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I decided to cut my losses.
KGJI SEC Suspension "because of questions regarding the adequacy and accuracy of information in the marketplace about the Company and the market for its securities. KGJI has failed to restate its financial statements for the 2016, 2017, and 2018 fiscal years after its auditor resigned and withdrew its reports on those financial statements and has not filed any periodic reports since it filed a Form 10-Q for the quarter ended September 30, 2019. In mid-February 2021, in the absence of any publicly available information from the media or current information from the Company for about six months, the share price and trading volume of KGJI increased significantly."
https://www.sec.gov/litigation/suspensions/2021/34-91893.pdf
Order:
https://www.sec.gov/litigation/suspensions/2021/34-91893-o.pdf
Its closer alright! SEC suspended!
This is a true "under the radar" stock. A real sleeper. But, the potential is there, and it feels like it's getting closer.
anyne know whats going on with this uptick ? it s a very low floater i know they had a scan of fake gold bars used as deposits anyone has updates ?
KGJI has hit the bottom now. It is going to bound back strong and high. This is the right time to load it up. Don't miss this opportunity. It won't get any cheaper.
just another chinese scam allowed to steal money from taxpayers
KGJI delisted from the Nasdaq to the OTC:
https://otce.finra.org/otce/dailyList?viewType=Additions
Was just playing that song yesterday on my ipod
No gold-plated copper bars, just coppertone...
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Funny, I see golden earrings...
" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=
None of these posts are about KGJI
and the 100% rise today. What am I missing here? I bought in lower today and was looking for more good data.
Company could have solid gold bars and not gold-plated copper bars. Just saying.
Long read but worth the time. GNGR predicted signets demise long ago, here is the communication with the CEO and Signet. Also Kingold data is to sensitive to post publicly but its similar to Signet. Kingold wanted GNGRs mold technology that is lightyears ahead of Chinas.
Post removed from the GUGR website.
Behind the scenes, we attempted many times to enter new markets and ideas and proposals to similar and even competing companies to work together and increase sales and shareholder value. I contacted SIGNET (ticker SIG) "YES I have emails to back up these statements" too possibly partner with GNGR. GNGR would supply SIGNET (owner of KAY and JARED and other jewelry stores) with new ideas in castings. Signet would receive a large amount of shares in GNGR and GNGR would be a supplier to Signet.
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When they elected not to work with GNGR (yes they were NASTY) My closing e-mail to the directors of SIG was the following: "With MY help, SIG will rise to $200 per share and GNGR would rise well above $5 per share", I think they figured they can achieve that without my help, I replied back, "ILL MAKE CONTACT WITH YOU WHEN YOUR STOCK DROPS BELOW $25".
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Well guess what? Signet tanked from $150 to $22.00 ( of course when it hit $24 I emailed the board saying TOLD YA!). Then I said ill be back again when its at $8... READ BELOW! By then the CEO blocked my emails out of denial. On March 16th 2020 the stock fell below $8 as I told the CEO in 2019 (see my email below to the directors)
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Most of Signets board (still) read my emails (and probably really pissed) but the USA contact who blocked my emails as I get a message saying its been blocked "GUESS WHY" I then posted this on a member Facebook page and the shareholders were furious Signet did not look further into my proposal. Of course soon after my posts were blocked.
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SO this is the way it is sometimes, We move ahead and also attempt to work with others. GNGR is growing, how is SIGNET DOING? You be the judge. I also spoke to one investor group. I said here is an offer.
Sell 100,000 of the shares they own in SIGNET at $95 ( the price at the time) and invest that $9,500,000 into GNGR and GNGR will build a new state of the art factory and expand sales to compete with the BIG jewelry companies. I would have given them 100,000,000 restricted shares in GNGR and 50,000,000 in FREE TRADING stock. With this deal GNGR would surly rise back to our 2012 high of $.23 per share or even higher. At that "ACHIEVABLE" level the investors would own 100,000,000 valued at $23,000,000 and the 50,000,000 free trading they could have sold with NO 144 waiting period for $11,500,000 ( easily topping the $9,500,000 investment)
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As it happens, they declined and SIGNET tanked from $95 to $11 then on down to $7.82 per share.
