MIRA INFORM REPORT

Report No. :	505028
Report Date :	27.04.2018

IDENTIFICATION DETAILS

Name :	SELECTED DIAMOND TRADERS (HK) LIMITED
Registered Office :	Rooms 701-5, 7/F., Crawford House, 70 Queen’s Road Central
Country :	Hongkong
Date of Incorporation :	22.04.2008
Com. Reg. No.:	39364425
Legal Form :	Private Limited Company
Line of Business :	Trader of all kinds of Diamonds.
No. of Employees :	15

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Hongkong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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. 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 (CEPA), adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie LAM announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Company Name And Address

SELECTED DIAMOND TRADERS (HK) LIMITED

ADDRESS: Rooms 701-5, 7/F., Crawford House, 70 Queen’s Road Central, Hong Kong.

(Formerly located at:

Room 2002-3, 20/F., Lucky Building, 37-41 Wellington Street, Central, Hong Kong.)

PHONE: 852-2810 0303

FAX: 852-2845 9548

MANAGEMENT

Managing Director: Mr. Wong Kei Fu

SUMMARY

Incorporated on: 22nd April, 2008.

Organization: Private Limited Company.

Issued Share Capital: HK$10,000.00

Business Category: Diamond Trader.

Employees: 15.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Rooms 701-5, 7/F., Crawford House, 70 Queen’s Road Central, Hong Kong.

(Formerly located at:

Room 2002-3, 20/F., Lucky Building, 37-41 Wellington Street, Central, Hong Kong.)

Holding Company:-

Selected Diamond Traders Ltd., Israel.

Associated Companies:-

Pinkusewitz Diamond Trader NV, Belgium.

Selected Diamonds USA, United States.

BUSINESS REGISTRATION NUMBER

39364425

COMPANY FILE NUMBER

1230148

MANAGEMENT

Managing Director: Mr. Wong Kei Fu

ISSUED SHARE CAPITAL

HK$10,000.00

SHAREHOLDER

(As per registry dated 22-04-2017)

Name	No. of shares
Selected Diamond Traders Ltd. 3 Jabotinsky Street, Ramat Gan, Israel.	10,000 =====

DIRECTORS

(As per registry dated 14-09-2017)

Name (Nationality)	Address
WONG Kei Fu	Room D, 37/F., Block 9, Larvotto, 8 Ap Lei Chau Praya Road, Ap Lei Chau, Hong Kong.
Marcus Elias FINKELSZTEJN	Jacob Jordaensstraat 81, 2018 Antwerpen, Belgium.

SECRETARY

(As per registry dated 22-04-2017)

Name	Address	Co. No.
Pro-Corp Nominees Ltd.	Rooms 2702-2703, 27/F., Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong.	0309291

HISTORY

The subject was incorporated on 22nd April, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at ‘Rooms 2002-3, 20/F., Lucky Building, 37-41 Wellington Street, Central, Hong Kong’, moved to the present address with effect from 14th September, 2017.

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

OPERATIONS

Activities: Diamond Trader.

Lines: All kinds of Diamonds.

Employees: 15.

Commodities Imported: India, Israel, other Asian countries, etc.

Markets: Hong Kong, other Asian countries, Europe, etc.

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

Terms/Buying: L/C, Advanced T/T, etc.

FINANCIAL INFORMATION

Issued Share Capital: HK$10,000.00

Profit or Loss: Made small profits in past years.

Condition: Keeping in a satisfactory manner.

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: Normal.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Selected Diamond Traders (HK) Limited is a wholly owned subsidiary of Selected Diamond Traders Ltd. [SDT] which is an Israel-based company.

The directors of the subject are Mr. Wong Kei Fu and Mr. Marcus Elias Finkelsztejn. The former is a Hong Kong merchant while the latter is a Belgium passport holder.

The subject is a diamond trader.

SDT is a family owned and operated leading diamond distributers and traders. Abraham Pinkusewitz founded Pinkusewitz Diamonds in June 1970. After managing various aspects of the company, Abraham's son – Moshe established, SDT in 2005.

Today, SDT is home-based in Israel. It handles high-end diamonds ranging from 1000 stones per carat to 15.00 carats, D-K colour, and FL-SI2 clarity. SDT has a high stock level of diamonds cut in China and Russia using state-of-the-art tools.

Now, SDT has over 3,500 people worldwide.

SDT’’s stock is composed of mainly rounds and princesses ranging from 0.30 carat to 15 carat diamonds of D to K colour, and IF-SI2 clarity.

SDT has offices in Belgium, England, and Israel. Its stock can be viewed online by its customers.

In Hong Kong, the business of the subject is chiefly handled by Mr. Wong Kei Fu. History in Hong Kong is over ten years.

On the whole, in view of the background of the subject, consider it good for normal credit requirements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.83
UK Pound	1	INR 93.17
Euro	1	INR 81.38
HKD	1	INR 8.50

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.