MIRA INFORM REPORT
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Report Date : |
25.04.2012 |
IDENTIFICATION DETAILS
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Name : |
NOBLE
JEWELRY LTD. |
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Registered Office : |
Unit M, 12/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.06.1992 |
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Com. Reg. No.: |
15765403 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Exporter and Wholesaler of Jewellery including rings, earrings, pendants, bracelets and necklaces in 18 karats yellow and white gold and platinum 900 with diamonds and precious stones. |
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No. of Employees
: |
58 |
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 : |
Exists |
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 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Hong Kong |
a2 |
a2 |
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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 |
NOBLE JEWELRY
LTD.
Unit M, 12/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2722 1132
FAX: 2369 1412, 2369 1023
E-MAIL: info@noble.com.hk
Executive Director & Chairman: Mr. Chan Yuen Hing, Johnny
Incorporated on: 9th June, 1992.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Design, manufacture and trading of jewelry.
Group Turnover: HK$643,399,000 (Year ended 31-03-2011)
Group Employees: 58. (As at 30-09-2011)
Main Dealing Bankers: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit M, 12/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
China Factory:-
Guangzhou Noble Jewelry Ltd.
(or known as Guangzhou Yizuan Jewelry Co. Ltd.)
B3-Building, Sha Wan Jewelry Industrial Park, 999 Fulong Road, Shawan, Panyu District, Guangzhou, Guangdong Province, China.
[Tel: 86-20-3487 8889; Fax: 86-20-3487 8882]
Holding Company:
Noble Jewelry (BVI) Ltd., British Virgin Islands.
Ultimate Holding
Company:
Noble Jewelry Holdings Ltd., Cayman Islands/Hong Kong.
Associated
Companies:-
Noble Jewelry Group of Companies
· Chad Allison Corporation, USA.
· Farwin Ltd., Hong Kong.
· Guangzhou Sinoble Jewelry Ltd., China.
· N.A. Marketing Ltd., USA.
· NJUK Ltd., UK.
· Noble Jewelry Ltd., USA.
· Noblediam S.L., Spain.
· Pesona Noble Jewelry Ltd., Hong Kong.
· Shanghai Chenghuang Jewellery Ltd., China.
· Shanghai Noble Concepts Jewelry Ltd., China.
· Topwin Trading Ltd., Hong Kong.
etc.
15765403
0361214
· Executive Director & Chairman: Mr. Chan Yuen Hing, Johnny
· Executive Director & Chief Executive Officer: Mr. Tang Chee Kwong, Stephen
Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated
09-06-2011)
|
Name |
|
No. of shares |
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Noble Jewelry (BVI) Ltd. 2/F., Abbott Building, Road Town, Tortola, British Virgin Islands. |
|
10,000 ===== |
(As per registry
dated 09-06-2011)
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Name (Nationality) |
Address |
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CHAN Yuen Hing |
Flat A, 27/F., Broadwood Park, 38 Broadwood Road, Happy Valley, Hong Kong. |
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CHAN Lai Yung |
Flat 4, 8/F., Kam Pak House, Hong Pak Court, Lam Tin, Kowloon, Hong Kong. |
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TANG Chee Kwong |
Flat E, 27/F., Tower 28, South Horizons, Apleichau, Hong Kong. |
(As per registry
dated 09-06-2011)
|
Name |
Address |
|
SIN Lap Poon |
Flat C, 12/F., 75 Broadway Street, Mei Foo Sun Chuen, Kowloon, Hong Kong. |
The subject was incorporated on 9th June, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Front & Rear Portion, 5/F., Ocean View Court, 25A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to 4/F., Grand Centre, 8 Humphreys Avenue, Tsimshatsui, Kowloon, Hong Kong in February 2000; to Unit 306-307, 3/F., Lippo Sun Plaza, 28 Canton Road, Tsimshatsui, Kowloon, Hong Kong in January 2003. The subject moved to Unit M, 12/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong in April 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer, Exporter and Wholesaler.
Lines: Jewellery including rings, earrings, pendants, bracelets and necklaces in 18 karats yellow
and white gold and platinum 900 with diamonds and precious stones.
Trade Mark: “NOBLE” brand.
Group Employees: 58. (As at 30-09-2011)
Materials/Commodities: Imported from India, Europe, South Africa, etc.
Markets: US, Europe, Middle East, Japan, China, Southeast Asia and Far East.
