This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kingold Jewelry Signs Agreement With Shenzhen-based Wholesaler To Process Gold Jewelry Products









WUHAN, China, May 29, 2012 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. (NASDAQ: KGJI), one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, today announced that it has entered into a gold-processing agreement with Shenzhen TongXin Jewelry Ltd. ("Shenzhen TongXin"), a large Shenzhen-based wholesaler of jewelry products. Shenzhen TongXin is a leading integrated company in jewelry and precious metal production, processing, wholesaling and refining in Mainland China since 1965. Shenzhen Tongxin is one of the "Famous TradeMarks of China", and its products have been distributed to more than 20 provinces, municipalities and autonomous regions, and have been exported to the United States, South Korea, Russia, France, Germany, Great Britain, Italy and other countries, with annual sales volume of over 40 tons.

Pursuant to the agreement, Kingold will exclusively process a variety of 24-karat gold jewelry products (rings, necklaces, bracelets) for Shenzhen TongXin beginning June 1, 2012 until May 31, 2013. Kingold expects to process at least 104 kilograms, or approximately 3668 ounces, of jewelry products per month until the expiration date of the agreement. Kingold's revenue from this agreement will be derived from its sales price of goods sold upon delivery to Shenzhen TongXin along with its service fees. While pricing is subject to change, based on a current spot price of gold on the date the agreement was executed of approximately US$1,568 per ounce, this would equate to revenues to Kingold of approximately US$5.8 million per month (excluding additional revenues from processing fees). The actual pricing of jewelry products produced under the agreement will be finalized at the time of sale. Pursuant to the terms of the agreement, Kingold holds the right to increase its processing fee if the then-current price of gold falls.

Mr. Zhi Hong Jia, Chairman and Chief Executive Officer of Kingold Jewelry stated, "This agreement is the culmination of a long-process in our discussions with Shenzhen TongXin. The company approached Kingold over two years ago, and began a thorough screening process in evaluating Kingold's processing capabilities, customer service, and quality of product. We are very confident that our quality and reputation within the industry helped greatly in securing this agreement. We are looking forward to working with Shenzhen TongXin, and as always are working towards broadening our base of major distributors and wholesalers."

About Kingold Jewelry, Inc.:

Kingold Jewelry, Inc., centrally located in Wuhan City, China's fourth largest city, was founded in 2002 and today is one of China's leading designers and manufacturers of 24-karat gold jewelry, ornaments and investment-oriented products. The Company sells both directly to retailers as well as through major distributors across China. Kingold has received numerous industry awards and has been a member of the Shanghai Gold Exchange since 2003. For more information, please visit www.kingoldjewelry.com.

Business Risks and Forward-Looking Statements

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors contained in Kingold's SEC filings available at www.sec.gov, including Kingold's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Kingold undertakes no obligation to update or revise any forward-looking statements for any reason.

Company Contact:Kingold Jewelry, Inc.Bin Liu, CFOPhone: +1-847-660-3498 (US) / +86-27-6569-4977 ( China)Email: bl@kingoldjewelry.com INVESTOR RELATIONSThe Equity Group Inc. Adam Prior, Vice President(212) 836-9606 aprior@equityny.com Katherine Yao, Account Executive+86 10-6587-6435 kyao@equityny.com

SOURCE Kingold Jewelry, Inc.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs