Kingold Jewelry Inc. (OTC:KGJI)

WUHAN, China, Feb. 12, 2020 /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 provided an update on the impact of the Coronavirus outbreak on its business and operation.

Headquartered in Wuhan, the provincial capital of Hubei province, China, Kingold is in the epicenter of the Coronavirus outbreak. The entire city of Wuhan has been locked down by the central government of China since January 23, 2020. In compliance with the government health emergency rules in place, the Company has been temporarily closed and its jewelry production operations have been halted since January 12, 2020. All company personnel have been required to stay at home until further notice by the government based on the development of this medical epidemic. In the short term, the Company expects the situation to have a material impact on its operations in the first quarter of 2020. The impact of the Coronavirus on the Company's operation and financial results for 2020 remains to be seen.

While the Company's business operation and financial results for the year ended December 31, 2019 were not affected by this health crisis, its financial statements preparation and auditing process have been delayed due to government imposed quarantines, office closings and travel restrictions affecting the Company's personnel and service providers. It is impossible to predict when the 2019 year-end procedures can resume or be completed at this time.

On January 30, 2020, in a public statement, Securities and Exchange Commission (SEC) Chairman Jay Clayton stated that he had requested the SEC staff "to monitor and, to the extent necessary or appropriate, provide guidance and other assistance to issuers and other market participants regarding disclosures related to the current and potential effects of the coronavirus."  The SEC recognized that such effects may be difficult to assess or predict both generally and on an issuer-specific basis and that actual effects will depend on many factors beyond the control and knowledge of any issuer. The Coronavirus situation continues to evolve and accordingly, the Company is closely minoring the development of the medical crisis and will provide an update on the operational and financial impacts as it obtains further information.

Chairman and CEO, Mr. Zhihong Jia, stated, "We are continuing to work closely with our provincial government to take all necessary precautions during this outbreak until such time as conditions to resume operations are suitable. As always, our top priority is on the safety and security of our employees, customers, and their families. We expect to provide regular updates as we evaluate any impact on our operations in the coming weeks."

Third Quarter 2019 Financial Results

• Net sales were approximately $382.8 million, a decrease from the prior year due to lower sales volume partially offset by higher gold prices
• Net loss was approximately $24.0 million, or $2.18 per diluted share (retrospectively restated for effect of 1-for-6 reverse stock split)

Outlook for 2019

• The Company has seen gold demand begin to recover following the conclusion of the quarter as gold prices have stabilized
• As a result of the shift in demand, the Company is revising guidance to around 110 metric tons of 24-karat gold products in 2019.
  

OUTLOOK FOR 2019

Based on its existing resources and capacity along with the shift in demand for 24-karat gold products in China, the Company estimates gold processed will be around 110 metric tons during 2019.

WUHAN CITY, China, Oct. 21, 2019 /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, the Board of Directors and a majority of the shareholders of Kingold, approved on September 26, 2019 and October 7, 2019, respectively, a 1-for-6 reverse stock split of the Company's issued and outstanding shares of common stock (the "Reverse Stock Split").

As of October 21, 2019 (immediately prior to the Effective Date), there were 66,113,502 shares of common stock outstanding. As a result of the Reverse Stock Split, there are approximately 11,018,917 shares of common stock outstanding (subject to adjustment due to the effect of rounding fractional shares into whole shares). The Reverse Stock Split will not have any effect on the stated par value of the common stock.  The Company has included additional detail in regards to the Reverse Stock Split in a Form 8-K filed with the Securities and Exchange Commission at www.sec.gov.

2019 First Quarter Financial Results

• Net sales were approximately $453.5 million, compared to approximately $539.5 million in the prior year period.
• Net income was approximately $6.4 million, or $0.10 per diluted share, compared to net income of approximately $13.2 million, or $0.20 per diluted share in the prior year period.

Management Commentary

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "In the first quarter of 2019, both of Kingold's operational and financial performances were affected by China'seconomic slowdown, which negatively impacted our customers' purchases of gold products and it was not until the end of the first quarter that the market gradually warmed up. Every time when Kingold encounters the impact from challenging environment, we have always maintained a positive attitude and focused on our product research and development. We believe in our ability of providing good quality products to meet consumer demand once the market picks up, which is a key strength of Kingold."

Outlook for 2019

• The Company reiterates its guidance of processing between 110 metric tons and 120 metric tons of 24-karat gold products in 2019.

WUHAN CITY, China, May 9, 2019 /PRNewswire/ -- Kingold Jewelry, Inc. ("Kingold" or "the Company") (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 filed Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission on May 7, 2019 to extend the filing of the Company's Form 10-Q for the three months ended March 31, 2019 for up to an additional 5 calendar days.

The Company filed for an extension due to a delay experienced in finalizing its financial statements and other disclosures in the Form 10-Q. The extension grants the Company until May 15, 2019 to file its Form 10-Q. Complying with this deadline deems the Form 10-Q to be timely filed. The Company expects to release its financial results for the first quarter ended March 31, 2019, after the market closes on Wednesday, May 15, 2019 and will conduct its quarterly conference call to discuss these results at 8:30 a.m. ET on Thursday, May 16, 2019.

Fourth Quarter 2018 Financial Results

• Net sales were $631.2 million, compared to $657.1 million.
• Net income was $9.5 million, or $0.14 per diluted share, compared to $10.5 million, or $0.15 per diluted share.

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We are proud to have achieved all aspects of financial and operational growth for the year 2018 and surpassed our previously provided processing volume while gaining double-digit percentage growth in all indices. According to the World Gold Council, in 2018 the annual jewelry demand in China increased by 3% as the retail industry continued to expand and innovate. 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. 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."

Outlook for 2019

The Company expects to process between 110 metric tons and 120 metric tons of 24-karat gold products in 2019.

OUTLOOK FOR 2019

Based on its existing resources and capacity along with strong demand for 24-karat gold products in China, the Company believes that its gold sales are expected to be between 110 metric tons and 120 metric tons during 2019. This guidance is based solely on current projected, organic growth.

WUHAN CITY, China, March 19, 2019 /PRNewswire/ -- Kingold Jewelry, Inc. ("Kingold" or "the Company") (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 filed Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission on March 18, 2019 to extend the filing of the Company's Form 10-K for the year ended December 31, 2018  for up to an additional 15 calendar days .

The Company filed for an extension due to delays in finalizing its financial statements for the year ended December 31, 2018 required to be included in the Form 10-K. The extension grants the Company until April 2,2019 to file its Form 10-K.

The Company expects to release its financial results for the fourth quarter and year-ended December 31, 2018, after the market closes on Tuesday, April 2, 2019 and will conduct its quarterly conference call to discuss these results at 8:30 a.m. ET on Wednesday, April 3, 2019.

Third Quarter 2018 Financial Results

• Net sales were approximately $626.2 million, an increase of 7.1% from approximately $584.5 million in the same period of 2017.
• Net income was approximately $13.2 million, or $0.20 per diluted share, compared to net income of approximately $29.0 million, or $0.44 per diluted share in the same period of 2017.

Outlook for 2018

Company reiterates guidance of between 100 metric tons and 110 metric tons of 24-karat gold products in 2018
Management Commentary

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to continue to deliver relatively strong operating results in the third quarter of 2018, despite the challenges from the uncertainty of the rapid changing market along with the RMB depreciation during the quarter. Recent challenging business environment in China has brought lots of pressure on us. Demand for gold has been slowing down in the wake of monetary tighten-up. Kingold is committed to continuous innovations even during the challenging times and believe it is the foundation of the company's long-term development."

Second Quarter 2018 Financial Results

• Net sales were $678.8 million, an increase of 42.6% from $475.9 million
• Net income was $13.6 million, or $0.20 per diluted share, compared to net income of $8.0 million, or $0.12 per diluted share

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to deliver strong operating results in the second quarter of 2018 and continue to benefit from our gold investment which enabled us to further expand our production capacity and design capabilities. During the quarter, we have witnessed a strong growing demand for 24-karat gold jewelry and investment products in China, and our management quickly adjusted the product mix in response to market demand with additional trendy design jewelry products and value preserving investment gold products. We are dedicated to building the Kingold brand as an increasingly important participant in the gold industry in China, while quickly responding to market changes and adjusting operational strategies."

OUTLOOK FOR 2018

Based on its existing resources and capacity along with strong demand for 24-karat gold products in China, the Company reiterates its expectation that gold processed will be between 100 metric tons and 110 metric tons during 2018.

First Quarter 2018 Financial Results

• Net sales were $539.5 million, an increase of 85% from $292.3 million.
• Net income was $13.2 million, or $0.20 per diluted share, increased by 162% from a net loss $21.3 million, or $(0.32) per diluted share.

Outlook for 2018

The Company reiterates its guidance of processing between 100 metric tons and 110 metric tons of 24-karat gold products in 2018.
Management Commentary

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to deliver strong operating results during the first quarter of 2018, which was a result of Kingold's continuous devotion in production expansion and achieved good performance from our gold investment after few quarters of our management's efforts. Our production capacity expanded based on the support of a significant amount of gold from our prior investment at favorable terms. We will continue to enhance shareholder value through consistent expansion in production, tight risk controls of our investment gold and continued efforts in improving inventory management."

Fourth Quarter 2017 Financial Results

• Net sales were $2.01 billion, increased by 41% from $1.42 billion; the increase was mainly due to an increase in the total sales volume.
• Net income was $26.2 million, or $0.39 per diluted share, compared to $92.9 million, or $1.40 per diluted share.

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "Kingold delivered strong operating results and achieved a record gold processing volume for the year 2017 based on continuous expansion to meet the market's increasing demand for 24-karat gold products. Kingold is determined to achieve further strategic expansion in China's gold industry and will continue to explore gold investment as a major component of Kingold's overall strategic development. We have leveraged the investment in gold in addition to purchasing gold to increase production and benefitted from rapid expansion, despite encountering challenges of a higher interest rate environment and a growing overall loan amount. As we are committed to becoming a more prominent player in China's gold industry, we expect to make timely adjustments in our investment and operation strategies in response to market changes to maintain our industry leading position and stay competitive."

OUTLOOK FOR 2018

Based on its existing resources and capacity along with strong demand for 24-karat gold products in China, the Company believes that its gold sales are expected to be between 100 metric tons and 110 metric tons during 2018. This guidance is based solely on current projected, organic growth.

Third Quarter 2017 Financial Results

• Net sales were $584.5 million, an increase of 50% from $390.5 million.
• Net income was $29 million, or $0.44 per diluted share, compared to net income was $15.9 million, or $0.24 per diluted share, an increase of $13.1 million, or 83%

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to deliver strong operating and financial results during the third quarter of 2017, as we have seen tremendous demand for 24-karet gold products since beginning of the year. Our management and sales team remain focused on business expansion by increasing our production capacity and expanding our distribution network across China, thus we were able to hit our previous announced FY 2017 guidance of between 70 metric tons and 80 metric tons of 24-karat gold products by the end of third quarter. We are dedicated in continuous business development in all aspects, we looking forward and confident in deliver favorable results for 2017."

Outlook for 2017

Company raises its guidance of 24-karat gold production in 2017 to between 80 and 90 metric tons.

First Quarter 2017 Financial Results

• Net sales were $292.3 million, an increase of 4% from $282.2 million.
• Net loss was $21.3 million, or $(0.32) per diluted share, compared to net income of $15.2 million, or $0.23 per diluted share

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to deliver strong operating results in the first quarter of 2017, and continue to increase our production capacity and total gold processed volume. During the quarter, we have witnessed strong growing demand for 24-karat gold products to encourage us to further expand our production. Under this competitive environment our management team continues to focus on establishing new sales channels while seeking sufficient free cash flow to support production volume to remain competitive. However, we have seen challenges from the higher interest rate resulted by our expansion in the gold investment business during the quarter, therefore we should be further observant in balancing the relationship of the market demand and trend with capital needs." 

OUTLOOK FOR 2017

Based on its existing resources and capacity along with strong demand for 24-karat gold products in China, the Company reiterates its expectation that gold processed will be between 70 metric tons and 80 metric tons during 2017.

WUHAN, China, Dec. 29, 2016 /PRNewswire/ -- Kingold Jewelry, Inc. ("Kingold" or the "Company") (KGJI), one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, today released a letter to shareholders from Kingold's Chairman and Chief Executive Officer, Mr. Zhihong Jia. The letter updates the Company's current activities and outlines its corporate strategy for 2017 and is included in its entirety below:

To Our Shareholders:

I want to thank all of Kingold's customers and shareholders for your continued support over the past year, which has been monumental for the Company. I would like to take this opportunity not only to provide you with some of our recent developments and milestones, but also to provide details for our 2017 plans that I hope will answer many questions and validate your long term investment in our Company. My goal is to release a letter twice a year, including every December, as a thorough measure of addressing the current year's activities, while also setting the expectations for the coming year.

Review of Kingold's Accomplishments in 2016

We achieved strong financial and operating results throughout 2016, highlighted by growth in demand for our 24-karat gold jewelry products that exceeded our expectations. We recently raised our annual guidance as a result of this demand to processing between 60 and 65 metric tons, compared with earlier guidance of between 50 and 60 metric tons. The Company achieved this as a result of continued expansion of many of the core tenets that led to the formation of Kingold, including the dominance of 24-karat gold and its role as both a luxury item and as a savings proxy and the continued urbanization of the Chinese population.

