WUHAN CITY, China, Nov. 14,
2016 /PRNewswire-Asia/ -- 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 its unaudited
financial results for the third quarter and nine months ended
September 30, 2016.
2016 THIRD QUARTER FINANCIAL HIGHLIGHTS (ALL RESULTS ARE
COMPARED TO PRIOR YEAR PERIOD)
- Net sales were $390.5 million, an
increase of $126.8 million, or 48.1%,
compared to $263.8 million. The
increase in net sales was primarily due to increased sales volume
in the Company's branded gold product production.
- Processed a total of 20.6 metric tons of 24-karat gold
products, an increase of 53.0%, compared to 13.5 metric tons.
- Gross profit increased to $50.4
million, an increase of $34.9
million, or 223.9%, compared to $15.6
million, and gross margin was 12.9% compared to 5.9% for the
same period in 2015.
- Net income increased 79.3% to $15.7
million, or $0.24 per diluted
share, compared to $8.8 million, or
$0.13 per diluted share.
OUTLOOK FOR 2016
- Company raises its guidance of 24-karat gold processed in 2016
to between 60 and 65 metric tons.
Mr. Zhihong Jia, Chairman and CEO
of the Company, commented, "We were pleased to deliver strong
operating results in the first nine months of 2016, as we took full
advantage of the increase in the gold price and growing gold demand
in China. In the third quarter, we
were more focused on corporate developments to further increase our
production capacity, design capability and sales marketing
initiatives. We understand Kingold operates in a capital-intensive
industry, and sufficient free cash flow is a prerequisite for gold
production Company to ensuring quality and timely customer delivery
to stay competitive. We feel this is a benefit of having the access
to capital to leverage our production and to remain our market
leading position."
2016 THIRD QUARTER OPERATIONAL REVIEW
In the third quarter of 2016, the Company processed a total of
20.6 metric tons of gold, of which branded production was 10 metric
tons, representing 48.3% of total gold processed, and customized
production was 10.6 metric tons, representing 51.7% of total gold
processed. In the third quarter of 2015, the Company
processed a total of 13.5 metric tons, of which branded production
was 7.8 metric tons, or 58.0% of the total gold processed, and
customized production was 5.7 metric tons, or 42.0% of total gold
processed.
Metric Tons of
Gold Processed
|
|
Three Months
Ended:
|
|
September 30,
2016
|
September
30, 2015
|
|
Volume
|
% of Total
|
Volume
|
% of Total
|
Branded*
|
10.0
|
48.3%
|
7.8
|
58.0%
|
Customized**
|
10.6
|
51.7%
|
5.7
|
42.0%
|
Total
|
20.6
|
100%
|
13.5
|
100.0%
|
|
Nine Months
Ended:
|
|
September 30,
2016
|
September
30, 2015
|
|
Volume
|
% of Total
|
Volume
|
% of Total
|
Branded*
|
28.6
|
51.4%
|
20.3
|
50.4%
|
Customized**
|
27.1
|
48.6%
|
20.0
|
49.6%
|
Total
|
55.7
|
100.0%
|
40.3
|
100.0%
|
|
|
|
* Branded Production: The Company
acquires gold from the Shanghai Gold Exchange to produce branded
products.
|
** Customized
Production: Clients who purchase customized products supply gold to
the Company for processing.
|
2016 THIRD QUARTER FINANCIAL REVIEW
Net Sales
Net sales for the three months ended
September 30, 2016 were $390.5 million, an increase of $126.7 million, or 48.1%, from net sales of
$263.8 million for the three months
ended September 30, 2015. Net sales
increased primarily as a result of increase in total sales volume
in amount of $84.7 million, the
increase in the average unit selling price for branded production
in amount of $63.2 million, offset by
approximately $17.1 million of
foreign currency translation loss.
Net sales for the nine months ended September 30, 2016 were $1,063 million, an increase of $343.6 million, or 47.8%, from net sales of
$719.4 million for the nine months
ended September 30, 2015. The
increase in net sales was primarily driven by increase in total
sales volume in amount of $308.9
million, the increase in the average unit selling price for
branded production in amount of $91.5
million, partially offset the decreased sales in customized
production, and offset by approximately a $45.9 million foreign currency translation
loss.
