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Report Date : |
02.10.2014 |
IDENTIFICATION DETAILS
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Name : |
PURE CONCEPTS LTD. |
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Registered Office : |
Unit C, 12/F., |
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Country : |
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Date of Incorporation : |
19.01.2005 |
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Com. Reg. No.: |
35290872 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of jewellery and diamond products |
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No. of Employees : |
6 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 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 |
PURE CONCEPTS LTD.
ADDRESS: Unit C, 12/F., Winner
Building, 36 Man Yue Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2521 8812
FAX: 852-2521 8813
Managing Director: Mr. Lee Pui
Lam
Incorporated on: 19th January, 2005.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond
Trader.
Employees: 6.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
PURE CONCEPTS
LTD.
Registered Head
Office:-
Unit C, 12/F., Winner Building, 36 Man Yue Street, Hunghom, Kowloon,
Hong Kong.
Holding Company:-
Wonking (Hong Kong) Ltd., Hong Kong. (same address)
Associated/Affiliated
Companies:-
QI Group of Companies
Cosmos Pioneer (S) Pte. Ltd., Singapore.
Donovans Ltd., Hong Kong.
Goldquest International Ltd., Hong Kong.
JR Mayer Collections Ltd., Thailand.
Q Lifestyle (S) Pte. Ltd., Singapore.
QF Service GmbH, Germany.
QI Asset Management Ltd., Cayman Islands.
QI Ltd., Cayman Islands.
QI Philippines inc., Philippines.
QI Services (M) Sdn. Bhd., Malaysia.
QI Services (TH) Ltd., Thailand.
QiComm Asia Ltd., Hong Kong.
[Dissolved]
QiComm Asia Pacific Ltd., Hong Kong.
QNet Ltd., Hong Kong.
Quest Travel Ltd., Hong Kong.
[Dissolved]
Quest Vacation International Ltd., Hong Kong. [Dissolved]
QuestNet Ltd., British Virgin Islands/Hong Kong.
QuestNet Services (HK) Ltd., Hong Kong.
Quex Courier (HK) Ltd., Hong Kong.
Synergia management Consulting Inc., Philippines.
The Asian Hotel Corporation, Sri Lanka.
The Mayer Mint GmbH, Germany.
V-Team International Ltd., British Virgin Islands.
V-Team Ltd., Hong Kong.
[Dissolved]
35290872
0946951
Managing Director: Mr. Mr. Lee
Pui Lam
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 19-01-2014)
|
Name |
|
No. of shares |
|
QI Asset Management Ltd. Scotia Centre, 4/F., P.O. Box 2804, George Town, Grand Cayman, Cayman
Islands. |
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2,500 |
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Wonking (Hong Kong) Ltd., Hong Kong. |
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7,500 |
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–––––– |
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Total: |
10,000 ===== |
(As per registry dated 01-01-2014)
|
Name (Nationality) |
Address |
|
LEE Pui Lam |
Flat F, 9/F., Block 2, Mountain Shore, 8 Yuk Tai Street, Ma On Shan,
New Territories, Hong Kong. |
|
ZHOU Pei Zhen |
Room B, 18/F., Tower 5, One Silversea, 18 Hoi Fai Road, Kowloon, Hong
Kong. |
(As per registry dated 19-01-2014)
|
Name |
Address |
Co. No. |
|
Excellence Group Ltd. |
Flat D, 2/F., Right Time Building, 21-27 Playing Field Road, Mongkok,
Kowloon, Hong Kong. |
0567136 |
The subject was incorporated on 19th January, 2005 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.
Activities: Importer,
Exporter and Wholesaler.
Lines: Jewellery
and diamond products
Employees: 6.
Commodities Imported: India, other
Asian countries, Belgium, Israel
Markets: Australasia,
Central & South America, Hong Kong, North America, Western Europe
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P
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: Making
a small profit every year.
Condition: Keeping in a normal
condition.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Pure Concepts Ltd.
is jointly owned by QI Asset Management Ltd., a Cayman Islands-registered firm
holding 25% interests, and Wonking (Hong Kong) Ltd. [Wonking], a Hong
Kong-registered firm holding 75%.
Wonking is also located at the same operating address as the subject.
The directors of the subject are Mr. Lee Pui Lam and Ms. Zhou Pei
Zhen. The latter was appointed on 1st
January, 2014.
The subject is a diamond trader.
It has had an affiliated company known as Donovans Ltd. [Donovans] in
Hong Kong. The subject and Donovans are
engaged in the same lines of business.
Donovans is a manufacturer of fine jewellery, catering for medium
market. Donovans is one of the suppliers
of the subject.
Donovans was founded in 2002.
This company is a manufacturer of fine jewelry. It provides an extensive range of 9K, 10K,
14K and 18K gold jewelry accented with diamonds and gemstones available in
bracelets, bangles, earrings, necklaces, pendants and rings. Catering for medium to high-end market,
Donovans annually launches 1,800 designs of jewelry with a China factory and
in-house design team.
The subject imports and distributed loose diamonds from India. Business is rather active.
The minor shareholder of the subject QI Asset Management Ltd. is an
associated company of the QI Group of Companies. The QI Group of Companies are a multinational
conglomerate comprising a dynamic group of businesses with regional offices in
Hong Kong, Singapore, Malaysia, Thailand and the Philippines and a wide
range of subsidiary companies in nearly 30 countries. The Group has six main business lines
diversified into lifestyle & leisure, luxury & collectibles, training
and education, property development and project management, logistics and an
e-commerce based retail & direct sales business.
The Group has investments in the field of telecommunications, television
and broadcast media, the banking industry, commercial and retail properties,
entertainment and hospitality, among others, its most recent venture was into
the education sector, with the establishment of a university in Malaysia.
With over 1,000 employees, the QI Group through its various businesses
has a global customer base of over five million that spans nearly 160
countries. The QI Group is a member of
the Commonwealth Business Council and a Global Growth Company member of the
World Economic Forum. One of the members
of the QI Group is GoldQuest International Ltd. [GoldQuest].
GoldQuest a global numismatics company renowned for its gold coin
products and jewellery marketed in more than 120 countries worldwide. In its five years of existence, GoldQuest is
now considered one of the most successful Asian start-up businesses, and is
Asia’s largest e-business portal. With
headquarters in Hong Kong and operational offices in nine countries, GoldQuest
is one of the world’s largest numismatics organisations working with reputed
government and private mints.
The subject is supported by the QI Group and its holding company. History in Hong Kong is over nine years.
On the whole, consider the subject good for normal business engagements.
DIAMOND INDUSTRY – INDIA
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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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.
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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.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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.