MIRA INFORM REPORT

 

 

Report No. :

304746

Report Date :

30.01.2015

 

IDENTIFICATION DETAILS

 

Name :

LEE HENG DIAMOND COMPANY LIMITED

 

 

Registered Office :

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.02.1977

 

 

Com. Reg. No.:

05073606

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of Diamonds

 

 

No. of Employee :

25

 

 

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)

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% 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

 

Contact Points

 

Company Name (in English):

Lee Heng Diamond Company Limited

Supplied Name:

LEE HENG DIAM CO.LTD.

Trading Address:

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

Supplied Address:

6TH FLR. SINO PLAZA, 256 GLOUCESTER ROAD, CAUSEWAY BAY, HONG KONG

Note: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

LEE HENG DIAMOND COMPANY LIMITED

Registered Address:

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

Telephone Number:

+852-2526-1167

Fax Number:

+852-2868-0170

Date of Registration:

1977-2-8

Registered Number:

51535

Business Registration No.:

05073606

Registered Capital:

HKD 120,000,000 (USD 15,480,000)

(As of 2015.1, 1 HKD = 0.129 USD)

Paid-up Capital:

HKD 120,000,000 (USD 15,480,000) = 240,000 Shares@ HKD 500

Legal Form:

Private Limited Liability Company

SITC Code:

66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

Principal Activities:

Trading of diamonds,

Staff:

About 25 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-2-8

 

History

 

Subject was incorporated on 1977-2-8 with the registered number 51535 as Private Limited Liability Company in Hong Kong.

 

 

Corporate Structure

 

Subject did not register any subsidiaries or branches, from other source we can not obtain the relevant information, either.

 

 

Shareholders

 

Name

Subscription Shares

Proportion of Investment (%)

Lee Heng Jewellery Group of Companies Limited (Corporation)

240,000

100%

Total

240,000

100%

 

Major Shareholder Information:

Name:

Lee Heng Jewellery Group of Companies Limited (Corporation)

Address:

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

Registered Number:

514502

Business Registration Number:

19075765

Date of Registration:

1995-5-16

 

 

Management Information

 

Core Management

 

Detailed Information of Directors:

1

Name:

Ma Charn Yui, Michael

Address:

Flat A, 4F, Blcok 1, Ruby Court, 55 South Bay Rd., Hong Kong

Position:

Director

ID Number:

A749507(5)

2

Name:

Ma Yung Kit

Address:

House D, 66 Deep Water Bay Rd., Hong Kong

Position:

Director

ID Number:

D126194(1)

3

Name:

Ma Yung Yi

Address:

House C, 66 Deep Water Bay Rd., Hong Kong

Position:

Director

ID Number:

D119483(7)

4

Name:

Chan Mee Ngan, Anna

Address:

Flat A, 4F, Blcok 1, Ruby Court, 55 South Bay Rd., Hong Kong

Position:

Director

ID Number:

A902252(2)

5

Name:

Ma Chun Wai, Franklin

Address:

House A, 66 Deep Water Bay Rd., Hong Kong

Position:

Director

ID Number:

D822101(5)

6

Name:

Ho Man Kwong

Address:

Flat D, 17F, Tower B, Hollywood Terrace, 268 Queen’s Rd. Central, Sheung Wan, Hong Kong

Position:

Director

ID Number:

E481905(9)

7

Name:

Cheng Tak Wai, David

Address:

Flat SA 37F, Block 1, Phase 2, Festival City, 1 Mei Tin Rd., Tai Wai, NT, Hong Kong

Position:

Director

ID Number:

G410810(7)

8

Name:

Ma Yan Calvin Ronald

Address:

House C, 66 Deep Water Bay Rd., Hong Kong

Position:

Director

ID Number:

Z703135(2)

9

Name:

Eunica Company Limited

Address:

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

Position:

Corporate Secretary

Registered Number:

454936

 

Personnel Structure

 

Total Employees

About 25 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Office

Address:

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

 

Premises Information

 

Office address:

Address:

6th Floor Sino Plaza Nos. 255-257 Gloucester Road Hong Kong

Owners:

Quality Investment Limited

Memorial Number:

UB4677878

Date of Instrument:

1990-12-14

Date of Registration:

1991-1-16

Consideration Value:

HKD 11,110,000.00

 

History of Premises Owners’

 

1

Memorial No.:

14052002490173

Date of Instrument:

2014-4-22

Date of Registration:

2014-5-20

Nature:

Debenture And Mortgage

In Favor of:

Bank Of China (Hong Kong) Limited

Consideration:

For Consideration See Memorial (PT.)