Gross Profit
Gross profit for the three months
ended September 30, 2016 was
$50.4 million, an increase of
$34.9 million from $15.6 million for the same period in 2015.
Gross profit for the nine months ended September 30, 2016 was $125.0 million, an increase of $96.2 million from $28.8
million for the same period in 2015.
Gross Margin
Gross margin for the three months ended
September 30, 2016 was 12.9%,
compared to 5.9% for the same period in 2015. The substantial
increase in gross margin was because: 1) the unit price of branded
production sales increased from RMB
206.7 per gram for the three months ended September 30, 2015 to RMB
257.1 per gram in the same period of 2016; 2) the percentage
increase of the unit price is smaller than the increase in the
sales as the unit cost of branded production increased from
RMB 197.2 per gram for the three
months ended September 30, 2015 to
RMB 227.6 per gram in the same period
in 2016; 3) the Company purchased a significant quantity of gold in
prior periods at relatively low prices, making the production costs
for three months ended September 30,
2016 much lower than normal.
Gross margin for the nine months ended September 30, 2016 was 11.8%, compared to 4.0%
for the same period in 2015. The substantial increase in gross
margin was because: 1) the unit price of branded production sales
increased from RMB 212.5 per gram for
the nine months ended September 30,
2015 to RMB 240.3 per gram in
the same period of 2016; 2) the percentage increase of the unit
price is smaller than the increase in the sales as the unit cost of
branded production increased from RMB
209.2 per gram for the nine months ended September 30, 2015 to RMB
215.3 per gram in the same period in 2016; 3) the Company
purchased a significant quantity of gold in prior periods at
relatively low prices, making the production costs for nine months
ended September 30, 2016 much lower
than normal.
Net Income
For the three months ended September 30, 2016, net income increased 79.3% to
$15.7 million, or $0.24 per diluted share, based on 66.7 million
weighted average diluted shares outstanding, compared to
$8.8 million for the same period in
2015, or $0.13 per diluted share,
based on 66.0 million weighted average diluted shares outstanding
in the prior-year period.
Net income for the nine months ended September 30, 2016 increased 218.9% to
$50.7 million, or $0.76 per diluted share based on 66.3 million
weighted average diluted shares outstanding, compared to
$15.9 million, or $0.24 per diluted share, based on 66.0 million
weighted average diluted shares outstanding in the same period of
2015.
BALANCE SHEET
HIGHLIGHTS
|
|
|
|
|
|
|
|
(in millions
except for percentages)
|
|
9/30/2016
|
12/31/2015
|
|
|
(Unaudited)
|
|
Cash
|
|
$129.6
|
$3.1
|
Inventories
(gold)
|
|
1,097.1
|
298.3
|
Working Capital
(Current Assets – Current Liabilities)
|
|
1,017.7
|
174.9
|
Stockholders'
Equity
|
|
308.6
|
265.7
|
Net cash used in operating
activities was $726.3 million for the
nine months ended September 30, 2016,
compared with net cash used in operating activities of $34.0 million for the same period in 2015. The
significant increase in net cash used in operating was mainly due
to purchase of inventory of $817.8
million in anticipation of the increased production and
sales demand when the Jewelry Park is completed which may stimulate
Kingold's sales starting from the second half 2016. In addition, in
connection with the Company's significant bank borrowings during
the nine months ended September 30,
2016, the Company was required to pledge significant of gold
with the banks as collateral, which also led the Company to
increase the inventory purchases and stockpile. On the other hand,
in connection with the Jewelry Park Transfer Contract, the Company
received net proceeds of $151.4
million cash payment from Wuhan Lianfuda for the Jewelry
Park transfer, such amount will be adjusted when the Company
delivers the Jewelry Park to Wuhan Lianfuda in the near future. The
overall increase in cash used in operating activities for the nine
months ended September 30, 2016 is
reflected in the above mentioned factors.
Kingold's net cash from operating activities can fluctuate
significantly due to changes in inventories (principally
gold). Other factors that may vary significantly include the
Company's purchases of gold and income taxes. The Company
expects that the net cash it generates from operating activities
will continue to fluctuate as the Company's inventories,
receivables, accounts payables, and other factors described above
change with increased production and purchase of larger quantities
of raw materials (principally gold).
