Gold Product Production Drops 12% – Kingold Jewelry

Kingold Jewelry reported that revenue rose 24 percent year on year to $210.7 million for the third quarter that ended on September 30, 2011. Cost of sales rose 22 percent to $197 million and net income doubled to $9.7 million. The company produced 12 percent fewer 24-karat gold products during the third quarter at 6.61 metric tons.

Gross margins increased to 6.6 percent from 5.1 percent one year ago, and operating expenses decreased by 46.2 percent.

Kingold Jewelry, a manufacturer and designer of 24-karat gold jewelry and ornaments, introduced its gold investment business within China Merchant Bank as well as Bank of Communication during the quarter and completed testing its new e-commerce platform in October.

Zhihong Jia, Kingold’s chairman, said, ”We have worked to maintain a smooth operation in the third quarter of 2011 despite a very volatile gold market during the period. After conducting successful trials of our investment-oriented gold line, we have been working closely with our partners in the banking sector to roll out investment related gold products across China. Our two new distribution centers in Shenzhen and Beijing have also started to perform well, helping us expand smoothly over major local markets in Southern and Northern China.”

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