MIRA INFORM REPORT
|
Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
FAI PO JEWELLERY
(H.K.) CO. LTD. |
|
|
|
|
Registered Office : |
Room 602-606, 6/F., Block A, Focal Industrial Centre, 21 Man Lok
Street, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
03.01.1997 |
|
|
|
|
Com. Reg. No.: |
20408387 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Importer, Exporter and Wholesaler of Gemset Jewellery, Gold
Jewellery etc. |
|
|
|
|
No. of Employees : |
35 (Including associates in Hong Kong) |
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
FAI PO JEWELLERY (H.K.) CO. LTD.
Note: Your
given name “Fai Po (Macao Commercial Offshore) Ltd.”, not registered in Hong
Kong, is the Macau company of the subject.
ADDRESS: Room 602-606, 6/F., Block A, Focal
Industrial Centre, 21 Man Lok Street, Hunghom,
Kowloon, Hong Kong.
PHONE: 2774 1199, 2774 4811,
2774 4833
FAX: 2330 1553, 2330 1563
E-MAIL: fpg@hkstar.com
General
Manager: Mr. Chan Wing Fai, Jacky
Incorporated on: 3rd January, 1997.
Organization: Private Limited Company.
Capital: Nominal:HK$10,000.00
Issued: HK$2.00
Business Category: Manufacturer, Importer, Exporter and Wholesaler.
Employees: 35. (Including associates in Hong Kong)
Main Dealing Banker: Bank of China (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 602-606,
6/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon,
Hong Kong.
China Factory:-
Lufeng Ronghui
Gemstone & Jewelry Manufacturing Factory Co. Ltd.
[or known as
Lufeng Ronghui Gemstone Factory Co. Ltd.]
Block 5-6, Donghai
Economic Development Area, Donghai Town, Lufeng City, Guangdong Province,
China.
[Tel: (86-660) 823
6666; Fax: (86-660) 823 0948]
Holding Companies:-
Joyce Field
International Ltd., British Virgin Islands.
Pearl Dynasty
Ltd., British Virgin Islands.
Associated/Affiliated Companies:-
Fai Po Group of
Companies
Amethyst Kingdom
Co. Ltd., Hong Kong.
East Ocean Gems
& Jewellery Co. Ltd., Hong Kong.
[Dissolved]
Fai Po (Macao
Commercial Offshore) Ltd., Macao.
Fai Po Diamond
Ltd., Hong Kong.
Fai Po Gem &
Jewellery Ltd., Hong Kong.
Fai Po Gem (China)
Ltd., Hong Kong.
Fai Po Gem (H.K.)
Co. Ltd., Hong Kong.
Fai Po Gems
Manufacturing Co. Ltd., Hong Kong.
Fai Po Group Ltd.,
Hong Kong.
Fai Po Jewellery
(China) Ltd., Hong Kong.
Fai Po Jewellery
Inc., USA.
Fai Po Properties
Ltd., Hong Kong.
Huahui Real Estate
Development Co. Ltd., China.
Intini Co. Ltd.,
Hong Kong.
Jeffery Investment
Ltd., Hong Kong.
Seng Fai Co. Ltd.,
Hong Kong.
Yi Danni Diamond
Co. Ltd., China.
etc.
20408387
0584998
General
Manager: Mr. Chan Wing Fai, Jacky
Sales
Contact: Ms. Deland Leung
Nominal Share
Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share
Capital: HK$2.00
(As per registry dated 03-01-2013)
|
Name |
|
No. of shares |
|
Pearl Dynasty Ltd. The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands. |
|
1 |
|
Joyce Field International Ltd. The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands. |
|
1 |
|
|
|
–– |
|
|
Total: |
2 = |
(As per registry dated 03-01-2013)
|
Name |
Address |
|
Pearl Dynasty Ltd. |
The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands. |
|
Joyce Field International Ltd. |
The Creque Building, P.O. Box 116, Road Town, Tortola, British Virgin Islands. |
(As per registry dated 03-01-2013)
|
Name |
Address |
Co. No. |
|
Silver Swing (International) Ltd. |
Room 807, 8/F., Opulent Building, 402‑406 Hennessy Road, Hong Kong. |
0157939 |
The subject was incorporated on 3rd January, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Grand Power (Asia) Ltd., name changed to the present style on 16th January, 1998.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer, Importer, Exporter and Wholesaler.
Lines: Gemset jewellery, gold jewellery, etc.
Employees: 35. (Including associates in Hong Kong)
2,000. (China)
Materials/Commodities Imported:-
Raw materials – Europe, India, Thailand, etc.
Finished products – China.
Markets: US, Japan, Taiwan, Singapore, South Korea, UK, Italy, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: Various terms.
MEMBERSHIP: Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Hong Kong Productivity Council, Hong Kong.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$2.00
Profit or Loss: Business is profitable.
Condition: Keeping in an active condition.
Facilities: Is making use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Bank of China (Hong Kong) Ltd., Hong Kong.
Standing: Good.
