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Kingold Jewelry’s Q4 earnings surge

Apr. 01, 2011 7:43 AM ET
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Kingold Jewelry (NASDAQ:KGJI), a Chinese gold jewelry manufacturer, said Thursday its fourth quarter earnings surged 83.6%, as revenues grew on higher production and gold prices.

For the fourth quarter ending December 31, the company, which went public in January, reported a net income attributable to the common shareholders of $5.3 million, or 12 cents per diluted share.  That was up from $2.9 million, or 9 cents per diluted share, in the year-ago period.

Meanwhile, revenues more than tripled year-over-year to $184.9 million. Analyst estimates were unavailable for the company.  

Gross margin, however, dropped to 5.2% from 10.5%, as the company produced more branded products, which requires the company to buy its own gold. Customized products are made from customer-supplied gold.

During the quarter, the company produced 6.46 metric tons of 24-karat gold products, compared to 4.48 metric tons in the same period a year ago.

For the entire 2010, the company reported net income of $18.2 million, or 41 cents per diluted share, more than double the $8.7 million, or 26 cents per diluted share, recorded in 2009.  Revenues also more than doubled to $523 million.

For 2011, the company expects net income in the range of $30 to $32 million, on revenues between $720 and $780 million.

At quarter-end, the company had $70.3 million of current assets, $9.1 million of which was cash. The company's shares rose 2% to trade at $2.46 as of 12:51 pm EST.

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