2

Memorial No.:

UB6375621

Date of Instrument:

1995-8-7

Date of Registration:

1995-8-22

Nature:

Tenancy Agreement With Plan For 33 Mths. From 16.1.94 To 15.10.96

In Favor of:

Bozell Limited

Consideration:

--

3

Memorial No.:

UB5482734

Date of Instrument:

1992-10-30

Date of Registration:

1992-11-10

Nature:

Occupation Permit No.H135/92

In Favor of:

--

Consideration:

--

 

Production Information

 

Subject is engaged in trading of diamonds, .

It is introduced that subject has a corporate factory in the Mainland of China for production.

 

Purchase Information

 

Subject’s products are both purchased at the Mainland of China and abroad.

 

Sales Information

 

Subject is a trader of diamonds, .

The major products of the subject are diamonds, gemstones, jewelry, .

The sales regions of the subject are domestic market, Japan, Korea, Southeast Asia, North America, West Europe, .

Subject’s major customers are manufacturers and designers of watches and jewelry, .

 

Trademark

 

Trade Mark No.:

300489150

Status:

Registered

Mark:

OCTALYA Octalya 


image

Mark Type:

Ordinary

Series Mark:

Yes

Owner's Name, Address:

LEE HENG DIAMOND COMPANY LIMITED
ROOM 1201, 12TH FLOOR, AON CHINA BUILDING,
29 QUEEN'S ROAD CENTRAL, HONG KONG.

Owner's Address
for Service:

SIT, FUNG, KWONG & SHUM
9th Floor, York House, The Landmark, 15 Queen's Road Central, Hong Kong

Agent's Address:

9th Floor, York House, The Landmark, 15 Queen's Road Central, Hong Kong

Class No.:

14, 16, 18, 35

Specification:

Class 14
precious metals and their alloys and goods in precious metals or coated therewith, not included in other classes; jewellery; precious stones; horological and chronometric instruments; diamonds; jewellery incorporating diamonds; earrings, ear clips, rings, chains, necklaces, bracelets, ankle bracelets, ankle chains, pendants, charms, pins, ornamental pins, clips, brooches, ornaments, trinkets, all being jewellery; tie clips, tie pins, cuff links, hat ornaments, hair pins, hair clips, hair accessories, badges, buckles, all of precious metal; writing instruments of precious metal; watches; watch straps

Class 16
certificates; certificates of authentication and quality of diamonds; printed matter; packaging and wrapping materials; bags, envelopes and pouches made of paper or plastics for packaging; boxes of cardboard or paper; document holders; card holders; holders being articles of stationery

Class 18
leather and imitations of leather, and goods made of these materials and not included in other classes; pouches, document holders and card holders made of leather or imitations of leather

Class 35
retailing, wholesaling, distribution and department store retailing services in relation to precious metals and their alloys, goods in precious metals or coated therewith, jewellery, precious stones, horological and chronometric instruments, diamonds, jewellery incorporating diamonds, earrings, ear clips, rings, chains, necklaces, bracelets, ankle bracelets, ankle chains, pendants, charms, pins, ornamental pins, clips, brooches, ornaments, trinkets, tie clips, tie pins, cuff links, hat ornaments, hair pins, hair clips, hair accessories, badges, buckles, writing instruments of precious metal, watches, watch straps; all the aforesaid services also provided on-line from a computer database or the Internet

Date of Filing:
(D-M-Y)

03-09-2005

Date of Publication of
Application of Acceptance for
Registration:
(D-M-Y)

30-09-2005

Date of Registration:
(D-M-Y)

03-09-2005

Actual Date of 
Registration:
(D-M-Y)

12-01-2006

Expiry date:
(D-M-Y)

02-09-2015

Matters:

Registration

Date of entry:

12-01-2006

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Diamonds,

Payment Terms

T/T, Cash,

 

Import

Products

Diamonds,

Payment Terms

L/C, T/T,

 

Sales

 

Domestic Markets

Product

Diamonds,

Selling Terms

T/T, Cash,

 

Export

Product

Diamonds,

Selling Terms

L/C, T/T,

 

 

Financial Information

 

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff rejected to disclose the financial information; from other sources we could not obtain such information, either.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

 

 

Public

 

Civil Litigation

 

1

Date:

