MIRA INFORM REPORT

 

 

Report No. :

352637

Report Date :

07.12.2015

 

IDENTIFICATION DETAILS

 

Name :

KTL JEWELLERY TRADING LTD.

 

 

Registered Office :

Unit 1207, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

31.12.2008

 

 

Com. Reg. No.:

50160783

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of Jewellery and Gems.

 

 

No. of Employees :

955 (Group) (As of 31-03-2015)

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 


 

HONGKONG - 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 and address

 

KTL JEWELLERY TRADING LTD.

 

ADDRESS:                   Unit 1207, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

PHONE:                        852-2363 0022,  3925 5900

 

FAX:                             852-2363 8787

 

E-MAIL:                        group@ktl.com.hk

 

 

MANAGEMENT

 

Managing Director:        Mr. Li Man Chun

 

 

SUMMARY

 

Incorporated on:            31st December, 2008.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$10,000.00

           

Business Category:       Jewellery Trader.

 

Group Revenue:            HK$1,036.8 million (Year ended 31-03-2015)

 

Group Employees:        955.  (As of 31-03-2015)

 

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

 

Banking Relation:          Satisfactory.

 

 

ADDRESS

 

Registered Head Office:-

Unit 1207, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

China Factory:-

1 Yinping Road, Shiqiao, Panyu, Guangdong Province, China.

[Tel: 86-20-8466 9466,   Fax: 86-20-8480 3079]

 

Holding Company:-

Landclick Properties Ltd., British Virgin Islands.

 

Associated Companies:-

KTL Group of Companies

Guangzhou KTL Jewellery Ltd., China.

K & A Gems Ltd., Hong Kong.  [Dissolved]

K.T.L. Development Co. Ltd., Hong Kong.

K.T.L. Jewellery Manufacturer (China) Ltd., Hong Kong.  [Dissolved]

K.T.L. Jewellery Manufacturer Ltd., Hong Kong.

K’s Product Inc., USA.

KTL Brilliant Ltd., Hong Kong.

KTL Jewellery Trading Ltd., Hong Kong.

KTL Management Ltd., Hong Kong.

KTL Marketing Ltd., Hong Kong.

Lucigala Jewellery (Hong Kong) Ltd., Hong Kong.

Pippo, Italy.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

50160783

 

 

COMPANY FILE NUMBER

 

1297593

 

 

MANAGEMENT

 

Managing Director:        Mr. Li Man Chun

Contact Person:            Mr. Victor Kei York Pang

 

 

ISSUED SHARE CAPITAL

 

HK$10,000.00

 

 

SHAREHOLDER

(As per registry dated 31-12-2014)

 

Name

 

No. of shares

Landclick Properties Ltd.

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

 

10,000

=====

 

 

DIRECTORS

(As per registry dated 31-12-2014)

 

Name

(Nationality)

 

Address

KEI York Pang, Victor

House 23, TPTL 165 Area 38, JC Castle, 18 Shan Tong Road, Tai Po, New Territories, Hong Kong.

 

LI Man Chun

Flat 9, 8/F., Dynasty Villa 9, Beacon Hill, 2 Yin Ping Road, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 31-12-2014)

 

Name

Address

Co. No.

SPB Corporate Services Ltd.

29/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

1025514

 

 

HISTORY

 

The subject was incorporated on 31st December, 2008 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:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of jewellery and gems

 

Employees:                  955.  (As of 31-03-2015)

 

Materials/Commodities: Imports raw materials from Europe, India, and finished products from China.

 

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


 

Group Revenue:            HK$1,114.7 million  (Year ended 31-03-2012)

HK$1,434.4 million  (Year ended 31-03-2013)

HK$1,345.8 million  (Year ended 31-03-2014)

HK$1,036.8 million  (Year ended 31-03-2015)

 

Terms/Sales:                 As per contracted.