Fai Po Jewellery (H.K.) Co. Ltd. is equally owned by two BVI-registered firms, namely, Pearl Dynasty Ltd. and Joyce Field International Ltd. The subject has just issued 2 ordinary shares of HK$1.00 each while each of the holding companies holds a single share. The two BVI-firms are also directors of the subject.
According to the subject, its predecessor was set up in 1986.
The subject has had a main associated company located at its operating address known as Fai Po Diamond Ltd. [Fai Po Diamond].
Fai Po Diamond is jointly held by three firms: Star Ruby Holdings Ltd., a Samoa-registered firm holding 75% interests; Fairly Diamond Ltd., a BVI‑registered firm holding 15%; and Paragon Diamond Ltd., a Hong Kong‑registered firm, holding 10%.
The subject has got another associated company Fai Po Gem (H.K.) Co. Ltd. [Fai Po Gem] located at its operating address as well. Fai Po Gem and the subject are engaged in the same lines of business. This firm was incorporated on 3rd January, 1997.
The subject and its associated companies, including Fai Po (Macao Commercial Offshore) Ltd., belong to Fai Po Group.
The subject is a jewellery trader and manufacturer. It is specialised in 14K and 18K gold jewellery set with all kinds of colour gemstones and semi‑precious stones, among which blue chalcedony is the most significant items. The other products include amethyst, citrine, tourmaline, peridot, blue topaz and rose quartz jewellery. The subject is trading in the following commodities:
·
Finished Jewellery
o
Diamond Jewellery
§ White Diamond
Jewellery
§ Coloured Diamond
Jewellery
o
Gem Set Jewellery
§ Emerald Jewellery
§ Ruby Jewellery
§ Sapphire Jewellery
o
Semi-Precious Gemstone Jewellery
§ Others
o
Gold Jewellery
§ 14-Karat Gold
Jewellery
§ 18-Karat Gold
Jewellery
o
Pearl Jewellery
§ Tahitian
Pearl Jewellery
·
Materials
o
Polished Semi precious Gemstone
§ Crystal
The subject is also specialized in all kind of semi-precious stones set, gold jewellery, such as blue chakedany, acnettrysit, chrine, crystal, tocrmatine, sea blue opal, turqualre, coral peridot, etc.
Raw materials and diamonds are imported from India, Europe, Thailand, etc.
The subject has had an affiliated factory in China with a total monthly production capacity of over a hundred thousand units of jewellery. The factory is located in Donghai Economic Development Area, Donghai Town, Lufeng City, Guangdong Province, China, this factory is known as Lufeng Ronghui Gemstone & Jewelry Manufacturing Factory Co. Ltd. (or known as Lufeng Ronghui Gemstone Factory Co. Ltd.). Currently the factory is employing about 2,000 workers and covering an area of 500 acres.
The factories are manufacturing the Group’s product under the brand name ‘Intini’.
Another two factories are in Panyu and Gaoming of Guangdong Province, China.
The subject also has had branches in Panyu, Guangzhou, Kunming, New York, etc.
At present, 90% of the subject’s products are exported to overseas markets such as the United States, Japan, Taiwan, Singapore, Malaysia, South Korea, the United Kingdom, Italy, the Middle East, etc. The remaining 10% is for domestic sales. Unit prices of the product ranges from several US dollars to a thousand US dollar.
The subject has got several more associated companies located at the subject’s operating office. Besides, it has got an associated company Fai Po Jewellery Inc. in the United States. This firm in New York is engaged in the distribution of the subject’s products in the United States.
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. 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 1C-B18, 5E-D26.
Over the past years, the subject’s associated company Fai Po Gem participated a number of exhibitions and fairs held in the following countries, cities, and regions:-
· United States — New York, Miami, Phoenix, Tucson, Las Vegas
· Hong Kong
· China — Shenzhen Special Economic Zone, Shanghai, Guangzhou
· United Kingdom — London
· UAE — Sharjah, Abu Dhabi, Dubai
· Switzerland — Zurich
· Italy
· Japan
The subject’s business, which is rather active, is chiefly handled by Ms. Deland Leung.
In Macau, the subject has set up an associated company in Macao known as Fai Po (Macao Commercial Offshore) Ltd. which is a Macao-registered firm. The Fai Po Group is trying to penetrate the Macao market.
To our knowledge, another member of the Group is engaged in manufacturing “Gemstone Tiles”. Products include mosaic floor tiles, paving stones, etc.
The Group is also involved in real estate business. Its subsidiary Huahui Real Estate Development Co. Ltd. has had two development projects in Huizhou and Lufeng, Guangdong Province, China.
The annual sales turnover of the Group ranges from HK$350 to 400 million. Business is profitable and active.
In the years ahead, the Group will keep on developing its business in the following courses:-
· Establishing a public welfare image
· Creating a worldwide brand
· To be a profession leader
· Setting up a Talents’ “Cradle”
Besides, the Group is having the following plans: the formation of low-grade industrial diversification, the development of large-scale, business specialization, management of the industry pattern of differentiation.
The subject is fully supported by the Group.
The history of the subject is over sixteen years and four 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.
-
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.
-
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.54.92 |
|
|
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.