Kingold Jewelry, Inc. announced unaudited consolidated earnings and operating results for the third quarter and first nine months ended September 30, 2016. For the quarter, the company announced net sales of $390,547,042 compared to $263,762,713 for the same period a year ago. Income from operations was $46,444,348 compared to $12,185,694 for the same period a year ago. Income from operations before taxes was $21,033,630 compared to $11,914,375 for the same period a year ago. Net income was $15,711,951 compared to $8,764,990 for the same period a year ago. Net income attributable to common stockholders was $15,712,396 or $0.24 per basic and diluted share compared to $8,765,438 or $0.13 per basic and diluted share for the same period a year ago. Net sales increased primarily as a result of increase in total sales volume in amount of $84.7 million, the increase in the average unit selling price for branded production in amount of $63.2 million, offset by approximately $17.1 million of foreign currency translation loss.

For the first nine months, the company announced net sales of $1,062,995,744 compared to $719,378,985 for the same period a year ago. Income from operations was $111,230,307 compared to $21,121,132 for the same period a year ago. Income from operations before taxes was $67,907,976 compared to $20,625,263 for the same period a year ago. Net income was $50,669,775 compared to $15,919,631 for the same period a year ago. Net income attributable to common stockholders was $50,671,685 or $0.76 per diluted share compared to $15,920,267 or $0.24 per basic and diluted share for the same period a year ago. Net cash used in operating activities was $726,339,615 compared to $33,997,165 for the same period a year ago. Purchase of property and equipment was $306,652 compared to $59,406 for the same period a year ago. Book value per share at the period end was $4.03. The increase in Net Sales were primarily driven by increase in total sales volume in amount of $308.9 million, the increase in the average unit selling price for branded production in amount of $91.5 million, partially offset the decreased sales in customized production, and offset by approximately a $45.9 million foreign currency translation loss. The significant increase in net cash used in operating was mainly due to purchase of inventory of $817.8 million in anticipation of the increased production and sales demand when the Jewelry Park is completed which may stimulate Kingold's sales starting from the second half 2016.

In the third quarter of 2016, the company processed a total of 20.6 metric tons of gold, of which branded production was 10 metric tons, representing 48.3% of total gold processed, and customized production was 10.6 metric tons, representing 51.7% of total gold processed. In the third quarter of 2015, the Company processed a total of 13.5 metric tons, of which branded production was 7.8 metric tons, or 58.0% of the total gold processed, and customized production was 5.7 metric tons, or 42.0% of total gold processed.

For the first nine months, the company processed 55.7 metric tons of gold compared to 40.3 metric tons of gold for the same period a year ago.

The company raised its guidance for gold processed during 2016 from between 50 metric tons and 60 metric tons to between 60 metric tons and 65 metric tons.