MIRA INFORM REPORT

Report Date :

27.01.2014

IDENTIFICATION DETAILS

Name :	LOPEZ DIAMOND CO. LTD.
Registered Office :	Flat D, 5/F., Victoria Mansion, 6-14 Gordon Road, North Point
Country :	Hong Kong
Date of Incorporation :	07.03.1989
Com. Reg. No.:	12720694
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of Loose diamond trader
No. of Employees :	Not Available

NOTES:

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ECGC Country Risk Classification List – June 30^th, 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
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'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

Company name

LOPEZ DIAMOND CO. LTD.

ADDRESS

Flat D, 5/F., Victoria Mansion, 6-14 Gordon Road, North Point, Hong Kong.

PHONE: 6448 8378

FAX: Not available

MANAGEMENT

Managing Director: Mr. Sia Kwok Ka, Charles

SUMMARY

Incorporated on: 7th March, 1989.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$3.00

Business Category: Diamond Trader.

Employees: Nil.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company name

LOPEZ DIAMOND CO. LTD.

ADDRESS

Registered Office:-

Flat D, 5/F., Victoria Mansion, 6-14 Gordon Road, North Point, Hong Kong.

BUSINESS REGISTRATION NUMBER

12720694

COMPANY FILE NUMBER

0244636

MANAGEMENT

Managing Director: Mr. Sia Kwok Ka, Charles

CAPITAL

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

Issued Share Capital: HK$3.00

SHAREHOLDERS

(As per registry dated 07-03-2012)

Name		No. of shares
SIA Kwok Ka, Charles		1
Elesio O. LOPEZ		2
		––
	Total:	3 =

DIRECTORS

(As per registry dated 07-03-2012)

Name (Nationality)	Address
SIA Kwok Ka, Charles	Flat D, 5/F., Victoria Mansion, 6-14 Gordon Road, North Point, Hong Kong.
Elesio O. LOPEZ	Flat D, 5/F., Victoria Mansion, 6-14 Gordon Road, North Point, Hong Kong.

SECRETARY

(As per registry dated 07-03-2012)

Name	Address
SZETO Sui Yee, Stella	Flat D, 5/F., Victoria Mansion, 6-14 Gordon Road, North Point, Hong Kong.

HISTORY

The subject was incorporated on 7th March, 1989 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Covitex Ltd., name changed to the present style on 27th October, 1989.

The subject moved to the present address in October 2006.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: Loose diamond trader.

Employees: Nil.

Commodities Imported: India, Israel, Belgium, etc.

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

Terms/Sales: L/C, T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

FINANCIAL INFORMATION

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

Issued Share Capital: HK$3.00

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory condition.

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: Small.

GENERAL

Having issued 3 ordinary shares of HK$1.00 each, Lopez Diamond Co. Ltd. is jointly owned by Mr. Charles Sia Kwok Ka, holding one share; and Ms. Elesio O. Lopez, holding two shares. They are also directors of the subject. The latter is a Philippines passport holder. The subject is named after Elesio O. Lopez. They are a couple.

The subject does not have its own operating office. Its registered and operating address is in the residence of the shareholders.

The subject’s telephone number and fax number have not registered with local telephone company nor listed on telephone directories. However, Mr. Charles Sia Kwok Ka can be reached at his mobile phone number 6448 8378.

The subject has no employees in Hong Kong.

The subject has set up a subsidiary known as Diamant Ltd. [Diamant]. However, Diamant has not registered with the Companies Registry of Hong Kong. It is likely that Diamant is in the Philippines. Diamant was formed to cater to the high-end fine jewellery market and is a loose diamond and jewellery design studio specialized in GIA and EGL certified diamonds.

Diamant has been a leading supplier of loose diamonds for over 35 years, serving wholesale customers exclusively. Diamant is a subsidiary of the subject, it was claimed.

Diamant is an industry pioneer in offering a complete jewellery design studio from stone selection, designing, and manufacturing using the latest jewellery designing technologies.

The subject a supplier of loose diamonds serving chiefly wholesale customers both in Hong Kong and abroad. All diamonds are sourced directly from cutting centres in Israel, Belgium, and India. Export markets include Europe, the United States, and some of the Asian countries.

The subject has got an associated company bearing the same name in the Philippines. It also has had an office in Canada. The Canada firm is known as Ace Diamond Trading Corporation.

The business of the subject is chiefly handled by the two shareholders.

As the history of the subject is over twenty-three years in Hong Kong, on the whole, consider it good for normal business engagements in small credit amounts.

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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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 30^th 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.62.18
UK Pound	1	Rs.103.38
Euro	1	Rs.85.09

INFORMATION DETAILS

Report Prepared by :

NNA

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