We have grown to understand the changing nature of our customer base, which is predominantly retail establishments and wholesale distributors. Distributors and retailers have come to rely on our highly intricate designs to meet very specific customer requests, as well as our ability to deliver these products in a timely fashion. We have long-standing relationships that marry our expertise in gold-jewelry design with the ever-evolving needs of our end customers.

During 2016, we also completed the sale our interest in the Shanghai Creative Industry Park, or the Kingold Jewelry Cultural Industry Park (the "Jewelry Park") to Wuhan Lianfuda Investment Management Co., Ltd. ("Wuhan Lianfuda") for RMB 1.14 billion (approximately US $171 million).  We know the principles behind Wuhan Lianfuda very well and share their vision for the long-term potential of the Jewelry Park. We originally conceived the idea of the Jewelry Park as a method of expanding Kingold's exposure throughout China's growing jewelry market. We wanted to create a one-stop shop for all businesses in the industry to see as a central hub throughout the country, and simultaneously create a destination spot for customers. Over the course of three years, we expended a considerable amount of resources and time to move the project from inception to completion. As we got into this, we appreciated gold industry as our core business more and more and sale of the Jewelry Park was a way to return to our core business. We were ultimately pleased to sell the property at a time that was favorable from a return on investment perspective, but also furthered our ultimate goal to see the Jewelry Park develop into the special destination we all envisioned. We are excited to benefit from our role in creating this active market that truly will serve as a bridge between upstream and downstream jewelry companies.

The ancillary benefit of our work on the Jewelry Park was that it greatly enhanced Kingold's exposure across the entire industry. As we move into 2017, we are dedicated to leveraging this increased exposure and focusing our capital and personal resources on expanding our core jewelry design and manufacturing business.

Operational Plans in 2017 - Development of Gold Jewelry Manufacturing Business

Since Kingold began trading as a public company in 2010, we have achieved continued growth in the amount of gold the Company processes. Our business model is not complex: we derive our revenue from the sales of 24-karat jewelry and Chinese ornaments and from design and processing fees we receive from other jewelry companies that hire us and supply us with the gold to design and produce 24-karat jewelry and Chinese ornaments. These are a mix of rings, necklaces, pendants, earrings, bracelets, and range in complexity from very simple bands or chains to highly intricate designs. Some investors have inquired about potential scale, and how our business could continue to grow at a reasonable rate given that we do pride ourselves on the unique nature of our products.  This is one of our Company's biggest challenges, that is balancing the need to generate favorable margins by providing a higher level of detail on certain projects while also utilizing our operational leverage to increase volume production.

Kingold benefits from a senior group of designers who manage this process, and we rely on these individuals to meet our customers' demands and expectations. We are diligent in researching and developing new designs that we believe will fit the needs of our customers, and benefit from years of testing, launching, successes, and in some cases failure. How do you grow metric tons year over year while still maintaining that balance? It is a mix of experience, culture, and capacity. We have a large-scale production base that includes a 74,933 square foot factory, a dedicated design, sales, and marketing team, and trained employees. We have received ISO 9001 accreditation from the International Organization for Standardization attesting to our quality control systems. Our production lines include automated jewelry processing equipment and procedures that we can rapidly modify to accommodate new designs and styles.

In 2017, we expect to continue to maintain a balance between the branded products where the Company acquires gold from the Shanghai Gold Exchange, and customized production where clients supply gold to the Company for processing products that they have commissioned. We generally have found that we can shift the balance based on a number of factors, including customer demand and fluctuations in gold prices. Our accounts receivables are very low as a result of operating in predominantly a cash business, and Kingold's net cash from operating activities can fluctuate due to changes in our gold inventories.

How do we think about inventory management? As we have said for years, our goal is not to act as a commodity-driven company. We want to be paid as a designer and processor of gold jewelry products, and our inventory balances are largely driven by customer orders and timing that require flexibility. While we do try to take advantage in the short-term as we purchase inventory in advance of orders that are pending delivery, we work to try and do so with a margin of safety so that Kingold's commodity risk is minimized. In 2017, the entirety of our focus will be on continuing to refine our processes and continue to improve.

Experience of Management / Business Relationships

We believe that one of Kingold's core strengths is our considerable experience and continuity of upper management and a diverse Board of Directors. We have a group of professionals who are experienced not only in our specific jewelry business but also throughout all facets of business. We have also worked to maintain a diverse group of Board members to ensure Kingold benefits from a well-rounded perspective on the long-term growth strategy of the business.

A recent item highlighted by a potential investor was a general questioning about our managements' business dealings outside of Kingold and their relation with each other. This includes my involvement in other investments. It is very important to note that my day-to-day activities and focus are entirely on the development and continuing progression of Kingold's business. I also feel very strongly about driving the long-term health of the jewelry industry in China. Our mission has been to grow at some point beyond simply being a well-respected manufacturer in China into a globally recognized company in the jewelry industry. It is what drives our people on a day-to-day basis.

I do invest in businesses outside of Kingold. I do not believe this is different from any other party involved in business generally. In a recent story written about Kingold, there were several loosely substantiated innuendos that the Company was utilizing Kingold's balance sheet as a tool for exploring different investment opportunities. This is not the case. We have remained and will continue to remain transparent in our filings as to all of our financial activities. We have spent a considerable time operating as a public entity in disclosing transactions that have a material impact on our financial results. We are always willing to listen to investors' opinions about ways to improve this communication, and one of our principal goals in the coming year will be to further investors' understanding of our business model, capabilities, and company relationships.

Capital Market Activities in 2017

Despite the accomplishments of our Company in recent years, we believe that the public market does not fully value the strength of our operations or our position in the jewelry industry marketplace. Many investors have explained to us that Kingold's biggest challenge is not in its operations, but in its consistency in communicating its plans and business model to investors. We have generally taken the approach that our focus must remain on enhancing our operations and the capital markets will eventually grow to understand our model and value the Company appropriately.  However, we understand that to fully garner the trust and attention of investors in the United States we must improve our investor communication strategy. Periods of silence leads to speculation, which in turn leads to negative reports on our business, and ultimately, damages our reputation globally.

We expect to expand our outreach efforts to the investor community in 2017.

Specifically, we expect to re-commence quarterly conference calls throughout the year. We will continue to maintain a consistent schedule of conference calls after close of the stock market after periodic filings throughout 2017.

Personally, I have received a number of requests to host investor meetings in the United States in recent quarters. We have been very welcoming to any investor willing to travel to meet with us here at our headquarters in Wuhan, China. I greatly enjoy those visits. I certainly am more comfortable hosting a tour of our facilities so investors can fully appreciate our business than struggling through translated discussions of our gross margins in a New York conference room where I am not speaking in my native language (this letter in of itself was a fun process). However, I certainly understand that new and existing investors will gain comfort from us being proactive in visiting and updating everyone on the current status of operations.

Our management team is committed to hosting a roadshow in the United States by May 2017 and will also commit to another in the fall. We expect to continue these stateside visits with investors in the years ahead.

We also have other goals in relation to communications, such as improving our website to better provide resource for investors to gather necessary information as part of their diligence on our Company. And finally, we intend to have two periods of communicating our strategy and philosophy to investors through the letters to shareholders. These letters include one as part of the Annual Meeting and the other in December each year. As always, we welcome any feedback or suggestions from investors.

Conclusion

We continue to operate in an industry that is always changing, and Kingold must evolve to meet the needs of the market. The Company has a strong track record of earnings progression and we recognize that one of the key areas of improvement for our team will be to better communicate the various aspects of our business to investors.

On behalf of our board of directors, management team, and over 550 employees, we thank you for your investment in our company and your continued interest in Kingold.

Sincerely
Mr. Zhihong Jia,
Chairman and CEO

Second Quarter 2016 Financial Results

• Net sales were $390.3 million, an increase of 56.5% from $249.4 million
• Net income was $19.8 million, or $0.30 per diluted share, an increase from $0.6 million, or $0.01 per diluted share

Outlook for 2016

• Company reiterates guidance of between 50 and 60 metric tons of 24-karat gold processed in 2016.

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to report strong operating results for the second quarter of 2016, as we have taken advantage of the increasing gold demand in China as well as a quick rebound of gold price. Our management team made adjustments on our sales go-to-market strategy and successfully achieved a 56.5% increase in net sales, a 40.1% increase in gold processed volume, plus over 30 times of growth in net income."

WUHAN CITY, China, July 29, 2016 /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 Wuhan Kingold Jewelry Company Limited ("Wuhan Kingold"), the controlled subsidiary of the Company, has sold all of its interest in the Shanghai Creative Industry Park, or the Kingold Jewelry Cultural Industry Park (the "Jewelry Park") to Wuhan Lianfuda Investment Management Co., Ltd. ("Wuhan Lianfuda") for RMB 1.14 billion (approximately US$ 171 million). In connection with the sale, Kingold leased space in the Jewelry Park for its new headquarters for an annual rent of RMB 1,718,400 (approximately US$ 256,800).

Wuhan Lianfuda has paid Wuhan Kingold the total consideration of RMB 1.14 billion (approximately US$ 171 million), pursuant to a contract to transfer the contractual rights and obligations (the "Transfer Contract") entered between Wuhan Kingold and Wuhan Lianfuda. In addition, Kingold transfers and Wuhan Lianfuda receives, all the rights and obligations in an acquisition agreement (the "Acquisition Agreement") signed among Kingold, Wuhan Wansheng and Wuhan Huayuan Science and Technology Development Limited Company ("Wuhan Huayuan") on October 23, 2013, including 60% stock rights of Wuhan Huayuan. Wuhan Lianfuda will undertake the remaining payment obligation of RMB 360 million (approximately US$ 54 million) stipulated in the Acquisition Agreement. According to an evaluation report issued by an independent evaluation agency, the evaluated value of the Jewelry Park on June 18, 2016 was approximately RMB 1.48 billion (approximately US$ 221 million).

Item 8.01 Other Events.

On August 14, 2015, the Registrant filed an 8-K disclosing its entry into an advisory agreement (the “Advisory Agreement”) on August 11, 2015 with Bespoke Independent Partners (“BIP”), a fully-owned subsidiary of Freud Pizenberg Independent Advisors, pursuant to which BIP agreed to serve as the Registrant’s strategic advisor as to investor relations, capital markets and shareholder value creation strategy.

The Service Agreement provided that it could be terminated on thirty (30) days-notice by the Registrant. The Registrant notified BIP by writing on May 10, 2016 of such termination. On June 27, 2016, the Registrant and BIP signed a settlement agreement and release (the “Settlement Agreement”), pursuant to which the Registrant agreed to pay BIP outstanding fees for previously rendered services in the aggregate amount of $66,439 by crediting such fees against the exercise price of the first tranche of success fee warrants on June 29, 2016, the first day on which such success fee warrants may be exercised under the terms of the Service Agreement, resulting in the issuance to BIP of 55,365 shares of the Registrant’s common stock. Pursuant to the Settlement Agreement, BIP is deemed to have exercised warrants to purchase 55,365 shares at $1.20 per share effective June 29, 2016, resulting in a balance of warrants to purchase 94,635 shares of common stock.

In connection with the Settlement Agreement, the parties agreed that (1) the first and second tranches of success fee warrants would remain vested and outstanding, (2) the third, fourth and fifth tranches of success fee warrants would be cancelled; and (3) crediting of the exercise price as described above would be the only payment made or required under the Service Agreement.

As a result, BIP will receive (a) 55,365 shares, (b) warrants to purchase 94,635 shares for $1.2 per share, expiring June 28, 2017, and (c) warrants to purchase 150,000 shares for $1.50 per share, which may be exercised from July 18, 2016 until July 17, 2017. Such warrants may be exercised upon delivery of cash and an exercise notice.

Item 1.01 Entry into a Material Definitive Agreement.

On April 26, 2016, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. (the “Company”), entered into a Trust Loan Agreement and an Amendment to the Trust Loan Agreement (“Amendment”) with The National Trust Ltd. to borrow a maximum of approximately $77.5 million ( RMB 500 million) as working capital loan. The loan is comprised of two installments, with the first installment of approximately $15.5 million (RMB 100 million) and the second installment of approximately $62 million (RMB 400 million). Each installment has a one-year term starting from the installment release date. For each installment, Wuhan Kingold is required to make the first interest payment equal to 4.1% of the principle received, then the rest of interest payments are calculated based on a fixed interest rate of 8% and due on semi-annual basis. Wuhan Kingold is required to pledge 2,600 kilogram of Au9995 gold with carrying value of approximately $83.4 million (RMB 538 million) as collateral to secure this loan. The loan is jointly guaranteed by Mr. Zhihong Jia, the CEO and Chairman of the Company, and Wuhan Vogue-Show Jewelry Co., Inc. which is wholly controlled by the Company. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions. As of the date of this Report, RMB 500 million (approximately $77.5 million) has been fully released by The National Trust Ltd.

An English translation of the Trust Loan Agreement and the Amendment is filed as Exhibits 10.1 and 10.2 hereto, respectively. The foregoing summary of the Trust Loan Agreement and the Amendment does not purport to be complete and is qualified in its entirety by reference to such agreement, which is incorporated by reference herein.

