|
Report No. : |
353918 |
|
Report Date : |
09.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
NELSON JEWELLERY ARTS CO. LTD. |
|
|
|
|
Registered Office : |
Room 202, 2/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong
|
|
|
|
|
Date of Incorporation : |
30.06.1981 |
|
|
|
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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 : |
3,000 [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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 12.5% of
total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese
companies constituted about 50% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 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, adopted in 2003 to
forge closer ties between Hong Kong and the mainland. The new measures,
effective from March 2015, cover a negative list and a most-favored treatment
provision, and will improve access to the mainland's service sector for Hong
Kong-based companies.
|
Source
: CIA |
NELSON JEWELLERY ARTS CO. LTD.
ADDRESS: Room 202, 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: 3,000.
Main Dealing Bankers: Hang Seng
Bank Ltd., Hong Kong.
The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
NELSON JEWELLERY ARTS CO. LTD.
Registered Head
Office:-
Room 202, 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) 012 1523 1183
Fax: (44) 208 181 6439
E-mail: info-contact@uk.nelson-jewellery.com
Australia Office
Suite 1210, World Tower 87-89 Liverpool Street, Sydney 2000, New South Wales,
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.]
Taiwan Office
Room 911, No. 205, Sec. 1, Dunhua South Road, Taipei City 106, Taiwan.
Tel: (886-2)
2778 2580
Fax: (886-2) 2778 2501
E-mail: twsales@nelson-jewellery.com
Italy Office
Via Paolo Cannobio N.5, 20122, Milano, Italy.
Tel: (023)
938 1078
Email: sales@nelsonitaly.com
Malaysia Office
Suite 19-11-3, Level 11 UOA Centre, No. 19 Jalan Pinang, 50450 Kuala Lumpur,
Wilayah Pereskutan, Malaysia.
Tel: (60)3
2162 2088
E-mail: klsales@nelson-jewellery.com
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
Industrial Road 4, Huizhou Industrial Park, Longmen District, Huizhou City,
Guangdong Province, China 516800.
Tel: (86-752) 7788 299, 5949 889
Fax: (86-752) 5949 899
[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.
Nelson Jewellery (HK) Ltd., Hong Kong.
Nelson Jewellery (International) Ltd., Hong Kong.
Nelson Jewellery Management Ltd., Hong Kong.
Nelson Jewellery Trading Ltd., Hong Kong.
Pan-Hua Nelson Jewellery Arts Co. Ltd., China.
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
(As per registry dated 02-11-2014)
|
Name |
|
No. of shares |
|
Nelson Jewellery Holdings Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
|
15,000,000 ======== |
(As per registry dated 02-11-2014)
|
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. |
(As per registry dated 02-11-2014)
|
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”.
Group Employees: 3,000.
Commodities Imported: Imported from
South Africa, Belgium, Israel and other European countries.
Markets: Hong
Kong, Japan, Southeast Asia, US, 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 very good condition.
Facilities: Making
very active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
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. It is
one of the leading manufacturers and exporters of diamond and jewellery
products in the global market. It 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.
Its products are exported to Asian countries, Europe, the Middle East,
North America, Australia, 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.
Furthermore, Mr. Nelson Ho also received the “Top Ten Business Maker
Award” in 2000.
The subject has set up three factories, one in Hong Kong, one in Panyu
of Guangzhou City while the third in Longmen of Huizhou City. The second and third are in Guangdong
Province, China. The Hong Kong company
is also a factory but the scale is smaller.
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, Taiwan, the United Kingdom, Malaysia,
Italy, etc.
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
85 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:
Europe:
Hong Kong:
Australia:
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 50 staff in Hong Kong.
The subject operates from its own office in Hong Kong.
As the history of the subject in Hong Kong is over thirty years and nine
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 |
|
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.
-
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.66.80 |
|
|
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.72.52. |
|
HKD |
1 |
Rs.8.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.