House & Home
House and Home
House and Home 
Mon, November 15, 2010
Sun, November 14, 2010
Fri, November 12, 2010
WUHAN CITY, China--([ BUSINESS WIRE ])--Kingold Jewelry, Inc. (NASDAQ: [ KGJI ]), one of the leading manufacturers of 24-carat gold jewelry in China, today announced financial results for the third quarter of 2010, marked by significant gains in net sales, net income and earnings per share.
Net sales increased 81.1% to $ 169.7 million for the three months ended September 30, 2010, compared to $ 93.7 million for the three months ended September 30, 2009. Net income attributed to common stockholders increased to $ 5.2 million as compared to $2.2 million for the third quarter of 2009, an increase of 135.1%. Earnings per share increased to $ 0.12 per share (diluted) as compared to $ 0.07 per share (diluted), for the third quarter of 2009.
The increase in net sales was primarily driven by the Companya™s increased working capital which has allowed it to take advantage of the surge in demand for the items it manufactures. In addition, the Company has also expanded its business operations into additional geographic areas which has broadened sales opportunities.
Net sales increased 76% to $ 338.1 million for the nine months ended September 30, 2010, compared to $ 192.0 million for the nine months ended September 30, 2009. Net income attributed to common stockholders increased to $13.5 million, or $ 0.31 per share (diluted), as compared to $ 5.8 million, or $ 0.17 per share (diluted), for the first nine months of 2009. Cash and cash equivalents for the period ended September 30, 2010 was $ 9.48 million, recognizing a net increase of $1.52 million, or 19.1%, from $7.96 million at December 31, 2009.
Kingolda™s third quarter results are summarized below.
| INCOME STATEMENT DATA (UNAUDITED) | |||||||||||
| For the three months ended | For the nine months | ||||||||||
| September 30, | ended September 30, | ||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||
| NET SALES | $ | 169,706,497 | $ | 93,703,615 | $ | 338,062,808 | $ | 192,036,951 | |||
| GROSS PROFIT | $ | 8,637,128 | $ | 3,628,217 | $ | 21,655,775 | $ | 9,602,722 | |||
| INCOME FROM OPERATIONS | $ | 7,595,762 | $ | 3,216,739 | $ | 19,427,028 | $ | 8,395,600 | |||
| NET INCOME ATTRIBUTABLE TO | $ | 5,247,571 | $ | 2,231,733 | $ | 13,500,482 | $ | 5,755,918 | |||
| COMMON STOCKHOLDERS | |||||||||||
| EARNINGS PER SHARE - DILUTED | $ | 0.12 | $ | 0.07 | $ | 0.31 | $ | 0.17 | |||
| BALANCE SHEET DATA (2010 UNAUDITED, 2009 AUDITED) | |||||||||
September 30, 2010 | Decmeber 31, 2009 | ||||||||
| TOTAL ASSETS |
| $ | 79,517,765 | $ | 62,327,038 | ||||
| STOCKHOLDERS' EQUITY |
| $ | 65,643,561 | $ | 50,823,356 | ||||
| KINGOLD JEWELRY INC. | ||||||||||
| (FORMERLY ACTIVEWORLDS CORP.) | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (UNAUDITED) | ||||||||||
| September 30, | December 31, | |||||||||
| 2010 | 2009 | |||||||||
ASSETS | ||||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 9,484,044 | $ | 7,964,120 | ||||||
| Restricted cash | - | 1,462,587 | ||||||||
| Accounts receivable | 334,749 | 485,399 | ||||||||
| Inventories | 50,660,556 | 31,756,009 | ||||||||
| Other current assets and prepaid expenses | 455,536 | 101,189 | ||||||||
| Deferred offering costs | 125,994 | - | ||||||||
| Value added tax recoverable | 4,287,164 | 5,792,014 | ||||||||
| Total Current Assets | 65,348,044 | 47,561,318 | ||||||||
| PROPERTY AND EQUIPMENT, NET | 13,525,483 | 14,126,950 | ||||||||
| OTHER ASSETS | ||||||||||
| Other assets | 144,280 | 141,198 | ||||||||
| Intangible assets, net | 499,958 | 497,572 | ||||||||
| Total other assets | 644,238 | 638,770 | ||||||||
| TOTAL ASSETS | $ | 79,517,765 | $ | 62,327,038 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | - | - | |||||||
| Short term loans | $ | 8,967,055 | $ | 8,775,522 | ||||||
| Other payables and accrued expenses | 1,375,197 | 368,196 | ||||||||
| Income tax payable | 2,004,715 | 1,347,295 | ||||||||
| Other taxes payable | 61,757 | 192,415 | ||||||||
| Value added tax payable | - | - | ||||||||
| Total Current Liabilities | 12,408,723 | 10,683,428 | ||||||||
| COMMITMENTS AND CONTINGENCIES | - | - | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||||
| Preferred stock, $0.001 par value, 500,000 shares | ||||||||||
| authorized, none issued or outstanding | ||||||||||
| as of September 30, 2010 and December 31, 2009 | - | - | ||||||||
| Common stock $0.001 par value, 100,000,000 shares | ||||||||||
| authorized, 42,343,073 and 41,766,404 shares issued and outstanding | ||||||||||
| as of September 30, 2010 and December 31, 2009, respectively | 42,343 | 41,766 | ||||||||
| Additional paid-in capital | 31,076,541 | 31,077,118 | ||||||||
| Retained earnings | ||||||||||
| Unappropriated | 29,108,122 | 15,669,257 | ||||||||
| Appropriated | 940,528 | 878,911 | ||||||||
| Accumulated other comprehensive income | 4,476,027 | 3,156,305 | ||||||||
| Total Stockholders' Equity | 65,643,561 | 50,823,356 | ||||||||
| Noncontrolling interest | 1,465,482 | 820,254 | ||||||||
| Total Equity | 67,109,042 | 51,643,610 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 79,517,765 | $ | 62,327,038 | ||||||
ABOUT KINGOLD JEWELRY
Kingold Jewelry, Inc. (NASDAQ: [ KGJI ]-[ News ]), centrally located in Wuhan, was founded in 2002 and today is one of China's leading designers and manufacturers of 24K gold jewelry sold by weight. The Company sells both directly to retailers and through major distributors across China. Kingold has received various industry awards and has been a member of the Shanghai Gold Exchange since 2003.
Forward-Looking Statements
Statements included in this press release include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors, Cautionary Notice Regarding Forward-Looking Statements and Business sections in the Company's filings with the Securities and Exchange Commission. We use words such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," or similar expressions, variations of those terms or the negative of those terms to identify forward-looking statements. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.
The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any ofthe assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.