MIRA INFORM REPORT

 

 

Report No. :

337330

Report Date :

20.08.2015

 

IDENTIFICATION DETAILS

 

Name :

WING HANG  DIAMOND  CO.  LTD.

 

 

Registered Office :

15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

24.12.1999

 

 

Com. Reg. No.:

30522052

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Subject is importer, exporter and wholesaler of all kinds of diamonds, jewellery, pearls

 

 

No. of Employee :

42.  (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

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hong Kong

A1

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 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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 

 

Company name

 

WING  HANG  DIAMOND  CO.  LTD.

 

 

Address

 

15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

 

(Formerly located at: 14/F. - 15/F., Luk Fook Jewellery Centre, 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

 

 

MANAGEMENT

 

Managing Director:  Mr. Pong Wing Chiu, David

 

 

SUMMARY

 

Incorporated on:  24th November, 1999.

 

Organization:  Private Limited Company.

 

Issued Share Capital:              HK$10,000,000.00

 

Business Category: Importer, Exporter and Wholesaler.

 

Annual Turnover:  HK$400~450 million.

 

Employees:  42.  (Hong Kong)

 

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

 

Banking Relation:  Good.


Registered Head Office:-

 

15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

China Offices & Factories:-

1)     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.]

2)     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 Guangzhou Ziao Wing Diamond Co. Ltd.]

3)     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]

4)     30 Feng Huang Road, Fuyang Town, Fuchuan County, Guangxi, China.
Tel:       (86-0774) 788 1688
Fax:      (86-0774) 788 9113
[Operated by Guangxi Fuchuan Yongheng Jewellery Co. Ltd.]

 

Holding Company:-

Wing Hang Holdings Ltd., British Virgin Islands.

 

Associated/Affiliated Companies:-

Guangxi Fuchuan Yongheng Jewellery Co. Ltd., China.

Guangzhou Ziao Wing Diamond Co. Ltd., China.
[Formerly known as Wing Ziao Diamond Cutting Works]

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)

 

 

BUSINESS REGISTRATION NUMBER

 

30522052

 

 

COMPANY FILE NUMBER

 

0695521

 

 

MANAGEMENT

 

Managing Director:  Mr. Pong Wing Chiu, David

Contact Person:  Ms. Vincci Hsu

 

 

ISSUED SHARE CAPITAL

 

HK$10,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 24-11-2014)

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

========

 

 

DIRECTORS

 

(As per registry dated 24-11-2014)

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
(Previous name: PONG Yan Lai, Yvonne)

 

Flat A, 18/F., Block E, Wylie Court, 21 Wylie Path, Yau Ma Tei, Kowloon, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 24-11-2014)

Name

Address

Co. No.

Tricor Tengis Ltd.

Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

0041027

 

 

HISTORY

 

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 14/F. - 15/F., Luk Fook Jewellery Centre, 239 Temple Street, Jordan, Kowloon, Hong Kong with effect from 14th March, 2011, and further moved to the present address in July 2015.

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

 

 

OPERATIONS

 

Activities:                Importer, Exporter and Wholesaler.

 

Lines:                     All kinds of diamonds, jewellery, pearls.

 

Employees:            42.  (Hong Kong)

                              Over 2,000.  (China)

 

Commodities

Imported:                Imported from Africa, Russia, India, Israel, Belgium, Tahiti, Indonesia, Philippines, Australia, Japan, etc.

 

Markets:                  US, Europe, Taiwan, China and other Southeast Asian countries.

 

Annual Turnover:     HK$400~450 million.

 

Terms/Sales:  L/C, T/T, etc.

 

Terms/Buying:  Various terms.

 

 

MEMBERSHIP

 

Diamond Federation of Hong Kong, China Ltd., Hong Kong.

Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: HK$10,000,000.00

 

Indebtedness:  HK$35.30 million  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 24-11-2014)

 

Mortgage or Charge:  (See attachment)

 

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.

 

GENERAL

 

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 was appointed director of Wing Hang.  Wing Hang in fact is a family business of the Pongs.  It moved to the present address in July 2015.

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 Conghua of Guangzhou, Guangdong Province and Fuchuan of Guangxi, China.

The factories employs over 1,500 workers in China.

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, etc.  The total construction area is about 19,209 sq.m.  All the equipment and machine tools are claimed to be advanced.

Besides, 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 associated 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, etc.

Stone Polishing and Cutting

For diamond

Diamond

From Africa, Russia (Importer)

From India, Israel and Belgium, UK (Exporter)

Loose Diamond

 

 

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.

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 2016” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 3rd to 7th March, 2016.

Wing Hang’s products are exported to Europe, the United States, China, Japan, South Korea, Taiwan and Southeast Asia, the Middle East, etc.  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 38 years, on the whole, consider it good for normal business engagements.

 

 


MORTGAGE OR CHARGE

 

Date

Description of Instrument

Mortgagee

31-10-2008

Assignment of Life Insurance

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

13-06-2014

Mortgage

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.25

UK Pound

1

Rs.102.25

Euro

1

Rs.72.20

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.