Kingold Jewelry Revenue and Income Decline, but Gross Profit Improves
Despite a drop in sales, Kingold Jewelry announced its gross profit rose to $75.1 million.
Kingold Jewelry Inc. (Nasdaq: KGJI), one of China's leading makers and designers of gold jewelry, ornaments and products, today announced income of $9.5 million, or 14 cents per American depositary share, in the final three months last year, representing a slight decrease from $10.5 million, or 15 cents per ADS, the prior year.
The Wuhan-based company said the decrease came after a drop in fourth quarter sales of 3.9 percent to $631.2 million from $657.1 million for the same period in 2017.
Despite the lower sales, KIngold said its gross profit for the fourth quarter was $75.1 million, an increase from $56.4 million in the same period the year before.
"Based on the management's analysis on the gold market trend, Kingold intends to continue to expand market coverage by diversifying our sales channels for gold jewelry and investment products and continue to explore gold investment to further implement our strategic expansion," Zhihong Jia, chairman and CEO of the company, said. "Meanwhile, Kingold expects to explore both upstream and downstream markets to optimally utilize resources within China's gold industry, thus to advance our Company's position as a leader in furtherance of the gold industry development, along with our peers."
Shares of Kingold closed today at $0.86, down 1 cent per share.
For all of 2019, Kingold said its gold sales were expected to be between 110 metric tons and 120 metric tons.