Group Turnover:-
· HK$655,349,000 (Year ended 31-03-2007)
· HK$761,976,000 (Year ended 31-03-2008)
· HK$631,947,000 (Year ended 31-03-2009)
· HK$521,328,000 (Year ended 31-03-2010)
· HK$643,399,000 (Year ended 31-03-2011)
· HK$ 22,017,000 (6 months ended 30-09-2010) – Unaudited
· HK$ 39,871,000 (6 months ended 30-09-2011) – Unaudited
Terms/Sales: Various terms.
Terms/Buying: L/C, T/T, etc.
· Federation of Hong Kong Industries, Hong Kong. [Member No. A6376]
· Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
· Jewelers Board of Trade, USA.
·
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKN0109]
Nominal Share Capital: HK$1,000,000.00 (Divided into 10,000 shares of HK$100.00 each)
Issued Share Capital: HK$1,000,000.00
Indebtedness: HK$17,300,000.00
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 09-06-2011)
Mortgage or Charge (since 2007): (See attachment)
Group Profit Attributable to Owners of the Group:-
· HK$56,294,000 (Year ended 31-03-2007)
· HK$60,627,000 (Year ended 31-03-2008)
· HK$ 1,330,000 (Year ended 31-03-2009)
· HK$ 3,140,000 (Year ended 31-03-2010)
· HK$ 7,613,000 (Year ended 31-03-2011)
· HK$11,460,000 (6 months ended 30-09-2010) – Unaudited
· HK$11,827,000 (6 months ended 30-09-2011) – Unaudited
Profit or Loss: Business is profitable.
Condition: Keeping in an active and satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
· Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Hang Seng Bank Ltd., Hong Kong.
· DBS Bank (Hong Kong) Ltd., Hong Kong.
· China Construction Bank (Asia) Corporation Ltd., Hong Kong.
Standing: Normal.
Noble Jewelry Ltd. is a wholly-owned subsidiary of Noble Jewelry (BVI) Ltd. which is a BVI-registered firm. The ultimate holding company of the subject Noble Jewelry Holdings Ltd. [Noble] is a listed firm in Hong Kong.
Listed on the Main Board of The Stock Exchange of Hong Kong Ltd. bearing stock code 00475, Noble is principally engaged in the design, manufacturing and wholesale of fine jewellery products in the PRC. With design and manufacturing facilities based in the city of Panyu, Guangdong, China, Noble’s products comprise a wide range of fine jewellery products with different styles predominantly consisting of diamond, gemstone and semi‑precious stone products, mostly designed by its own product development and design team under the model of original design manufacturing [ODM], serving jewellery distributors and retailers in the PRC.
For the year ended 31st March, 2011, the Noble Jewelry Group achieved steady business growth during the year. Turnover rose by 23.4% to HK$643.4 million as compared with HK$521.3 million in the previous financial year while gross profit grew by 10.0% from HK$137.9 million to HK$151.7 million. Net profit attributable to shareholders amounted to HK$7.6 million (2010: HK$3.1 million).
Through continuous efforts in diversifying both in terms of markets and customers, the Group obtained a greater volume of orders from Indonesia and the Middle East. The wholesale business, including ODM and original brand manufacturing [OBM], continued to be a major revenue source to the Group. Turnover from the business grew by 21.2% to HK$585.8 million (2010: HK$483.5 million), accounting for 91.0% of total turnover. The Group’s business development strategy has successfully delivered sustainable growth. The customer knowledge management [CKM] system has optimized the Group’s efforts toward servicing those financially stronger customers with greater potential to expand their business, as well as customers who can generate significant recurring revenue and are more readily able to accept price increases. In addition, the comprehensive original strategy management [OSM] program provides assistance in devising and supporting the business development strategies of customers, helping the Group to forge closer ties with current and prospective customers.
Due to the better performance in the six months ended 30th September, 2011 [1H 2012] as a result of the greater emphasis and effort put on expanding and improving the wholesale distribution channels in the PRC by the Group and the positive consumer sentiment in the PRC jewelry wholesale market, the Continuing Operations achieved steady business growth during the period under review. The increase in turnover in 1H 2012 was mainly attributable to the subsisting rise in gold and diamond prices during the period. As a result, the turnover of the Continuing Operations rose significantly by approximately 81.4% from approximately HK$22.0 million for the six months ended 30th September, 2010 [1H 2011] to approximately HK$39.9 million for 1H 2012. Gross profit for the Continuing Operations grew by approximately 102.9% from approximately HK$3.4 million for 1H 2011 to approximately HK$6.9 million for 1H 2012 with gross profit margin maintaining at 17.3% as compared to 15.5% for 1H 2011. Net profit for the Continuing Operations rose from approximately HK$0.5 million for 1H 2011 to approximately HK$3.4 million for 1H 2012.