OUTLOOK FOR 2016
Based on 2016 first nine months
results, its existing resources and capacity (which includes the
Company's recent proceeds from its previously announced financing
and gold lease agreements) along with strong demand for 24-karat
gold products in China, the
Company raised its guidance for gold processed during 2016 from
between 50 metric tons and 60 metric tons to between 60 metric tons
and 65 metric tons.
INVESTOR CONFERENCE CALLS
The Company has elected to
discontinue hosting live quarterly conference calls at this
time. An open line of communication with investors and
analysts remains a top priority of the Company and management is
readily available for discussions with investors on a one on one
basis. Investors and analysts wishing to speak with
management are urged to contact the Company's investor relations
representatives at The Equity Group at +86 10-6587-6435 or
kyao@equityny.com.
About Kingold Jewelry, Inc.
Kingold Jewelry, Inc.
(NASDAQ: KGJI), centrally located in Wuhan City, one of China's largest cities, was founded in 2002
and today is one of China's
leading designers and manufacturers of 24-karat gold jewelry,
ornaments, and investment-oriented products. The Company sells both
directly to retailers as well as through major distributors across
China. Kingold has received
numerous industry awards and has been a member of the Shanghai Gold
Exchange since 2003. For more information, please visit
www.kingoldjewelry.com.
Business Risks and Forward-Looking Statements
This
press release contains forward-looking statements that are subject
to the safe harbors created under the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended. You
can identify these forward-looking statements by words such as
"expects," "believe," "project," "anticipate," or similar
expressions. The forward-looking statements in this release
include, but are not limited to, statements regarding Kingold's
outlook with respect to its 2015 gold processing, expectations with
respect to expansion into a higher margin, direct retail business
through the online retail store, expectations with respect to
completion of construction of the Jewelry Park and planned grand
opening, as well as its ability to engage in presales and finance
the remaining construction, and its expectations with respect to a
long-term partnership with Fosun. Readers are cautioned that
actual results could differ materially from those expressed in any
forward-looking statements. Forward-looking statements are subject
to a number of risks, including those contained in Kingold's SEC
filings available at www.sec.gov, including Kingold's most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date on
which they are made. Kingold undertakes no obligation to update or
revise any forward-looking statements for any reason.
Company Contact
Kingold Jewelry, Inc.
Bin Liu, CFO
Phone: +1-847-660-3498 (US) / +86-27-6569-4977 (China)
bl@kingoldjewelry.com
INVESTOR RELATIONS
The Equity Group Inc.
Katherine Yao, Senior Associate
Phone: +86 10-6587-6435
kyao@equityny.com
KINGOLD JEWELRY,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
(IN US
DOLLARS)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months
ended September 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
|
390,547,042
|
|
|
$
|
263,762,713
|
|
|
$
|
1,062,995,744
|
|
|
$
|
719,378,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(339,845,689)
|
|
|
|
(247,894,654)
|
|
|
|
(937,138,523)
|
|
|
|
(689,700,092)
|
|
Depreciation
|
|
|
(286,710)
|
|
|
|
(304,849)
|
|
