MIRA
INFORM REPORT
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Report Date : |
10.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
LORENZO CRYSTAL LTD. |
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Registered Office : |
Unit C, Lower G/F., Kaiser Estate Phase 3, 9-11 Hok Yuen
St., Hunghom, Kln. |
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Country : |
Hong Kong |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
8-2-2000 |
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Com. Reg. No.: |
703464 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Engaged in retail of jewellery. |
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 : |
Clear |
name & address
LORENZO CRYSTAL LTD.
UNIT C, LOWER G/F., KAISER ESTATE PHASE 3,
9-11 HOK YUEN ST., HUNGHOM, KLN., HONG KONG.
TEL : 852 27643448
FAX : 852 27643408
EXECUTIVE SUMMARY
INCORPORATION DATE :
8-2-2000
REGISTRATION NO. :
703464
REGISTERED LEGAL FORM : PRIVATE
LIMITED COMPANY
CHIEF EXECUTIVE : MR. NG HON TAK RINGO (DIRECTOR)
STAFF STRENGTH :
30
AUTHORIZED CAPITAL :
HK$10,000 = 10,000 SHARES @ HK$1.-
PAID-UP
CAPITAL : HK$2.-
BUSINESS LINE :
RETAIL OF JEWELLERY
TURNOVER :
US$95M (GROUP, YEAR ENDED 31-12-2005)
EQUITIES :
N/A (GROUP, YEAR ENDED 31-12-2005)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
N/A
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
HKD 7.79524 = USD1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
HKD – Hong Kong Dollars
SC is a private limited company registered under incorporation file no.
703464 on 8-2-2000.
SC's shareholder(s) & director(s) are shown to be as follows:
Shareholder(s) (as at 8-2-2007) Number
of shares held
- Legitimate Hour Investments Ltd. 2
--
2
===
Director(s) (as at 8-2-2007)
- Au Ka Man / G035771 (4)
- Ng Hon Tak Ringo / G216383 (6)
The above registration information is based on SC's annual return filed
at Companies Registry within the last 2 years.
The correct name and address of SC are the heading one instead of the
one given by you.
SC's adopted business name
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- Lorenzo
- Lorenzo Factory Outlet
- Enzo
Total number of employees: 30.
Location: Maintaining
its office at the heading business address which occupies a gross area of 3,000
square feet at an industrial building in a commercial & industrial
district.
Condition inside the premises during our
visit : Normal.
Office/factory layout : Standard.
SC is a
subsidiary of Legitimate Hour Investments Ltd. whose partial information is as
follows:
- Registered address: P. O. Box 957, Offshore Incorporations Centre,
Road Town, Tortola, British Virgin Islands.
- Business
line: As an offshore investment holding co.
- Civil litigation & winding-up petition: None in our database
Upon a
current contact, Ms. Lau, SC's administrator, advised that SC is the subsidiary
of Lorenzo Jewelry Ltd., whose partial information is as follows:
Year established : 1987
Registered/business
address : Rm 1212, 12/F, Blk A, Focal Ind.
Ctr, 21 Man Lok St, Hunghom, Kln., Hong Kong
Business line : Manufacturing &
retail of jewellery
No. of employees : NA
Civil litigation & winding-up petition records: None in our database
Turnover :
NA
She further advised that SC is the ultimate subsidiary of LJ
International Inc., a publicly listed co on NASDAQ with stock code
"JADE", whose partial information is as follows:
Year established : 1987
Registered/business
address : Rm 1212, 12/F, Blk A, Focal Ind.
Ctr, 21 Man Lok St, Hunghom, Kln., Hong Kong
Business line : As an investment
holding co with core interest in marketing, design and trading of
jewellery
No. of employees : NA
Civil litigation & winding-up petition records: None in our database
Turnover :
US$95M (year ended 31-12-2005)*
Partial financial data of the said company:
Items Fiscal
yr 31-12-2005 Fiscal yr 31-12-2004
Current assets : US$99M US$64M
Current
liabilities : US$63M US$41M
Fixed assets &
non-current assets : US$9M US$10M
Tangible
worth/(net deficit) : US$45M US$33M
Turnover : US$95M US$77M
Net income/(net
loss) : US$3M US$3M
* On 5-11-2007, LJ International, Inc. (LJI)) (NASDAQ:JADE) today
announced that its Audit Committee has dismissed KPMG and has engaged Gruber
& Company LLC as its independent registered accounting firm. The completion
of the Company's 2006 audit and the filing of the Company's 20-F Annual Report
will meet the requirement imposed by the NASDAQ Listing Qualifications Panel
when it granted LJI's request for continued Nasdaq listing until the end of
2007.
