MIRA INFORM REPORT

Report Date :

20.12.2014

IDENTIFICATION DETAILS

Name :	LEE HENG DIAMOND COMPANY LIMITED

Registered Office :	6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay

Country :	Hong Kong

Date of Incorporation :	08.02.1977

Com. Reg. No.:	05073606

Legal Form :	Private Limited Liability Company

Line of Business :	Trading of gems, jewelry

No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Contact Points

Company Name (in Chinese):	利興鑽石有限公司
Company Name (in English):	Lee Heng Diamond Company Limited
Supplied Name:	LEE HENG DIAMOND CO. LTD.
Trading Address:	6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong
Supplied Address:	6th FLOOR, SINO PLAZA 256, GLOUCESTER ROAD, CAUSEWAY BAY, HONGKONG.

Note: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Lee Heng Diamond Company Limited
Registered Address:	6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong
Telephone Number:	+852-2971-2200
E-mail:	info@leeheng.com
Date of Registration:	1977-2-8
Registered Number:	51535
Business Registration No.:	05073606
Registered Capital:	HKD 120,000,000 (USD 15,480,000) (As of 2014.07, 1 HKD = 0.129 USD)
Paid-up Capital:	HKD 120,000,000 (USD 15,480,000) = 240,000 Shares@ HKD 500
Legal Form:	Private Limited Liability Company
SITC Code:	89731--Articles of jewellery and parts thereof, of precious metals or metals clad with precious metals (g)
Principal Activities:	Trading of gems, jewelry and etc.
Staff:	N/A
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-2-8

Notes: Subject declined to disclose its staff number; from other source we cannot obtain the relevant information, either.

History

Subject was incorporated on 1977-2-8 with the registered number 51535 as Private Limited Liability Company in Hong Kong.

Corporate Structure

Parent Company

Name:	Lee Heng Jewellery Group Of Companies Limited
Address:	6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong
Date of Registration:	1995-5-16
Registered Number:	514502
Business Registration No.:	19075765
Legal Form:	Private Limited Liability Company

Major Related Companies

IAD Jewllery Ltd

Ablemaster Jewelry Manufacturing Co

Mabros Gold Co Ltd

Mabelle Jewelry Co

Dorical Ltd

Shareholders

Name	Subscription shares	Proportion of Investment (%)
Lee Heng Jewellery Group Of Companies Limited	240,000	100%
Total	240,000	100%

Management Information

Core Management

Detailed Information of Directors:

1
Name:	Ma Charn Yui, Michael
Address:	Flat A, 4/F, Block 1, Ruby Court, 55 South Bay Road, Hong Kong
Position:	Director
ID Number:	A749597(5)
2
Name:	Ma Yung Kit
Address:	House D, 66 Deep Water Bay Road, Hong Kong
Position:	Director
ID Number:	D126194(1)
3
Name:	Ma Yung Yi
Address:	House C, 66 Deep Water Bay Road, Hong Kong
Position:	Director
ID Number:	D119483(7)
4
Name:	Chan Mee Ngan, Anna
Address:	Flat A, 4/F, Block 1, Ruby Court, 55 South Bay Road, Hong Kong
Position:	Director
ID Number:	A902252(2)
5
Name:	Ma Chun Wai, Franklin
Address:	House A, 66 Deep Water Bay Road, Hong Kong
Position:	Director
ID Number:	D822101(5)
7
Name:	Ho Man Kwong
Address:	Flat D, 17/F, Tower B, Hollywood Terrace, 268 Queen’S Road Central, Sheung Wan, Hong Kong
Position:	Director
ID Number:	E481905(9)
8
Name:	Cheng Tak Wai, David
Address:	Flat 8A, 37/F, Block 1, Phase 2, Festival City, 1 Mei Tin Road, Tai Wai N.T, Hong Kong
Position:	Director
ID Number:	G410810(7)
9
Name:	Ma Yan Calvin Ronald
Address:	House C, 66 Deep Water Bay Road, Hong Kong
Position:	Director
ID Number:	Z703135(2)
10
Name:	Eunica Company Limited
Address:	6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong
Position:	Corporate Secretary
Registered Number:	454936

Operation Information

Offices & Factories

	Office
Address:	6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong

Premises Information

Office address:

Address:	6th Floor Sino Plaza Nos. 255-257 Gloucester Road Hong Kong
Owners:	Quality Investment Limited
Memorial Number:	UB4677878
Date of Instrument:	1990-12-14
Date of Registration:	1991-1-16
Consideration Value:	HKD 11,110,000.00

