MIRA INFORM REPORT

 

 

Report Date :

22.05.2014

 

IDENTIFICATION DETAILS

 

Name :

FINE  UNITED  LTD.

 

 

Registered Office :

Room 307, 3/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

29.04.1998

 

 

Com. Reg. No.:

21922388

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Importer and Exporter of     Jewellery, Semi-Precious Stones,  Diamonds & Pearls products

 

 

No. of Employees :

15.  (Including associate in 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 :

Satisfactory

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 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

 

FINE  UNITED  LTD.

 

 

Company ADDRESS

 

Room 307, 3/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

PHONE:            852-2303 1900

FAX:                 852-2303 1832

E-MAIL:            info@fineunited.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Lai Chee Wing, Albert

 

 

SUMMARY

 

Incorporated on:             29th April, 1998.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$1,000.00

 

Business Category:        Manufacturer, Importer and Exporter.

 

Annual Turnover:            HK$85~90 million  (Including associate)

 

Employees:                   15.  (Including associate in Hong Kong)

           

Main Dealing Banker:     The Bank of East Asia Ltd., Hong Kong.

 

Banking Relation:            Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room 307, 3/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

Holding Company:-

Fine United Holding Ltd., British Virgin Islands.

 

Associated/Affiliated Companies:-

Albert Jewellery Co. Ltd., Hong Kong.

Albert Jewellery Co. Ltd., Japan.

 

 

BUSINESS REGISTRATION NUMBER

 

21922388

 

 

COMPANY FILE NUMBER

 

0643293

 

 

MANAGEMENT

 

Managing Director:  Mr. Lai Chee Wing, Albert

Contact Person: Ms. Lau Hoi Yan, Jenny

 

 

CAPITAL

 

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

Issued Share Capital:     HK$1,000.00

 

 

SHAREHOLDERS

(As per registry dated 29-04-2013)

 

Name

 

No. of shares

LAI Chee Wing, Albert

 

10

Fine United Holding Ltd.

P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

 

990

 

 

–––––

 

Total:

1000

====

 

 

DIRECTORS  

(As per registry dated 29-04-2013)

 

Name

(Nationality)

 

Address

LAI Chee Wing, Albert

Flat B, 3/F., Tower 17, One Beacon Hill, 1 Beacon Hill Road, Kowloon, Hong Kong.

 

LEE Chun Ming

Flat 4, 14/F., Kam Shing House, Kam Tai Court, Ma On Shan, Shatin, New Territories, Hong Kong.

 

 

SECRETARY 

(As per registry dated 29-04-2013)

 

Name

Address

Co. No.

Treasure Current Ltd.

Room 1201, 12/F., Ka Wah Bank Centre, 232 Des Voeux Road Central, Hong Kong.

0307612

 

 

HISTORY

 

The subject was incorporated on 29th April, 1998 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:                      Manufacturer, Importer and Exporter.

 

Lines:                           Jewellery, semi-precious stones, diamonds & pearls

 

Employees:                   15.  (Including associate in Hong Kong)

450.  (China)

 

Commodities Imported:   India, Thailand, other Asian countries, Europe, etc.

 

Markets:                       Asian countries, Europe, North America, etc.

 

Annual Turnover:            HK$85~90 million  (Including associate)

 

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

 

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

 

 

MEMBERSHIP

 

Hong Kong Productivity Council, Hong Kong.

 

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKF0319]

 

Hong Kong Jewellery Manufacturers’ Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital:     HK$1,000.00

 

Indebtedness:                HK$19,478,360.75

(Total amount outstanding on all mortgages and charges as per last Annual Return dated 29-04-2013)

 

Mortgage or Charge:       (See attachment)

 

Profit or Loss:                Making a small profit very year.

 

Condition:                      Business is rather active and steady.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met obligations on time.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Bank of East Asia Ltd., Hong Kong.

 

Standing:                      Good.

 

GENERAL

 

Having issued 1,000 ordinary shares of HK$1.00 each, Fine United Ltd. is jointly owned by Fine United Holding Ltd., a BVI-registered firm holding 99%, and Mr. Lai Chee Wing, Albert, holding just 1%.  The directors are Mr. Albert Lai and Mr. Lee Chun Ming.  Both are Hong Kong businessmen.

The subject is a diamond and jewellery trader.  It also trades in gemstone and pearl products.  The subject is significant for the following products:

Cubic Zirconia Necklace, Cubic Zirconia Ring, Cubic Zirconia Earrings, 925 Silver Ring with CZ stones, Silver CZ rings.

