Kingold Jewelry, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Production Guidance for the Fourth Quarter of 2018
November 14, 2018 at 04:05 pm EST
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Kingold Jewelry, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. Net sales for the three months ended September 30, 2018 were approximately $626.2 million, increased by 7.1% from approximately $584.5 million for the same period in 2017. The increase in Net Sales were mainly due to higher sales volume of branded production sales. Net income was approximately $13.2 million, or $0.20 per diluted share, compared to net income of approximately $29.0 million in the prior year period, or $0.44 per diluted share in the prior year period. Income from operations was $58,587,812 against $74,679,152 a year ago. Income from operations before taxes was $17,734,809 against $38,728,109 a year ago.
For the first nine months ended September 30, 2018, the Company's net sales were approximately $1,844.5 million, increased by 36.4% from approximately $1,352.7 million in the first nine months of 2017. Net income was approximately $40.0 million, or $0.60 per diluted share based on 66.3 million weighted average diluted shares outstanding, compared to net income of approximately $15.7 million, or $0.24 per diluted share in the same period of 2017. Net cash provided by operating activities was approximately $461.4 million, compared with approximately $145.6 million of net cash used in operating activities for the same period in 2017. The net cash provided by operating activities was mainly due to net income of approximately $40.0 million for the nine months ended September 30, 2018, the decrease in inventory purchased of $321 million because $557.9 million of gold for investment was released to inventory and processed during the nine months ended September 30, 2018, collections from value added tax receivables of $84.6 million, an increase in income tax payable of $0.7 million and an increase in other payables and accrued liabilities of $1.0 million. Income from operations before taxes was $53,784,180 against $21,271,146 a year ago. Income from operations was $181,233,386 against $132,535,507 a year ago. Purchases of property and equipment was $491,136 against $1,551,847 a year ago.
Based on its existing resources and capacity along with expected relatively strong demand for 24-karat gold products in the fourth quarter of 2018 in China, the company reiterates its expectation that gold processed will be between 100 metric tons and 110 metric tons during 2018.
Kingold Jewelry Inc designs and manufactures 24-karat gold jewelry and Chinese ornaments. The Company develops, promotes and sells a range of products to the jewelry market across the People's Republic of China (PRC). The Company offers a range of in-house designed products, including, but not limited to, gold necklaces, rings, earrings, bracelets and pendants. The Company also sells investment gold products through banks in China. The Company sells its products directly to distributors, retailers and other wholesalers, who then sell its products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores.
Kingold Jewelry, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Production Guidance for the Fourth Quarter of 2018