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Report No. : |
304926 |
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Report Date : |
30.01.2015 |
IDENTIFICATION DETAILS
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Name : |
KING’S DIAMOND TRADING COMPANY |
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Registered Office : |
Rooms 701-705, 7/F., Crawford House, 70 Queen’s Road, Central |
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Country : |
Hongkong |
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Date of Incorporation : |
23.01.1980 |
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Com. Reg. No.: |
6436083-000-01 |
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Legal Form : |
Partnership |
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Line of Business : |
Manufacturer, Importer, Exporter and Wholesaler of Polished diamond, loose
diamond, loose fancy diamond, fancy colour diamond, diamond gold jewellery,
diamond platinum jewellery, gemset gold jewellery, jewellery mountings, ruby, sapphire. |
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No. of Employees : |
25 |
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 : |
-- |
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 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 |
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 |
KING’S
DIAMOND TRADING COMPANY
ADDRESS: Rooms 701-705, 7/F., Crawford
House, 70 Queen’s Road, Central, Hong Kong.
PHONE: 852-2810 0303, 2524 0213;
2537 2009
FAX: 852-2845 9548
E-MAIL: kdtc@netfront.net
Chief Executive: Mr.
Wong Yuk Ming, Thomas
Establishment: 23rd
January, 1980.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Jewellery Trader & Manufacturer.
Group Employees: 25.
Main Dealing Banker: Dah Sing Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head
Office:-
Rooms 701-705, 7/F., Crawford House, 70
Queen’s Road, Central, Hong Kong.
Workshop:-
Flat D, 10/F., Kaiser Estate, Phase 1, 41
Man Yue Street, Hunghom, Kowloon, Hong Kong.
Affiliated
Companies:-
Belford Jewellery, Hong Kong. [BR No. 05272468-000] [Also trading under the name of Belford Time
Enterprise – BR No. 05272468-001]
Belford Jewellery Co. Ltd., Hong Kong.
Belford Jewellery Co. Ltd., Macau.
Chinaramic Enterprise Ltd., Hong Kong.
King’s Gallery Ltd., Hong Kong.
6436083-000-01
Chief Executive: Mr. Wong Yuk Ming, Thomas
Name: Mr.
WONG Yuk Ming, Thomas
Residential Address: Flat B, 2/F., Lincoln Court, 156 Tai Hang Road, Hong Kong.
Name:
Mr. CHEUNG
Wun Kung
Residential Address: Flat B, 25/F., Block 1, Grand Panorama, 10 Robinson Road, Hong
Kong.
Name:
Mr. WONG
Yuk Shan, Peter
Residential Address: Flat B2, 4/F., Chermain Heights, 9 Eastbourne Road, Kowloon
Tong, Kowloon, Hong Kong.
The subject was established on 23rd January,
1980 as a partnership concern owned by Mr. Wong Yuk Ming and Mr. Cheung Wun
Kung under the Hong Kong Business Registration Regulations. On 2nd April, 1980, Mr. Peter Wong Yuk
Shan joined in as additional partner.
Initially the subject was located at Flat
A-B, 18/F., Comfort Building, 74‑77 Connaught Road Central, Hong
Kong, moved to 14/F., Entertainment Building, 30 Queen’s Road Central, Hong
Kong in November 1985; and further to Room 701-705, 7/F., Lane Crawford House,
70 Queen’s Road Central, Hong Kong where is the present address in February
1990. In December 2008, the name of the building
Lane Crawford House was changed to Crawford House.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Manufacturer,
Importer, Exporter and Wholesaler.
Lines: Polished
diamond, loose diamond, loose fancy diamond, fancy colour diamond, diamond gold
jewellery, diamond platinum jewellery, gemset gold jewellery, jewellery mountings, ruby, sapphire.
China Sole Agent for: “Brilliant Rose” Diamond.
Group Employees: 25.
Commodities Imported: Mainly bought diamonds from U.S.A., Israel, Belgium, U.K., Russia
& South Africa.
Markets: Taiwan,
Thailand, Philippines, Singapore, Malaysia, Japan, Korea, China, Hong
Kong, Middle East, U.S., Europe, etc.
