Kingold Jewelry Reports Third-Quarter Results
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 $7.96 million at December 31, 2009.Kingold’s third quarter results are summarized below.
|INCOME STATEMENT DATA (UNAUDITED)|
|For the three months ended||For the nine months|
|September 30,||ended September 30,|
|INCOME FROM OPERATIONS||$||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||$||5,755,918|
|EARNINGS PER SHARE - DILUTED||$||0.12||$||0.07||$||0.31||$||0.17|
|BALANCE SHEET DATA (2010 UNAUDITED, 2009 AUDITED)|
September 30, 2010
Decmeber 31, 2009
|KINGOLD JEWELRY INC.|
|(FORMERLY ACTIVEWORLDS CORP.)|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|September 30,||December 31,|
|Cash and cash equivalents||$||9,484,044||$||7,964,120|
|Other current assets and prepaid expenses||455,536||101,189|
|Deferred offering costs||125,994||-|
|Value added tax recoverable||4,287,164||5,792,014|
|Total Current Assets||65,348,044||47,561,318|
|PROPERTY AND EQUIPMENT, NET||13,525,483||14,126,950|
|Intangible assets, net||499,958||497,572|
|Total other assets||644,238||638,770|
LIABILITIES AND STOCKHOLDERS' EQUITY
|Short term loans||$||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||-||-|
|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 $0.001 par value, 100,000,000 shares|
|authorized, 42,343,073 and 41,766,404 shares issued and outstanding|
|as of September 30, 2010 and December 31, 2009, respectively||42,343||41,766|
|Additional paid-in capital||31,076,541||31,077,118|
|Accumulated other comprehensive income||4,476,027||3,156,305|
|Total Stockholders' Equity||65,643,561||50,823,356|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||79,517,765||$||62,327,038|
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