MIRA
INFORM REPORT
|
Report Date : |
23.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
NELSON JEWELLERY ARTS CO.
LTD. |
|
|
|
|
Registered Office : |
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
02.11.1984 |
|
|
|
|
Com. Reg. No.: |
09311761 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Importer, Retailer and Exporter of all kinds of jewellery products
including 14K and 18K gold fine diamond jewellery with gem-stone settings,
precious stone jewellery, platinum jewellery and South Sea pearl jewellery. |
|
|
|
|
No. of Employees : |
Over 3,000. (Including Group) |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
NELSON JEWELLERY ARTS
CO. LTD.
Company ADDRESS
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong.
PHONE: 2362 2888, 2362 2333
FAX: 2764 4028
E-MAIL: info@nelson-jewellery.com
custserve@nelson-jewellery.com
MANAGEMENT
Managing Director: Mr. Ho Chi
Kai, Nelson
SUMMARY
Establishment: 30th
June, 1981. (Partnership)
Incorporated on: 2nd
November, 1984.
Organization: Private
Limited Company.
Capital: Nominal: HK$15,000,000.00
Issued: HK$15,000,000.00
Business Category: Jewellery Trader.
Annual Turnover: HK$450~500
million.
Group Employees: Over
3,000.
Main Dealing Bankers: Hang Seng Bank Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
company ADDRESS
Registered Head
Office:-
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong.
Overseas
Offices/Factories:-
Los
Angeles Office
Suite
900, Crown Plaza, 631 South Olive Street, Los Angeles, CA 90014, USA.
Tel: (1-213) 489 3323
Fax: (1-213) 489 1832
E-mail: info@nelsonus.com
New
York Office
Suite
608, 10 West 46th Street, New York, NY 10036, USA.
Tel: (1-212) 398 8682
Fax: (1-212) 398 8683
E-mail: nynelson@nelsonus.com
United Kingdom
Office
Suite
305, The Jewellery Business Centre, 95 Spencer Street, Birmingham, B18 6DA, UK.
Tel: (44) 01215231183
Fax: (44) 2081816439
E-mail: info-contact@uk.nelson-jewellery.com
Australia
Office
Suite
9, Level 14, 323-327 Pitt Street, Sydney 2000, Australia.
Tel: (61) 2-9283-5020
Fax: (61) 2-9283-9250
E-mail: ausales@nelson-jewellery.com
[Operated by Nelson (Aust.) J.A. Pty. Ltd.]
Thailand
Head Office
322/22
14th Floor, Surawong Watthanakarn, Build Surawong Road, Sipraya Bangrak,
Bangkok 10500, Thailand.
Tel: (66-2) 267 1222-5
Fax: (66-2) 267 1221
Thailand
Diamond Factory
Gemopolis Industrial Estate, 47/11 Moo 4 Sukhapiban, 2 Road Prawes, Bangkok
10260, Thailand.
Tel: (66-2) 727 0176-80
Fax: (66-2) 727 0181
China
Panyu Factory
No.
18, Jie-Jin 2 Road, Shatou Town, Panyu, Guangdong Province, China 511490.
Tel: (86-20) 8487 1571
Fax: (86-20) 8487 1517
[Operated by Pan-Hua Nelson Jewellery Arts Co. Ltd.]
China
Longmen Factory
Communication
Building, Right Side Xilin Bridge, Xiangbin East Road, Longcheng Town, Longmen
County, Huizhou City, Guangdong Province, China 516800.
Tel: (86-752) 778 8299
Fax: (86-752) 778 9477
[Operated by Long-Men Nelson Jewellery Co. Ltd.]
Holding Company:-
Nelson Jewellery Holdings Ltd., British Virgin Islands.
Associated/Affiliated
Companies:-
A & N Co. Pty. Ltd., Australia.
China Diamond Production Co. Ltd., Hong Kong.
Long-Men Nelson Jewellery Co. Ltd., China.
Nelgold Ltd., Hong Kong.
Nelson (Aust.) J.A. Pty. Ltd., Australia.