History of Premises Owners’

1
Memorial No.:	14052002490173
Date of Instrument:	2014-4-22
Date of Registration:	2014-5-20
Nature:	Debenture And Mortgage
In Favor of:	Bank Of China (Hong Kong) Limited
Consideration:	For Consideration See Memorial (PT.)
2
Memorial No.:	UB6375621
Date of Instrument:	1995-8-7
Date of Registration:	1995-8-22
Nature:	Tenancy Agreement With Plan For 33 Mths. From 16.1.94 To 15.10.96
In Favor of:	Bozell Limited
Consideration:	(PT.)
3
Memorial No.:	UB5482734
Date of Instrument:	1992-10-30
Date of Registration:	1992-11-10
Nature:	Occupation Permit No.H135/92

Note: (PT.) means “part of”.

Production Information

l The subject is a trader of gems, jewelry and etc without any production activities

l It is introduced that subject’s group has a factory in Hong Kong for production.

Purchase Information

l It is introduced that subject purchases its raw materials and etc both at home and abroad.

l It is introduced that subject imports some golden jewelry from Italy.

l It is introduced that subject imports some diamonds from India and etc.

Sales Information

l The subject is mainly engaged in sales of gems, jewelry and etc.

l Subject’s major products are cut diamonds, diamond jewellry, gold jewellry and etc.

l It is introduced that subject is selling some diamonds with the certifications of GIA, IGI and HRD.

l Subject’s selling territory includes Asia, Europe, America and etc.

l Subject’s major customers are manufacturers and designers of jewelry, watch, direct customers and etc

Trademark

Trade Mark No.:	300489150
Status:	Registered
Mark:	OCTALYA Octalya
Mark Type:	Ordinary
Series Mark:	Yes
Owner's Name, Address:	LEE HENG DIAMOND COMPANY LIMITED ROOM 1201, 12TH FLOOR, AON CHINA BUILDING, 29 QUEEN'S ROAD CENTRAL, HONG KONG.
Owner's Address for Service:	SIT, FUNG, KWONG & SHUM 9th Floor, York House, The Landmark, 15 Queen's Road Central, Hong Kong
Agent's Address:	9th Floor, York House, The Landmark, 15 Queen's Road Central, Hong Kong
Class No.:	14, 16, 18, 35
Specification:	Class 14 precious metals and their alloys and goods in precious metals or coated therewith, not included in other classes; jewellery; precious stones; horological and chronometric instruments; diamonds; jewellery incorporating diamonds; earrings, ear clips, rings, chains, necklaces, bracelets, ankle bracelets, ankle chains, pendants, charms, pins, ornamental pins, clips, brooches, ornaments, trinkets, all being jewellery; tie clips, tie pins, cuff links, hat ornaments, hair pins, hair clips, hair accessories, badges, buckles, all of precious metal; writing instruments of precious metal; watches; watch straps Class 16 certificates; certificates of authentication and quality of diamonds; printed matter; packaging and wrapping materials; bags, envelopes and pouches made of paper or plastics for packaging; boxes of cardboard or paper; document holders; card holders; holders being articles of stationery Class 18 leather and imitations of leather, and goods made of these materials and not included in other classes; pouches, document holders and card holders made of leather or imitations of leather Class 35 retailing, wholesaling, distribution and department store retailing services in relation to precious metals and their alloys, goods in precious metals or coated therewith, jewellery, precious stones, horological and chronometric instruments, diamonds, jewellery incorporating diamonds, earrings, ear clips, rings, chains, necklaces, bracelets, ankle bracelets, ankle chains, pendants, charms, pins, ornamental pins, clips, brooches, ornaments, trinkets, tie clips, tie pins, cuff links, hat ornaments, hair pins, hair clips, hair accessories, badges, buckles, writing instruments of precious metal, watches, watch straps; all the aforesaid services also provided on-line from a computer database or the Internet
Date of Filing: (D-M-Y)	03-09-2005
Date of Publication of Application of Acceptance for Registration: (D-M-Y)	30-09-2005
Date of Registration: (D-M-Y)	03-09-2005
Actual Date of Registration: (D-M-Y)	12-01-2006
Expiry date: (D-M-Y)	02-09-2015
Historical Details:
Date of entry	Matters
12-01-2006	REGISTRATION

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials and etc
Payment Terms	Cash, T/T and etc

