|
Report Date : |
08.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
NELSON JEWELLERY ARTS CO. LTD. |
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Registered Office : |
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
30.06.1981 |
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Com. Reg. No.: |
09311761 |
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|
|
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Legal Form : |
Private Limited Company. |
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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. |
|
|
|
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No. of Employees : |
3,300 |
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 : |
Good |
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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.
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% of total system deposits in Hong Kong by the end of 2013. 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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% in 2013. 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 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies
|
Source
: CIA |
NELSON JEWELLERY ARTS
CO. LTD.
ADDRESS: 2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2362 2888, 2362 2333
FAX: 852-2764 4028, 2330 3274
E-MAIL: info@nelson-jewellery.com
custserve@nelson-jewellery.com
hr@nelson-jewellery.com
Managing Director: Mr. Ho Chi Kai, Nelson
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$500~550 million.
Group Employees: 3,300.
Main Dealing Bankers: Hang Seng Bank Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
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.
09311761
0143110
Managing Director: Mr. Ho Chi Kai, Nelson
General Manager: Ms. Candy Lau
Contact Person: Mr. Roy Tam
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 02-11-2013)
|
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 02-11-2013)
|
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 02-11-2013)
|
Name |
Address |
|
Adam Christopher HAN |
2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong. |
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.
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”.
Office Floor Space: 30,000 sq.ft. – owned by associate.
Group Employees: 3,300.
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$500~550 million.
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
MEMBERSHIP: Federation of Hong Kong Industries,
Hong Kong.
[Membership No. A8577]
Hong Kong Jewellery &
Jade Manufacturers Association, Hong Kong.
[Membership No. 123]
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]
Tahitian Pearl Association Hong Kong.
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: Very Good.
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. The directors of the subject are Nelson Ho Chi Kai and his wife Ms. Christina Chung Yuk Wah.
The subject 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.
The followings are the main products of the subject: diamond ring, emerald ring, sapphire ring, diamond necklace, 18K white gold diamond ruby bracelet, 18K white gold diamond ring, 18K white gold jade diamond ring, emerald necklace, emerald ring, diamond ring, 18K white gold south sea pearl necklace, 18K white gold diamond bracelet, etc.
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 advanced equipment in order 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 Longmen County, 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 such as 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, Milan of Italy, Kuala Lumpur of Malaysia.
Most of 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 recent years, the subject has developed its own branded product bearing the trade mark Nelson. Engaged in Original Brand Manufacturing [OBM], the subject now has about 100 designers working in Hong Kong and China.
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.
The subject takes part in some 40 large-scale trade shows in overseas countries in order to achieve more business opportunities. For instance, it has been taking part in the following shows and exhibitions:-
The United States:
Jewelers Int’l Showcase, Miami (Jan)
JA New York Winter Show (Mar)
Jewelers Int’l Showcase, Miami (Mar)
JCK Las Vegas Show (May)
JA New York Summer Show (Jul)
JA Special Delivery New York (Oct)
Jewelers Int’l Showcase, Miami (Oct)
Europe:
Vicenzaoro Winter, Italy (Jan)
Inhorgenta Munich, Germany (Feb)
Spring Fair Birmingham, UK (Feb)
Baselworld, Switzerland (Mar)
Vicenzaoro Spring, Italy (May)
Int’l Jewellery London, UK (Sep)
Vicenzaoro Fall, Italy (Sep)
Hong Kong:
HK Int’l Jewellery Show (Mar)
HK Jewellery & Gem Fair (Jun)
HK Jewellery & Gem Fair (Sep)
HK Int’l Jewelry Manufacturers’ Show (Nov)
Australia:
JAA Int’l Jewellery Fair, Sydney (Sep)
The subject is also a member of Tahitian Pearl Association Hong Kong.
The annual sales turnover of the subject ranges from HK$500 to 550 million. Business is lucrative and active.
Currently, the subject has about 250 staff in Hong Kong.
As the history of the subject in Hong Kong is over twenty-nine years and four months, on the whole, consider it good for normal business engagements.
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 |
|
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.
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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.
-
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.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
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.
-
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.04 |
|
|
1 |
Rs.101.97 |
|
Euro |
1 |
Rs.83.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.