Company to seek potential sale options on commercial properties
WUHAN CITY, China, January 21, 2015 /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 has obtained approval from the Wuhan Housing Security and Management Bureau in Wuhan, China to pre-sell certain commercial units within the Kingold Jewelry International Industrial Park (the "Jewelry Park").
The Company formally received two separate "Certificates of Presale of Commercial Properties" from Wuhan Housing Security and Management Bureau, which cover five commercial buildings, totaling approximately 123,600 square meters (approx. 1,330,000 square feet).
The Company is now seeking potential buyers for these commercial properties, and is expected to utilize any proceeds from the presale of these units to complete construction on the Jewelry Park. Kingold expects to complete the Jewelry Park within the previously announced timeframe, and plans to schedule a grand opening ceremony in December 2015.
Zhihong Jia, Chairman and CEO of Kingold, stated, "We are pleased to have received approval from the local government to move forward in pre-selling several of our properties, which was a necessary requirement as we move forward. We have received considerable interest in the properties from potential buyers as the Jewelry Park has begun to take shape, and are focused on completing all phases of the development for this project. We are now focused on the interior and exterior design elements and expect to remain on track to open the Jewelry Park by December 2015."
Background on the Jewelry Park
In October 2013, Kingold entered into an agreement to acquire the operating rights for 66,667 square meters (approximately 717,598 square feet, or 16.5 acres) of land in Wuhan for an aggregate purchase price of RMB1 billion (approximately US$164 million at the then effective spot rate). The Company intends to utilize the completed Jewelry Park as its new operation center and show room. Kingold also plans to rent space within the Jewelry Park to other jewelry manufacturers in China, in addition to selling developed commercial and residential properties to individual and corporate buyers.
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 through a variable interest entity, or VIE, relationship with Wuhan Kingold Jewelry Company Limited, a corporation incorporated in the People’s Republic of China, 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. You can identify these forward-looking statements by words such as "expects," "believe," "project," "anticipate," or similar expressions. The forward-looking statements in this release include statements regarding Kingold’s Jewelry Park and its estimated time of completion and grand opening, Kingold’s expected use of proceeds from the presale of the commercial units within the Jewelry Park, as well as the Company’s ability to attract tenants and engage in sales of additional portions of the Jewelry Park property. 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
Adam Prior, Senior Vice President
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