Kingold Jewelry, Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2016; Reiterates Production Guidance for the Full Year of 2016
May 16, 2016 at 05:30 pm EDT
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Kingold Jewelry, Inc. reported unaudited consolidated and production earnings results for the first quarter ended March 31, 2016. For the quarter, net sales were $282,188,057 against $206,195,220 a year ago. Income from operations was $25,178,020 against $8,845,848 a year ago. Income from operations before taxes was $20,263,891 against $8,565,581 a year ago. Net income attributable to company was $15,197,213 against $6,581,204 a year ago. Diluted earnings per share were $0.23 against $0.10 a year ago. Net cash used in operating activities was $214,086,920 against net cash provided by operating activities of $9,357,027 a year ago. Purchase of property and equipment was $42,449. The company's book value per diluted share was $4.29 at March 31, 2016, compared to $4.03 at December 31, 2015. The significant increase in net cash used in operating activities was mainly due to $201 million in inventory purchases in anticipation of increased production/sales demand following the completion of the Jewelry Park, with sales expected to increase beginning the second quarter of 2016.
For the quarter, the company processed approximately 14.8 metric tons of 24-karat gold products during the period, an increase of 20.1% from 12.3 metric tons.
The company reiterates guidance of between 50 and 60 metric tons of 24-karat gold processed in 2016.
Kingold Jewelry Inc designs and manufactures 24-karat gold jewelry and Chinese ornaments. The Company develops, promotes and sells a range of products to the jewelry market across the People's Republic of China (PRC). The Company offers a range of in-house designed products, including, but not limited to, gold necklaces, rings, earrings, bracelets and pendants. The Company also sells investment gold products through banks in China. The Company sells its products directly to distributors, retailers and other wholesalers, who then sell its products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores.
Kingold Jewelry, Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2016; Reiterates Production Guidance for the Full Year of 2016