First Quarter 2016 Financial Results

• Net sales were $282.2 million, an increase of 37% from $206.2 million
• Net income was $15.2 million, or $0.23 per diluted share, an increase of 131% from $6.6 million, or $0.10 per diluted share

Kingold also announced today that it anticipates finishing construction of the Kingold Jewelry Cultural Industry Park by the end of May 2016.

Previously, the Company signed several supplemental agreements with the construction company Wuhan Wansheng which Wuhan Wansheng agreed to complete the construction and deliver the completed real estate property to us in April 2016. However, due to the cold weather condition in January and February 2016 and the construction worker leave during the Chinese Spring Festival holiday season, the final construction work of the Jewelry Park resumed in the middle of February 2016 and the landscaping, building decoration and road construction did not fully complete as of March 31, 2016. Due to the construction work delay, the inspection application with local government was also delayed until mid-April 2016 when the construction work was fully completed. Therefore, in April 2016, both parties signed an additional supplemental agreement to extend the final property delivery time to May 30, 2016 when the certificate of occupancy is expected to be obtained from local government.

Chairman Jia continued, "We are very excited about the anticipated completion of the Jewelry Park at the end of this month. We look forward to the Jewelry Park becoming a bridge between upstream and downstream companies within the jewelry industry. We expect increased sales upon the opening of the Jewelry Park, as well as a greater level of collaboration and exchanging of ideas amongst our jewelry industry tenants, which will increase Kingold's brand awareness and expansion and diversification of our customer base."

Outlook for 2016

Company reiterates guidance of between 50 and 60 metric tons of 24-karat gold processed in 2016.
Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to deliver solid financial and operating results for the first quarter of 2016 as we continued to improve our manufacturing capacity and distribution network. During the first quarter, our management team made adjustments on our sales go-to-market strategy and successfully achieved double-digit growth in our sales and gold processed volume."

Based on its existing resources and capacity, the Company reiterates its expectation that gold processed will be between 50 metric tons and 60 metric tons during 2016. 

Fourth Quarter 2015 Financial Results

• Net sales were $1,000.2 million compared to $1,107.6 million; the decline was due to the decrease in total sales volume, decrease in the average unit selling price and loss in currency exchange rate
• Net income was$21.6 million, or$ 0.33per diluted share, compared to$47.3 million, or $0.72per diluted share

Company expects to process between 50 metric tons and 60 metric tons of 24-karat gold products in 2016

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "In 2015 we faced challenges from declining market price of gold which negatively impacted the Company's customers' purchase of gold and the pressure from delayed construction progress of our Jewelry Park due to harsh weather along with the Chinese New Year. We anticipate that the Jewelry Park will be finished in April 2016, and the Jewelry Park will serve as a platform to further accelerate Kingold towards the goal of becoming a leading 24-karat gold products designer, manufacturer, and a sizable supplier in Greater China."

OUTLOOK FOR 2016

Based on its existing resources and capacity along with strong demand for 24-karat gold products in China, the Company believes that its gold sales is expected to be between 50 metric tons and 60 metric tons during 2016. This guidance is based solely on current projected, organic growth. The Company anticipates narrowing this guidance throughout the year, along with providing additional metrics for investors in the coming months.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. 

On March 18, 2016, Kingold Jewelry Inc. (the “Company”) received notification from The NASDAQ Stock Market (“NASDAQ”) that, since the bid price of the Company’s common stock closed at or above $1.00 per share for the last 16 consecutive business days, from February 25, 2016 to March 17, 2016, the Company has regained compliance with the NASDAQ Listing Rule 5550(a)(2) requirement for continued listing on NASDAQ (the “Minimum Bid Price Rule”), and that this matter is now closed.

The Company previously received notice from NASDAQ that it was not in compliance with the Minimum Bid Price Rule for continued listing on NASDAQ, as the bid price of the Company's common stock closed below the minimum $1.00 per share for the 30 consecutive business days.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. 

On February 9, 2016, The NASDAQ Stock Market (“NASDAQ”) granted Kingold Jewelry Inc. (the “Company”) an additional 180 calendar days, or until August 8, 2016, to regain compliance with the $1.00 per share minimum required for continued listing on The NASDAQ Capital Market pursuant to NASDAQ Marketplace Rule 5550(a)(2) (the “Minimum Bid Price Rule”).

As previously reported, on August 11, 2015, the Company received a notification letter (the “Notice”) from NASDAQ advising the Company that for 30 consecutive business days preceding the date of the Notice, the bid price of the Company’s common stock had closed below the $1.00 per share minimum required for continued listing on The NASDAQ Capital Market pursuant to the Minimum Bid Price Rule. The Company was provided 180 calendar days, or until February 8, 2016, to regain compliance with the Minimum Bid Price Rule. The Company was unable to regain compliance with the Minimum Bid Price Rule by February 8, 2016. The NASDAQ determination to grant the second compliance period was based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The NASDAQ Capital Market, with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

To regain compliance, the bid price of the Company’s common stock must close at or above $1.00 per share for a minimum of ten consecutive business days at any time during the second 180-day compliance period. The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options, including effecting a reverse stock split. There can be no assurance that the Company will be able to regain compliance with the Minimum Bid Price Rule or maintain compliance with the other listing requirements necessary for the Company to maintain the listing of its common stock on The NASDAQ Capital Market.

The Notice has no effect on the listing of the Company’s common stock at this time and the Company’s common stock will continue to trade on The NASDAQ Capital Market under the symbol “KGJI.”

Item 1.01 Entry into a Material Definitive Agreement.

In January 2016, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. (“Kingold”), signed two Loan Agreements of Circulating Funds with the Qixia Branch of Evergrowing Bank (“Evergrowing Bank”), for loans of RMB 800 million (approximately US $122 million) in aggregate. The stated purpose for the loans is for purchasing gold and the loans bear fixed interest of 7.5% per year. The loans are secured by 5,000 kilograms of gold in aggregate and are jointly guaranteed by Mr. Zhihong Jia, the CEO of both Kingold and Wuhan Kingold. The repayment of the loans may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

The Loan Agreement of Circulating Funds entered on January 20, 2016 provides for a loan of RMB 400 million (approximately US $61 million). The loan has a maturity date of January 19, 2018. The loan is secured by 2,500 kilograms of gold and is jointly guaranteed by Mr. Zhihong Jia.

The Loan Agreement of Circulating Funds entered on January 28, 2016 provides for a loan of RMB 400 million (approximately US $61 million). The loan has a maturity date of January 26, 2018. The loan is secured by 2,500 kilograms of gold and is jointly guaranteed by Mr. Zhihong Jia.

English translations of the Loan Agreements of Circulating Funds is filed as Exhibits 10.1 and 10.2 hereto. The foregoing summary of the Loan Agreements of Circulating Funds does not purport to be complete and is qualified in its entirety by reference to the text of such agreement, which is incorporated herein by reference.

 
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in its entirety into this Item 2.03.

Item 1.01 Entry into a Material Definitive Agreement.

On December 18, 2015, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. entered into the Loan Agreement of Circulating Funds (“Loan Agreement”) with the Qixia Branch of Evergrowing Bank. The Loan Agreement provides for an aggregate loan of RMB 200 million (approximately US $31 million). The stated purpose for the loan is for purchasing gold. The loan has a maturity date of December 15, 2017, and bears fixed interest of 7.5% per year. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

Item 1.01 Entry into a Material Definitive Agreement.

 
On September 24, 2015, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. entered into the Loan Agreement of Circulating Funds (“Loan Agreement”) with the Jiang’an Wuhan Branch of Hubei Bank Co., Ltd. The Loan Agreement provides for an aggregate loan of RMB 20 million (approximately US $3.2 million). The stated purpose for the loan is for purchasing raw materials. The loan has a maturity date of November 12, 2016, and bears fixed interest at the benchmark interest rate of value date +20% of such rate. For example, if the benchmark interest rate is 6%, then such loan has a rate of 7.2%. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

2015 THIRD QUARTER FINANCIAL RESULTS

• Net sales were $263.8 million, an increase of $12.8 million, or 5.1%, compared to $251.0 million. The increase in net sales was primarily due to increased sales volume in the Company's branded gold product production.
• Net income increased 67.5% to $8.8 million, or $0.13 per diluted share, compared to $5.2 million, or $0.08 per diluted share.

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased with our operating results for the third quarter of 2015, as both our gross profit and net income achieved double digit growth. Kingold faced a wide range of challenges during the first half of 2015, but we remained focused on continuing to create innovative designs in order to provide our customers with a wide variety of products from which to choose. In the third quarter, we have been able to increase our net sales by taking full advantage of our existing sales network and our online retail platform. We believe that our continuous efforts in expanding both online and offline sales channels should positively affect Kingold's business prospects in the future."

OUTLOOK FOR 2015

Based on its existing resources and capacity (which includes the Company's recent proceeds from its previously announced financing and gold lease agreements), the Company reiterates that it expects its gold processed will be between 45 metric tons and 55 metric tons during 2015.

Item 1.01 Entry into a Material Definitive Agreement.

On September 17, 2015, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. (the “Company”), entered into a Trust Loan Contract in the amount of RMB300 million (equivalent to approximately US$47.1 million) with China Minsheng Trust Co., Ltd. The Trust Loan was approved on August 3, 2015. The stated purpose of the Trust Loan is capital turnover. The loan has a 12-month term, and bears interest at a fixed annual rate of 12.5%. The loan is secured by 1,877.4 kilograms of Au9995 gold, pledged by Wuhan Kingold. Our CEO Mr. Zhihong Jia and his wife Lili Huang also agreed to guarantee the loan. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

Second Quarter 2015 Financial Results

Net sales were $249.4 million, a decrease of 26.6% compared to $339.8 million, largely due to decreases in production, sales volume and selling prices

• Net income was $0.6 million, or $0.01 per diluted share, compared to $16.8 million, or $0.25 per diluted share

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We were pleased to maintain profitability during the second quarter of 2015 given the sharp drop of gold prices and the succeeding lower demand for gold products. China's economy has been cooling off since the beginning of 2015, and the red-hot stock market during the first half of 2015 made the demand for gold much less appealing. Thus, Chinese consumers have slowed their demand for gold substantially. However, we believe market conditions will motivate us to enhance our design capabilities to solidify our position as one of our industry's leaders, to establish new partner banks to further extend our coverage for our investment gold products, and to seek and explore new opportunities to expand our sales channels."

OUTLOOK FOR 2015
With the overall commodity market and gold market under continued pressure, Kingold anticipates a weak demand for gold in China for the rest of 2015. The Company expects that its gold processed is expected to be between 45 metric tons and 55 metric tons during 2015.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On August 11, 2015, Kingold Jewelry Inc. (the “Registrant”) received from the Nasdaq OMX Group (“Nasdaq”) a letter (the “Nasdaq Letter”) indicating that it is not in compliance with the minimum $1.00 per share minimum bid price requirement for continued inclusion on the Nasdaq Capital Market set forth in Nasdaq Marketplace Rule 5550(a)(2), as a result of the bid price of the Registrant’s ordinary shares having closed below $1.00 for the last 30 consecutive business days prior to the date of the letter. In particular, the Nasdaq Letter notes that for each trading day in the period June 25, 2015 through and August 10, 2015, the Registrant’s Common Stock closed at less than $1.00 per share.

Nasdaq’s letter advises the Registrant that, in accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the Registrant will be provided 180 calendar days, or until February 8, 2016, to regain compliance. The letter further advises that such compliance can be achieved if, at any time before February 8, 2014, the bid price of the Registrant’s ordinary shares closes at $1.00 or more per share for a minimum of 10 consecutive business days. There can be no guarantee that the Registrant will be able to regain compliance with the continued listing requirement of Nasdaq Marketplace Rule 5550(a)(2).

If the Registrant does not regain compliance by February 8, 2016, Nasdaq will provide written notification to the Registrant that its ordinary shares may be delisted. At that time, the Registrant may appeal Nasdaq’s decision to a Listing Qualifications Panel.

The Registrant intends to actively monitor the bid price for its ordinary shares between now and February 8, 2016, and will consider available options to resolve the deficiency and regain compliance with the Nasdaq minimum bid price requirement.

WUHAN CITY, China, April 6, 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 it has entered into a convertible note purchase agreement with a majority-owned subsidiary of Fosun International Limited (HKEx stock code: 00656, together with its subsidiaries, "Fosun") that will result in $15 million of gross proceeds to the Company when the transaction closes.

Transaction Highlights

• Pursuant to the Purchase Agreement, the Company agreed to issue and sell a $15 million aggregate principal amount 6.0% Senior Secured Convertible Note due 2018 (the "Note"), subject to customary closing conditions.
• Fosun will have the right to convert the principal amount of the Note into shares of Common Stock at an initial conversion price of approximately $1.15 per share.
• The Note bears interest at a rate of 6.0% per year payable annually.
• The Note is secured by a bank letter of credit and a personal guarantee by Kingold's Chairman and Chief Executive Officer, Mr. Zhihong Jia.

The Company intends to use the proceeds from this strategic investment to accelerate the development of the Kingold Jewelry Cultural Industry Park ("Jewelry Park").