2008-05-13

Court Name:

Small Claim Tribunal

Court No.:

4

Claimant:

Lee Heng Diamond Company Limited

Defendant:

Not Stated

Reason:

Departure Notice

2

Date:

2006-07-08

Court Name:

District Court Civil Action

Court No.:

3324

Claimant:

Lee Heng Diamond Co Ltd

c/o

Room 1201, 12/F, Aon China Building, 29 Queen's Road, Central, HK

Defendant:

Ng Sui Yau

t/a

Hung Kay Jewellery Co

c/o

1) 11/F, Room 10,

Hai Phong Mansion, 53-55 Hai Phong Road,  Tsim Sha Tsui, Kln

2) 1/F, Block E, No.316 Canton Road, Kln

Reason:

Good Sold & Delivered

Amount(HKD):

163,710.74

 

Mortgage Record

 

No mortgage record of the subject was found.

 

 

Lawsuits

 

Up to now, no present or latent litigation of the subject has been found.

High Court Action:

Clear

High Court Baukufty Bankruptcy Proceedings:

Clear

High Court Commercial Action:

Clear

High Court Construction & Arbitration Proceedings:

Clear

High Court Companies Winding-Up:

Clear

 

 

Special Note

 

Interview Details

Department:

Sales Department

 

 

Industry Information

 

66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

Unit: HKD/000

 

2014.05

2014.01~2014.05

 

Quantity

Value

Quantity

Value

Imports

United Arab Emirates

96,110

728,817

662,210

4,475,744

Armenia

--

--

461

1,049

Australia

1,756

23,658

3,733

54,816

Belgium

84,515

1,239,263

423,171

6,622,381

Canada

476

2,771

2,771

48,195

Switzerland

8,077

206,582

32,377

858,188

Germany

709

2,321

12,087

20,158

Britain

1,277

88,340

9,442

386,120

Israel

65,772

1,433,655

360,130

8,238,886

India

981,536

4,727,211

5,338,417

26,201,042

Malaysia

3,860

18,103

19,791

137,275

USA

129,016

1,115,405

703,068

6,169,441

The Mainland of China

114,204

798,063

516,495

3,689,202

Exports

United Arab Emirates

--

--

53

749

Israel

--

--

50

24,803

Japan

--

--

3

116

Singapore

--

--

17

208

Belgium

13

4,441

249

67,929

Thailand

--

--

251

732

USA

33

924

465

35,419

The Mainland of China

157

184

2,711

8,359

 

External Trade Information:

 

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

 

Imports

Domestic Exports

Re-exports

Total exports

Year-on-year % change of Total exports

Merchandise trade balance

2011

3,764,596

65,662

3,271,592

3,337,253

+10.1

-427,343

2012

3,912,163

58,830

3,375,516

3,434,346

+2.9

-477,817

2013

4,060,717

54,364

3,505,322

3,559,686

+3.6

-501,031

2013.03

340,857

5,073

286,638

291,711

+11.2

-49,146

2013.04

332,963

4,503

285,763

290,267

+9.0

-42,696

2013.05

335,809

4,818

286,724

291,542

-1.0

-44,267

2013.06

327,309

4,476

273,161

277,637

-0.2

-49,673

2013.07

342,565

4,783

300,630

305,413

+10.6

-37,152

2013.08

347,059

4,932

302,558

307,490

-1.3

-39,570

2013.09

359,841

4,395

313,436

317,830

+1.5

-42,010

2013.10

361,196

4,458

318,686

323,144

+8.8

-38,052

2013.11

370,104

4,587

320,935

325,522

+5.8

-44,581

2013.12

365,228

4,596

306,281

310,877

0.0

-54,351

2014.01

323,436

4,299

299,157

303,456

-0.4

-19,979

2014.02

266,587

3,276

209,638

212,914

-1.3

-53,673

2014.03

351,889

5,120

296,403

301,523

+3.4

-50,365

2014.04

340,972

4,867

280,816

285,682

-1.6

-55,290

2014.05

348,323

5,299

300,673

305,973

+4.9

-42,350

2014.06

352,316

4,802

304,409

309,211

+11.4

-43,105

 

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

 

 

Attachment

 

Address: 6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

 

Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

 

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

 

 

6F, Sino Plaza, 256 Gloucester Rd., Causeway Bay, Hong Kong

 

 

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

UK Pound

1

Rs.93.12

Euro

1

Rs.69.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 

 

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.