Terms/Sales:
COD or as per
contracted.
Terms/Buying: L/C,
T/T, etc.
Diamond Federation of Hong Kong, China Ltd.,
Hong Kong.
Capital: Not
disclosed.
Profit & Loss: Business is profitable.
Condition:
Business is
normal and active.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met as
contracted.
Commercial Morality: Satisfactory.
Banker:
Dah Sing
Bank Ltd., Hong Kong.
Standing:
Normal.
King’s Diamond Trading Company [KDTC] is an old established company
which was established on 23rd January, 1980.
It is a diamond and jewellery trading company. It is a partnership jointly owned by a three
local merchants known as Mr. Thomas Wong Yuk Ming, Mr. Cheung Wun Kung,
and Mr. Peter Wong Yuk Shan.
KDTC is engaged in the manufacture and wholesale of polished diamonds
and jewellery for Southeast Asia markets.
Since 2003, it has become a manufacturer of polished diamond producing
large exclusive white and natural fancy colour diamonds in triple excellent,
hearts and arrows brilliants, and fine cut fancy shapes. Products include a whole variety of sizes
ranging from one to fifty carats in all colours and purities. Business has been expanded from Southeast
markets to Japan, Europe and the United States.
In addition, KDTC is acting as a sole agent for the “Brilliant Rose” diamonds
in China. This new types of cutting
diamonds are well received in the market of Hong Kong, Taiwan, Singapore and
Malaysia.
Its affiliates, Belford Jewellery [Belford], and Belford Jewellery Co.
Ltd. [BJCL] are also located at the same office. Both companies are controlled and operated by
Mr. Benson Wong Yuk Tsuen, brother of the principals (Thomas Wong Yuk Ming and
Peter Wong Yuk Shan).
Benson had studied fashion design in the United Kingdom. After gaining a couple of years of work
experience, he returned to Hong Kong and formed Belford in 1977. At first, he only designed some jewels
from time to time for KDTC. His jewellery
collections are extensive, including Enchanting, Corarosa, Cross, Decora,
Art Deco, Hexagon, Jade, Pandora, Rose and Semitaire. From 1987 to 2005, Belford had won numerous
awards in design competitions. Over the
past 30 years, Belford has been committed to original design. Its professional and unique creations with
exquisite craftsmanship are renowned in the market.
Currently, Belford operates a jewellery shop located at Shop 214, The
Galleria, 9 Queen’s Road Central, Hong Kong while BJCL operates another
shop located at Shop 001, G/F., Evora (Block 3), Macau Fisherman’s Wharf,
Avenida De Amizade, Macau. This firm is
selling various kinds of luxury diamond jewellery. To cope with the growing business in Macau,
another jewellery shop was opened on 13th July, 2010 at Av. Da Praia
Grande, n.599, Edificio Comercial Rodrigues, Macau.
The business of the subject is actively and normally conducted.
The founder, Mr. Thomas Wong Yuk Ming, is a very honest
businessman. During the 60’s, he had
worked as an office clerk in Hong Kong Guangdong Trust Bank and later worked in
Banque Nationale de Paris.
Subsequently, he quitted from the bank and became a diamond salesman at
an Indian firm. Later in 1980, he began to
establish his own company by establishing KDTC.
He spent most of the time to develop his diamond sourcing at different
countries such as the United States, India, Israel, South Africa, Russia and
the United Kingdom, etc. From 1993 to
1997, he had been the Chairman of The Diamond Importers Association Ltd. for 4
consecutive years. He is now one of the
Executive Committee Members of The Diamond Federation of Hong Kong China Ltd.
The history of the subject in Hong Kong is over 35 years.
On the whole, consider it good for normal business engagements.
Court
case record:-
|
Action Date |
Case No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
16-02-2006 |
H1 |
Antwerp Diamond Bank NV [Also known as
Antwerp Diamantbnak NV] |
King’s Diamond Trading Company |
Bill of Sale Registration |
Not stated |
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.61.50 |
|
|
1 |
Rs.93.12 |
|
Euro |
1 |
Rs.69.32 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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.