Au Ka Man, director:
- In her late 30's & married
- Embarked upon her career to present field as a junior salesman in her
early 20's
Currently active in SC's day-to-day operations & is responsible for
its management.
Registered residential address: 2C, Dioramic Rise, Stage 3, Marina Cove,
Sai Kung, N.T., Hong Kong.
Property ownership: Current land search indicates the said premises
ownership as follows:
- Owner(s): Au Ka Man + Lo Wing Keung
- Date of purchase / consideration: 13-1-1997 / HK$3.28
- Date of mortgage / secured amount: NA
- Mortgagee: NA
Credit history check : This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:
Civil litigation
as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent payment
records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Ng Hon Tak Ringo, director:
- In his late 30's & married
- Embarked upon his career to present field as a small businessman in
his late 20's
Currently active in SC's day-to-day operations & is responsible for
its management.
Registered residential address: Flat 802, 8/F, Blk C, The Dahfuldy, 21
Homantin Hill Road, Kln., Hong Kong.
Credit history check: This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:
Civil litigation
as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent payment
records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Ownership background appraisal:
Rating : 2 Obtained scores : 70 (see explanatory notes
below)
Keys : 1 : scores
81-100 : Excellent
2
: scores 61-80 : Good
3
: scores 46-60 : Average
4
: scores 21-45 : Fair
5
: scores 01-20 : Poor
The rating indicates the personal financial & operational strength
of SC's major principals. It is
calculated from a composite of scores obtained from the following 5 factors
which carry equal weight in our analysis:
Personal financial strength, credit history & trade reputation,
business experience & track record, market connection and management skill.
Upon a current contact, Ms. Lam, SC's administrator, declined forwarding
any financial information on the ground that it is the company's policy not
releasing any data to a third party without the benefit of knowing the identity
of the inquiring party.
As per current co. search, total amount of indebtedness of SC in respect
of all mortgages and charges which are required to be registered with Companies
Registry as at 8-2-2007 was nil.
Banking relations are maintained principally with: HSBC.
This section will contain the civil litigations & winding-up
petitions filed against SC for the last 6 years (as stored in our database),
and the mortgage/charge records filed by SC for the last 2 years. In Hong Kong, creation of such
mortgages/charges by an unlimited co is not required to be registered in the
public records.
Civil litigation/winding-up petitions: None in our database.
Mortgage/charge record(s): None filed since its incorporation date.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments habits and ability
to pay. It is based on the 3 weighed
factors: Trade payment experience
(through current enquiry with SC's suppliers), our delinquent payment records
and our debt collection record concerning SC.
Trade payment experience: SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.
Delinquent
payment record: None in our database.
Debt
collection record: No overdue amount owed by SC
was placed to us for collection within the last 6 years.
Business categories:
SC is engaged in retail of jewellery.
Items available include pearl, diamond, gold, plantium, gemstone and
related accessories.
A portion is sold under its own brand(s) "Enzo".
Principal purchases:
Major
types of sourcing :
Merchandise
Local--type
of suppliers : LJ
International Inc.
Buying
terms :
Intercompany account basis
Overseas--supplying
countries : PR China
Buying
terms : L/C
& T/T
Principal market :
Local--type
of customers : Walk-in customers
& tourists
Selling
terms : Cash payment
& credit card payment
Overseas--buying
countries : USA, Europe, Japan, PR China
& Australia
Selling
terms : L/C &
T/T
SC maintains more than 80 retail shops in PR China.
SC is considered a well-maintained business with solid base to meet
moderate amount of credit dealings.
-- Asset Tracing --
Upon our current investigation, our database & sources consulted
indicate that SC was not involved in any property transaction (both purchase
& disposal) in Hong Kong for the last 6 years.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)