
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.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
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 |
|
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.