I do believe that this deal would have caused GNGR to rise to $2-$5 per share making their 50,000,000 free trading worth $100,000,000 or more and the 100,000,000 worth between $100,000,000 and $500,000,000. Not to mention GNGR castings sales would be in the millions.
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If they owned 1,000,000 shares at the time valued at $95 and did my deal, my offer would have netted them far more then the losses. If they owned 1,000,000 at $95 is $95,000,000 and at $7.82 comes to $7,820,000 a LOSS of over $87,000,000 POOF GONE! IF they sold it as I told them before it tanks below $25 they would have at least had the cash on hand not lower valued stock.
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Can't imaging loseing that much dough in just a few years believing that just because they are a big company they can't fail. IF they took my offer they would have made up to 5 maybe even 20 times thier loss. Imagine that!
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GNGR is small and when we approach BIG players they seem to think WHO IS GNGR and they dont need us. WELL looks like they made a HUGE mistake having lost $$$ BILLIONS $$$ in share value with shares dropping over 90%+ - OF course I told them ill be back when the stock hits $4 per share.
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GNGR is expanding on our OWN with NO HELP. Sure we try to see if there are other Opportunities and this issue above is NOT isolated, I have many more similar but dont need to waste my time posting them all BUT you get the idea. IF you want to read another similar event (Click here)
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Grant Newsteder
CEO
Sure! will keep them in watchlist, signet will come back strongly, while Kinggold is in serious trouble might crash..!!
The share structure is perfect, only 108,553,765 in the float. The CEO owns almost all the issued with some allies holding a few hundred million. Most of the A/S is restricted.
GNGR is more focused on sales and not the share price (yet)
GNGR will be moving up to OTC current once the financials are all caught up. GNGR is all made 100% in the USA and no portion of production in contracted or outsourced.
If you say that the share structure is the reason 2 out of 3 jewelry companies fail. Well then GNGR is the one that does not.
No worries just wanted to once again show that GNGR was right about Signet (1 of 3) and Kingold (2 of 3) GNGR will be the #3 that does not fail.
Sure bookmark GNGR and just watch what is happening very soon. NO pump, No debt dilution conversion just good old fashioned hard work.
Team10
984K MCap?
4.5B A/S
1.09 O/S
the share structure looks so bad if this is a competing candidate jeweler stock?, though the float is low, O/S above 1B most of the time reflect bad management or poor financials?.... other than the reason 2-3 jewelers going down, is there any reason why is this company or stock may be a good deal? or to be on watch list?
GNGR, are you talking about: Gunther Grant
www.gugr.com ??????
Major update.
Mr. Newsteder was 100% correct about SIGNET (ticker SIG) dropping from $140 to $5.40 and anticipated Kingold would not be able to even have that much gold on hand based on reserves known in the world.
And we just saw this post on his twitter page and got confirmation that in fact NASDAQ listed Kingold is in deep trouble.
Some have said in past posts that it is impossible for GNGR to compete with these major operations. It will now be hard for them to keep up with GNGR from jail.
Signet is almost done, Warren Buffets Benbridge is all but close to being done and kingold is done.
That's a lot of done when GNGR is only doing.
People better open their eyes and ears and leave the true aspects of this industry and how to make it succeed to the professionals like GNGR.
Team10
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almost $ 3Billion fake gold bars?....that is perplexing, how do these criminals do things of that level of fraud and think they will get away?....time and again, time and again!, how fu..kd up are they?...