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "This is a significant investment and important step in Kingold's corporate development. We believe that aligning our interests with a globally-known and respected financing partner such as Fosun will broaden Kingold's capabilities as well as potentially change the landscape of China's gold jewelry market. Both sides conducted considerable due diligence to reach this agreement, and we are excited about the long-term upside from our two companies working together. Fosun owns Zhaoyuan Gold, one of the largest gold mining companies in China, and Yuyuan Group, one of the largest gold retailers in China. We believe there is a tremendous opportunity in the creation of a vertically integrated conglomerate of gold mining, designing, processing and retailing in China. With Fosun's strong support and resources, Kingold has a great opportunity to accomplish lateral consolidation across a very fragmented gold manufacturing industry in China and become a solid market leader."

Fourth Quarter 2014 Financial Results

• Net sales was $209.3 million, a decrease of 34.1% compared to $317.6 million, largely due to the later Chinese New Year 
• Net income was $7.7 million, or $0.12 per diluted share, a decrease of 3.2% from $7.9 million, or $0.12 per diluted share

Outlook for 2015

• Company expects to process between 70 metric tons and 80 metric tons of 24-karat gold products in 2015.

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, "We are pleased with our 2014 financial and operating results as we continued to improve our 24-karat gold manufacturing and designing capability and distribution network throughout China. In 2014, China's gold industry was impacted by a weaker economy and overall decline in gold prices. Despite these challenges, Kingold processed 60.1 metric tons of gold products during the year and sold them to its 300 major customers from 25 provinces."

Item 1.01 Entry into a Material Definitive Agreement.

On February 9, 2015, Wuhan Kingold Jewelry Co., Ltd. (“Wuhan Kingold”), the PRC-based operating subsidiary of Kingold Jewelry, Inc. (the “Company”), received a Notice of Acceptance of Registration (the “Acceptance”) from the PRC’s National Association of Financial Market Institutional Investors (the “NAFMII”), registering the issuance of up to RMB 750 million (approximately US$120 million) of debt financing instruments by Wuhan Kingold pursuant to a Non-Public Oriented Debt Financing Instruments Private Placement Agreement, by and among Wuhan Kingold, Shanghai Pudong Development Bank Co., Ltd (“Pufa Bank”) and the other institutional investors named therein (together with Pufa Bank, the “Investors”), dated July 21, 2014 (the “Private Placement Agreement”). Such Private Placement Agreement became valid upon the Acceptance. In connection with the Private Placement Agreement, Wuhan Kingold and Pufa Bank entered into an Underwriting Agreement dated August 12, 2014, appointing Pufa Bank as the lead underwriter and bookkeeping manager for the issuance of the debt securities.

The debt financing program is intended to operate similar to a commercial paper program. Under the program, Wuhan Kingold may issue the debt securities at any time within two years from the date of the Acceptance, with the initial issuance completed within six months from the date of the Acceptance. Wuhan Kingold is required to report any issuance to the NAFMII. The Private Placement Agreement provides that the Investors are entitled to, but are not required to, participate in any issuance, and prohibits using the proceeds from any issuance of debt securities for real estate and equity acquisition transactions.

The total amount of the first phase issuance will be RMB 400 million (approximately US$64 million), and will be secured by certain gold or gold products held by Wuhan Kingold. The total amount of the second phase issuance will be RMB 350 million (approximately US$56 million), and will be secured by certain real property and construction in progress (including the Kingold Jewelry International Industry Park). In connection with the foregoing, Wuhan Kingold and Pufa Bank have entered into a Credit Agent Agreement (the “Credit Agent Agreement”), pursuant to which Pufa Bank serves as the agent of the holders of the debt securities. Mr. Zhihong Jia, Chairman and Chief Executive Officer of the Company has executed a guaranty, to guarantee Wuhan Kingold’s obligations under the Credit Agent Agreement.

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."

WUHAN, China, January 9, 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 an update on construction at the Kingold Jewelry International Industry Park ("Jewelry Park"). The Company has completed the framework on the property and now is in the next phase of construction, which will be focused on both exterior and interior decoration and design. The Company expects to complete the entire project on time and will have a grand opening by December 2015, which is consistent with its previously announced schedule.

Zhihong Jia, Chairman and CEO of Kingold, stated, "We are very pleased to have completed this important phase of construction at Kingold's Jewelry Park, and have been actively working on attracting tenants. We believe that with the completion of the framework we can now accelerate this project and we are very confident that the Company will open on schedule. We will continue to keep our stockholders apprised of our progress."

WUHAN, China, January 8, 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 it has formed a formal committee focused on ensuring that the Company is creating value for stockholders. The stockholder value committee consists of Board members Chairman Zhihong Jia, David Sherman, and Zhonghong Fu, assisted by the Company's Chief Financial Officer, Bin Liu.

The Company's Board of Directors has been reviewing its corporate strategy with a view towards setting a formal process of reviewing methods in which the Company can consistently enhance stockholder value, including providing greater investor access to management, improving its corporate governance, being consistent in its capital market strategy, and providing greater transparency.

Chairman Jia is the founder of Kingold and through a call option arrangement with Famous Grow Holdings Limited is the beneficial owner of roughly 16 million shares in Kingold. Mr. Jia has also served as Vice President of the Gems and Jewelry Trade Association of China since November 2005. Zhonghong Fu joined the board of Kingold on October 27, 2014. Mr. Fu is the partner in charge of the Shanghai branch of Fortune Venture Capital Co. Ltd. Fortune Capital is one of the leading Chinese venture capital firms with over $3 billion in assets under management. Mr. Fu was appointed as Chairman of the Compensation Committee and as a member of the Audit and Nominating Committee.

David Sherman has served as an independent director of Kingold Jewelry Inc. since February 1, 2011. Mr. Sherman has served as Chairman of the Audit Committee and as a member of the Compensation and Nominating Committees since February 2011. Mr. Sherman is a Professor of Accounting at Northeastern University D'Amore McKim School of Business.

WUHAN, China, December 15, 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 it and MLV & Co. LLC ("MLV") mutually agreed to immediately terminate the previously announced At Market Issuance Sales Agreement pursuant to which the Company could have offered and sold up to $10,000,000 of shares of its common stock from time to time with MLV as sales agent ("ATM Facility"). The Company did not sell any shares of its common stock under the ATM Facility.

The Chairman of Kingold intends to schedule a meeting of its Board of Directors to review corporate strategy with a view towards enhancing stockholder value. The review process will be ongoing and is expected to define corporate goals that focus on increasing stockholder value, providing greater access to management, setting high standards of corporate governance, reviewing the role of professional advisors and providing investors with the appropriate level of information and transparency.

The Company's management and its Board of Directors are proud of Kingold's success at the operating level and look forward to seeing that success reflected in the Company's stock performance.

WUHAN CITY, China, December 9, 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 made an announcement regarding its recent entry into an At-The-Market Issuance Sales Agreement, pursuant to which the Company may offer and sell up to $10,000,000 of shares of its common stock from time to time (the "ATM Facility"). The shares will be offered through MLV & Co. LLC ("MLV"), as sales agent. As of the date of this press release, the ATM Facility has not been utilized and Kingold has not sold any shares under the ATM Facility.

The Company intends to use the net proceeds from the ATM Facility, if any, for the purchase of additional raw materials for its products, working capital and other general corporate purposes. The Company will determine, at its sole discretion, the timing and number of shares to be sold under the ATM Facility. MLV will make any sales under the ATM Facility using its commercially reasonable efforts consistent with its normal trading and sales practices.

Item 1.01 Entry Into Material Definitive Agreement.

On November 19, 2014, Kingold Jewelry, Inc. (“Kingold”) entered into an At Market Issuance Sales Agreement, (the “Sales Agreement”) with MLV & Co. LLC (“MLV”), pursuant to which it may issue and sell shares of its common stock having an aggregate offering price of up to $10 million from time to time, at its option, through MLV, as sales agent. Sales of common stock through MLV, if any, will be made by any method that is deemed an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions at market prices, in block transactions or as otherwise agreed by Kingold and MLV. Subject to the terms and conditions of the Sales Agreement, MLV will use commercially reasonable efforts to sell the common stock based upon Kingold’s instructions (including any price, time or size limits or other customary parameters or conditions Kingold may impose). Kingold is not obligated to make any sales of its common stock under the Sales Agreement. Any shares sold will be sold pursuant to Kingold’s effective shelf registration statement on Form S-3. Kingold will pay MLV a commission of equal to 5.0% of the gross proceeds of sales of our common stock. We have also agreed to reimburse MLV for legal expenses incurred by it up to $25,000 in the aggregate. The Sales Agreement will terminate upon the earlier of the sale of all common stock subject to the Sales Agreement or termination of the Sales Agreement by Kingold or MLV.

Third Quarter 2014 Financial Results

• Net sales decreased to $251.0 million compared to $283.9 million, primarily due to an overall decrease in the price of gold during the quarter
• Net income was $5.2 million, or $0.08 per share, compared to $11.0 million, or $0.17 per share

Mr. ZhiHong Jia, Chairman and CEO of the Company, commented, "Kingold has continued to report profitable results despite a challenging gold market. We processed 14.5 metric tons of gold during the quarter and continue to increase our sales volume by expanding our sales channels both in China and overseas. However, we are continuing to focus on properly balancing our product mix and focusing on customized production, which increased as a percentage of our overall business during the quarter. We believe that this will enable Kingold to both leverage its expertise in design and manufacturing as well as help to alleviate its inventory risk. We are working diligently to ensure that the Company is well-positioned to grow despite gold pricing headwinds. We believe that our business is a flexible and sustainable model, and have been pleased to see steady demand from our customer base. We remain on track to meet our projected gold processed volume of between 60 metric tons and 70 metric tons during 2014."

Outlook for 2014

• Company reiterates 2014 guidance of between 60 metric tons and 70 metric tons of gold processed during 2014
• Expects international business to continue to expand. The Company delivered an initial shipment of 24-karat gold jewelry product samples to the Middle East Region in October 2014

WUHAN, China, Nov. 4, 2014 /PRNewswire/ -- Kingold Jewelry, Inc. ("Kingold" or "the Company") (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 signed a Cooperation Agreement of Precious Metal Products with Hubei Bank Corporation Limited ("Hubei Bank") on October 28^th to design and manufacture investment-gold products for resale by Hubei Bank to its customers throughout the province. 

Under the agreement, Kingold will design and manufacture 24-karat gold investment-oriented products, including coins, bars and ornaments, on behalf of Hubei Bank. This partnership marks the seventh that the Company has entered since launching its investment gold business in 2012, as Hubei Bank joins Kingold's other bank partners, including: Bank of Communications, China Merchant Bank, CITIC Bank, Wuhan Rural Commercial Bank, China Construction Bank, and Xingye Bank. 

Kingold's investment gold products are now being resold in a number of provinces throughout China, including Beijing, Hubei, Jiangsu, Jiangxi, Liaoning, Zhejiang, Henan and Sichuan Provinces.

Chairman and CEO, Mr.  Zhihong Jia, stated, "We continue to gain traction in the growth of investment gold as a percentage of our overall business. Our strategy is to leverage our design and manufacturing capabilities into a sector of the market where branded banking products are continuing to see steady demand. Our Company has had a strong relationship with Hubei Bank for many years, and we intend to provide the finest quality 24-karat gold products to customers located throughout the Bank's network of approximately 127 retail branches."

WUHAN CITY, China, Oct. 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 [2008]) 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."

WUHAN, China, Aug. 28, 2014 /PRNewswire/ -- Kingold Jewelry, Inc. ("Kingold" or "the Company") (KGJI), one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, announced that the Company has begun paying out today the previously announced special cash dividend of US$0.08 per share of common stock to stockholders of record as of June 30, 2014. The Company received the necessary provincial government approvals enabling it to pay the dividend to stockholders.

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "We greatly appreciate the patience and support of Kingold's stockholders during this process and are pleased to be able to reward that patience with the payout of this dividend. We will continue to build stockholder value and work toward effectively managing our capital needs to grow our business while remaining supportive of Kingold's investor base."

Second Quarter 2014 Financial Results

• Net sales decreased to $339.8 million compared to $367.0 million, largely as a result of lower gold prices during the period
• Net income attributable to common stockholders increased to $16.8 million, or $0.25 per share, from $6.3 million, or $0.10 per share, largely due to a write-down in inventory from the prior year period

Mr. ZhiHong Jia, Chairman and CEO of the Company, commented, "Despite the overall decrease in gold price during the quarter, we continuous to receive growing demand for gold products in China, and we were still able to increase our production. We remain on track to meet our projected volume totals for 2014 and continue to produce strong margins due to lower costs of production."

Mr. Jia added, "Construction at the Company's planned Kingold Jewelry International Industry Park continues to progress, and the foundations have largely been laid. As a result of a delay by the construction company in charge of the project, we deferred our payments due to the construction company by two to three months. The construction has resumed and we expect to accelerate the construction process for the remainder of 2014."

Outlook for 2014

Based on its existing resources and capacity, strong demand for 24-karat gold products in China and continued efforts in building market share, the Company reiterates its gold processed is expected to be between 60 metric tons and 70 metric tons during 2014.

WUHAN CITY, China, June 17, 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 on June 16, 2014, its Board of Directors approved a special cash dividend of $0.08 per share of common stock. The total amount of cash distributed in the dividend is expected to be approximately US$5.3 million. The dividend will be payable on or about July 31, 2014 to stockholders of record as of June 30, 2014.

