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Kingold Jewelry’s Sales -10% in 2015 as Gold Price Dips
Mar 29, 2016 10:21 AM
By Rapaport News
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RAPAPORT... Kingold Jewelry, a China-based designer and manufacturer of
gold products, reported sales fell 9.7 percent to $1 billion last year as the price of the precious metal fell.
The price of the precious metal on Comex declined 11 percent in 2015, according to data compiled by Bloomberg.
Revenue was
also negatively affected by currency
exchange-rate fluctuation, the Wuhan-headquartered company said in a statement
March 28.
"In 2015,
we faced challenges from the declining market price of gold which negatively
impacted the company's customers' purchase of gold,” said Zhihong Jia,
Kingold’s chairman and chief executive officer.
Gold sales by
volume fell 6 percent to 56.5 metric tons in 2015 but still exceeded the
company’s guidance of 45 to 55 metric tons.
Profit for the
year dived 85 percent to $6.8 million.
The
construction of the company’s new operations center and showroom, known as the
Jewelry Park, was delayed by cold weather and building workers’ leave during
the Chinese New Year, pushing completion back three months to April.
During the
fourth quarter of 2015, sales jumped 34 percent year on year to $280.8 million,
while the company swung to a loss of $198,791 from a profit of $8.4 million a
year earlier.
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Tags:
China, gold, Jewelry, Kingold Jewelry, Manufacturing, Rapaport News
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