|
Report No. : |
304368 |
|
Report Date : |
27.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
ADVANCE
JEWELLERY MFG LTD. |
|
|
|
|
Registered Office : |
C/o Goldex Group Ltd., Room 21A, 21/F., Block 01, Tower 1, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hongkong |
|
1` |
|
|
Date of Incorporation : |
10.09.2010 |
|
|
|
|
Com. Reg. No.: |
52934948 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of Diamonds and Jewellery. |
|
|
|
|
No. of Employees : |
2 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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% 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 |
ADVANCE JEWELLERY MFG LTD.
ADDRESS: C/o Goldex Group
Ltd.
Room 21A, 21/F., Block
01, Tower 1, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong
Kong.
PHONE: 852-2722 0212
FAX: 852-2722 0102
E-MAIL: tracy_yip@advancehk.com
Managing
Director: Ms. Zhang Zheng
Huan
Incorporated on: 10th September,
2010
Organization: Private Limited
Company.
Issued Share Capital: US$100,000.00
Business Category: Importer,
Exporter and Wholesaler.
Employees: 2.
Main Dealing Banker: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
Room 21A, 21/F.,
Block 01, Tower 1, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon,
Hong Kong.
Associated Companies:-
Gabriel Bros.
Inc., US.
Quatrina Jewellery
Ltd., Hong Kong.
52934948
1503871
Managing
Director: Ms. Zhang Zheng Huan
Contact
Person: Ms.
Tracy Yip
US$100,000.00
(As per registry dated 10-09-2014)
|
Name |
|
No.
of shares |
|
Jacques
GABRIEL |
|
22,500 |
|
Abdul
GABRIEL |
|
22,500 |
|
Sobhi
REZEKALLAH |
|
27,500 |
|
Abit GENCTURK |
|
27,500 |
|
|
|
––––––– |
|
|
Total: |
100,000 ====== |
(As per registry dated 10-09-2014)
|
Name (Nationality) |
Address |
|
DENG Hui Huan |
No. 1101, Unit 2, Building 9, Huiqin
Garden, Star River Phase III, Panyu Guangzhou, Guangdong, China. |
|
ZHANG
Zheng Huan |
Room 702, Building 3, Street 5, Kangyu
Garden, Panyu, Guangzhou, Guangdong. |
|
Sherman
CHUI |
Unit 1102, Tower 2, Block 17, Jin’ao
Garden, No. 630 Nancheng Road, Qiaonan Street, Panyu, Guangzhou, Guangdong,
China. |
(As per registry dated 10-09-2014)
|
Name |
Address |
Co.
No. |
|
Business
Full Consultants Ltd. |
2/F., Teng Fuh Commercial Building, 333 Queen’s Road Central, Sheung
Wan, Hong Kong. |
0573955 |
The subject was incorporated on 10th September, 2010 as a private
limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Gabriel &
Co. Asia Ltd., name changed to the present style on 15th November, 2010.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter
and Wholesaler.
Lines: Diamonds
and jewellery
Employees: 2.
Commodities Imported: India, other Asian
countries, etc.
Markets: China, Japan,
other Asian countries, US, etc.
Terms/Sales: L/C or as per
contracted.
Terms/Buying: L/C, T/T, D/P,
etc.
Hong Kong Jewelry
Manufacturers’ Association, Hong Kong.
Issued Share Capital: US$100,000.00
Profit or Loss: Made
a small profit in 2013.
Condition: Business
is improving.
Facilities: Making
fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
Having issued 100,000 ordinary shares of US$1.00 each, Advance Jewellery
Mfg Ltd. is jointly owned by the following four foreigners: Mr. Abdul Gabriel,
holding 22.5% interests; Mr. Jacques Gabriel, holding 22.5%; Mr. Sobhi
Rezekallah, 27.5%; Mr. Abit Gencturk, also 27.5%. The former two are residing in the United
States while the third and fourth are residing in Canada.
The directors of the subject are Ms. Deng Hui Huan, Ms. Zhang Zheng Huan
and Mr. Sherman Chui. The first two are
China ID holders while the third is a Hong Kong ID holder.
As a sole US enterprise, the subject is a luxury brand product
manufacturer. It is specialized in
researching, designing, manufacturing, and marketing. It offers a great variety of jewellery
products with fashionable styles. Its
brand “Gabriel & Co.” started in Now York in 1989.
“Gabriel & Co.” has ranked the second in the United State’s luxury
brands.
The subject shares its office with another company Goldex Group Ltd.
[Goldex].
Goldex holds an AA Grade Trade License of member and the recognized Gold
and Silver electronic trader of The Chinese Gold and Silver Exchange
Society. Its member number is 183.
The subject has two employees in Hong Kong.
The subject is a diamond and jewellery importer, exporter and
wholesaler. It is trading in loose,
polished and cut diamonds. Most of the commodities
are imported from India. Prime markets
are Asian countries, Europe, Canada, the United States, etc.
The subject has an associated company Quatrina Jewellery Ltd. [Quatrina]
which is a Hong Kong-registered company.
Quatrina has an associated factory in Panyu, Guangzhou, Guangdong
Province, China.
The subject has had associated firms in the United States and
Canada. The US firm is owned by the
Gabriel family while the Canada firm is jointly owned by Abit Gencturk and
Sobhi Rezekallah. Both of the US and
Canada companies are jewellery traders.
The business of the subject is chiefly handled by Mr. Sherman Chui.
The history of the subject in Hong Kong is just over four years and four
months.
On the whole, consider it good for normal business engagements in small
credit amounts.
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.61.50 |
|
|
1 |
Rs.92.16 |
|
Euro |
1 |
Rs.69.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.