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "We are very proud of our financial performance in 2013 and thus far in 2014, and we plan to continue to balance our need to invest in our Company with our continuing effort to grow our business. Through this dividend, we are also rewarding our stockholders for their support, which helped lead to our strong performance. We declared a dividend today as a means of rewarding our stockholders for our past financial success, and as a means of thanking our stockholders for their past and future support of Kingold. We expect the Company's strong performance to continue, and we look forward to keeping our stockholders apprised of our progress."

Mr. Jia further stated, "Our management team and our Board have renewed and augmented our commitment to maintaining a high standard of corporate governance to ensure that our investors will continue to have confidence in our financial and operating reports and results. This tangible action reflects our commitment to expanding the visibility of Kingold to current and future stockholders in the United States and Asia, and our hope is that it will allow them to appreciate the strength and continued potential for growth of our business and the value of our equity."

2014 First Quarter Financial Results

• Net sales for the three months ended March 31, 2014, increased by 38.9% to $307.5 million from $221.4 million for the same period in 2013.
• EPS basic and diluted was $0.24 vs. last years same quarter of $0.05

Mr. ZhiHong Jia, Chairman and CEO of the Company, commented, "We are pleased to have achieved solid operating results during the first quarter of 2014, which was a result of our expanded production. We also reported considerable growth in gross profit as a result of purchasing larger quantities of gold at lower market prices into inventory at year end 2013 and at the beginning of 2014. We are proud that one of Kingold's original designs, "Buddha Gold Coin," was a popular and a hit during the 2014 Chinese New Year sales season. We expect to create and design additional new gold products to meet Chinese market demand and its consumer culture. We anticipate that these efforts will continue to increase our sales volume as well as expand Kingold's brand name. We are very pleased with our operating performance during the period and remain optimistic for the remainder of 2014."

Chairman Jia continued, "We are also moving forward in our other growth projects, including the development of the Kingold Jewelry International Industry Park in Wuhan. We believe this site in Wuhan provides a significant opportunity for upside potential as we move forward toward anticipated completion in mid-2015. We have continued to carefully monitor our expenses in this development and expect to provide additional information throughout the year for investors."

Outlook for 2014

Based on its existing resources and capacity (which includes the Company's recent proceeds from its previously announced financing and gold lease agreements), the Company reiterates its gold processed will be between 60 metric tons and 70 metric tons during 2014.

Fourth Quarter 2013 Financial Results:

• Net sales increased 57.7% to $317.6 million 
• Net income for the fourth quarter of 2013 of $8.0 million, or $0.12 per diluted share based on 65.6 million weighted average diluted shares outstanding, compared to net income of $7.4 million, or $0.14 per diluted share based on 54.7 million diluted shares outstanding, in the prior-year period.

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "Kingold's growth accelerated throughout 2013, which we believe was largely the result of our continued push to gain market share from competitors in addition to utilizing gold leasing agreements to increase our capacity. This resulted in solid revenue and earnings growth. We are also seeking new means of diversifying our business through the development of the Wuhan Kingold Jewelry International Industry Park, which we believe will be an integral part of the Company's long-term growth strategy by creating a major hub for the jewelry industry in the central region of China. We believe this park will become a sought after location to display well-known jewelry brands while also serving as a platform for Kingold to sell to new clients. We also expect to expand our international presence in 2014, beginning with our recently announced joint venture agreement to enter the Kuwait market. We were pleased with our progress during 2013, where we diversified our revenue base while still remaining focused on our core competency of designing and manufacturing 24-karat gold jewelry products of the highest quality."

Outlook for 2014

• Kingold expects to process between 60-70 metric tons of 24-karat gold products in 2014.

WUHAN, China, March 5, 2014 /PRNewswire/ -- Kingold Jewelry, Inc. (NASDAQ: KGJI) ("Kingold" or the "Company"), one ofChina's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments, and investment-oriented products, today announced that the Company has signed a joint venture agreement with Kuwait Support Services Company W.L.L. ("KSS"), a major multi-business group headed by His Excellency Sheikh Ameer Al Sabah of Kuwait. The two companies will form a combined entity that is expected to source and finance gold, and to develop, market, and distribute gold products including, but not limited to, gold coins, gold bullion, medals, ornaments, and jewelry. The Company expects to market these products initially to customers in Kuwait, and then to customers in Bahrain, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Mr. Zhihong Jia, Chairman and CEO of Kingold Jewelry, Inc., stated, "We are so pleased to work with Sheikh Ameer and KSS to explore the fast growing Middle East gold market. This marks the first international business expansion for Kingold and we are looking forward to partnering with KSS to provide our quality gold products to a large population of potential consumers.

Item 1.01 Entry into a Material Definitive Agreement.

On December 5, 2013, Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the controlled subsidiary of Kingold Jewelry, Inc. (the “Company”), entered into three Working Capital Loan Contracts with Wuhan Branch China CITIC Bank Corporation Limited (“CITIC”) pursuant to which it borrowed an aggregate of RMB110 million (equivalent to approximately US$18.1 million). The stated purpose of the loans is capital turnover. The loans have maturity dates of March 1, 2014, March 5, 2014, and March 20, 2014, respectively, and have a fixed interest rate equal to the benchmark interest rate announced by the People’s Bank of China for loans of the same term and priority +10% of such rate. For example, if the announced rate is 6%, then such loans have a rate of 6.6%. The loans are secured by 500 kilograms of Au9995 gold. The repayment of the loans may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

On December 6, 2013, Wuhan Kingold entered into three additional Working Capital Loan Contracts with CITIC pursuant to which it borrowed an aggregate of RMB95 million (equivalent to approximately US$15.6 million). The stated purpose of the loans is capital turnover. The loans have maturity dates of April 11, 2014, April 18, 2014, and May 8, 2014, respectively, and have a fixed interest rate equal to the benchmark interest rate announced by the People’s Bank of China for loans of the same term and priority +15% of such rate. For example, if the announced rate is 6%, then such loans have a rate of 6.9%. The loans are secured by 500 kilograms of Au9995 gold. The repayment of the loans may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

On December 10, 2013, Wuhan Kingold entered into a Loan Contract of Circulating Fund with the Jiang’an Wuhan Branch of Hubei Bank Co., Ltd. pursuant to which it borrowed an aggregate of RMB50 million (equivalent to approximately US$8.2 million). The stated purpose of the loan is for operating turnover. The loan has a maturity date of April 18, 2014, and bears fixed interest at the benchmark interest rate of value date +10% of such rate. For example, if the benchmark is 6%, then such loan has a rate of 6.6%. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

On December 10, 2013, Wuhan Kingold entered into a Loan Contract of Circulating Fund with the Wuhan Branch of Industrial Bank Co., Ltd., pursuant to which it borrowed an aggregate of RMB48 million (equivalent to approximately US$7.9 million). The stated purpose of the loan is for purchasing gold. The loan has a maturity date of April 17, 2014, and has a floating interest rate equal to the national primary standard rate with the same date and same grade plus 10% of such rate. For example, if the standard rate is 6%, then such loan has a rate of 6.6%. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

On November 29, 2013, Wuhan Kingold entered into a Trust Loan Contract in the amount of RMB200 million (equivalent to approximately US$32.8 million) with Chang’an International Trust Co., Ltd. in order to undertake the previously disclosed acquisition of the Kingold Jewelry International Industry Park (the “Jewelry Park”). The Trust Loan was approved on December 3, 2013. The stated purpose of the Trust Loan is to permit Wuhan Kingold to purchase 100% of the stock rights from Wuhan Huayuan Science & Technology Development Co., Ltd. (which is the original developer of the Jewelry Park). The loan has a 24-month term, and bears interest at a fixed annual rate of 13.5%. The loan is secured by 1,000 kilograms of Au99995 gold, pledged by Wuhan Kingold. Wuhan Kingold also agreed to deposit cash into a separate account in order to repay the principal and interest on the loan. If Wuhan Kingold does not maintain sufficient required cash in the account, it agreed to pay liquidated damages until the shortfall is corrected. The repayment of the loan may be accelerated under certain conditions, including upon a default of principal or interest payment when due, breach of representations or warranties, certain cross-defaults, upon the occurrence of certain material events affecting the financial viability of Wuhan Kingold, and other customary conditions.

Third Quarter 2013 Financial Results

• Net sales increased 28.6% to $283.9 million compared to $220.8 million, largely as a result of increased production.
• Net income attributable to Kingold shareholders for the third quarter of 2013 increased 31.4% to $11.0 million, or$0.17 per diluted share based on 64.5 million weighted average diluted shares outstanding, from $8.4 million, or$0.15 per diluted share

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "We have begun to realize the benefit of the gold leasing transactions entered into this year. As a result of increased access to gold, we have greater flexibility to expand our production capacity at favorable times in the market cycle. This has allowed Kingold to achieve higher margins, increase its cash flow from operations, and better manage its operations during the period. Throughout the first nine months of 2013, there has been considerable pressure on global gold pricing. While this has created challenges for Kingold and a number of gold manufacturers, we feel this presents a potential long-term opportunity to win market share from some of our less capitalized competitors. We believe the third quarter's strong sales and margin expansion despite this pressure on pricing demonstrates our ability to execute throughout varying market cycles. We are revising our 2013 sales volume guidance to provide for a tighter range of between 50-55 metric tons in 2013 and as a result expect to produce strong fourth quarter year-over-year improvements in production."

Chairman Jia continued, "Subsequent to the quarter, we reached a milestone agreement that we feel is key for Kingold's long-term growth. We entered into an acquisition agreement to acquire 66,666 square meters (717,587 square feet) of industrial land for use in the development of Wuhan Kingold Jewelry International Industry Park. This is expected to be a major commercial complex where businesses in the jewelry industry and consumers can come together, with manufacturing, wholesale, and retail shopping. We plan to move part of our production facility to this industrial park, which will provide Kingold with greater flexibility to expand production levels. We are very excited about this project and look forward to updating investors on our progress."

WUHAN CITY, China, Oct. 29, 2013 /PRNewswire/ -- Kingold Jewelry, Inc. (NASDAQ: KGJI), ("Kingold" or the "Company"), 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 entered into an acquisition agreement to acquire the operating rights for 66,666 square meters (717,587 square feet) of industrial land for use in the development of Wuhan Kingold Jewelry International Industry Park in the Jiangan district, Wuhan (the "Project"), for approximately 1.0 billion RMB (approximately USD$164 million at current exchange rates) from Wuhan Huayuan Science and Technology Development Limited Company.

The Company expects construction of Wuhan Kingold Jewelry International Industry Park to be completed by mid 2015. This Project is located at No. 12 Han Huang Road, Jiang'An District, Wuhan, a premier district on the north shore of the Yangtze River.

The construction of Wuhan Kingold Jewelry International Industry Park is anticipated to be an integral part of the Company's long-term growth strategy by creating a major hub for the jewelry industry in the central region of China. Wuhan Kingold Jewelry International Industry Park is expected to be a major commercial complex that provides a place where businesses and activities in the jewelry industry come together, including manufacturing, wholesale, and retail shopping. The Company plans to move part of its production facility to this industrial park, which will provide Kingold greater flexibility to expand production levels. Key elements of the Project include of the following:

• Acquisition of project: the Company acquires the total project (including both land lease and floor space) at a cost of roughly RMB 5,204 per square meters ($483.5 per square foot).
• The Company plans to construct seven buildings with total useable floor space of approximately 192,000 square meters (2.07 million square feet), 36,000 square meters (389,000 square feet) of which is anticipated to be used as the Company's product show center, product research and development center, and corporate headquarters.
• Of the remaining area, 42,000 square meters (452,000 square feet) is expected to operate as retail shops, and 114,000 square meters (1.23 million square feet) is expected to be leased as office space to domestic and international jewelry companies and related industry organizations.

Kingold intends to finance the Project predominantly with bank loans supplemented by operating cash flows, and where possible, deposits or advances the Company may receive from lessees.

Payments for the project will be made in tranches as follows:

 Mr. Zhihong Jia, Chairman and CEO of Kingold Jewelry, Inc., stated, "We are very pleased to announce this landmark event in Kingold's history, which we believe will help position our Company to be a vertically-integrated, leading manufacturer of gold jewelry and provider of wholesale (and retail) jewelry in Central China. We expect to utilize the land to create a new headquarter for the Company and develop a 'Jewelry City.' This Project will encompass all aspects of the gold manufacturing and distribution process, from development to retail sales. We believe Wuhan Kingold Jewelry International Industry Park will not only be a sought-after display area for well-known jewelry brands for both retail and wholesale distributors, but will also serve as an information exchange for a variety of participants in the jewelry industry. We expect it will also be a platform by which Kingold can build relationships with global jewelry companies. We believe this is the first step to creating a truly international enterprise and look forward to updating investors on this project's progress in the coming weeks and months."

WUHAN,China, October 24, 2013 /PRNewswire/ -- Kingold Jewelry, Inc. (NASDAQ: KGJI), ("Kingold" or the "Company"), 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 received an increase in the credit line established under the Gold Leasing Agreement ("Agreement") with China Construction Bank's ("CCB") Wuhan Jiang'An branch, which was signed in January 2013. CCB proposed the increase of the credit line based on Kingold's strong performance and appropriate handling of gold.