Pan-Hua Nelson Jewellery Arts Co. Ltd., China.
Sun Hing Diamond Co. Ltd., Thailand.
BUSINESS REGISTRATION NUMBER
09311761
COMPANY FILE NUMBER
0143110
MANAGEMENT
Managing Director: Mr. Ho Chi
Kai, Nelson
Contact Person: Mr. John Choi
CAPITAL
Nominal Share Capital: HK$15,000,000.00 (Divided into 15,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$15,000,000.00
SHAREHOLDER
(As per registry
dated 02-11-2011)
|
Name |
|
No. of shares |
|
Nelson Jewellery Holdings Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
|
15,000,000 ======== |
DIRECTORS
(As per registry
dated 02-11-2011)
|
Name (Nationality) |
Address |
|
HO Chi Kai, Nelson |
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong. |
|
CHUNG Yuk Wah, Christina |
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong. |
SECRETARY
(As per registry
dated 02-11-2011)
|
Name |
Address |
|
Adam Christopher HAN |
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong. |
HISTORY
The subject was originally established on 30th June, 1981 as a
partnership concern jointly owned by Mr. Ho Chi Kai and Mr. Chow Lap Koon under
the name of Nelson Jewellery Arts Company.
Re-organized and incorporated on 2nd November, 1984 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.
OPERATIONS
Activities: Importer, Retailer and Exporter.
Lines: All
kinds of jewellery products including 14K and 18K gold fine diamond jewellery
with gem-stone settings, precious stone jewellery, platinum jewellery and South
Sea pearl jewellery.
Trade Mark: “NELSON” brand.
Office Floor Space: 30,000
sq.ft. – owned by associate.
Group Employees: Over 3,000.
Commodities Imported: Imported from South Africa, Belgium, Israel and other European
countries.
Markets: Hong Kong, Japan, Southeast Asia,
USA, Europe, Middle East, Australia, etc.
Annual Turnover: HK$450~500 million.
Terms/Sales:
As per contracted.
Terms/Buying: On
various terms.
MEMBERSHIP
· Federation of Hong Kong Industries, Hong Kong. [Member No. A8577]
· Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
· The Chinese General Chamber of Commerce, Hong Kong.
· The Chinese Manufacturers’ Association of Hong Kong, Hong Kong. [Membership No. 005885]
· The Hong Kong General Chamber of Commerce, Hong Kong. [Membership No. HKN0124]
· The Hong Kong Jade & Stone Manufacturers Association, Hong Kong.
FINANCIAL INFORMATION
Nominal Share Capital: HK$15,000,000.00 (Divided into 15,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$15,000,000.00
Alternation
of Capital:-
|
Initially |
paid up |
HK$ 1,000,000.00 |
|
15-06-2009 |
paid up |
HK$ 14,000,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$ 15,000,000.00 ============== |
Increase
of Nominal Capital:-
|
From |
HK$1,000,000.00 |
to |
HK$15,000,000.00 |
on |
15-06-2009 |
Mortgage or Charge: (See attachment)
Profit or Loss: Business is
profitable.
Condition: Maintaining in a good condition.
Facilities: Making active use of general banking
facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Hang Seng Bank Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
· The Bank of Nova Scotia, Hong Kong Branch.
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
· Bank of China (Hong Kong) Ltd., Hong Kong.
Standing:
Good.
GENERAL
Nelson Jewellery Arts Co.
Ltd. was founded by Mr. Nelson Ho Chi Kai in 1981. The subject is a wholly-owned subsidiary of
Nelson Jewellery Holdings Ltd. which is a BVI-registered firm. It has expanded from a local sub-contractor
to a major diamond and gold jewellery manufacturer.
The subject is one of the
leading manufacturers and exporters of diamond and jewellery products in the
global market. Its is engaged in
manufacturing, marketing and exporting of fine jewellery. It is also trading in fine diamond and
gemstone jewellery, set in platinum and/or gold.