It has got an associated company Albert Jewellery Co. Ltd. [Albert Jewellery] located at the same building.  Albert Jewellery is engaged in the same lines of business as the subject.  It is also a member of The Hong Kong General Chamber of Commerce, Hong Kong.  It seems that this firm is chiefly owned by Albert Lai as the firm was named after him.  The holding company of Albert Jewellery is Albert Jewellery Holding Ltd. which is a BVI-registered company.

From 2001 onwards, Albert Jewellery adds jewellery watches to its product lines, apart from long established gem setting jewellery in 14K & 18K gold and PT900.  This firm also focuses its products on the diverse use of gemstones such as turquoise, coral, onyx, agate, quartz and fluorite.  Using these gemstones together with quality diamonds in its products has strengthened the position as one of the leading jewellery specialists in Hong Kong.

The subject has got an affiliated factory in Guangdong Province, China.  It is likely that the factory is in Panyu, Guangzhou, Guangdong Province, China.

Main products of the factory include fine jewellery findings and setting, pearl, gemstones and jade, gold jewellery, 18K PT 900 include OEM, diamond jewellery, pearl jewellery, silver jewellery, synthetic gemstone jewellery, etc.  Main products are bracelets, Cubic Zirconia earrings, pendants, Cubic Zirconia rings, brooches, Cubic Zirconia necklaces, etc.  Raw materials such as rough diamonds, polished and cut diamonds are imported from India and Europe.  Finished products are exported to Japan, other Asian countries, the Middle East, Europe and the United States.  Overall business is rather active.

Albert Jewellery has set up a company in Japan in order to penetrate the Japan market further.  Annual sales turnover of the subject and Albert Jewellery ranges from HK$85 to 90 million.  Making a small profit every year.

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 always takes part in Hong Kong Jewellery & Gem Fair and Hong Kong International Jewellery Show which are held in Hong Kong annually.

The subject’s business is chiefly handled by Mr. Lai Chee Wing, Albert himself.

The history of the subject in Hong Kong is over fifteen years.

On the whole, consider its good for normal business engagements.

 

REMARKS:

 

Property information of the company:-

1.     Property Location:       Flat B on 3/F. of Tower 17 and Car Parking Space No. 38 on Car Park D2, One Beacon Hill, 1 Beacon Hill Road, Kowloon, Hong Kong.

Owner:     Fine United Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

01-04-2010

-

The Bank of East Asia Ltd., Hong Kong.

Legal charge to secure general banking facilities

 

2.     Property Location:       Unit K, 36/F.,The Masterpiece, K11, 18 Hanoi Road, Kowloon, Hong Kong.

Owner:     Fine United Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

30-12-2012

-

The Bank of East Asia Ltd., Hong Kong.

Legal charge to secure general banking facilities

30-12-2012

-

-ditto-

Assignment of Rental

 


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

01-04-2010

Instrument:      Legal Charge/Mortgage

Property:

142/80,444th parts or shares of and in New Kowloon Inland Lot No. 6277 (Flat B on 3/F. of Tower 17 and Car Parking Space No. 38 on Car Park D2 of One Beacon Hill, 1 Beacon Hill Road, Kowloon, Hong Kong.)

Mortgagee:      The Bank of East Asia Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities

30-11-2012

Instrument:      Legal Charge/Mortgage

Property:

76/106,220th parts or shares of and in Kowloon Inland Lot No. 11188 (Unit K, 36/F., The Masterpiece, K11, 18 Hanoi Road, Kowloon, Hong Kong.)

Mortgagee:      The Bank of East Asia Ltd., Hong Kong.

To seucre all moneys in respect of general banking facilities and interest thereon

30-11-2012

Instrument:      Assignment of Rental

Property:

76/106,220th parts or shares of and in Kowloon Inland Lot No. 11188 (Unit K, 36/F., The Masterpiece, K11, 18 Hanoi Road, Kowloon, Hong Kong.)

Mortgagee:      The Bank of East Asia Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities and interest thereon

15-05-2013

Instrument:      Assignment of Life Insurance

Property:

(1)  All the Assignor’s claims under the Insurance:

Insurance Policy No: 28006703

Name of Insurance Co.: HSBC Life (International) Ltd.

Name of the Insured: Lai chee Wing, Albert

Assignor / Policy Owner: Fine United Ltd.

(2)  All the Assignor’s claims against the issuer of the Policy

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

All and any monies and liabilities

 


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.

-            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.58.77

UK Pound

1

Rs.99.01

Euro

1

Rs.80.56

 

 

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

--

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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