|
Report Date : |
19.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
WING HANG DIAMOND CO. LTD. |
|
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|
Registered Office : |
14/F. - 15/F., Cyber Plaza, 239 Temple Street, Jordan, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
24.11.1999 |
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Com. Reg. No.: |
30522052 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, jewellery,
pearls |
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|
|
No. of Employees : |
45. (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 : |
Good |
|
Payment Behaviour : |
Regular |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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
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 |
Note: Cyber Plaza is the
new building name instead of Luk Fook Jewellery Centre.
WING HANG DIAMOND
CO. LTD.
ADDRESS: 14/F. - 15/F., Cyber Plaza,
239 Temple Street, Jordan, Kowloon, Hong Kong.
PHONE: 852-2526 6512, 2526 6591
FAX: 852-2868
4988, 2526 6599
E-MAIL: info@winghangdiamond.com
pearl@winghangdiamond.com
Managing Director: Mr. Pong Wing
Chiu, David
Incorporated on: 24th November, 1999.
Organization: .
Capital: Nominal: HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Importer,
Exporter and Wholesaler.
Annual Turnover: HK$400~450 million.
Employees: 45. (Hong Kong)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
WING HANG
DIAMOND CO. LTD.
Registered Head
Office:-
14/F. - 15/F., Cyber Plaza, 239 Temple Street, Jordan, Kowloon,
Hong Kong.
China Offices
& Factories:-
Room A602, 6/F., Shanghai Diamond Exchange,
Jin Mao Tower, 1701 Century Avenue, Pudong, Shanghai, China.
Tel: (86-21) 5015 8045
Fax: (86-21) 5015 8045
[Operated by Wing Hang Diamond (Shanghai) Co. Ltd.]
561 Qigan Chengao Da Dao, Aotou Town,
Conghua City, Guangzhou, Guangdong Province, China.
Tel: (86-20) 8786 4700, 8786 1088
Fax: (86-20) 8786 1208
[Operated by Ziao Wing Diamond Co. Ltd.]
9 Fuqian Road, Qigan Xu, Aotou Town, Conghua
City, Guangzhou, Guangdong Province, China.
Tel: (86-20) 8786 1088
Fax: (86-20) 8786 1208
[Operated by Wing Hang Diamond Cutting Works]
30 Fong Hang Street, Fuyang Town, Fuchuan
County, Guangxi, China.
Tel: (86-774) 788 1688
Fax: (86-774) 788 9113
[Operated by Guang Xi Fu Chuan Wing Hang Co. Ltd.]
Holding Company:-
Wing Hang Holdings Ltd., British Virgin Islands.
Associated/Affiliated
Companies:-
Guang Xi Fu Chuan Wing Hang Co. Ltd., China.
Shenzhen Linglong Jewellery Designing Co.
Ltd., China.
Wing Hang Diamond (Asia) Co. Ltd., Hong
Kong. (Same address)
Wing Hang Diamond (Shanghai) Co. Ltd., China.
Wing Hang Diamond Cutting Works Ltd., Hong Kong. (Same address)
Wing Hang Diamond Cutting Works, China.
Wing Hang Jewellery Co. Ltd., Hong Kong.
(Same address)
Guangzhou Ziao Wing Diamond Co. Ltd., China.
