News

Advanced Search

Kingold's 1Q Revenues +42%, Profit +32%

May 10, 2012 10:53 AM   By Jeff Miller
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Kingold Jewelry reported its first-quarter revenue soared 42 percent year on year to $225 million for the three months that ended on March 31, while cost of sales jumped 44 percent to $213 million. Net profit rose 32 percent to $7.3 million. The company's revenue increase  was primarily driven by higher prices for gold and a greater number of sales for branded jewelry. Gross margin for the period was 5.1 percent, which was down from 5.7 percent one year earlier,  because gold prices increased nearly 9 percent while the company could not raise its processing fee proportionally, according to its financial statement.

Kingold processed approximately 8.84 metric tons [one metric ton = 35,274 ounces] of 24-karat gold products in the quarter, representing a year-on-year increase of 17.6 percent.

Zhihong Jia, the chairman of Kingold, stated, ''We continued to see strong growth in our sales volume during the first quarter of 2012, particularly from our investment gold business. We continue to gradually shift resources to support demand from our bank partners, and were pleased that this has helped serve as a new driver for sales.''

Kingold is now distributing products from its investment gold business to several provinces and municipal locations throughout China, including Beijing, Hubei, Jiangsu, Jiangxi, Liaoning, Zhejiang, Henan and Sichuan. 

New clients of Kingold during the quarter included Harbin Hengyuan Gold Corp., Hangzhou Xingya Jewelry, Wuxi Yinglou and Datong Jintai Jewelry.  ''We were also pleased to receive a AAA credit rating from the Gems & Jewelry Trade Association of China, which we feel is a testament to our reputation in China's jewelry industry and strong financial position,'' Jia said.

Tags: China, gold, investment, Jeff Miller, Jewelry, kingold, products
Similar Articles
Synthetic colored diamondsDe Beers Scores Partial CVD Patent Victory
Feb 09, 2020
A court has awarded a limited victory to De Beers’ synthetic-diamond production unit in a patent dispute with Singapore-based grower
AWDCBelgium Tightens Access to Diamond Trade
Jan 09, 2020
Belgium has introduced legislation requiring managers of diamond companies to prove their good conduct and knowledge
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.