=================================
Nasdaq-listed firm caught up in 83-tonne fake gold bars scam
Bloomberg News | July 16, 2020 | 9:23 am Intelligence China Gold
https://www.mining.com/web/chinese-jeweler-probed-for-using-fake-gold-bars-for-loans/
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 14, 2020 (November 29, 2019)
KINGOLD JEWELRY, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-15819 13-3883101
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
No. 8 Han Huang Road
Jiang’an District
Wuhan, Hubei Province, PRC
430023
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (011) 86 27 65694977
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, $0.001 par value KGJI The NASDAQ Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Explanatory Note
On July 6, 2020, Kingold Jewelry Inc. (the “Company”) filed a Form 8-K (the “Form 8-K”) to report certain events under Item 2.04. Due to inadvertent errors in the information gathered by the Company, three sentences in Item 2.04 were inaccurate, which stated that, at the time of the report, the Company was still in the process of locating the notices of default it may have received with respect to the unpaid balances of the relevant loans, when in fact it has not received a notice of default from the respective lenders with respect to two loans and one of loans was further extended. This Form 8 K/A is being filed to include the updated disclosure to correct the errors in the filed Form 8-K. The content of this Form 8 K/A is otherwise identical to the content of the original 8-K filed on July 6, 2020.
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
(a) Evergrowing Bank Loans. As previously disclosed, from February 24, 2016 to March 24, 2016, Wuhan Kingold signed ten loan agreements with the Yantai Huanshan Road Branch of Evergrowing Bank for loans of approximately $140.1 million (RMB 1 billion) in aggregate. The purpose of the loans was for purchasing gold. The original terms of loans were two years and bore fixed interest of 4.75% per year. Based on the loan repayment plan as specified in the loan agreements, approximately half of the principal loan amount (RMB 500 million) was repaid upon maturity. For the remaining balance of approximately $70.0 million (RMB 500 million), the Company entered into a loan extension agreement with the bank to extend the loan borrowing period for seven months until October 2018, with the new interest rate of 6.5% per year. The loans were secured by 2,735 kilograms of gold in aggregate with carrying value of approximately $89.1 million (RMB 635.9 million) and were personally guaranteed by the CEO and Chairman of the Company, Mr. Zhihong Jia. Upon the maturity of these loans, the Company entered into a series of supplemental agreements with Yantai Huanshan Road Branch of Evergrowing Bank to extend the term of the loan for an additional 12 months, with new maturity dates between October 9, 2019 and October 21, 2019. From April to September 2019, the Company repaid a total of $42.1 million (RMB 300.5 million) to the bank. As of September 30, 2019, the outstanding balance of the loans amounted to approximately $27.9 million (RMB 199.5 million). The loan subsequently matured in October 2019, and the Company signed a supplemental agreement with the bank to extend the loan’s due date to March 23, 2020. During the fourth quarter of 2019, the Company repaid a portion of the loan and the unpaid balance was approximately RMB 194.5 million as of December 31, 2019. As of the date of this report, Wuhan Kingold has not received from Evergrowing Bank a notice of default or a notice of repayment with respect to the outstanding balance of the loan due on March 23, 2020.
(b) Sichuan Trust Loans.
On September 7, 2016, the Company entered into two trust loan agreements with Sichuan Trust Ltd. (“Sichuan Trust”) to borrow a maximum of approximately $280.2 million (RMB 2 billion) as working capital loan. The required annual interest rate was 8.46%. The Company paid the first interest payment equal to 1.21% of the principal received as loan origination fee on an annual basis. The rest of the interest payments are calculated based on a fixed interest rate of 7.25%. The Company pledged 7,258 kilograms of gold with carrying value of approximately $236.4 million (RMB 1.7 billion) as collateral to secure this loan. The loan was personally guaranteed by the CEO and Chairman of the Company. The Company also made a restricted deposit of approximately $2.1 million (RMB 15 million) to secure these loans. The deposit would be refunded when the loan was repaid upon maturity. As of September 30, 2019, the Company received an aggregate of approximately $210.1 million (RMB 1.5 billion) from the loan. These loans originally had maturity dates between September 20, 2018 and November 30, 2018. During the year ended December 31, 2018, these loans were extended to have maturity dates between November 20, 2019 and January 30, 2020. As of September 30, 2019, 7,258 kilograms of gold with carrying value of approximately $236.4 million (approximately RMB 1.7 billion) were pledged as collateral to secure the loans. The Company stated the parties had agreed to further extend the loans and Wuhan Kingold had also signed the extension agreements. Sichuan Trust has not, however, returned its signed extension agreements to Wuhan Kingold. The loan records Wuhan Kingold obtained from the systems of the People’s Bank of China indicated that the loans were in fact extended with new maturity dates between December 2020 and January 2021. As of the date of this report, Wuhan Kingold has not received a notice of default or a notice of repayment due with respect to the outstanding balance of these loans.
