KGJI Kingold Jewelry Inc (CE)

Kingold Jewelry, Inc. (OTCBB:KGJID), one of the leading manufacturers of 24-carat gold jewelry in China, today announced financial results for the second quarter of 2010, marked by significant gains in net sales, net income and earnings per share.

Kingold also announced that on August 10, 2010, its one-for-two reverse split of its common stock became effective. In connection with the reverse stock split, Kingold’s stock symbol has been changed to “KGJID”.

Net sales increased 78.5% to $ 107.8 million, compared to $ 60.4 million for the three months ended June 30, 2010. Net income attributed to common stockholders increased to $ 4.3 million, or $ 0.05 per share (diluted), an increase of 196.6%, as compared to $ 1.45 million, or $ 0.02 per share (diluted), for the second quarter of 2009.

Net sales increased 71% to $ 168.4 million, compared to $ 98.5 million for the six months ended June 30, 2010. Net income attributed to common stockholders increased to $ 8.3 million, or $ 0.09 per share (diluted), as compared to $ 3.2 million, or $ 0.05 per share (diluted), for the first six months of 2009. Cash and cash equivalents for the period ended June 30, 2010 was $ 6.6 million, recognizing a net decrease of $1.3 million, or -19.9%, from $7.96 million at December 31, 2009.

Kingold’s second quarter results are summarized below.

  INCOME STATEMENT DATA (UNAUDITED)

For the three monthsended June 30,

 

For the six months ended June 30,

2010   2009 2010   2009   NET SALES $ 107,843,982 $ 60,418,354 $ 168,356,310 $ 98,479,024   GROSS PROFIT 6,999,242 2,862,769 13,018,645 5,983,357   INCOME FROM OPERATIONS 6,224,295 2,389,390 11,831,264 5,082,445   NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 4,304,016 $ 1,451,061 $ 8,252,908 $ 3,196,849   EARNINGS PER SHARE - DILUTED $ 0.05 0.02 $ 0.09 0.05

 

BALANCE SHEET DATA June 30, 2010

(unaudited)

December 31, 2009

TOTAL ASSETS $ 71,962,531 $ 62,327,038 STOCKHOLDERS' EQUITY $ 59,520,283 $ 50,823,356  

ABOUT KINGOLD JEWELRY

Kingold Jewelry, Inc. (OTCBB:KGJID), 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 numerous 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 of the 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.

  KINGOLD JEWELRY, INC.

(FORMERLY ACTIVEWORLDS CORP.)

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN US DOLLARS)

  June 30,   December 31, 2010 2009 (Unaudited)  

ASSETS

  CURRENT ASSETS Cash and cash equivalents $ 6,643,253 $ 7,964,120 Restricted cash - 1,462,587 Accounts receivable 250,820 485,399 Inventories 44,923,854 31,756,009 Other current assets and prepaid expenses 212,395 101,189 Value added tax recoverable 5,649,702 5,792,014 Total Current Assets 57,680,024 47,561,318   PROPERTY AND EQUIPMENT, NET 13,644,058 14,126,950   OTHER ASSETS Other assets 142,360 141,198 Intangible assets, net 496,089 497,572 Total other assets 638,449 638,770 TOTAL ASSETS $ 71,962,531 $ 62,327,038  

LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES Short term loans $ 8,847,678 $ 8,775,522 Other payables and accrued expenses 750,037 368,196 Income tax payable 1,600,228 1,347,295 Other taxes payable 45,811 192,415 Total Current Liabilities 11,243,755 10,683,428   STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value, 500,000 shares authorized, none issued or outstanding as of June 30, 2010 and December 31, 2009 - - Common stock $0.001 par value, 100,000,000 shares authorized, 83,532,777 shares issued and outstanding as of June 30, 2010 and December 31, 2009 83,532 83,532 Additional paid-in capital 31,035,352 31,035,352 Retained earnings Unappropriated 23,885,309 15,669,257 Appropriated 915,767 878,911 Accumulated other comprehensive income 3,600,323 3,156,305 Total Stockholders' Equity 59,520,283 50,823,356   Noncontrolling interest 1,198,493 820,254 Total Equity 60,718,776 51,643,610 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 71,962,531 $ 62,327,038