|
|
(869,075)
|
|
|
|
(924,958)
|
|
Total cost of
sales
|
|
|
(340,132,399)
|
|
|
|
(248,199,503)
|
|
|
|
(938,007,598)
|
|
|
|
(690,625,050)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
50,414,643
|
|
|
|
15,563,210
|
|
|
|
124,988,146
|
|
|
|
28,753,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
3,931,214
|
|
|
|
3,247,362
|
|
|
|
13,643,705
|
|
|
|
7,130,925
|
|
Stock compensation
expenses
|
|
|
11,143
|
|
|
|
102,344
|
|
|
|
33,428
|
|
|
|
417,471
|
|
Depreciation
|
|
|
25,102
|
|
|
|
24,776
|
|
|
|
72,089
|
|
|
|
75,204
|
|
Amortization
|
|
|
2,836
|
|
|
|
3,034
|
|
|
|
8,617
|
|
|
|
9,203
|
|
Total operating
expenses
|
|
|
3,970,295
|
|
|
|
3,377,516
|
|
|
|
13,757,839
|
|
|
|
7,632,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
46,444,348
|
|
|
|
12,815,694
|
|
|
|
111,230,307
|
|
|
|
21,121,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(expenses)
|
|
|
(75,748)
|
|
|
|
3,209
|
|
|
|
(75,618)
|
|
|
|
9,740
|
|
Interest
Income
|
|
|
1,216,697
|
|
|
|
(575)
|
|
|
|
1,900,120
|
|
|
|
150,497
|
|
Interest
expense
|
|
|
(26,551,667)
|
|
|
|
(273,953)
|
|
|
|
(45,146,833)
|
|
|
|
(656,106)
|
|
Total other expenses,
net
|
|
|
(25,410,718)
|
|
|
|
(271,319)
|
|
|
|
(43,322,331)
|
|
|
|
(495,869)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS BEFORE TAXES
|
|
|
21,033,630
|
|
|
|
11,914,375
|
|
|
|
67,907,976
|
|
|
|
20,625,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX PROVISION
(BENEFIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
25,230,923
|
|
|
|
71,176
|
|
|
|
36,891,707
|
|
|
|
3,357,451
|
|
Deferred
|
|
|
(19,909,244)
|
|
|
|
3,078,209
|
|
|
|
(19,653,506)
|
|
|
|
1,348,181
|
|
Total income tax
provision
|
|
|
5,321,679
|
|
|
|
3,149,385
|
|
|
|
17,238,201
|
|
|
|
4,705,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
15,711,951
|
|
|
|
8,764,990
|
|
|
|
50,669,775
|
|
|
|
15,919,631
|
|
Add: net loss
attributable to non-controlling interest
|
|
|
445
|
|
|
|
448
|
|
|
|
1,910
|
|
|
|
636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
|
$
|
15,712,396
|
|
|
$
|
8,765,438
|
|
|
$
|
50,671,685
|
|
|
$
|
15,920,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total foreign currency
translation gains (loss)
|
|
$
|
(1,330,413)
|
|
|
$
|
(10,487,596)
|
|
|
$
|
(7,990,100)
|
|
|
$
|
(8,899,780)
|
|
Less: foreign currency
translation gain attributable to non-controlling
interest
|
|
|
271
|
|
|
|
2,821
|
|
|
|
1,847
|
|
|
|
2,739
|
|
Foreign currency
translation gains (loss) attributable to common
stockholders
|
|
$
|
(1,330,684)
|
|
|
$
|
(10,484,775)
|
|
|
$
|
(7,991,947)
|
|
|
$
|
(8,897,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
ATTRIBUTABLE
TO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stockholders
|
|
$
|
14,381,712
|
|
|
$
|
(1,719,337)
|
|
|
$
|
42,679,738
|
|
|
$
|
7,023,226
|
|
Non-controlling
interest
|
|
|
(174)
|
|
|
|
-
|
|
|
|
(63)
|
|
|
|
-
|
|
|
|
$
|
14,381,538
|
|
|
$
|
(1,719,337)
|
|
|
$
|
42,679,675
|
|
|
$
|
7,023,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.24
|
|
|
$
|
0.13
|
|
|
$
|
0.77
|
|
|
$
|
0.24
|
|
Diluted
|
|
$
|
0.24
|
|
|
$
|
0.13
|
|
|
$
|
0.76
|
|
|
$
|
0.24
|
|
Weighted average number
of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
66,018,867
|
|
|
|
65,963,502
|
|
|
|
65,982,294
|
|
|
|
65,963,502
|
|
Diluted
|
|
|
66,740,085
|
|
|
|
65,963,502
|
|
|
|
66,291,236
|
|
|
|
65,963,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KINGOLD JEWELRY,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(IN US
DOLLARS)
(UNAUDITED)
|
|
|
|
|
|
|
