MIRA INFORM REPORT
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Report Date : |
23.05.2013 |
IDENTIFICATION DETAILS
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Name : |
LEE HENG DIAMOND CO. LTD. |
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Registered Office : |
C/o Eunica Co. Ltd. 6/F., Sino Plaza, 256 Gloucester Road, Causeway Bay |
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Country : |
Hong Kong |
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Date of Incorporation : |
08.01.1977 |
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Com. Reg. No.: |
05073606 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of all kinds diamond and
jewellery products, gemsets. |
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No. of Employees : |
12. (Head office only) |
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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
Company name and Address
LEE HENG DIAMOND
CO. LTD.
ADDRESS: Room 1201,
12/F., China Building, 29 Queen’s Road Central, Hong Kong.
PHONE: 2526
1167, 2971 2200
FAX: 2868
0170
E-MAIL: lhdgroup@leeheng.com
support@leehengdiamond.com
info@leeheng.com
MANAGEMENT
Managing Director: Mr. Ma Chun Wai, Franklin
SUMMARY
Incorporated on: 8th
February, 1977.
Organization: Private Limited Company.
Capital: Nominal:HK$120,000,000.00
Issued: HK$120,000,000.00
Business Category: Jewellery
Trader and Retailer.
Employees: 12. (Head office only)
Main Dealing Banker: Hang Seng
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Registered
Office:-
c/o Eunica Co. Ltd.
6/F., Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong.
Head Office:-
Room 1201, 12/F., China Building, 29 Queen’s Road Central,
Hong Kong.
Holding Company:-
Lee Heng Jewellery Group Of Companies Ltd., Hong Kong. (Same address)
Associated/Affiliated
Companies:-
Lee Heng Diamond Group
Ablemaster Jewellery Manufacturing Co. Ltd., Hong Kong.
Dorical Ltd., Hong Kong.
Falconer Jewellers Ltd., Hong Kong.
IAD Jewellery Ltd., Hong Kong.
MaBelle Jewellery Co. Ltd., Hong Kong.
Mabros Gold Co. Ltd., Hong Kong.
Mabros Jewellery Co. Ltd., Hong Kong.
Madia Jewellery International Co. Ltd., Hong Kong.
Profit Famous Ltd., Hong Kong.
Marbros Holdings Ltd., Hong Kong.
etc.
BUSINESS REGISTRATION NUMBER
05073606
COMPANY FILE NUMBER
0051535
MANAGEMENT
Group Chairman: Mr. Ma Charn Yui, Michael
Managing Director: Mr. Ma Chun Wai, Franklin
Contact Persons: Mr.
Stephen Lee
Ms. Shirley Lam
CAPITAL
Nominal Share Capital: HK$120,000,000.00 (Divided into 240,000 shares of
HK$500.00 each)
Issued Share Capital: HK$120,000,000.00
SHAREHOLDER
(As per registry dated 08-02-2013)
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Name |
Occupation |
No. of shares |
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Lee Heng Jewellery Group Of Companies Ltd., Hong Kong. |
Corporation |
240,000 ====== |
DIRECTORS
(As per registry dated 28-02-2013)
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Name (Nationality) |
Address |
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MA Yan, Calvin Ronald |
House C, 66 Deep Water Bay Road, Hong Kong. |
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MA Yung Kit |
House D, 66 Deep Water Bay Road, Hong Kong. |
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MA Yung Yi |
House C, 66 Deep Water Bay Road, Hong Kong. |
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CHAN Mee Ngan, Anna |
Flat A, 4/F., Block 1, Ruby Court, 55 South Bay Road, Hong Kong. |
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MA Chun Wai, Franklin |
House A, 66 Deep Water Bay Road, Hong Kong. |
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HO Man Kwong |
Flat D, 17/F., Tower B, Hollywood Terrace, 268 Queen’s Road Central,
Sheung Wan, Hong Kong. |
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CHENG Tak Wai, David |
Room 2608, 26/F., Tsui Ning House, Tsui Wan Estate, Chai Wan, Hong
Kong. |
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MA Charn Yui, Michael |
Flat A, 4/F., Block 1, Ruby Court, 55 South Bay Road, Hong Kong. |
SECRETARY
(As per registry dated 08-02-2013)
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Name |
Address |
Co. No. |
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Eunica Co. Ltd. |
6/F., Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong. |
0454936 |
HISTORY
The subject was incorporated on 8th February, 1977 as a private limited
liability company under the Hong Kong Companies Ordinance.
