Impressive Third Quarter performance!
November 12, 2010 04:00 PM Eastern Time
Kingold Jewelry Reports Third-Quarter Results
Revenue of $169.7 Million 81.1% Higher Year over Year
Net Income of $5.2 Million 135.1% Higher Year over Year
WUHAN CITY, China--(BUSINESS WIRE)--Kingold Jewelry, Inc. (NASDAQ: KGJI), one of the leading manufacturers of 24-carat gold jewelry in China, today announced financial results for the third quarter of 2010, marked by significant gains in net sales, net income and earnings per share.
Net sales increased 81.1% to $ 169.7 million for the three months ended September 30, 2010, compared to $ 93.7 million for the three months ended September 30, 2009. Net income attributed to common stockholders increased to $ 5.2 million as compared to $2.2 million for the third quarter of 2009, an increase of 135.1%. Earnings per share increased to $ 0.12 per share (diluted) as compared to $ 0.07 per share (diluted), for the third quarter of 2009.
The increase in net sales was primarily driven by the Company’s increased working capital which has allowed it to take advantage of the surge in demand for the items it manufactures. In addition, the Company has also expanded its business operations into additional geographic areas which has broadened sales opportunities.
Net sales increased 76% to $ 338.1 million for the nine months ended September 30, 2010, compared to $ 192.0 million for the nine months ended September 30, 2009. Net income attributed to common stockholders increased to $13.5 million, or $ 0.31 per share (diluted), as compared to $ 5.8 million, or $ 0.17 per share (diluted), for the first nine months of 2009. Cash and cash equivalents for the period ended September 30, 2010 was $ 9.48 million, recognizing a net increase of $1.52 million, or 19.1%, from $7.96 million at December 31, 2009.
Kingold’s third quarter results are summarized below.
INCOME STATEMENT DATA (UNAUDITED)
For the three months ended For the nine months
September 30, ended September 30,
2010 2009 2010 2009
NET SALES $ 169,706,497 $ 93,703,615 $ 338,062,808 $ 192,036,951
GROSS PROFIT $ 8,637,128 $ 3,628,217 $ 21,655,775 $ 9,602,722
INCOME FROM OPERATIONS $ 7,595,762 $ 3,216,739 $ 19,427,028 $ 8,395,600
NET INCOME ATTRIBUTABLE TO $ 5,247,571 $ 2,231,733 $ 13,500,482 $ 5,755,918
COMMON STOCKHOLDERS
EARNINGS PER SHARE - DILUTED $ 0.12 $ 0.07 $ 0.31 $ 0.17
BALANCE SHEET DATA (2010 UNAUDITED, 2009 AUDITED)
September 30, 2010
Decmeber 31, 2009
TOTAL ASSETS
$
79,517,765 $ 62,327,038
STOCKHOLDERS' EQUITY
$
65,643,561 $ 50,823,356
KINGOLD JEWELRY INC.
(FORMERLY ACTIVEWORLDS CORP.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, December 31,
2010 2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 9,484,044 $ 7,964,120
Restricted cash - 1,462,587
Accounts receivable 334,749 485,399
Inventories 50,660,556 31,756,009
Other current assets and prepaid expenses 455,536 101,189
Deferred offering costs 125,994 -
Value added tax recoverable 4,287,164 5,792,014
Total Current Assets 65,348,044 47,561,318
PROPERTY AND EQUIPMENT, NET 13,525,483 14,126,950
OTHER ASSETS
Other assets 144,280 141,198
Intangible assets, net 499,958 497,572
Total other assets 644,238 638,770
TOTAL ASSETS $ 79,517,765 $ 62,327,038
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ - -
Short term loans $ 8,967,055 $ 8,775,522
Other payables and accrued expenses 1,375,197 368,196
Income tax payable 2,004,715 1,347,295
Other taxes payable 61,757 192,415
Value added tax payable - -
Total Current Liabilities 12,408,723 10,683,428
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 500,000 shares
authorized, none issued or outstanding
as of September 30, 2010 and December 31, 2009 - -
Common stock $0.001 par value, 100,000,000 shares
authorized, 42,343,073 and 41,766,404 shares issued and outstanding
as of September 30, 2010 and December 31, 2009, respectively 42,343 41,766
Additional paid-in capital 31,076,541 31,077,118
Retained earnings
Unappropriated 29,108,122 15,669,257
Appropriated 940,528 878,911
Accumulated other comprehensive income 4,476,027 3,156,305
Total Stockholders' Equity 65,643,561 50,823,356
Noncontrolling interest 1,465,482 820,254
Total Equity 67,109,042 51,643,610
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 79,517,765 $ 62,327,038
ABOUT KINGOLD JEWELRY
Kingold Jewelry, Inc. (NASDAQ: KGJI - News), 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 various 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.
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