Despite the ongoing financial instability in US and European regions, the Group’s Continuing Operations were able to achieve respectable growth in the PRC, with sales in the PRC market (excluding Hong Kong) rising by approximately 81.4% to HK$39.9 million. Through continuous efforts in expanding its wholesale distribution channels and expanding the sales force by hiring more sales staff, the Group obtained a greater volume of orders from all across PRC during 1H 2012. Pursuing continuous strategy for customer-segment and geographical diversification in the PRC market also remained effective and fruitful in driving the business growth during the period of 1H 2012.
In 1H 2012, two directors joined in the board of directors of the Group, namely, Mr. Yangjun and Mr. Hu Yishi.
As at 30th September, 2011, the Continuing Operations had a total of 58 employees (31st March, 2011: 91 employees).
As the history of the subject is over 19 years in Hong Kong, on the whole, consider it good for normal business engagements.
REMARKS:
Brief personal profile of the principal directors:-
Mr. CHAN Yuen Hing, Johnny, aged 50, is the Chairman and an Executive Director. Mr. Johnny Chan is the founder starting the business in 1983 as a sole proprietorship. He has over 20 years’ experience in the jewelry industry and is familiar with the jewelry markets in Hong Kong, the US, Europe, the Middle East and Japan. Mr. Johnny Chan is responsible for overall strategic planning and development. He completed an advance learning program for an executive Master’s degree in Business Administration in the Zhong Shan University in 2004. Mr. Johnny Chan was awarded the Young Industrialist Awards of Hong Kong in 2000.
Mr. TANG Chee Kwong, Stephen, aged 57, is the Chief Executive Officer and an Executive Director. He joined the Group in 2002 and is responsible for business policy formulation and execution. Mr. Stephen Tang had previously worked at Hang Seng Bank for almost 30 years and was a senior relationship manager at the time of his resignation from the bank in 2002. Under sponsorship by Hang Seng Bank, Mr. Stephen Tang completed an executive development program organised by the Kellogg Graduate School of Management at the Northwestern University in the US in 1997. Mr. Stephen Tang is an associate member of The Hong Kong Institute of Bankers and The Chartered Institute of Bankers in the United Kingdom.
Court case:-
|
Action
Date |
Case
No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
May 1998 |
H8049 |
Sugem |
Noble Jewelry Ltd. |
Goods Sold and Delivered |
US$277,208 |
Property
information of the company:-
Property Location: Unit M on 12/F. of Kaiser Estate, 3rd
Phase,
9-11A Hok Yuen Street and 18 Man Lok Street, Kowloon, Hong Kong.
Owner: Noble Jewelry Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
28-12-2010 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Legal charge to secure general banking facilities |
(Since 2007)
|
Date |
Particulars |
Amount |
|
28-12-2010 |
Instrument: Legal Charge/Mortgage Property: 118/5,000th parts or shares of and in Section I of Kowloon Marine Lot No. 40 and Subsection 1 of Section H of Kowloon Marine Lot No. 40 (Unit M on 12/F. of Kaiser Estate, 3rd Phase, 9‑11A Hok Yuen Street and 18 Man Lok Street, Kowloon, Hong Kong.) Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
27-10-2011 |
Instrument: Security Over Deposits with the Bank (Limited Company – Under Seal) Property: A deposit with chargee in the amount of HK$5,170,000.00 under Deposit A/C No. 026‑241521, whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further monies in any deposit account with the chargee at any of its offices Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Amount secured – (i) all monies in any currency owing by the Company to the chargee at any time, actually or contingently, in any capacity, alone or jointly with any other person; (ii) interest on such monies, to the date on which the chargee receives payment, at the rates payable by the Company or which would have been payable but for any circumstance which restricts payment and (iii) all expenses of the chargee in perfecting or enforcing the charge |
DIAMOND INDUSTRY –
INDIA
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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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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
–
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months
ago, they had not repaid these dues. Bankers believe many diamantaires
borrowed money during the economic downturn two years ago and diverted funds to
businesses like real estate and capital markets. Many of themselves made money
from these businesses but their diamond companies have gone sick and declared
insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.79 |
|
UK Pound |
1 |
Rs.85.17 |
|
Euro |
1 |
Rs.69.53 |
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 |
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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 |
|
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 |
|
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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.