Building According To The Golden Rule
From our world-class production facilities to our uncompromising labor practices, every facet of Kingold's operations reflects a profound commitment to excellence and to building lasting relationships with customers and employees alike.
Those core values have been landmarks of Kingold Founder and CEO Zhihong Jia's entire career-from his military years with the People's Liberation Army where he held a range of senior responsibilities including managing several major goldmines, to founding and building Kingold into a major industry player.
Today, the company and has distinguished itself as a respected brand within an industry characterized by marginal labor practices and inconsistent production quality.
That commitment to integrity and quality will remain a cornerstone of the company's future as Kingold aggressively pursues its strategy of becoming the most dominant player in China's 24-karat gold jewelry market.
Third Quarter 2011 Highlights
- Revenue increased 24.2% to $210.7 million from $169.7 million in the third quarter 2010
- Gross profit rose 62% to $14 million from $8.6 million in the third quarter 2010
- Net income attributable to common stockholders grew 103.5% to $9.3 million, or $0.18 per diluted share, from $4.6 million, or $0.10 per diluted share, in the third quarter 2010
- In the third quarter, Kingold started to roll out its investment related gold business across networks within China Merchant Bank as well as Bank of Communication.
- Kingold completed testing at the end of September of its new e-commerce channel and successfully launched the new initiative in October.
Based on the Company's performance during the first nine months of 2011 and management's current outlook for the remainder of the year, the Company has reassured its full year 2011 revenue guidance to a range of between $800 million and $850 million and net income guidance between $32 million and $34 million.
"Our performance in the first nine months of 2011 reinforces our optimism for another year of strong organic growth at Kingold," commented Mr. Jia. "Domestic demand for 24-karat gold products is still robust and we have been well positioned to take advantage of surging consumer demand in China."
Kingold Launches E-Commerce Strategy with M-Gold
Following the successful conclusion of a two month beta Kingold has just launched its new e-commerce business at www.m-gold.com.cn
.The new site carries a wide variety of Kingold's higher-end 24 karat gold products which are designed and manufactured in-house at Kingold's facility in Wuhan
. Products include jewelry, household ornaments, investment related products such as gold coins and bars, and M-Gold, Kingold's branded line of marriage products; and will target newly affluent customers throughout China
."We are excited about launching our internet business and believe that we are the first major jewelry designer and manufacturer to sell 24 karat gold products on-line. This initiative will enable Kingold to take it's beautifully designed and executed products directly to consumers throughout China
, many of whom have up till now not had the ability to purchase our products," commented Chairman Jia. "It will also result in far higher margins to Kingold than our traditional business model, where we primarily supply to distributors, not to end-users."E-commerce is growing explosively in China
, with over 150 million people shopping online in China
today, according to Shanghai
-based iResearch. One of the reasons behind this growth is that consumers feel more comfortable shopping online as a result of third-party payment systems such as Alipay, and the increasing acceptance of debit and credit cards."Building our Internet presence is one of the many strategies we are employing in building Kingold into the major national brand of 24 karat gold products in China
," continued Chairman Jia. "We expect to announce other initiatives in the near future which will serve to reinforce these efforts and set the basis for our continued expansion."Customers will be able to pay for purchases from the new site both directly, via online banking, and indirectly, through third party payment systems.
Wuhan Rural Commercial Bank Selects Kingold Jewelry to Produce 24K Gold Products
Kingold Jewelry, Inc. ("Kingold") (NASDAQCM: KGJI
), one of the leading manufacturers of 24-carat gold jewelry in China
, today announced that it has entered into an agreement with Wuhan Rural Commercial Bank ("the Bank") for the distribution of Kingold's investment-related products such as gold coins, bars and ornaments. It is anticipated that Kingold's investment-related products will be available for purchase by customers throughout the Bank's network of 230 branches across Wuhan
, one of the largest cities in China
with a population of approximately 9 million inhabitants."This is the first of what we anticipate will be a series of initiatives with local banks across China
to target increasingly affluent suburban residents, who are not typically served by the larger national banks," commented Chairman Jia. "This push into suburban China
is complementary to our existing relationships with two of China
's largest national banks, China Merchants Bank and the Bank of Communications, who are currently rolling out our investment products across their network of over 3,000 branches. We anticipate that Kingold's investment related business will start to significantly impact revenues by the end of this year, and become a meaningful contributor in 2012."