Will shift from diamonds only to coloured gemstone jewellery too
The new Chairman/MD of Blue Diamonds Jewellery Worldwide PLC, Mr. Xia Liqiang has in the annual report of the troubled company pledged to make it a world leader in the jewellery business.
Liqiang who assumed office in April this year following the resignation of the previous management has told shareholders that Blue Diamonds had unfortunately posted a net loss of Rs.36.4 million in the year ended March 31, 2014, up from a loss of Rs.26.2 million the previous year.
He said that the company’s tie-up with one customer in the Middle East had prevented its penetration into new markets in that region and orders had reduced, revenue was down and they were not able to negotiate new orders.
"Learning from the past, we have now decided to manufacture coloured gemstone jewellery for the first time without curtailing (limiting) ourselves only to diamond jewellery," he said.
Being a Chinese national with vast experience in the jewellery business in China and knowing market requirements in that country, they have made plans to showcase jewellery using gemstones only found in Sri Lanka, he said.
They have also participated in local exhibitions and made inroads reaching untapped local clientele.
Liqiang announced that they would participate in the biggest jewellery exhibition in the UK and China within the next two months and he was confident that they would be able to obtain new buyers and orders.
"As you know China will be the biggest economy in the world soon and with my associates over there, I will be able to penetrate that market without any hindrance," he said.
He also said he had remodeled the management of the Blue Diamonds factory by introducing Chinese methods that have proved without doubt to be the best in the world.
The company’s auditors, KPMG, has without qualifying their opinion emphasized that the company had incurred a loss of Rs.36.4 million in the year under review and carried Rs.96 million accumulated losses in its books.
"Although these conditions indicate the existence of uncertainty regarding the company’s ability to continue as a going concern, considering the liquid assets of the company and the future plans as described in Note 30 to these financial statements, no adjustments have been made in these financial statements," the auditors said.
The Note 30 in the accounts referred to states that despite losses incurred in the financial years ended March 31, 2013 and 2014 and accumulated losses, the directors were of the view that the company was financially viable and could meet its obligations considering its liquid assets and future plans.
They have also obtained satisfactory new orders and achieved full factory capacity in the current financial year with the introduction of new buyers and were not dependent on a limited number of customers following the expansion of their customer base.
"During the year the company has also been able to settle major part of pending legal cases. In addition to above, the company has also taken steps to move on to new products such as traditional jewellery, plain gold jewellery to enhance the product range and the company is currently operating at a zero debt basis," the note explained.
The new Chairman/MD Mr. Xia Liqiang is the Chairman of VVS Lanka Holding (Pvt) Limited, Shenzhen Beneficial Investment Co. Ltd., Suntopway Solar Group and Liyan Lanka Jewelry Co. Ltd.
He had worked for the Chinese Government for eight years and subsequently has acquired 20 years experience in the fields of renewable energy, jewellery industry and hotel business in various parts of the world.
Ms. Zhao Min another director of the company is Managing Director of Liyan Lanka Jewelry Co. Ld. and has 10 years experience in the jewellery industry in China.
Mr. D.T. Jayanetti, an Executive Director of Blue Diamonds has had wide experience both in public and private sectors having been a former Chairman of Janatha Estate Development Board, State Plantation Corporation, Elkaduwa Plantations (Pvt) Ltd., and also served on the boards of the Sri Lanka Tea Board and the Sri Lanka Rubber Research Institute. He is CEO of Nakshasrtra Overseas (Pvt) Ltd and Blue Diamonds Jewellery Worldwide PLC.
Blue Diamonds has a stated capital of Rs.208.4 million, a general reserve of Rs.135 million and a revaluation reserve of Rs.17.7 million. Total assets ran at Rs.318.8 million and total liabilities at Rs.53.9 million.
Mr. Xia Liqiang with 17.89% is the biggest shareholder of the company with Sri Lanka Insurance Corporation’s General Fund owning 10.22%.
Net assets per share had grown to Rs.1.68 in the year under review from Rs.1.48 a year earlier and the voting share traded between a high of Rs.4.40 and a low of Rs.1.30 during the year against a trading range of Rs.13 to Rs.1.90 the previous year.
The directors of the company are: Mr. Xia Liqiang (Chairman/MD), Ms. Zhao Min, Messrs. D.T. Jayanetti, Guo Wei, Yang Chang, Ms. He ‘Dan, Ms. S.P. Perera and Ms. D.S.H. Gamage.
www.island.lk
The new Chairman/MD of Blue Diamonds Jewellery Worldwide PLC, Mr. Xia Liqiang has in the annual report of the troubled company pledged to make it a world leader in the jewellery business.
