WUHAN CITY, China, October 10, 2014 /PRNewswire/ — Kingold Jewelry, Inc. (“Kingold” or “the Company”) (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 the Company delivered an initial shipment of 24-karat gold jewelry product samples to the Middle East Region.
In light of the substantial increase in the Company’s 24-karat gold processing volume and sales in recent years, management is now seeking to further the Company’s international presence, selecting the Middle East as its initial strategic market. Kingold recently received a 30-day gold and gold products import and export permit from the People’s Bank of China (“PBOC”) Wuhan Branch enabling it to carry out the initial shipment of samples to the Middle East.
The permit was issued under the Notice of General Customs Administration of People’s Republic of China and People’s Bank of China (No. 3 ) which came into force on January 21, 2008. The Company believes the release of gold and gold product import and export rights to non-state-owned enterprises from the People’s Bank of China will underpin the development of the Company’s 24-karat export trades, and will plan to apply for further permits as and when additional orders from the Middle East are placed.
Mr. Zhihong Jia, Chairman and CEO of Kingold, commented, “We are pleased to have begun shipping our product samples to the Middle East and to have officially embarked upon our planned international expansion. The Middle East is one of the major global markets of and forgold products, and has historically focused on 20-karat and 22-karat jewelry products; however, after having performed certain market research in-house, we believe that our 24-karat gold jewelry products will be well received in the region, in large part due to their purity, their glamour and their value retention. The PBOC’s recent grant of gold import and export rights to companies like Kingold is therefore a milestone event, and we believe it will greatly enhance Kingold’s overseas market expansion.”
Chairman Jia continued, “We believe the recent initial shipment of our 24-karat gold jewelry product samples to the Middle East will result in the commencement of regular orders in the near future. While 24-karat gold jewelry products currently represent a relatively small percentage of our processing volume, we expect this percentage to increase after the completion of our planned Kingold Jewelry International Industry Park. In addition, we expect that the expansion of our business into overseas markets will benefit Kingold’s global brand awareness and ultimately lead to an increase in Kingold’s gold processing volume.”
About Kingold Jewelry, Inc.
Kingold Jewelry, Inc. (NASDAQ: KGJI), centrally located in Wuhan City, one of China’s largest cities, 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, as amended, and the Securities Exchange Act of 1934, as amended. These include statements regarding Kingold’s expectations regarding the strategic significance for the Company of the Middle Eastern market, the release of gold and gold product import and export rights to non-state-owned enterprises and its impact on the Company’s development of 24-karat export trades, the reception of 24-karat jewelry products in the Middle East, the impact of Kingold’s receipt of gold import and export rights on Kingold’s overseas market expansion, the Company’s application for additional permits for the import and export of gold and gold products, the likelihood of increasing 24-karat jewelry product orders as a result of the product sample shipment, the increase in the processing of 24-karat jewelry products upon on the completion of the planned Kingold Jewelry International Industry Park, and the overall positive impact of Kingold’s overseas expansion on its market presence, global brand awareness, and gold processing volume. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Forward-looking statements are subject to a number of risks, including those 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.
Kingold Jewelry, Inc.
Bin Liu, CFO
Phone: +1-847-660-3498 (US) / +86-27-6569-4977 (China)
The Equity Group Inc.
Katherine Yao, Associate