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RAPAPORT...
Kingold Jewelry Inc. reported that its revenue increased 29.9 percent year on year to $1.2 billion for the fiscal year that ended on December 31. Gross margin fell to 4.3 percent of sales compared with 5.6 percent one year earlier. Profit declined 13.5 percent to $28.3 million.
During 2013, Kingold Jewelry processed 51.1 metric tons of 24-karat gold products, an increase of 35.2 percent compared with 2012. Kingold anticipates processing between 60 and 70 metric tons of 24-karat gold products in 2014. Zhihong Jia, the chairman and CEO of Kingold, said, "Kingold's growth accelerated throughout 2013, which we believe was largely the result of our continued push to gain market share from competitors in addition to utilizing gold leasing agreements to increase our capacity. This resulted in solid revenue and earnings growth. We are also seeking new means of diversifying our business through the development of the Wuhan Kingold Jewelry International Industry Park, which we believe will be an integral part of the company's long-term growth strategy by creating a major hub for the jewelry industry in the central region of China."
Kingold also anticipates expanding its international presence in 2014, beginning with a recently announced joint venture agreement to enter the Kuwait market. Kingold currently has approximately 300 jewelry business clients across 25 provinces in China. Kingold's investment gold products primarily include gold bars and coins and other customized products specifically designed for use by commercial banks.
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