Kingold Jewelry, Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2018; Reiterates Production Guidance for the Year 2018
May 11, 2018 at 01:36 am IST
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Kingold Jewelry, Inc. reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2018. For the quarter, the company reported net sales of $539,524,055 compared to $292,264,077 a year ago. Income from operations was $61,578,286 compared to $13,243,518 a year ago. Income before income taxes was $17,837,407 compared to loss before income taxes of $23,593,768 a year ago. Net income was $13,234,924 or $0.20 per basic and diluted share compared to net loss of $21,305,819 of $0.32 per basic and diluted share a year ago. Net cash provided by operating activities was $211,445,239 compared to net cash used in operating activities of $54,677,306 a year ago. Purchases of property and equipment were $375,289 compared to $506,991 a year ago. The increase in Net Sales were primarily driven by the higher sales volume for branded production sales and customized production sales. The increase of net cash provided by operating activities was mainly due to the decrease in inventory purchases of 155.3 million because $319.9 million of gold for investment was released to inventory during the three months ended March 31, 2018, a decrease in value added tax receivable of $37 million and an increase in income taxable of $2.0 million.
For the quarter, the company processed a total of 23.3 metric tons of 24-karat gold products, of which branded production was 13 metric tons, representing 55.8% of total gold processed, and customized production was 10.3 metric tons, representing 44.2% of total gold processed in the first quarter of 2018. In the first quarter of 2017, the Company processed a total of 16 metric tons, of which branded production was 8.1 metric tons, or 50.3% of the total gold processed, and customized production was 7.9 metric tons, or 49.7% of total gold processed.
Based on its existing resources and capacity along with strong demand for 24-karat gold products in China, the company reiterates its expectation that gold processed will be between 100 metric tons and 110 metric tons during 2018.
Kingold Jewelry Inc designs and manufactures 24-karat gold jewelry and Chinese ornaments. The Company develops, promotes and sells a range of products to the jewelry market across the People's Republic of China (PRC). The Company offers a range of in-house designed products, including, but not limited to, gold necklaces, rings, earrings, bracelets and pendants. The Company also sells investment gold products through banks in China. The Company sells its products directly to distributors, retailers and other wholesalers, who then sell its products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores.
Kingold Jewelry, Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2018; Reiterates Production Guidance for the Year 2018