Kingold's total credit line under the Agreement is now RMB400 million (approximately US$65.4 million), an increase of RMB150 million from the original credit line of RMB250 million.

The Agreement is similar to a revolving credit line, with CCB providing Kingold a reusable credit line of up toRMB400 million; however, drawdowns under the facility (and repayment thereunder) will be made in gold rather than currency. Gold loans under the facility will bear interest at a rate of approximately 6% p.a., with interest based on the actual weight of gold loaned under the facility (in grams), the price of gold (yuan/gram), in addition to the rate and number of days the gold was loaned under the facility. The increased line of credit is available until July 22, 2014. Because the market price of gold may fluctuate during the term of the Agreement, Kingold and CCB have agreed to a cap of 95% on the credit line based on the actual value of gold loans outstanding at any time under the credit facility.

China Construction Bank is a leading commercial bank in China providing a comprehensive range of commercial banking products and services. At the end of June 2013, the market capitalization of the Bank reached US$176.7 billion, ranking fifth among listed banks in the world. The Bank had a network of 14,925 branches and sub-branches in Mainland China, maintained 10 overseas branches in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo,Seoul, New York, Ho Chi Minh City, Sydney and Taipei, and owned multiple subsidiaries, such as CCB Principal Asset Management, CCB Financial Leasing, CCB Trust, CCB Life, Sino-German Bausparkasse, CCB Asia, CCB London, CCB Russia, CCB Dubai and CCB International.

Mr. Zhihong Jia, Chairman and CEO of Kingold Jewelry, Inc. stated, "We are very pleased with our partnership with CCB under this Agreement. This increased credit line will allow us to further increase our production capacity and grow our business over the next several months. We continue working hard to take advantage of the market opportunities in China's 24K gold consumer goods market and are honored to have the support of CCB."

2013 Second Quarter Financial Results

• Net sales increased 36.7% to $367.0 million compared to $268.5 million, largely as a result of increased production due to higher demand.
• Gross profit decreased to $11.1 million compared to $15.0 million, and gross margin was 3.0% compared to 5.6%, largely as a result of this write-down in inventory.
• Net income attributable to common shareholders was $6.3 million, or $0.10 per diluted share, compared to $9.6 million, or$0.18 per diluted share.
• Book value per diluted share of $2.99 at June 30, 2013 compared to $2.97 at December 31, 2012.

Company Reiterates Guidance for 2013 Due to Strong Demand in Second Quarter

• During the quarter, the Company experienced an increase in demand for its jewelry and investment gold products as a result of the May 1^st Chinese Labor Day Holiday and correction in the price of gold in April.
• Kingold reiterates its expectation of processing between 50-60 metric tons of 24-karat gold products in 2013. The Company processed 23.8 million metric tons through the first six months of 2013.

Management Comments

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "We were pleased to report top-line growth and profitability despite changes in global gold pricing. As reported previously, we were affected by the rapid changes in gold prices. Our customers altered their buying patterns and delayed orders as a result of the extreme volatility in pricing. We mitigated the impact on our operations by slowing down sales of products where we are not able to fix the price at the time of sale (such as our investment gold business and sales to certain jewelry customers) to avoid market risk and to preserve value. We also wrote-down our inventory to reflect the change in market value. We understand that Kingold is subject to commodity risk, however we remain focused on properly running our business through all market cycles. We are pleased that from mid-to-late April and throughout the remainder of the second quarter we witnessed a surge in demand as prices stabilized, and as expected, saw increased demand for our products due to theMay 1^st Chinese Labor Day holiday. We focused on providing quick turnaround to meet this demand, and have received a favorable response from our customer base. Over the long-term, we think this will add tremendous value to our brand and customer loyalty, and ultimately continue to drive sales and profits in the future. Further, we are benefiting from an improving balance sheet position, as noted by our increased cash, lower receivables, lower inventory, and increasing book value. We feel that our business is a sustainable and flexible model that can shift with changing market cycles that may create great difficulty for our smaller competitors."

Outlook for 2013

Kingold believes gold processed will be between 50 metric tons and 60 metric tons during 2013. This guidance is based solely on current projected, organic growth, and would represent a 32.3% to 58.7% increase from the 37.8 metric tons processed in 2012.

Mr. Jia concluded, "Kingold is on track to produce its expected volume through 2013, largely as a result of a substantial increase in demand in the early weeks of the second quarter surrounding the May 1^st Labor Day holiday in the PRC. We are also looking into new methods of expanding our brand presence, including opening new showrooms for Kingold's own products. In addition, we are steadily increasing the marketing of our investment gold products, while controlling this growth in light of changing gold prices. Our goal throughout the first half of 2013 has been to continue developing our relationships with our customers, who we believe recognize the strength of a well-capitalized and organized company that can quickly handle their production needs throughout any cycle."

First Quarter 2013 Financial Results

• Net sales decreased 1.6% to $221.4 million compared to $225.0 million, largely as a result of lower gold prices
• Gross profit decreased 45.4% to $6.3 million compared to $11.6 million, and gross margin was 2.9% compared to 5.1%.
• Net income attributable to common shareholders was $3.0 million, or $0.05 per diluted share, compared to $7.3 million, or$0.13 per diluted share

Company Reiterates Guidance for 2013 Due to Strong Demand in Second Quarter

• The sharp correction in the price of gold in mid-April has stimulated substantial demand in China for gold. Accordingly, the Company experienced an immediate increase in demand for the Company's jewelry and investment gold products.
• As a result of this increased demand, Kingold reiterates its expectation of processing between 50-60 metric tons of 24-karat gold products in 2013.

Management Comments

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "While the global gold market presented obstacles during the period, we believe that the Company's strong financial footing places Kingold in a position to benefit from the recent stability in gold prices. While our customers continued to express strong demand for our jewelry and investment gold products in the first quarter, many delayed making purchases because they believed they could purchase the products at a lower price at a later date. As a result, Kingold encountered lower sales during the period. Despite these challenges, we continued to report profitable operations and have built a foundation that allows our Company to withstand global pricing effects and gain market share from our competitors that do not have these advantages."

Chairman Jia continued, "During the quarter, we took a cautious approach and slowed down sales of products where we were not able to fix the price at the time of sale, such as our investment gold business and sales to certain jewelry customers, to avoid market risk and to preserve value. We believe this conservative approach served the best interests of the Company as we experienced an immediate increase in product orders following two days of considerable decreases in gold pricing in mid-April. The increase in orders was largely the result of a number of our customers placing orders to build up inventory in advance ofChina's Labor Day holiday, which is typically a large order period for us. We continue to leverage Kingold's production capacity and are working with our distribution network to fill and process orders as efficiently as possible. Over the long term, we believe that Kingold's ability to withstand global gold price fluctuations will help fortify client relationships, thereby demonstrating the strength and value of the Kingold brand."

Outlook for 2013

As a result of increased demand throughout the first six weeks of the second quarter of 2013 and based on the Company's existing resources and capacity, Kingold believes gold processed will be between 50 metric tons and 60 metric tons during 2013. This guidance is based solely on current projected, organic growth, and would represent a 32.3% to 58.7% increase from the 37.8 metric tons processed in 2012.

Mr. Jia concluded, "We are pleased with the acceleration of orders since mid-April. We believe that our strong cash position and inventory of gold, along with our ability to deliver products quickly, have helped Kingold meet this surge in demand. We remain confident regarding the long-term prospects for 24-karat gold products in China and believe that our Company is well-equipped to expand on its market position."

Fourth Quarter 2012 Results

• Net sales for the 2012 fourth quarter of $201.4 million, compared to $168.4 million in the fourth quarter of 2011.
• Gross profit for the period was $11.7 million, compared to $6.8 million in the prior-year period. Gross margin increased to 5.8% for the three months ended December 31, 2012, up from 4.1% for the prior-year period. The Company's gross margin is defined by the mark-up it charges reflecting design and processing fees, determined by the complexity of design.
• Net income attributable to Kingold shareholders for the fourth quarter of 2012 of $7.4 million, or $0.14 per diluted share based on 54.7 million weighted average diluted shares outstanding, compared to net income of $3.2 million, or$0.06 per diluted share based on 51.3 million diluted shares outstanding, in the prior-year period.

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "The last several months have been a strong period in our Company's history, as we finished 2012 by reporting solid financial results and strengthened our financial position considerably through the closing of our recent financing and securing new sources of gold. Kingold beat its previously announced volume guidance by over 7% and achieved year-over-year growth in volume, net sales, gross profit margin, and net income. We believe that gold design and processing companies like Kingold, with our developed distribution network, attractive designs and reliable product quality, are well-positioned to expand our brand and capture an increasing share of China's growing gold jewelry and investment market."

Outlook for 2013

• As a result of the recent increase in gold inventory and continued strong demand for the Company's jewelry and investment gold products, Kingold expects to process between 50 - 60 metric tons of 24-karat gold products in 2013

Operating and Financial Highlights (Percentage Increases are Year-over-Year)

• 11.8 metric tons of 24-karat gold products processed during Q2 2012, an increase of 16.8%
• Net sales increased 6.5% in Q2 2012 to $268.5 million
• Gross profit margin improved to 5.6% from 4.9%
• Net income attributable to common shareholders increased 13.9% to $9.6 million, or $0.18 per share

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "We were very pleased with our second quarter results, which included increases in gold tons processed, sales, gross profit margin, and net income. We also continued to make progress in developing our investment gold business and signed a significant agreement that we believe will expand our access to end users in the jewelry market."

Market and Business Outlook

Despite the fluctuation in gold prices and concerns over the global economic climate (particularly in Europe), China's gold consumption has remained strong during 2012. A recent report in July by the World Gold Council noted that while sales were expected to slow in the second quarter after a record first quarter, it estimates China's gold demand "should expand 13% to 870 metric tons in 2012." The report projected jewelry demand growing 7.7% to 550 tons, and bars and coins up 24% to 320 tons.

Kingold reaffirms its 2012 guidance that the Company will process approximately 35 tons of gold product. This guidance is based solely on its current organic growth projections.

Chairman Jia concluded, "We were pleased with our development during the first half of 2012, as we continued to diversify our sales to meet a wider range of end customers. This includes providing something as simple as a wedding ring, a complex necklace design, or a long-term investment product. As our investment gold business has started to build up, we anticipate that we can expand partnerships with major banks to spread a larger sales network across China. We also remain focused on growing our customer base in 24-karat gold jewelry designing and manufacturing segments, which remains the largest portion of our business. We feel it prudent to reiterate at this time that volume and trends have remained strong and we continue to evaluate global effects on demand in China. We feel strongly that long-term demand for gold products in China will continue to grow, and have worked to adapt our business to take advantage of changing market conditions."

WUHAN CITY, China, July 12, 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 Kingold's board of directors has authorized the repurchase of up to $10 million of issued and outstanding shares of Kingold's common stock in the open market or in privately negotiated transactions at any time and from time to time during the twelve-month period ending July 12, 2013. Kingold currently has approximately 53.4 million common shares outstanding.

Repurchases will be made under the plan using Kingold's own cash resources. These repurchases, if and when made, will be made subject to market conditions, applicable legal requirements (including federal and state securities laws as well as rules of the Securities and Exchange Commission) and other factors. This plan does not obligate Kingold to acquire any particular amount of common stock and the plan may be modified, extended or terminated at any time at Kingold's discretion.

Mr. Zhi Hong Jia, Chairman and Chief Executive Officer of Kingold, stated, "As reported in our filings with the Securities and Exchange Commission, the Company recently contemplated a secondary offering to help accelerate our growth, but given the decrease in our share price after the announcement of the offering, our management and Board determined that this was not in the best interest of the Company or its shareholders. In addition to growing our Company, it is our goal to enhance long-term stockholder value. We believe that our current share price presents an attractive investment opportunity and that it is prudent to establish a stock repurchase plan at this time. We remain steadfast in our confidence in Kingold's fundamentals as reflected with this share repurchase, and look forward to keeping shareholders apprised of our progress."

Kingold Jewelry, Inc. has decided to postpone its proposed public offering of common stock described in its preliminary prospectus supplement filed with the Securities and Exchange Commission on June 28, 2012.

From 424B5 on 6/28/2012

Unless we indicate otherwise, all information in this prospectus supplement: (1) is based on 53,426,890 shares of common stock issued and outstanding as of June 22, 2012; (2) assumes no exercise by the underwriters of their option to purchase up to an additional           shares to cover over-allotments, if any; (3) excludes 3,040,000 shares of our common stock issuable upon exercise of outstanding stock options under our 2011 Stock Incentive Plan at a weighted average exercise price of $1.95 per share as of June 22, 2012; and (4) excludes 1,868,793 shares of our common stock issuable upon exercise of outstanding warrants at a weighted average exercise price of $1.42 per share as of June 22, 2012.

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."

