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Report No. : |
342563 |
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Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
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Name : |
GEMDEM DIAMOND & JEWELRY HONG KONG LTD. |
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Registered Office : |
Unit 08B, 13/F., Block B, Hunghom Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
26.01.2010 |
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Com. Reg. No.: |
51739074 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler All Kinds
of Loose Diamonds |
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No. of Employees : |
4 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 |
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 |
GEMDEM DIAMOND
& JEWELRY HONG
KONG LTD.
ADDRESS: Unit 08B, 13/F., Block B, Hunghom
Commercial Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3151 7020
FAX: 852-3151 7021
MANAGEMENT:
Managing Director: Mr. Wang Xi Guang
Incorporated on: 26th
January, 2010.
Organization:
Private Limited
Company.
Issued Share Capital: HK$10,000.00
Business Category: Importer, Exporter and Wholesaler.
Employees:
4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Unit 08B, 13/F., Block B, Hunghom Commercial
Centre, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Shanghai Gemdem Diamond Co. Ltd., China.
Ultimate Holding Company:-
Beijing Kingee Culture Development Co. Ltd.,
China.
Branch:-
Shanghai Gemdem Diamond Co. Ltd. Shenzhen Co.
(also known as Shenzhen Gemdem Diamond Co. Ltd.)
Flat D, 27/F., Baishida Building, Second
Phase, Baishida Dongdu Square, Taining Road, Luohu District, Shenzhen, China.
[Tel: 755-2550 0322, Fax: 755-2550 0322]
51739074
1415745
Managing Director: Mr. Wang Xi Guang
HK$10.000.00
(As per registry dated 06-01-2015)
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Name |
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No. of shares |
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Shanghai Gemdem Diamond Co. Ltd. Room 803B, Block A, No. 1701 Century
Boulevard, Pudong New Area, Shanghai, China. |
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10,000 ===== |
(As per registry dated 26-01-2015)
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Name (Nationality) |
Address |
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WANG Xi Guang |
Room 13D, Block 3A, Luohu Qu, Color World
Garden, Shenzhen, China. |
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CHEN Bao Kang |
Room 504, Block 2, Yue Cheng Qu Da Cheng
Wan, |
(As per registry dated 26-01-2015)
|
Name |
Address |
Co. No. |
|
Excel Concept Consultants Ltd. |
Unit G, 19/F., King Palace Plaza, 55 King
Yip Street, Kwun Tong, Kowloon, Hong Kong. |
0936900 |
The subject was incorporated on 26th January,
2010 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.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of loose diamonds
Employees: 4.
Commodities Imported: India, China
Markets: China,
Hong Kong, other Asian countries, Europe, North America
Terms/Sales:
COD or as per
contracted.
Terms/Buying:
L/C, T/T, D/A, O/A
Issued Share Capital:
HK$10.000.00
Profit or Loss: Made a small profit in 2013.
Condition: Business
is improving.
Facilities: Making
rather 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 10,000 ordinary shares of
HK$1.00 each, Gemdem Diamond & Jewelry Hong Kong Ltd. is wholly owned by
Shanghai Gemdem Diamond Co. Ltd. [Shanghai Gemdem] which is a China-based firm.
The directors of the subject Mr. Wang Xi
Guang and Mr. Chen Bao Kang are China merchants. Both are China passport holders and do not have
the right to reside in Hong Kong permanently.
Wang is a significant character in the field of jewellery manufacturing
industry in China.
The subject is a loose diamond trader. Its products bear the trade mark “Gemdem”.
Wang is a native of Hunan Province. Graduated from Hunan Normal University
Department of English Language in 1997, he came to Shenzhen Special Economic
Zone in 2004 and set up his business Shenzhen Euro-Light Jewellery Co. Ltd.
[Euro-Light]. Very soon, Euro-Light has
become a partner of Dimexon Eurostar which is a diamond giant trader. Euro-Light marketed Dimexon Eurostar’s
diamonds in Southern China.
In June 2009, Wang made investments in
Shanghai Gemdem and became a principal shareholder of it. Now, he is the Executive Director of Shanghai
Gemdem which was set up in 2007 and with a registered capital of RMB10 million
Yuan. It is the earliest company in
China trading in natural colour diamonds.
Euro-Light has been merged into Shanghai Gemdem.
According to Wang, he has been in diamond
trading for over thirteen years. He is
dealing with those diamond merchants in Israel, Belgium India, the United
States, Japan and Hong Kong.
Now, Shanghai Gemdem is a business partner of
Israel L.L.D. Diamond which has its own diamond mines.
Shanghai Gemdem is a member of Shanghai
Diamond Exchange. It has set up a branch
office in Shenzhen Special Economic Zone and an office in Nanjing City of
Jiangsu Province.
According to Shanghai Government, Shanghai
Gemdem is one of the top five companies having the largest export value in
diamonds.
Shanghai Gemdem is 33.3% held by Mr. Wang Xi
Guang and 66.7% held by Zhejiang Jovan Jewelry Co. Ltd. [Jovan].
In February 2015, China Securities
Administrative Association approved Beijing Kingee Culture Development Co. Ltd.
[BKCD] to be listed on Shenzhen Special Economic Zone Stock Exchange. BKCD bears stock code 002721.
BKCD researches, develops, designs, produces,
and sells precious metal handicrafts in China.
It operates through Consignment Sales, Distribution Sales, Retail Sales,
and Franchise Sales segments. It offers
gold and silver products, jewelleries, and postage stamps, as well as engages
in gold bullion investments business. It
was formerly known as Beijing Kingee Culture Development Ltd. and changed its
name to Beijing Kingee Culture Development Co. Ltd. in July 2010. BKCD was founded in 2007 and is based in
Beijing, China. BKCD has agreed to acquire
Jovan for a consideration of US$170 million.
Jovan operates under the brand Yue
Wang and currently has over 45 outlets in China. In first half of 2014, Jovan reported
revenues of US$69 million.
Now, BKCD has become the ultimate holding
company of the subject.
The subject is fully supported by Shanghai
Gemdem and ultimately by BKCD. History
in Hong Kong is over five years and eight months.
On the whole, since the history of the
subject is short, consider it good for normal business engagements on L/C basis
or in moderate credit amounts.
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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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.74 |
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UK Pound |
1 |
Rs.99.53 |
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Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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.