Fiscal-year sales for China-based Kingold Jewelry rose 51 percent year on year to $789 million, while cost of sales increased 52 percent to $747 million, for the period that ended on December 31. Net income attributable to shareholders jumped 44 percent to $26.2 million.
Despite reporting sales growth for the full year, Kingold Jewelry noted a weaker fourth-quarter as revenue dropped 9.8 percent year on year to $168.5 million and cost of sales dropped 8.6 percent to $161.3 million. Net income plunged 40 percent to $3.2 million. The company noted that the fourth quarter revenue was impacted by lower prices of gold during the period.
Zhihong Jia, the chairman of Kingold, said, “We were pleased to report solid operating results in 2011. Our focus has been on improving all aspects of our operations, including creating more sophisticated designs of our 24-karat gold products, wider distribution, quality control, and building a diversified customer base.”
Jia concluded that even though the volatile gold market led to a drop in pricing at the end of 2011, the demand for gold and jewelry in China remained strong.