MIRA INFORM REPORT

 

 

Report No. :

348642

Report Date :

09.11.2015

 

IDENTIFICATION DETAILS

 

Name :

BRI-STAR JEWELLERS LTD.

 

 

Registered Office :

Room 205, 2/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

01.09.2003

 

 

Com. Reg. No.:

33936092

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturer, Importer, Exporter and Retailer of All kinds of diamonds and jewellery products, emerald, precious stones.

 

 

No. of Employees :

20

 

 

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)

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 & address

 

BRI-STAR JEWELLERS LTD.

 

ADDRESS:       Room 205, 2/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:            852-2180 8881, 6283 3832

 

FAX:                 852-2121 8884

 

E-MAIL:            info@bri-star.com

info@brilliantstarhk.com

sales@bri-star.com

 

MANAGEMENT:

 

Managing Director:  Mr. Yep Mau Koung, Ben

 

 

SUMMARY

 

Incorporated on:            1st September, 2003.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$50,000.00

 

Business Category:       Manufacturer, Importer, Exporter and Retailer.

 

Annual Turnover:           HK$300 to 350 million.

 

Employees:                  20.  (Hong Kong)

 

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

 

Banking Relation:          Satisfactory.

 

 

Name

 

BRI-STAR JEWELLERS LTD.

 

 

ADDRESS

 

Registered Head Office:-

Room 205, 2/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

 

The Landmark Flagship Store:-

Ben Yep

Shop 302 and 303, 3/F., The Landmark, Central, Hong Kong.

[Tel: 852-2522 3663;  E-mail: info@townandcountryhk.com]

 

China Stores:-

Shenzhen Store & Showroom
1A010, Jinli International Jewellery Exchange Centre, 48 Beili Road South, Shenzhen, China. [Tel: (86-755) 2587 7820]

Kunming Store
1F-15, Vogue Plaza, 41 Tongren Street, Kunming, Yunnan Province, China. [Tel: (86-871) 3620 396]

 

China Factory:  Foshan, Guangdong, China.

 

Holding Company:-

Great Allied Profits Ltd., British Virgin Islands.

 

Associated Companies:-

Ben Yep, Hong Kong.

Bri-Star Jewelry International Ltd., Hong Kong.  [Dissolved]

Bri-Star Jewelry Manufacturing Ltd., Hong Kong.

Goalmark Ltd., Hong Kong.  [Dissolved]

Smartrend (Hong Kong) Ltd., China.

Unique Design Inc., USA.

 

 

BUSINESS REGISTRATION NUMBER

 

33936092

 

 

COMPANY FILE NUMBER

 

0859662

 

 

MANAGEMENT

 

Managing Director:  Mr. Yep Mau Koung, Ben

(Hong Kong Mobile Phone: 852-6283 3832)

General Manager:  Ms. Suda Yep

Contact Person:  Ms. Crystal Wong

 

ISSUED SHARE CAPITAL

 

HK$50,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 01-09-2015)

Name

 

No. of shares

Great Allied Profits Ltd.

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

 

499,999

New Atlantic Assets Ltd.

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

 

1

 

 

–––––––

 

Total:

500,000

======

 

 

DIRECTORS

 

(As per registry dated 01-09-2015)

Name

(Nationality)

 

Address

YEP Mau Koung

Unit D, Level 2, Tower 16, Laguna Grande, 8 Laguna Verde Avenue, Phase 4, Laguna Verde, Hunghom, Kowloon, Hong Kong.

 

Great Allied Profits Ltd.

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

 

 

SECRETARY

 

(As per registry dated 01-09-2015)

Name

Address

Co. No.

Royal Honour Consultants Ltd.

Room 702, 7/F., Tung Yip Commercial Building, 244 Des Voeux Road Central, Hong Kong.

0764691

 

 

HISTORY

 

The subject was incorporated on 1st September, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Brilliant Star Jewellers Ltd., name changed to the present style on 7th April, 2005.

 

Formerly the subject was located at Room 803, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to the present address in July 2012.

 

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

 

 

OPERATIONS

 

Activities:                      Manufacturer, Importer, Exporter and Retailer.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones.

 

Brand Name:                 Ben Yep, Sierra, Mist.

 

Employees:                  20.  (Hong Kong)

1,600.  (China)

 

Materials/Commodities: India, Belgium, other European countries.

 

Markets:                        Japan, India, other Asian countries, Middle East, Europe, North America.

 

Annual Turnover:           HK$300 to 350 million.

 

Terms/Sales:                 L/C, T/T.

 

Terms/Buying:               L/C, T/T, D/P, O/A.