2012 First Quarter Operational and Financial Review

• In the first quarter of 2012, Kingold processed approximately 8.84 metric tons [one metric ton = 35,274 ounces] of 24-karat gold products, an increase of 17.6% over the 7.52 metric tons processed in the first quarter of 2011. In the first quarter Kingold processed approximately 970,000 pieces of jewelry, gold bars and coins, with the majority being necklaces and rings (roughly 250,000 pieces for each category).
• The Company reported revenues for the 2012 first quarter of $225.0 million, an increase of 42.6% from$157.7 million in the first quarter of 2011. The increase in net sales was primarily driven by increased branded production as well as by the increase in the price of gold. Of the $67.3 million increase in net sales, approximately $35.3 million was attributable to increased branded production and approximately $25.2 million to the increase in the price of gold and the remaining is due to the gain from exchange rate fluctuations.
• The Company expects a higher percent of its revenue in future quarters to be derived from its investment gold business, which generated incremental $9.9 million of revenue in the first quarter of 2012. The Company's investment gold consists of products such as gold coins, bars and certain gold gift products, which are sold to individual branch locations under that bank's specific brand. The Company typically expects a higher margin from its investment gold products than its branded jewelry and ornament production.
• Gross profit for the 2012 first quarter was $11.6 million, an increase of 29.0% from $9.0 million in the prior-year period. The Company's gross margin for the period was 5.1% compared to 5.7% from the prior year period. Gross margin was lower for the period primarily because gold prices increased nearly 9% while the Company could not raise its processing fee proportionally. However, Kingold's gross margin improved over the gross margin of 4.1% reported in the fourth quarter of 2011. The fourth quarter gross margin was affected by a shift in product mix (more branded production) and initial costs involved with ramping up the Company's investment gold business.
• The Company reported net income attributable to Kingold shareholders for the first quarter of 2012 of $7.3 million, or $0.13 per diluted share based on 54.4 million weighted average diluted shares outstanding, compared to net income of $5.3 million, or $0.11 per dilute

Mr. Zhihong Jia, Chairman and CEO of Kingold, stated, "We continued to see strong growth in our sales volume during the first quarter of 2012, particularly from our investment gold business. We continue to gradually shift resources to support demand from our bank partners, and were pleased that this has helped serve as a new driver for sales. We are now distributing products from the investment gold business to several provinces and municipal locations throughout China, including Beijing, Hubei, Jiangsu, Jiangxi, Liaoning, Zhejiang, Henan and Sichuan. In our jewelry business, we have continued to build upon and expand our customer base over the past year, with new clients including Harbin Hengyuan Gold Corp, Hangzhou Xingya Jewelry, Wuxi Yinglou and Datong Jintai Jewelry. We were also pleased to receive a AAA credit rating from the Gems & Jewelry Trade Association of China, which we feel is a testament to our reputation in China's jewelry industry and strong financial position. We feel that the long-term demand drivers in the jewelry business, such as a rising middle class, growing disposable income and culture (weddings and child births) will continue to provide stable growth for the Company."

Market and Business Outlook

Despite the fluctuation in gold prices, China's gold consumption remained very strong in the first quarter of 2012. According to statistics from the Hong Kong Census and Statistics Department from May 2012, in the first quarter Hong Kong alone exported 135.5 metric tons of gold into mainland China, five times more than in the same period from last year. China is widely expected to overtake India as the world's largest gold market in 2012.

The Company reaffirms its 2012 guidance that sales volume will be approximately 35 tons. This guidance is based solely on our current organic growth projections. Kingold expects its second quarter sales volume to continue the momentum and growth seen in the first quarter.

Chairman Jia concluded, "We have been very pleased with the development over the past six months, as we have begun to shift our resources towards growing the investment gold business. We expect this segment to continue to grow as a percentage of our revenues in coming periods. We continue to closely monitor gold price fluctuations globally, but were pleased to see stable pricing throughout the first quarter. We continue to feel that population growth, a rising middle class, and a trend towards risk-averse investment in gold will continue to drive China's gold demand for the immediate and long-term future to the benefit of Kingold. We remain confident about the long-term growth prospects for the investment gold market and 24-karat gold jewelry in China and look forward to continuing to develop our new products and distribution abilities throughout the country. We have maintained a healthy balance sheet, are debt-free, and remain wholly focused on expanding our operations."

WUHAN CITY, China, March 17, 2012 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. (NASDAQ: KGJI) announced today that Kingold once again won the confidence vote by the World Gold Council (WGC) and was awarded by WGC as the Designated Dealer for wedding gold products in China.

Kingold has been authorized this title for the second consecutive year, and is one out of only three China-based gold manufacturers to capture this title. The other two companies are Gold Leaf Jewelry and Yue Hao Jewelry.

Kingold will operate and produce its wedding products under the Kingold brand as well as the M-Gold brand which are Kingold's premium line of wedding products targeting high-end customers. "By leveraging this partnership, we have launched several campaigns in Sichuan, Chongqing, Guizhou, Guangxi and Yunnan area and received very positive feedback from the local distributors." Stated by Mr. Zhao Bin, General Manager of Kingold, "This partnership further reinforces and enhances our position as one of the leading manufacturers and designers of high quality 24-karat gold jewelry and ornaments. "

"Gold consumption in China has been spurred by wedding demand. We have been striving to develop middle to high-end wedding gold products in the past few years. The strategic partnerships with World Gold Council will help us to stimulate customers' potential purchasing power and significantly enhance our brand recognition." Added Mr. Zhihong Jia, Chairman and CEO of Kingold, "As one of the first gold manufacturers to be certified and recommended by the World Gold Council to promote wedding products, our distributors have helped us to develop more than 500 franchise stores/counters nationwide by the end of 2011, in which over 400 were franchised under the brand name M-Gold, and approximately 100 were franchised under the brand name Kingold. We anticipate the total number of our franchise stores may exceed 1,000 by the end of this year."

WUHAN, China, February 23, 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 definitive agreement with Shanghai Oriental CJ Company for selling investment-oriented products, such as gold bar, on Shanghai Oriental CJ's TV shopping channel.

Shanghai Oriental CJ Company is a joint venture between Shanghai Media Group and South Korea's CJ Home Shopping Company operates one of the first, largest and most influential TV home shopping channels in China. The channel broadcasts 24 hours a day, and 7 days a week. It has reached over RMB 5 billion (about US$ 793 million) in sales in 2010 by offering a wide range of consumer products to Chinese consumers, particularly the most affluent population in coastal area and Southeastern China.

Under the terms of the agreement, Kingold Jewelry will start selling its investment-oriented products, such as gold bars and coins on Oriental CJ channel and Oriental CJ's B2C online platform in the first half of 2012.

"This is another new initiative for us to expand our current sales channel to more direct B2C model. TV home shopping sector in China, while is in the early stage, has been experiencing explosive growth in both revenue and customer base, and it is estimated to reach total revenue of RMB 100 billion (approximately US$15.8 billion) by 2015. We believe this partnership with Oriental CJ will not only allow us to generate incremental revenue and profit with less upfront cost, but also benefit the company by building its brand awareness among Chinese consumers," commented by Mr. Zhihong Jia, Chairman and CEO of Kingold. "We will continuously leverage Oriental CJ's platform and its high-end customer base by introducing more of our branded gold products such as jewelry and household ornaments in the future. We are in a right direction to gradually shift our focus into retail market directly targeting end users from the traditional wholesale market. We are confident that our ultimate goal to build Kingold as a major national brand of 24 karat gold products in China will be achieved."

On December 29, 2011, Kingold Jewelry, Inc. (the “Company”) issued 2,783,527 unregistered shares of its common stock (the “Shares”) to Hai Gao Holdings Limited (“Holdings Limited”) pursuant to the terms of a subscription agreement, dated December 29, 2011 (the “Agreement”). Holdings Limited is controlled by Mr. Yang Wen, a citizen of the PRC. On August 15, 2011, Mr. Yang Wen purchased in a transaction 4.17% of the equity interest of Wuhan Kingold Jewelry Company Limited (“Wuhan Kingold”), the Company’s controlled operating subsidiary in the PRC, for RMB 30 million (approximately $4.8 million). This equity interest in Wuhan Kingold was previously held by Beijing Shouchuang Investment Co. Ltd, a PRC State Owned Enterprise, until August 9, 2011 when it sold this interest through a public statutory auction process in the PRC.

Third Quarter 2011 Results

On August 8, 2011, the Company increased its full year 2011 revenue guidance to a range of between $800 million and $850 million, up from prior guidance of between $720 million and $780 million. The Company also raised its full year 2011 net income guidance to a range of between $32 million and $34 million, up from prior guidance of between of $30 million and $32 million. Based on management's estimate of weighted average diluted share count for 2011, the guidance corresponds to earnings per diluted share of $0.63 to $0.67.  

The Company's guidance assumes, among other things, relatively stable gold prices for the remainder of the year, no additional capital raises in 2011, and meaningful contribution from its new line of investment-oriented gold products in the second half of 2011.    

(NASDAQ:KGJI - News), a leading Chinese manufacturer and designer of 24-karat gold jewelry and ornaments, today announced that Mr. Zhihong Jia, the Company's Chairman and Chief Executive Officer, has entered into a Rule 10b5-1 plan, under which he intends to purchase up to $500,000 of the Company's common stock. Once the maximum dollar amount of shares has been purchased under the plan, the Chairman currently intends to enter into a subsequent Rule 10b5-1 plan to purchase up to an additional $1 million of the Company's common stock, for a total investment of up to $1.5m.

WUHAN CITY, China, May 2, 2011 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. ("Kingold" or the "Company") today released an open letter to shareholders from the Company's Chairman, Zhihong Jia, discussing Kingold's platform for sustainable growth and dedication to strong corporate governance.

Dear Kingold Shareholders,

I am writing to thank you for your ongoing commitment to Kingold Jewelry, especially during the challenging current market environment for reverse mergers ("RTOs/reverse takeovers") of China based operating companies that trade on United Statesexchanges.  The problems that have surfaced among China RTOs appear to emanate largely from failures in corporate governance practices and, in a few cases, reflect blatant fraud.  In the hope of allaying any concerns you may have, I would like to review ways in which Kingold has built a solid platform for sustainable growth while maintaining rigorous corporate governance standards.

Kingold operates a sustainable, low risk business model.

We have established a market leading position in China's gold jewelry industry, which only opened to the private sector in 2002.  Unlike many of our peers who are conglomerates or who operate in the broader non-gold jewelry category, Kingold focuses exclusively on 24-karat gold products.  Furthermore, we have specialized in design and manufacturing, rather than branching out into wholesale distribution and retailing businesses.  We have placed a strong emphasis on product quality and serving our valued customers.  Importantly, we have not made a single acquisition to date and we plan to continue on an organic growth strategy going forward.  

We are proud of our progress in developing our new line of investment-oriented gold products as well as our line of proprietary MGold brand jewelry.  We believe our current capital base and cash flow are sufficient to meet our near-term capital requirements.

A major benefit of our business model is a low level of accounts receivable.  We set the price for our products at the time a customer places a purchase order, we then buy the gold to produce the products ordered and are paid in full when we deliver the finished goods to the customer.  Kingold had less than $1.2 million of accounts receivable as of December 31, 2010, a negligible amount for a business that generated $523 million in 2010 revenues.

Kingold is dedicated to transparency and strong financial and operational controls.

Our business model is inherently transparent as Kingold produces only 24-karat gold products and we purchase our gold exclusively from the Shanghai Gold Exchange (the "Exchange"). All these purchases can be independently verified. In addition, some of our gold is supplied by our customers for customized production. In 2010, we produced a total of 26 tons of gold products, of which approximately 14.7 tons of gold was purchased from the Exchange and 11.3 tons was supplied by customers.  

Moreover, our tax records in China are transparent and match the numbers reported in the United States.  As a result of our focused business model, the fair market value of our inventory, which is comprised entirely of 24-karat gold, can be easily determined.  

Finally, stringent financial controls are a company-wide priority, from the ground up to our Board of Directors ("Board"), and finally to me. We recently hired a well-regarded consulting firm in China to bolster our internal controls and 404 compliance who conducted an in-depth review of our internal control over financial reporting and continues to support us regarding financial controls. When we had an issue with a non-cash stock compensation expense resulting from the issuance of 100,000 shares of restricted common stock that was previously disclosed, we hired a Big 4 accounting firm to evaluate the effect of the expense on our financial statements which resulted in a de minimis charge. Our decisive action demonstrates our commitment to achieving a very high standard of corporate governance. Our goal is to have the best corporate governance of any Chinese company listed on a U.S. exchange.      

Kingold has a dedicated management team and board of directors.

I started Kingold shortly after liberalization of the jewelry industry in 2002; I was attracted to the sector as a result of my previous experience managing gold mines on behalf of the PRC army. I have worked hard to surround myself with the best possible team to help me realize what I believe to be a unique opportunity, that of becoming the undisputed leader in China's 24-karat gold jewelry manufacturing industry.

The day to day operations of Kingold are managed by our general manager, Bin Zhao, an industry veteran with close to 20 years of experience, together with a highly skilled team of professionals. Our CFO, Bin Liu, has more than 15 years of global capital markets experience and, before joining us, served as a vice president of Citigroup's Financial Institution Cards business.  I have no family members involved in any aspect of Kingold's business nor do I have any other businesses.

Kingold also is distinguished by a strong Board with independent directors that include Professor H. David Sherman, a U.S. Certified Public Accountant who serves as Chairman of our audit committee. Since 1985, Dr. Sherman has been a Professor atNortheastern University, College of Business. In addition, Dr. Sherman, who earned his MBA and doctorate at the Harvard Graduate School of Business Administration, was on the faculty of the MIT Sloan School of Management, an Adjunct Professor of INSEAD (France) and an Adjunct Professor of Tufts Medical School, Department of Public Health. He also served as an Academic Fellow at the Securities and Exchange Commission from 2004 through 2005. Our other independent directors are Binnan Zhang, Vice President and Secretary-General of the China Gold Association and a Director of the Beijing Gold Economic Research Center, and Xaixiao Xu, Director of Cinda Securities Co., Ltd. in Beijing.

