Table of Contents
1 Executive Summary
2 Corporate Profile:
3 Macro Analysis
4 Industry Analysis
5 Company Analysis
5.1 SWOT analysis
5.2 Ratio&Trend Analysis
5.3 Industry Comparison
5.4 Review of components in the annual report
5.5 Quality of earnings

6 Conclusion
7 References
Appendix

1 Executive Summary

2 Corporate Profile:
Tse Sui Luen Jewellery (International) Ltd., through its subsidiaries, manufactures, sells, and markets jewellery products. The Company also provides related agency services and invests in properties.In 1987,it listed in Hong Kong Stock Exchange(stock code:417).

3 Macro Analysis

4 Industry Analysis

5 Company Specific Analysis
5.1
The decline results from the increase in dividends payment.

5.2.1 Liquidity Ratios: Short-term Solvency
In Statement of Financial Position, Current ratio is 2.17 in 2013 and 1.72 in 2012, while Quick ratio is 1.72 in 2013 and 0.92 in 2012. The data is good and above the benchmark. The current ratio is around 2, meaning that half of the current assets cannot be turned in cash in the short term, but all current liabilities can be repaid. And the components of current assets are cash and current tax assets, while the current liabilities are convertible bonds.Also, the percentage of inventories drops a little, indicating an efficient short-term liquidity.
5.2.2 Operating efficiency
In Consolidated Statement of Financial Position, days to sell inventory is from 170.62 days last year to 160 days current year. The improvement in inventory turnover ratio reflects an improvement in liquidity of inventory.It impies a shortened period of inventory held and quicker turnover of goods sold, which is positive. As a result, the company shows a good operating performance.

5.2.3 Asset management
The trend of Current Asset turnover is deteriorating from 1.899 to 1.7029, indicating an inefficient utilization of current asset to generate to sales. Meanwhile, the non-current asset turnover as well drops, from a level of 3.57 to 2.83 resulting from a great increase in the Interests in subsidiaries. It turns out the ability of asset generating to