 

MEMBERSHIP:             Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

Lunjiao Jewelry Chamber of Commerce, China.

Guangdong Golden Jewelry & Jade Industry’s Association, China.

Guangzhou Jewelry Chamber of Commerce, China.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: HK$50,000.00

 

Mortgage or Charge:-

Date of Assignment of Life Insurance:  19-03-2008

Amount:            Secured Indebtedness

Property:          (i) All the Assignor’s claims, options, privileges, right, title, interest and benefit in and under the Insurance; and (ii) all the Assignor’s claims and rights against the issuer of the Policy in respect of the Policy upon the terms herein set out as a continuing security for the due and punctual payment of the Secured Indebtedness and the due and punctual performance and observance by the Borrower (Bri-Star Jewelry Manufacturing Ltd.) of all other obligations of the Borrower contained in the Facility Letter

 

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

 

Profit or Loss:               Making a small profit every year.

 

Condition:                     Business is active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Very Good.

 

 

GENERAL

 

Bri-Star Jewellers Ltd. is a wholly-owned subsidiary of Great Allied Profits Ltd. which is a BVI-registered firm.

The subject is chiefly controlled by the Yep family.  Director is Mr. Ben Yep Mau Koung who is a Hong Kong merchant.  He is also Managing Director of the subject.

 

The predecessor of the subject was set up in 1985 in New York City, the United States.

 

The subject is a diamond and colour stone jewellery trader.  Most of its products are designed by Ben Yep.  The subject is a rather fast-growing and creative manufacturer and exporter of diamond and colour stone jewellery, mainly in 10K-18K gold, sterling silver and platinum.

 

The followings are the main products of the subject:-

  1. Finished Jewellery
  2. Diamond Jewellery
  3. White Diamond Jewellery
  4. Colour Diamond Jewellery
  5. Gem Set Jewellery
  6. Emerald Jewellery
  7. Ruby Jewellery
  8. Sapphire Jewellery
  9. Semi-precious Gemstone Jewellery
  10. Others
  11. Gold Jewellery
  12. 14K Gold Jewellery
  13. 18K Gold Jewellery
  14. 24K Gold Jewellery
  15. Fineness not Specified
  16. Silver Jewellery
  17. Fineness not Specified
  18. Platinum Jewellery
  19. Pt 950 Platinum Jewellery
  20. Pearl Jewellery
  21. South Sea Pearl Jewellery
  22. Tahitian Pearl Jewellery
  23. Other Jewellery
  24. Others

 

The subject’s main factory is in Foshan City, Guangdong Province, China.  The main products of the factory are earrings, diamond pendant, diamond ring, necklace.

 

The subject has about 1,600 employees in its manufacturing facilities located in China.

 

Having over 30 years of designing experience, Ben Yep, has launched a new line of fine jewellery, the “BEN YEP Collection” in 2006.  This collection has been aired on one of the largest TV network in the United Stated.

 

The subject’s products also bear the brand names of Sierra, and Mist besides BEN YEP.

 

Ben’s jewellery design career was first started in Hong Kong and quickly dot promoted as chief designer in a top jewellery manufacturer.  In order to maximize his potential, he went to America where he became a GIA certified designer and gemmologist.  After working for an internationally renowned luxury jeweller in New York, he started his own business in jewellery designing and manufacturing.

 

Now, the subject has a team engaged in manufacturing for branded products and large scale production.  It also has a joint venture operation in the United States with one of the largest diamond sight- holders in the world.

 

The subject’s sister company Unique Design Inc. [UD] is based in New York, the United States.  UD is engaged in distributing jewellery and diamond products.  Its customer base is the top 20 largest retail chain stores, department stores and TV shopping networks nationwide.

 

The subject also has got its own retailing shop in Hong Kong known as ‘Ben Yep’.  The former name of this firm was “Town and Country”.  This shop is one of the earliest luxury jewellery shops in Hong Kong.  Having a history of over 50 years, Ben Yep is located at Shop 302 and 303, 3/F., The Landmark, Central, Hong Kong.

 

The subject also has set up a showroom and retailing shop in Shenzhen Special Economic Zone, as well as a store in Kunming City of Yunnan Province of China.

 

In September 2015, the subject launched its new online shop known as JewelMall.  The business of this online shop is still under development.

 

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 such as Las Vegas, Basel, Tokyo, Shenzhen Special Economic Zone, etc.  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.

 

The subject’s annual sales turnover of the subject ranges from HK$300 to 350 million.  History in Hong Kong is over twelve years and two months.  Overall business is active.

 

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


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.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.