Liqiang who assumed office in April this year following the resignation of the previous management has told shareholders that Blue Diamonds had unfortunately posted a net loss of Rs.36.4 million in the year ended March 31, 2014, up from a loss of Rs.26.2 million the previous year.
He said that the company’s tie-up with one customer in the Middle East had prevented its penetration into new markets in that region and orders had reduced, revenue was down and they were not able to negotiate new orders.
"Learning from the past, we have now decided to manufacture coloured gemstone jewellery for the first time without curtailing (limiting) ourselves only to diamond jewellery," he said.
Being a Chinese national with vast experience in the jewellery business in China and knowing market requirements in that country, they have made plans to showcase jewellery using gemstones only found in Sri Lanka, he said.
They have also participated in local exhibitions and made inroads reaching untapped local clientele.
Liqiang announced that they would participate in the biggest jewellery exhibition in the UK and China within the next two months and he was confident that they would be able to obtain new buyers and orders.
"As you know China will be the biggest economy in the world soon and with my associates over there, I will be able to penetrate that market without any hindrance," he said.
He also said he had remodeled the management of the Blue Diamonds factory by introducing Chinese methods that have proved without doubt to be the best in the world.
The company’s auditors, KPMG, has without qualifying their opinion emphasized that the company had incurred a loss of Rs.36.4 million in the year under review and carried Rs.96 million accumulated losses in its books.
"Although these conditions indicate the existence of uncertainty regarding the company’s ability to continue as a going concern, considering the liquid assets of the company and the future plans as described in Note 30 to these financial statements, no adjustments have been made in these financial statements," the auditors said.
The Note 30 in the accounts referred to states that despite losses incurred in the financial years ended March 31, 2013 and 2014 and accumulated losses, the directors were of the view that the company was financially viable and could meet its obligations considering its liquid assets and future plans.
They have also obtained satisfactory new orders and achieved full factory capacity in the current financial year with the introduction of new buyers and were not dependent on a limited number of customers following the expansion of their customer base.
"During the year the company has also been able to settle major part of pending legal cases. In addition to above, the company has also taken steps to move on to new products such as traditional jewellery, plain gold jewellery to enhance the product range and the company is currently operating at a zero debt basis," the note explained.
The new Chairman/MD Mr. Xia Liqiang is the Chairman of VVS Lanka Holding (Pvt) Limited, Shenzhen Beneficial Investment Co. Ltd., Suntopway Solar Group and Liyan Lanka Jewelry Co. Ltd.
He had worked for the Chinese Government for eight years and subsequently has acquired 20 years experience in the fields of renewable energy, jewellery industry and hotel business in various parts of the world.
Ms. Zhao Min another director of the company is Managing Director of Liyan Lanka Jewelry Co. Ld. and has 10 years experience in the jewellery industry in China.
Mr. D.T. Jayanetti, an Executive Director of Blue Diamonds has had wide experience both in public and private sectors having been a former Chairman of Janatha Estate Development Board, State Plantation Corporation, Elkaduwa Plantations (Pvt) Ltd., and also served on the boards of the Sri Lanka Tea Board and the Sri Lanka Rubber Research Institute. He is CEO of Nakshasrtra Overseas (Pvt) Ltd and Blue Diamonds Jewellery Worldwide PLC.
Blue Diamonds has a stated capital of Rs.208.4 million, a general reserve of Rs.135 million and a revaluation reserve of Rs.17.7 million. Total assets ran at Rs.318.8 million and total liabilities at Rs.53.9 million.
Mr. Xia Liqiang with 17.89% is the biggest shareholder of the company with Sri Lanka Insurance Corporation’s General Fund owning 10.22%.
Net assets per share had grown to Rs.1.68 in the year under review from Rs.1.48 a year earlier and the voting share traded between a high of Rs.4.40 and a low of Rs.1.30 during the year against a trading range of Rs.13 to Rs.1.90 the previous year.
The directors of the company are: Mr. Xia Liqiang (Chairman/MD), Ms. Zhao Min, Messrs. D.T. Jayanetti, Guo Wei, Yang Chang, Ms. He ‘Dan, Ms. S.P. Perera and Ms. D.S.H. Gamage.
www.island.lk
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