In January 2019, Wuhan Kingold entered into a trust loan agreement in the amount of approximately $43.4 million (RMB 310 million) with Sichuan Trust. The purpose of the trust loan was to purchase raw material gold. The loan period was 12 months from receiving the principal amount. The loan bore interest at a fixed annual rate of 10.7615%. The loan was secured by 1,647 kilograms of gold in aggregate with carrying value of approximately $56.0 million (RMB 399.6 million). The loan was also personally guaranteed by the CEO and Chairman of the Company. On March 17, 2020, Wuhan Kingold received written notice from Sichuan Trust stating that, in light of the impact of COVID-19, Sichuan Trust agreed to extend the term of the loan for six months to July 27, 2020; and that in the event that the COVID-19 lockdown terminates before the extended due date, then Wuhan Kingold is required to repay the loan within one month after the ending of COVID-19 lockdown. The travel restrictions and lockdown were lifted on April 8, 2020. As of the date of this report, the outstanding principal balance of the loan is RMB 310 million. Wuhan Kingold has not received a notice of default or a notice of repayment with respect to this loan.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KINGOLD JEWELRY, INC.
By: /s/ Yi Huang
Name: Yi Huang
Title: Acting Chief Financial Officer
Date: July 14, 2020
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 14, 2020 (July 8, 2020)
KINGOLD JEWELRY, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-15819 13-3883101
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
No. 8 Han Huang Road
Jiang’an District
Wuhan, Hubei Province, PRC
430023
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (011) 86 27 65694977
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, $0.001 par value KGJI The NASDAQ Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On July 8, 2020, Wuhan Kingold Jewelry Co., Limited (“Wuhan Kingold”), a contractually controlled affiliate of Kingold Jewelry Inc. (the “Company”) received a Notice of Acceleration of Repayment Obligations (the “Notice”) from Bank of Zhangjiakou dated July 1, 2020 that an event of default has occurred with respect to a loan agreement entered into between Wuhan Kingold and Bank of Zhangjiakou.
On September 16, 2019, Wuhan Kingold entered into a Working Capital Loan Agreement with Zhangjiakou Bank for a loan of approximately $25.2 million (RMB 180 million). The purpose of this loan was to provide working capital for Wuhan Kingold to purchase gold as raw material. The term of the loan was one year with a maturity date of September 15, 2020. The loan bears fixed interest at 0.625% per month (7.5% per year), and the monthly interest is due on the 21st date of each month. An additional penalty interest will be applied to any unpaid monthly interest. The outstanding balance of loan principal and any remaining interest due must be paid at maturity. The agreement also provided that the bank has the right to accelerate repayment upon a default in interest payments. The loan is secured by 747 kilograms of gold in aggregate with the agreed carrying value of approximately $32.0 million (RMB 228.7 million) and is personally guaranteed by the CEO and Chairman of the Company.
The Notice states the outstanding balance of the unpaid interest due from February to June 2020 was RMB 5.7 million in aggregate. In the Notice, the bank declares that the entire loan shall be due and payable within three days of the delivery of the Notice, including RMB 180 million in principal and all unpaid interest.
Item 8.01 Other Events.