[Formerly known as Wing Ziao Diamond Cutting Works]
30522052
0695521
Managing Director: Mr. Pong Wing Chiu, David
Contact Person: Ms. Vincci Hsu
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
(As per registry dated 24-11-2013)
|
Name |
|
No. of shares |
|
Wing Hang Holdings Ltd. P.O. Box 3340, Road Town, Tortola, British Virgin Islands. |
|
9,999,999 |
|
PONG Yue Ting, Yvonne |
|
1 |
|
|
|
––––––––– |
|
|
Total: |
10,000,000 ======== |
(As per registry dated 24-11-2013)
|
Name (Nationality) |
Address |
|
PONG Wing Chiu |
Flat A & B, 15/F., Block 8, Braemar Hill Mansions, 29 Braemar
Hill Road, Hong Kong. |
|
PONG Hang King, Alfred |
Flat B, 15/F., Braemar Hill Mansions, 29 Braemar Hill Road, Hong Kong. |
|
PONG Yue Ting, Yvonne |
Flat A, 18/F., Block E, Wylie Court, 21 Wylie Path, Yau Ma Tei,
Kowloon, Hong Kong. |
|
PONG Lek Hon, Edmond (Previous names: PONG Hang Yu and PANG Lihan) |
Flat A, 15/F., Block 8, Braemar Hill Mansions, 29 Braemar Hill
Road, North Point, Hong Kong. |
(As per registry dated 24-11-2013)
|
Name |
Address |
Co. No. |
|
Tricor Tengis Ltd. |
Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong. |
0041027 |
The subject was incorporated on 24th November, 1999 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at 22/F., Crawford House, 70 Queen’s
Road Central, Hong Kong, moved to the present address with effect from
14th March, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds, jewellery, pearls
Employees: 45. (Hong Kong)
Over 2,000. (China)
Commodities
Imported: Imported from Africa, Russia,
India, Israel, Belgium, Tahiti, Indonesia, Philippines, Australia, Japan
Markets: US,
Europe, Taiwan, China and other Southeast Asian countries.
Annual Turnover: HK$400~450 million.
Terms/Sales: L/C, T/T
Terms/Buying: Various terms.
Diamond Federation of Hong Kong, China Ltd., Hong Kong.
Hong Kong Jewellery & Jade Manufacturers Association,
Hong Kong.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$10,000,000.00
(Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
Indebtedness: HK$10,000,000.00
(Total amount outstanding on all mortgages
and charges as per last Annual Return dated 24-11-2013)
Profit or Loss: Business
is profitable.
Condition: Keeping
in an active and satisfactory condition.
Facilities: Making
very active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Very Good.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
ABN AMRO Bank
N.V., Hong Kong Branch.
DBS Bank (Hong Kong) Ltd.,
Hong Kong.
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing: Very Good.
Wing Hang Diamond Co. Ltd. [Wing Hang] was
incorporated in November 1999 as a wholly-owned subsidiary of Wing Hang
Holdings Ltd. which is a BVI-registered firm.
On 28th April, 2010, Ms. Pong Yue Ting and Mr.
Pong Lek Hon were appointed directors of Wing Hang. Wing Hang in fact is a family business of the
Pongs. It moved to the present address
in March 2011.
Founded in 1975, Wing Hang started as a small
diamond trading company having just eight employees. Now, Wing Hang has established a rather
strong foothold in the global diamond wholesaling industry.
Headquartered in Hong Kong, Wing Hang has set
up its own production facilities and is currently employing about 700 staff
members in cutting and polishing plants in the Mainland China. Its plants are located in Shenzhen, Conghua
of Guangzhou, Guangdong Province and Fuchuan of Guangxi, China. The Conghua plant has been claimed to be the
largest diamond processing factory in China.
The factories in Conghua are able to employ
over 1,500 workers.
The Conghua new factory is known as Guangzhou Ziao
Wing Diamond Co. Ltd. [Ziao Wing].
Covering an area of 68 acres, Ziao Wing has a production workshop,
jewellery exhibition hall, dormitory The
total construction area is about 19,209 sq.m.
All the equipment and machine tools are claimed to be advanced.
Besides, seizing the opportunities from the
promising pearl trade, Wing Hang expanded its business in 1980 in pearl
wholesaling. Today, it has become a
widely recognized industry leader in the sales of South Sea pearls.
In order to increase the production capacity
of its polished diamonds, Wing Hang has imported advanced polishing
technologies, such as laser cutting machines and computerized bruiting machines
from abroad. Advanced laser‑scanning
machines have been installed to maximize the yield from rough diamonds while
professional polishing machines for ideal cuts are imported to strengthen its
capability in producing this category of products.
In 2004, Wing Hang set up an affiliated
company Wing Hang Jewellery Co. Ltd. which is engaged in manufacturing all
kinds of jewellery, diamond and pearl products.
