Kingold Jewelry, Inc. Announces Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2016; Reiterates Production Guidance for the Year 2016
August 12, 2016 at 09:05 pm
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Kingold Jewelry, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. The company's net sales for the three months ended June 30, 2016 increased 56.5% to $390.3 million from $249.4 million for the same period in 2015. The increase was primarily due to an increase in sales volume, the increase of average unit selling price for the Company's branded production, and offset by a loss from currency translation. Net income attributable to common stockholders for the three months ended June 30, 2016 was $19.8 million, or $0.30 per basic and diluted share, compared to net income of $0.6 million, or $0.01 per basic and diluted share in the prior-year period. Income from operations was $39.6 million compared with $0.09 million a year ago. Income from operations before taxes was $26.6 million compared with $0.15 million a year ago. As on June 30, 2016, the company's book value per diluted share was $4.46.
For the six months, the company's net sales were $672.4 million, increased 47.6% from $455.6 million in the first half of 2015. The company's net income attributable to common stockholders was $35.0 million, or $0.53 per basic and diluted share, compared to net income of $7.2 million, or $0.11 per basic and diluted share, in the same period of 2015. Net cash used in operating activities was $466.3 million for the six months ended June 30, 2016, compared with net cash used in operating activities of $23.6 million for the same period in 2015. The significant increase in net cash used in operating activities was mainly due to spending on purchase of inventory of $502.9 million in anticipation of the increased production and sales demand when the Jewelry Park is completed which may stimulate its sales starting from the second half of 2016. Income from operations was $64.8 million compared with $8.9 million a year ago. Income from operations before taxes was $46.9 million compared with $8.7 million a year ago. Purchase of property and equipment was $0.33 million compared with $0.03 million a year ago.
The company processed 20.3 metric tons of 24-karat gold products during the quarter, an increase of 40.1% from 14.5 metric tons a year ago.
For the six months, the company processed 35.2 metric tons of 24-karat gold products compared with 26.8 metric tons a year ago.
The company reiterates its expectation that gold processed will be between 50 metric tons and 60 metric tons during 2016.
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. Announces Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2016; Reiterates Production Guidance for the Year 2016