The subject moved its registered address to the present location in
February 2006.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer,
Exporter, Wholesaler and Retailer.
Lines: All
kinds diamond and jewellery products, gemsets.
Brand Name: MaBelle, Madia, Mabros,
Falconer.
Employees: 12. (Head office only)
Commodities Imported: India,
Thailand, Europe, etc.
Markets: Asia
countries, Europe, Middle East, US, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, O/A, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$120,000,000.00 (Divided into 240,000 shares of
HK$500.00 each)
Issued Share Capital: HK$120,000,000.00
Profit or Loss: Making
a small profit every year.
Condition: Keeping
in an active condition.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Hang Seng Bank Ltd., Hong Kong.
Standing: Very Good.
GENERAL
Having issued 240,000 ordinary shares of HK$500.00 each, Lee Heng
Diamond Co. Ltd. is a wholly owned subsidiary of Lee Heng Jewellery Group Of
Companies Ltd. which is a Hong Kong-based firm located at the operating office
of the subject. The operating address of
the Group is located at Room 1201, 12/F., China Building, 29 Queen’s Road
Central, Hong Kong.
Incorporated in Hong Kong in 1977, the subject is the origin and key
member of the Lee Heng Diamond Group which consists of over twelve different
diamond and jewellery companies — from handling polished diamond, manufacturing
jewellery, to wholesaling, retailing and distributing diamonds and jewellery
products.
The subject is one of the core members of the Group. According to the subject, its predecessor
started operation in 1949. The subject
is trading in the following products:-
Diamond gold jewellery (such as diamond ring, diamond pendant, ladies’
diamond pendant, branded diamond ring, etc.);
Diamond jewellery set;
Loose diamond;
Certified diamond;
Diamond platinum jewellery;
Gemset gold jewellery — 18 karat;
Gemset jewellery; &
Gold chain, etc.
Commodities and raw materials are imported from Italy, France, other
European countries, some Asian countries such as India, etc. Prime markets are Hong Kong, China, other
Asian countries, Europe, the Middle East, etc.
Overall business is rather active.
In Hong Kong, the subject has had four affiliated retailers and one in
China. Names of the retailers are
Mabros, Falconer Jewellers, Madia, MaBelle and MaBelle (China). MaBelle was created by the Group in 1993,
however, the MaBelle shop was established in Shanghai, China in 2001. Now, there are over 40 MaBelle Jewelry Shops
in China.
In Hong Kong, the Group is operating about 50 MaBelle Jewelry Shops.
The subject and its associates Mabros Gold, IAD Jewellery are
wholesalers. The manufacturers of the
Group are “Ablemaster Jewellery Manufacturing Co. Ltd.” and “Profit Famous”.
The Group has ten retail shops in Hong Kong. Mabros Jewellery Co. Ltd. is one of the
retailing shops of the Group which is retailing “Marbos” brand jewellery
products. The Group also markets its
products via the following two websites: “Mabelle.com” and “Dorical”.
In 2007, the Group launched its first online shop -- MBLife.com through
establishing Dorical Ltd.
Three of the subject’s directors Ma Yung Yi, Michael Ma Charn Yui and Ma
Yung Kit are also directors of Ablemaster Jewellery, a Hong Kong-registered
firm incorporated on 17th March, 1992.
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 3CON-010.
As the history of the subject in Hong Kong is over thirty-six years, on
the whole, consider it good for normal business engagements.
REMARK
Property information of affiliate:-
Property Location: Workshop
Unit 10, 11, 12 & 13 on 2/F. of Block A,
Focal Industrial Centre, 21 Man Lok
Street, Kowloon, Hong Kong.
Owner: Ablemaster Jewellery Manufacturing 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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01-12-1992 |
- |
Dah Sing Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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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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 –
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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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.52 |
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|
1 |
Rs.84.09 |
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Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.