Business Operations of Wuhan Kingold. Wuhan Kingold’s operations have been significantly impacted by the disclosed loan defaults, related loan disputes, various legal proceedings and the resulting freezing of bank accounts. Further, as previously disclosed, its jewelry production had been halted in January through early April 2020 as a result of the COVID-19 outbreak. After Wuhan’s lockdown was lifted in April, Wuhan Kingold resumed its operations, albeit on a much smaller scale. The jewelry production has been limited to customized production, and the factory processes customized products for customers who supply gold to the Company, with virtually no branded production. Revenue generated from the customized product sale has historically counted only a small percentage of the total revenue, and such small revenue amount from recent sales has not been immediately paid by some customers and the unpaid portion is recorded as accounts receivable by the Company. Wuhan Kingold has granted to the delinquent customers a grace period from one to three months for making the payment given its long time relationships with those customers and Wuhan Kingold’s recent challenges. Factory production headcount has decreased from hundreds of employees to approximately 60 employees as of the date of this report. Employee salaries have mostly been funded by borrowings from an affiliated entity and paid through an employee’s personal bank account.
Legal Proceedings. In connection with various loan disputes with multiple lenders as disclosed in the current reports filed in July 2020, Wuhan Kingold and the Company’s CEO and Chairman of the Board, Mr. Zhihong Jia, have been involved in several legal proceedings.
Anxin Litigation Update. As previously disclosed, in February 2020, Anxin Trust Co., Ltd. (“Anxin Trust”) filed a lawsuit against Wuhan Kingold and the Company’s CEO in connection with the loan dispute arising from the loan agreement Wuhan Kingold entered into with Anxin Trust on January 29, 2016, and related extension and supplemental agreements. In April 2020, the plaintiff amended its complaint to add an additional defendant, Wuhan Kingold Industrial Group Co., Ltd, a related party to the Company, to the case and to change the outstanding balance of the due and payable amount under the loan from approximately RMB 0.39 billion in interest to a total of approximately RMB 2.3 billion including approximately RMB 2.0 billion of loan principal. This loan dispute suit is pending with the Shanghai Financial Court (the “Financial Court”). To preserve the defendants’ assets pending the outcome of the trial, in May 2020, the Financial Court issued a ruling and ordered to freeze the defendants’ assets of an aggregate value of approximately RMB 1.9 billion, including bank deposits, real property or personal property. At present, the parties’ suit regarding venue change is pending with the Shanghai High People’s Court and no hearing has been scheduled as of the date of this report.
Enforcement Orders by Court. Wuhan Intermediate People’s Court and Shandong Yantai Intermediate People’s Court have issued multiple orders to enforce Wuhan Kingold’s repayment obligations in accordance with the loan agreements and its performance of the remedy provisions as provided in the agreements upon the occurrence of default events. Such court orders were issued based on the official certification provided by several notary public offices in China certifying that the loan agreements between Wuhan Kingold and the lenders were valid and legally enforceable under Chinese law. In addition, the court orders also directed Wuhan Kingold to report the information regarding all of its assets to the courts.
Government Investigation. An investigation has been launched in Wuhan into the facts related to certain allegations regarding the adequacy and integrity of gold in the control of the lenders that was used as collateral to secure the loans Wuhan Kingold borrowed from those lenders under the relevant loan agreements.
Frozen Bank Accounts. All of Wuhan Kingold’s bank accounts have been frozen in connection with and as a result of various legal proceedings.
Special Committee Update. As previously disclosed, a special committee of the Board (the “Special Committee”) has been established to oversee an internal investigation into certain issues raised to the Board’s attention related to allegations in recent news articles that the gold pledged as collateral by Wuhan Kingold to secure certain loans was not pure gold (the “Internal Investigation”). However, the Special Committee is at present unable to retain independent advisors to conduct the Internal Investigation, because the Special Committee has been advised by the Company management that substantially all of the Company’s bank accounts have been frozen and as a result, the Special Committee is unable to access funds to retain advisors to conduct the investigation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KINGOLD JEWELRY, INC.
By: /s/ Yi Huang
Name: Yi Huang
Title: Acting Chief Financial Officer
Date: July 14, 2020