2. Import

Products	Raw materials and etc
Payment Terms	L/C, T/T and etc

Sales

1. Domestic Markets

Product	Gems, jewelry and etc.
Selling Terms	Cash, T/T and etc

2. Export

Product	Gems, jewelry and etc.
Selling Terms	L/C, T/T and etc

Financial Information

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff rejected to disclose the financial information, from other sources we could not obtain such information, either.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public

Civil Litigation

Date:	2006-07-08
Court Name:	District Court Civil Action
Court No.:	3324
Claimant:	c/o Room 1201, 12/F, Aon China Building, 29 Queen's Road, Central, HK
Defendant:	Ng Sui Yau t/a Hung Kay Jewellery Co c/o 1) 11/F, Room 10, Hai Phong Mansion, 53-55 Hai Phong Road, Tsim Sha Tsui, Kln 2) 1/F, Block E, No.316 Canton Road, Kln
Reason:	Good Sold & Delivered
Amount(HKD):	163,710.74

Mortgage Record

Company Name:	Lee Heng Diamond Co Ltd (the “Customer”)
Instrument of Creating Mortgage:	Security Over Deposits with the Bank (Limited Company - Under Seal)
Date of Creating Mortgage:	2010-3-15
Date of Discharge of the Charge:	2011-5-26
Amount Secured:	Amount secured - (i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person, (ii) interest on such monies (both before and after any demand or judgment), to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge,
Name of Mortgagee:	The Hongkong and Shanghai Banking Corporation Limited
Address of Mortgagee:	HSBC Main Building No. 1 Queen’s Road Central Hong Kong
Description of Property Mortgaged:	A deposit with chargee in the amount of HKD 21,800,000.- under Deposit A/C No. 518-210315 whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices.

Special Note

Interview Details

Department:

Sales Department

Industry Information

89731--Articles of jewellery and parts thereof, of precious metals or metals clad with precious metals (g)

Unit: HKD/000

	2014.05		2014.01~2014.05
	Quantity	Value	Quantity	Value
Imports
United Arab Emirates	360,811	286,593	1,910,636	2,509,526
Austria	3,452	187	14,139	4,212
Australia	28,455	20,576	193,679	76,769
Belgium	5,306	2,991	18,285	12,571
The Mainland of China	15,416,663	2,786,822	80,725,040	14,919,295
Exports
United Arab Emirates	34,144	20,993	266,704	182,114
Austria	895	1,895	2,797	5,247
Australia	15,794	11,843	141,972	57,892
Belgium	1,028	1,273	19,070	8,044
The Mainland of China	286,047	25,826	1,126,839	117,609

External Trade Information:

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

	Imports	Domestic Exports	Re-exports	Total exports	Year-on-year % change of Total exports	Merchandise trade balance
2011	3,764,596	65,662	3,271,592	3,337,253	+10.1	-427,343
2012	3,912,163	58,830	3,375,516	3,434,346	+2.9	-477,817
2013	4,060,717	54,364	3,505,322	3,559,686	+3.6	-501,031
2013.03	340,857	5,073	286,638	291,711	+11.2	-49,146
2013.04	332,963	4,503	285,763	290,267	+9.0	-42,696
2013.05	335,809	4,818	286,724	291,542	-1.0	-44,267
2013.06	327,309	4,476	273,161	277,637	-0.2	-49,673
2013.07	342,565	4,783	300,630	305,413	+10.6	-37,152
2013.08	347,059	4,932	302,558	307,490	-1.3	-39,570
2013.09	359,841	4,395	313,436	317,830	+1.5	-42,010
2013.10	361,196	4,458	318,686	323,144	+8.8	-38,052
2013.11	370,104	4,587	320,935	325,522	+5.8	-44,581
2013.12	365,228	4,596	306,281	310,877	0.0	-54,351
2014.01	323,436	4,299	299,157	303,456	-0.4	-19,979
2014.02	266,587	3,276	209,638	212,914	-1.3	-53,673
2014.03	351,889	5,120	296,403	301,523	+3.4	-50,365
2014.04	340,972	4,867	280,816	285,682	-1.6	-55,290
2014.05	348,323	5,299	300,673	305,973	+4.9	-42,350
2014.06	352,316	4,802	304,409	309,211	+11.4	-43,105

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

Attachment

6/F, Sino Plaza, 256 Gloucester Road, Causeway Bay, Hong Kong

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.06
UK Pound	1	Rs. 98.73
Euro	1	Rs. 77.45

INFORMATION DETAILS

Analysis Done by :	KRN

Report Prepared by :	DPT

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%)

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