Wing Hang is trading in the following
products:-
|
Product/Service |
Product/Service
Remarks |
|
Pearl |
Include south sea pearl stands from Japan and Tahiti |
|
South Sea Pearl |
Include black, white, golden south sea pearl strands from Japan,
Tahitian and Australia |
|
South Sea Pearl Products |
Diamond Ring, Baroque Strand, Jewellery Set, Necklace |
|
Stone Polishing and Cutting |
For diamond |
|
Diamond |
From Africa, Russia (Importer) From India, Israel and Belgium, UK (Exporter) |
|
Loose Diamond |
|
Wing Hang has long been an experienced
wholesaler and manufacturer of brilliant-cut rounds. Each round brilliant has 57 or 58 facets, which
is precisely angled to reflect and refract the maximum bundles of light. To meet the growing demand from consumers in
South East Asia and China, Wing Hang has boosted the production of
heart-and-arrow cut diamonds. With finer
polish, symmetry and proportion, such diamonds can reflect a perfectly balanced
set of eight hearts and eight arrows from their tables and bottom facets under
a specially designed loupe. Wing Hang
also excels in the ideal cut, through which a diamond can reveal its greatest
brilliance, dispersion and scintillation.
Most of the ideal-cut diamonds are above 20 points with good colour and
good clarity. Besides rounds, Wing Hang
also produces a full range of fancy-shaped diamonds, particularly princess
cuts. Its professionalism is likewise
demonstrated in single cut for watches.
Wing Hang is the supplier, importer and
exporter of versatile range of diamonds in a wide variety like rose cut
diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose
cut marquise, fancy cut and fancy colour diamonds, briollets beads, old mine
cut diamonds, round brilliant cut diamonds, marquise, pears ,oval, heart, and
emerald.
Wing Hang’s polished products include diamonds
ranging from 0.03 to 1.5 carats, with the majority ranges from 0.03 to 0.75
carats. The greatest demand is for I, J
and higher colours and clarity grade is VS or better, as more and more
customers in the cities of China begin to appreciate the handicraft. In addition to high-end products, Wing Hang
also provides a wide variety of polished diamonds of different size and colour
to meet the needs of different clients, especially those from China.
As the demand of diamonds in the worldwide
market continues to grow, Wing Hang has been participating in international trade
fairs and exhibitions in order to promote sales. It has taken part in Shows which are held in
Switzerland, Las Vegas of the United States, China besides Hong Kong.
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.
Wing Hang’s products are exported to Europe,
the United States, China, Japan, South Korea, Taiwan and Southeast Asia, the
Middle East. It is also aiming to penetrate the China market further.
The subject’s trade mark in China is known as Cherubs.
The subject’s factory in China is known as
Shenzhen Linglong Jewellery Designing Co. Ltd. [Linglong].
Besides cutting its own diamond roughs sourced
from the DTC and Europe, Wing Hang also processes rough diamonds for its clients
in Belgium, Israel, Australia, Hong Kong and Japan.
According to Wing Hang, it has exported the
largest volume of polished diamonds (in terms of weight) among all diamond
wholesalers in Hong Kong. Furthermore,
Wing Hang offers a one-stop solution to its business partners, from polishing
to manufacturing; product development to marketing.
The annual sales turnover of Wing Hang ranges
from HK$400 to 450 million. Business is
profitable and keeps on improving.
As the history of Wing Hang in Hong Kong is over
36 years, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
31-10-2008 |
Instrument: Assignment of
Life Insurance Property: Property Charged: (i) all the Assignor’s claims, options, privileges,
right, title, interest and benefit in and under the Insurance; and (ii) all
the Assignor’s claims and rights against the issuer of the Policy in respect
of the Policy upon the terms herein set out as a continuing security for the
due and punctual payment of the Secured Indebtedness and the due and punctual
performance and observance by the Borrower of all other obligations of the
Borrower contained in the Facility Letter Mortgagee: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong. |
Secured Indebtedness |
|
02-04-2013 |
Instrument: Security Over
Deposits Property: A deposit with chargee in the amount for HK$15,000,000 - under Deposit
A/C No. 411-010085, whatever currency it may subsequently by 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 Mortgagee: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong. |
All monies |
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.
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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.
-
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.58.86 |
|
|
1 |
Rs.68.82 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.