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$10,000.00

 

Indebtedness:               HK$136,212,441.00 (Total amount outstanding on all mortgages and charges as per last  Annual Return dated 31-12-2014)

 

Mortgage or Charge:     (See attachment)

 

Group Profit Attributable to Shareholders:

HK$68.8 million  (Year ended 31-03-2012)

HK$33.8 million  (Year ended 31-03-2013)

HK$37.6 million  (Year ended 31-03-2014)

HK$20.3 million  (Year ended 31-03-2015)

 

Profit or Loss:               Operation is profitable.

 

Condition:                     Maintaining in an active condition.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Good.

 

Bankers:-

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

Bank of China (Hong Kong) Ltd., Hong Kong.

Hang Seng Bank Ltd., Hong Kong.

China Construction Bank (Asia) Corporation Ltd., Hong Kong.

 

Standing:                      Good.

 

 


GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, KTL Jewellery Trading Ltd. is a wholly-owned subsidiary of Landclick Properties Ltd. which is a BVI-registered company.

 

The subject has had an associated company K.T.L. Jewellery Manufacturer Ltd. [KTLJM] located at its operating address.

 

The subject is a member of the KTL Group of companies.

 

One of the significant member of the Group is K & A Gems Ltd. which is a Hong Kong-registered firm.

 

The subject is indirectly wholly-owned by KTL International Holding Group Ltd. [KTL] which is a listed company in Hong Kong bearing stock code 442.  KTL and its subsidiaries are referred as ‘the Group’.

 

KTL has been serving all jewellery traders in the world for about 20 years.

 

KTL’s main factory, owned by the Group, is in Panyu, Guangzhou, Guangdong Province, China.  The production capacity of this factory is over 8,500,000 pieces of jewellery every year.  In order to maintain its production capacity and competitiveness, the factory has employed experienced technicians in different departments to manage each process.  The factory manufactures variety of products which include diamond, precious and semi-precious stone in 9K to 18K gold.

 

Every year, KTL invests about 10% of its total sales turnover in research and development [R&D] for developing new products and new manufacturing technology.

 

The factory has been equipped with the following Designing Software: Jewel CAD, J-CAD3, Alias, etc., and has got the following Prototypes Machines: EnvisionTEC, Meiko modelling system, Computerized Numerical Control, etc.

 

The main products of the factory are all carat of gold set with diamond, precious and semi-precious stones.  Products are marketed in Hong Kong, exported to Japan, other Asian countries, Italy, other European countries, the United States, etc.

 

KTL has got ISO:9001 certification.

 

Currently, KTL has set up offices in Italy and the United States, overall business is rather active.

 

For the year ended 31st March, 2015, the revenue of the Group was approximately HK$1,036.8 million, representing a decrease of approximately 23.0% as compared with the same for the year ended 31st March, 2014 which was HK$1,345.8 million.

 

Gross profit was approximately HK$180.3 million for the year ended 31st March, 2015, representing a decrease of approximately 26.1% as compared with the same for the year ended 31st March, 2014 which was HK$244.1 million.

 

Gross profit margin declined to 17.4% from 18.1% in the last financial year.

 

Profit attributable to the owners of the parent was approximately HK$20.3 million for the year ended 31st March, 2015, representing a decrease of approximately 45.9% as compared with the same for the year ended 31st March, 2014 which was HK$37.6 million.

 

Recently, the subject has set up a branch company in Guangzhou known as Guangzhou KTL Jewellery Ltd. which is responsible for the China market.  This firm is retailing those jewellery products bearing the brand name of Luci de Gala.

 

As at 31st March, 2015, the Group had 955 employees (2014: 1,254).

 

The history of the subject is about seven years in Hong Kong.

 

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

 

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

 

Mortgagee

24-06-2012

Charge Over Deposits (3-Parties)

Hang Seng Bank Ltd., Hong Kong.

02-07-2013

Charge Over Deposits (3-Parties)

Hang Seng Bank Ltd., Hong Kong.

22-08-2014

Charge Over Accout

China Construction Bank (Asia) Corporation Ltd., Hong Kong.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.84

UK Pound

1

Rs.101.04

Euro

1

Rs.73.05

HKD

1

Rs.8.61

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

NIT

 

               


 

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.