MIRA INFORM REPORT

 

 

Report Date :

15.01.2014

 

IDENTIFICATION DETAILS

 

Name :

GEMDEM DIAMOND & JEWELRY HONG KONG LTD

 

 

Registered Office :

Unit 08B, 13/F., Block B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

26.01.2010

 

 

Com. Reg. No.:

51739074

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of loose diamonds

 

 

No of Employees :

4

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Hong Kong

A2

A1

 

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

 


 

COMPANY NAME & ADDRESS

 

GEMDEM  DIAMOND  &  JEWELRY  HONG  KONG  LTD.

 

Note: (Your enquiry given as: GEMDEM DIAMONDS & JEWELLERY HONG KONG LTD.) of the same address

 

ADDRESS: Unit 08B, 13/F., Block B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

 

PHONE: 852-3151 7020

 

FAX: 852-3151 7021

 

 

MANAGEMENT:

 

Managing Director:  Mr. Wang Xi Guang

 

 

SUMMARY

 

Incorporated on : 

 

26th January, 2010.

 

Organization: 

 

Private Limited Company.

 

Capital:                 

 

Nominal:                 HK$10,000.00

Issued:                    HK$10.000.00

 

 

Business Category:                                

 

Importer, Exporter and Wholesaler.

 

 

Employees:

 

4

 

Main Dealing Banker:                                  

 

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation: 

 

Satisfactory.

 

 

COMPANY NAME & ADDRESS

 

GEMDEM  DIAMOND  &  JEWELRY  HONG  KONG  LTD.

 

 

ADDRESS:

 

Registered Head Office:-

 

Unit 08B, 13/F., Block B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.

 

 

Holding Company:-

 

Shanghai Gemdem Diamond Co. Ltd., China.

 

 

Branch:-

 

Shanghai Gemdem Diamond Co. Ltd. Shenzhen Co. (also known as Shenzhen Gemdem Diamond Co. Ltd.)

Flat D, 27/F., Baishida Building, Second Phase, Baishida Dongdu Square, Taining Road, Luohu District, Shenzhen, China.

[Tel: 755-2550 0322,   Fax: 755-2550 0322]

 

 

BUSINESS REGISTRATION NUMBER

 

51739074

 

 

COMPANY FILE NUMBER

 

1415745

 

 

MANAGEMENT

 

Managing Director:  Mr. Wang Xi Guang

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10.000.00

 

 

SHAREHOLDER

 

(As per registry dated 06-01-2013)

 

Name

 

No. of shares

Shanghai Gemdem Diamond Co. Ltd.

Room 803B, Block A, No. 1701 Century Boulevard, Pudong New Area, Shanghai, China.

 

10,000

=====

 

 

DIRECTORS

 

(As per registry dated 26-01-2012)

 

Name (Nationality)

Address

WANG Xi Guang

Room 13D, Block 3A, Luohu Qu, Color World Garden, Shenzhen, China.

 

CHEN Bao Kang

Room 504, Block 2, Yue Cheng Qu Da Cheng Wan,
No. 4 Construction Co., Shaoxing, Zhejiang, China.

 

 

SECRETARY

 

(As per registry dated 26-01-2013)

Name

Address

Co. No.

Excel Concept Consultants Ltd.

Unit 1210, 12/F., COL Tower, Wharf T&T Square, 123 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong.

0936900

 

 

HISTORY

 

The subject was incorporated on 26th January, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of loose diamonds, etc.

 

Employees:                   4.

 

Commodities Imported:  India, China, etc.

 

Markets:                        China, Hong Kong, other Asian countries, Europe, North America, etc.

 

Terms/Sales:                  COD or as per contracted.

 

Terms/Buying:                L/C, T/T, D/A, O/A, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:      HK$10.000.00

 

Profit or Loss:                  Made a small profit in 2013.

 

Condition:                        Business is improving.

 

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.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Gemdem Diamond & Jewelry Hong Kong Ltd. is wholly owned by Shanghai Gemdem Diamond Co. Ltd. [Shanghai Gemdem] which is a China-based firm.

 

The directors of the subject Mr. Wang Xi Guang and Mr. Chen Bao Kang are China merchants.  Both are China passport holders and do not have the right to reside in Hong Kong permanently.  Wang is a significant character in the field of jewellery manufacturing industry in China.

 

The subject is a loose diamond trader.  Its products bear the trade mark “Gemdem”.

 

Wang is a native of Hunan Province.  Graduated from Hunan Normal University Department of English Language in 1997, he came to Shenzhen Special Economic Zone in 2004 and set up his business Shenzhen Euro-Light Jewellery Co. Ltd. [Euro-Light].  Very soon, Euro-Light has become a partner of Dimexon Eurostar which is a diamond giant trader.  Euro-Light marketed Dimexon Eurostar’s diamonds in Southern China.

 

In June 2009, Wang made investments in Shanghai Gemdem and became a principal shareholder of it.  Now, he is the Executive Director of Shanghai Gemdem which was set up in 2007 and with a registered capital of RMB10 million Yuan.  It is the earliest company in China trading in natural colour diamonds.  Euro-Light has been merged into Shanghai Gemdem.

 

According to Wang, he has been in diamond trading for over thirteen years.  He is dealing with those diamond merchants in Israel, Belgium India, the United States, Japan and Hong Kong.

 

Now, Shanghai Gemdem is a business partner of Israel L.L.D. Diamond which has its own diamond mines.

 

Shanghai Gemdem is a member of Shanghai Diamond Exchange.  It has set up a branch office in Shenzhen Special Economic Zone and an office in Nanjing City of Jiangsu Province.

 

The annual turnover of Shanghai Gemdem ranges from RMB500 to 520 million Yuan in China.  Business is quite active.  According to Shanghai Government, Shanghai Gemdem is one of the top five companies having the largest export value in diamonds.

 

The subject is fully supported by Shanghai Gemdem.  History in Hong Kong is about four years.

 

On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis or in small credit amounts.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.52

UK Pound

1

Rs. 101.47

Euro

1

Rs. 84.11

 

 

INFORMATION DETAILS

 

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

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.