In 1996, the subject became
the first jewellery manufacturer got “The Hong Kong Award for Industry:
HKPC Productivity”. Mr. Nelson Ho was
also bestowed the title of “The Young Industrialist of Hong Kong” in 1998. The title has showed the public recognition
of his achievements in management and contribution to Hong Kong’s jewellery
industry. Furthermore, Mr. Nelson Ho
also received the “Top Ten Business Maker Award” in 2000 for his extraordinary
accomplishments in exploring the international market.
Having a diamond polishing
and stone cutting factory in Bangkok, Thailand, the subject fully controls the
quality and quantity of its diamond products.
Additionally, its three large jewellery factories in China and Hong Kong
are equipped with high technology to maximize its productivity. Its significant factories in China are China
Panyu Factory and China Longmen Factory.
The former is in Panyu, Guangzhou City, Guangdong Province, China while
the latter is in Huizhou City, Guangdong Province, China.
The subject’s Hong Kong
factory covers an area of about 3,000 sq.ft.
All of the subject’s products are ISO 9001:2000 certified.
The subject’s operations
are backed up by a number of overseas sales offices in New York, Los Angeles,
Miami of the United States, Sydney of Australia, Germany, Shanghai of China,
Taipei of Taiwan and Birmingham of the United Kingdom. The subject’s customers are international
jewellery importers and wholesalers. It
is also a direct marketer of its own products.
It has got about 3,000 employees including factory workers and overseas
staff.
The subject has been a
market leader in the jewellery manufacturing industry for many years. In 1995, the subject innovated the
utilisation of laser welding technology and the wax setting technique to
enhance productivity. It also has
adopted the CAD/CAM model-making technology for automating its design
processes.
In 2000, Mr. Nelson Ho
invested more than US$2 million to introduce the world’s premier SAP-ERP
Enterprise Resource Management System, making the subject the first company in
the world to apply the system in the jewellery industry.
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. For instance, it is going to take part in
“HKTDC Hong Kong International Jewellery Show 2012” which will be held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
16th to 20th February, 2012.
The annual sales turnover
of the subject ranges from HK$450 to 500 million. Business is lucrative.
As the history of the
subject in Hong Kong is over twenty-seven years and two months, on the whole,
consider it good for normal business engagements.
REMARKS
Property information of affiliate:-
Property Location: 2/F.,
Guardforce Centre, 3 Hok Yuen Street East, Kowloon, Hong Kong.
Owner: Nelgold Ltd.
Date of Purchase: 18-02-1998
Purchased Price: HK$28,000,000
pt.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
18-02-1998 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
|
02-05-2000 |
Instrument: Charge Over Deposits Property: By way of fixed charge and release to The Bank of Nova Scotia all
their present future rights in the respect of: (a) the sum deposited by
Nelson Jewellery Arts Co. Ltd. or for their benefit in the account or as
evidenced by the deposit instrument or other evidence of indebtedness; and (b)
all other sums in any currency from time to time standing to Nelson Jewellery
Arts Co. Ltd.’s credit or the credit of any other persons for their benefit
on any deposit account Mortgagee: The Bank of Nova Scotia,
Hong Kong Branch. |
All banking facilities or other accommodation or services |
|
27-11-2006 |
Instrument: Security Over Deposits with The Bank
(Limited Company – Under Seal) Property: All monies for the time being standing to the credit of the deposit
account No. 009-206251-003 Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure general banking facilities |
|
10-06-2010 |
Instrument: Deed of Indemnity, Charge Over Deposit
and Set‑off Property: All the Company’s estate, right, title, claim, benefit and interest to
and in the Deposit (account no. 01266292074939) and all interest from time to
time payable thereon and together with all title deeds or documents relating
thereto Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
All moneys in respect of general banking facilities |
|
21-04-2011 |
Instrument: Charge Over Deposits (2-Party) Property: All monies and deposits now or hereafter in the time deposit Account
No. 394-141311 and 394-141311-001 kept by the Company with Hang Seng Bank
Ltd. Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all monies and liabilities which are now or at any time
hereafter may be outstanding owing or payable by the Company to Hang Seng
Bank Ltd. |
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.
-
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.
-
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 –
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.
-
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.50.33 |
|
|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.31 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.