We invite inquiries from shareholders who have an interest in better understanding our business and also welcome prospective investors, analysts and other interested parties to visit our facility and management team in Wuhan, to see first-hand the quality of our 24-karat gold manufacturing operations. If you are interested in reviewing our Chinese tax records and/or our gold purchases from the Exchange, please contact our CFO, Bin Liu, on 212-509-1700 or by e-mail at bl@kingoldjewelry.com to set up an appointment.

Fourth Quarter Results:

• Revenue increased 216.6% to $184.9 million from $58.4 million in fourth quarter 2009    
• Gross profit rose 55.8% to $9.5 million from $6.1 million in fourth quarter 2009
• Net income attributable to common stockholders grew 83.6% to $5.3 million, or $0.12 per diluted share, from $2.9 million, or $0.09 per diluted share, in fourth quarter 2009.

"We are very pleased to report record fourth quarter revenue and earnings, capping off an excellent year for Kingold Jewelry. In 2010, our first full year as a publicly traded company, we launched a successful line of proprietary branded jewelry, MGold, up-listed our shares to NASDAQ, accomplished robust earnings growth, and positioned the company for continued success in 2011," said Mr. Zhihong Jia, Kingold's Chairman and CEO.

In 2011, the Company anticipates revenue of between $720 million and $780 million and net income of between $30 million and $32 million. The Company's guidance assumes, among other things, relatively stable gold prices for the remainder of the year, no additional capital raises in 2011, and meaningful contribution from its new line of financially-oriented gold products starting in the second half of 2011.  

WUHAN CITY, China, March 17, 2011 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. ("Kingold" or the "Company") (Nasdaq: KGJI), one of China's leading manufacturers and designers of 24-Karat gold jewelry and ornaments, today announced selected estimated unaudited financial results for the year ended December 31, 2010.

The Company expects 2010 revenue to be approximately $523 million, or more than double 2009 reported revenue of $250.5 million. 2010 net income attributable to common stockholders is expected to be approximately $18 million, or more than double the prior year number of $8.7 million.

"We are pleased to announce strong preliminary 2010 results, including robust top and bottom line growth, driven by solid demand for our high quality 24-K gold jewelry and ornaments," said Mr. Zhihong Jia, Kingold's Chairman and CEO.

Separately, the Company announced that it has filed Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission, which will give the Company until March 31, 2011 to file its annual report on Form 10-K for the year ended December 31, 2010 (the "Form 10-K"). Upon filing on or before March 31, 2011, the Company's Form 10-K will be deemed to be timely filed. The additional time required to file the Form 10-K is a direct result of the additional requirements of Section 404 of the Sarbanes-Oxley Act of 2002, to which the Company became subject to for the first time with respect to its Form 10-K for the year ended December 31, 2010.

WUHAN, China, Feb. 3, 2011 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. today announces that H. David Sherman, an expert on developing and using financial and non-financial measures to evaluate and manage performance with over 25 years of expertise in academia and business, has joined the Kingold's Board of Directors.

Professor Sherman replaces Dr. Vince Orza who resigned as a director as of January 28, 2011. Dr. Orza resigned from the Board due to a disagreement over Kingold's equity offering which he did not support at the $3.19 per share offering price. He felt that Kingold was undervalued at such price.  Kingold's previously announced US$22.9 million equity offering closed on January 13, 2011.

Update:

KGJI shares  have fallen hard this moring, down $1.40 in early trading to $4.65. Recall that we recently published an article on KJGI when the stock price was $8.87, alerting investors with some of our concerns surrounding this story.   We are assuming that the fall in price may have something to do with a potential offering due to the existence of an S-1 filing.  If KGJI was to offer stock at current levels it would be doing so at a trailing P/E of 11.92 which is still a premium to the ChinaHybrid space. If it were to trade on par with other ChinaHyrbid stocks, a potential stock offering would have to be priced much lower.

by Maj Soueidan

As indicated in my recent article, Limit Risk While You Invest in ChinaHybrids (U.S. Listed Chinese Stocks),  I track daily new highs in an attempt to identify momentum value plays.  A trend I have noticed is that even as the RTO stocks have once again corrected many ADRs, some with premium multiples are attaining new 52 week highs. Short investors have asserted that ADRs are of higher quality than their RTO counterparts and that their PRC filings match SEC filings.

ADR/ADS stocks listed on major exchanges that attained 52 new highs even as the Chinese RTO space has pulled back:

51 Job Adr (NASDAQ:JOBS)
China Digital Tv Holding Adr (NYSE:STV)
7 Days Group Holdings Adr (NYSE:SVN)
Global Sources (NASDAQ:GSOL)
China Techfaith Wireless Adr (NASDAQ:CNTF)
3 Sbio Inc Ads (NASDAQ:SSRX)
Hollysys Automation Tech (NASDAQ:HOLI)
Fabrinet (NYSE:FN)
Elong Adr (NASDAQ:LONG)
China Yuchai Intl (NYSE:CYD)

A couple well-followed RTO stocks have recently attained new highs:

Lihua Intl (NASDAQ:LIWA)
Puda Coal (NYSE AMEX:PUDA)

The following stocks on the BB have recently attained new highs, most on light volume:

China Electronics (OTC BB:CEHD)
Horiyoshi Worldwide (OTC BB:HHWW)
Shun Cheng HK (OTC BB:BRBH)
Zhongchai Machinery (OTC BB:EQPI)
China Agri-Business (OTC BB:CHBU)
Gfr Pharmaceuticals (OTC BB:GFRP)
Sino Oriental (OTC BB:SMPN)
China Shesays Med (OTC BB:CSAY)
Jinhao Motor Co Common (OTC BB:GIMC)
Asia Pacific Wire & Cabl (OTC BB:AWRCF)

I also like to observe stocks that are within striking distance of a 52 week new high. One such RTO stock caught my attention due to the fact that it sports a trailing P/E multiple of over 20 that most RTO stocks would kill for.  I was obviously excited, thinking that the market had placed its quality stamp of approval on Kingold Jewelery (NASDAQ:KGJI).  Shares have risen from a 52 week low of $0.56 to $8.87, off its high of $11.95 in August 2010.

The company also claims to be the leader in its industry:

"Kingold Jewelry, Inc. is one of the leading professional designers and manufacturers of gold jewelry in the central part of China including Hubei, Hunan, Henan, Jiangxi, Anhui and Sichuan Provinces. According to statistics provided by Gems and Jewelry Trade Association of China, KGJI ranked first and second in the PRC's gold industry nationwide in total volume of production in 2007 and 2006, respectively."

As a precaution, I now run many of my potential ChinaHybrid stock selections through my Chinese attorney I call "Bob" in order to respect his privacy. Recall that Bob was instrumental in my article, The SEC vs SAIC Fact Finding Mission, published on August 25, 2010.  I asked Bob if he was aware of KGJI.  He was, and the news was quite interesting.

Bob writes:

KGJI tried to list in Shenzhen stock exchange in China in 2008.  However, it was rejected by China Securities Regulatory Commission on Aug 4th. 2008 (http://www.csrc.gov.cn/pub/zjhpublic/G00306202/200810/t20081027_34946.htm). 

KGJI planned to sell 33,340,000 shares which would have equated to 25% of the total shares after the planned IPO.  The book value per share before the IPO is RMB 1.59 yuan. As the IPO is rejected by China Securities Regulation Commission, we do not know what the planned price was. However, if we assume KGJI would have applied a 20 P/E (China market has a high P/E), the price shall be around RMB 0.30 per share.

Translation from CSRC site:

"China Securities Regulatory Commission, the Audit Committee issued its 115th meeting in 2008 at the August 4, 2008 meeting, the meeting reviewed the results now announced as follows: Wuhan Golden Phoenix Jewelry Co., Ltd. is not approved."

I am 100% percent sure this KGJI Wuhan Golden Phoenix Jewelry are one the same. Wuhan Golden Phoenix Jewelry has the same address, same legal representative and financial statements as well. In its prospectus submitted to CSRC, KGJI applied its English name as "Kingold Jewelry" on the cover which is the same as KGJI. Wuhan Golden Phoenix Jewelry is the direct translation of its Chinese name. When you say the logo of KGJI, it is a golden phoenix.

Bob goes on to comment:

The media reported that possible reasons for the rejection dealt with falsified financial books.  There were several reasons applied to challenge the prospectus submitted to China Securities Regulatory Commission (CSRC) by KGJI (Prospectus: http://www.csrc.gov.cn/n575458/n776436/n804920/n2466277/n10731196.files/n10731195.pdf). 

At first, it has been speculated that the company intentionally increased (forged) the value in its asset appraisal report for machinery and raw materials invested by Zhihong Jia, CEO, in 2004. Secondly, the increase of the revenues from 2006 to the first season of 2008 was challenged.   Thirdly, it has been speculated that suspicious share transactions from Zhihong Jia to other shareholders existed.  (http://money.163.com/08/0805/03/4II6GVGS00251RJ2.html)

I read the prospectus of KGJI in China (2008), the reverse merger documents and its S-1.  Apparently, the annual increase rate of revenue of KGJI is more than 100% for three years.  The Chinese media challenged the increase in 2008.  The financials in the PRC prospectus, reverse merger documents and the S-1 match, so the company used the same filings submitted to the CSRC.  Now, we need to figure out more details in 2010.

To be clear, the CRSC did not mention that it rejected the application for the IPO due to fraud allegations.

In addition to Bob’s findings and with help from a new due diligence panel I have assembled, I have provided the following information that investors may find useful:

• Right after their reverse merger in February, KGJI hired Baker Tilly Hong Kong, respected auditor that also audits Chinacast Education (NASDAQ:CAST).  Then, only a month later, they switched to Friedman LLP.
  http://www.sec.gov/Archives/edgar/data/1089531/000135448810000845/awld_8k.htm
  
• Share structure : 
  
  6,250,010 Shares Pre-RM
  66,208,466 Shares Issued to Owners in RM
  10,240,964 Shares sold in PP at $0.498/share
  833,335 shares issued to advisors
  1,550,000 warrants at $0.598/share
  5,120,482 warrants at $0.498/share
  Total diluted O/S after all transactions: 90,203,257 shares or 45,101,628 post 1 for 2 reverse split.
  
  http://www.sec.gov/Archives/edgar/data/1089531/000111650209001960/awld_8k.htm
  http://www.sec.gov/Archives/edgar/data/1089531/000135448810001889/kgji_pre14c.htm

• It looks like the Company will tap the equity market, as determined by a recently amended S-1 and a blurb in the 2010 third quarter 10Q -

“We expect that cash generated from financing activities may increase significantly as a result of additional financing being obtained.”

We will continue our probe into the KGJI story in order to confirm or refute fraud allegations.   We welcome input from investors.

We believe that our current cash and cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for working capital, for the next 12 months.

Contradictory statement in the same filing:

We expect that cash generated from financing activities may increase significantly as a result of additional financing being obtained.

The increase in revenue was mainly attributable to the following factors: (1) for the three months ended September 30, 2009, we were still privately held, had relatively lower brand name recognition than we currently do, and our market coverage was smaller than is currently the case, which is in direct contract to the fact that for the three months ended September 30, 2010, we were a public company in the US, and have experienced greater brand recognition, which, in turn, has helped us to enhance our market coverage and attract more customers; (2) our increased working capital has allowed us to take advantage of the increase in demand for the items that we manufacture; (3) we have expanded our business operations into additional geographic areas which, in turn, has broadened sales opportunities, thus allowing us to gain market share in new geographical areas by securing relationships with regional jewelry wholesalers and distributors, such as Shenyang Xinglong Jewelry, Fuzhou Xingfulong Jewelry and Hangzhou Junhao Jewelry; and. (4) we have also made efforts to grow our business in the 24K gold ornament market.

Activeworlds Corp. Completes Acquisition of Chinese Gold Jewelry Manufacturer, Wuhan Kingold Jewelry Co., Ltd.

Transaction Details

Shares Structure Pre-reverse Merger

• 6.2 million common
• Modified Terms of Existing Warrants: 1.6 million shares with an exercise price of  $0.598

Share Structure Post Merger

• Shares Issued in transaction: ~66 million
• It is contemplated that in connection with the Reverse Acquisition and simultaneous with the Closing, ActiveWorlds shall conduct a private placement to accredited investors of 10,041,687 shares of ActiveWorlds Common Stock and 5,020,844 five year warrants with an exercise price of $0.498 per share for a total price of $5,000,000
• Estimated Fully Diluted Outstanding Shares: ~90 million

Wuhan Kingold Jewelry Co., Ltd. Information:

• China`s leading manufacturer of 24K gold jewelry sold by weight.
• Nine months ending September 30, 2009 Kingold had revenues of $192,036,951 versus 57,184,660 in 2008
• Nine months ending September 30, 2009 $5,755,918  versus $3,825,753 in 2008

Source: SEC Form 8K (October 5, 2009)