September 30,
2016
|
December 31,
2015
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash
|
$129,649,710
|
$3,100,569
|
|
Restricted
cash
|
111,471,928
|
26,649,687
|
|
Accounts
receivable
|
803,371
|
1,624,323
|
|
Inventories
|
1,097,089,498
|
298,303,185
|
|
Other current assets
and prepaid expenses
|
4,766,011
|
1,046,032
|
|
Value added tax
recoverable
|
130,914,603
|
15,526,002
|
|
Total current
assets
|
1,474,695,121
|
346,249,798
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
7,684,808
|
7,622,509
|
|
OTHER
ASSETS
|
|
|
|
|
|
Deposit on land use
right - Jewelry Park
|
9,047,947
|
9,296,763
|
|
Construction in
progress- Jewelry Park
|
152,867,231
|
105,844,259
|
|
Other
assets
|
144,733
|
148,713
|
|
Land use
right
|
433,524
|
454,180
|
|
Deferred income tax
assets
|
17,660,837
|
-
|
|
Total long-term
assets
|
187,839,080
|
123,366,424
|
|
TOTAL
ASSETS
|
1,662,534,201
|
469,616,222
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Short term
loans
|
$195,195,961
|
$55,455,428
|
|
Debts payable,
net
|
-
|
61,471,962
|
|
Construction
payables-Jewelry Park
|
53,971,233
|
23,876,642
|
|
Deposit
payable-Jewelry Park
|
170,908,906
|
22,182,171
|
|
Other payables and
accrued expenses
|
9,935,272
|
6,355,979
|
|
Due to related
party
|
1,041,634
|
200,059
|
|
Income tax
payable
|
24,962,897
|
1,119,918
|
|
Other taxes
payable
|
977,152
|
710,104
|
|
Total current
liabilities
|
456,993,055
|
171,372,263
|
|
Deferred income tax
liability
|
-
|
1,774,993
|
|
Long term
loans
|
896,971,914
|
30,808,571
|
|
TOTAL
LIABILITIES
|
1,353,964,969
|
203,955,827
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
Preferred stock,
$0.001 par value, 500,000 shares authorized, none issued or
outstanding as of September 30, 2016 and December 31, 2015 - -
Common stock $0.001 par value, 100,000,000 shares authorized,
66,018,867 and 65,963,502 shares issued and outstanding as of
September 30, 2016 and
December 31, 2015
|
66,018
|
65,963
|
|
Additional paid-in
capital
|
80,219,824
|
79,990,717
|
|
Retained
earnings
|
|
|
|
Unappropriated
|
235,235,832
|
184,564,147
|
|
Appropriated
|
967,543
|
967,543
|
|
Accumulated other
comprehensive income (deficit)
|
(7,993,196)
|
(1,249)
|
|
Total
stockholders' equity
|
308,496,021
|
265,587,121
|
|
Non-controlling
interest
|
73,211
|
73,274
|
|
Total
Equity
|
308,569,232
|
265,660,395
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$1,662,534,201
|
$469,616,222
|
|
KINGOLD JEWELRY,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN US
DOLLARS)
(UNAUDITED)
|
|
|
|
|
|
For the nine
months ended September 30,
|
|
|
2016
|
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
|
|
$
|
50,669,775
|
|
|
$
|
15,919,631
|
Adjustments to
reconcile net income to cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
941,164
|
|
|
|
1,000,162
|
Amortization of
intangible assets
|
|
|
8,617
|
|
|
|
9,203
|
Amortization of
deferred financing costs
|
|
|
143,227
|
|
|
|
162,322
|
Share based
compensation
|
|
|
229,162
|
|
|
|
417,471
|
Deferred tax provision
(benefit)
|
|
|
(19,653,506)
|
|
|
|
1,348,181
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
788,112
|
|
|
|
307,315
|
Inventories
|
|
|
(817,804,500)
|
|
|
|
(69,261,230)
|
Other current assets
and prepaid expenses
|
|
|
(3,799,223)
|
|
|
|
(134,535)
|
Value added tax
recoverable
|
|
|
(117,388,028)
|
|
|
|
(9,744,403)
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
Other payables and
accrued expenses
|
|
|
3,673,428
|
|
|
|
2,438,517
|
Deposit payable
,Jewelry Park, net
|
|
|
151,362,720
|
|
|
|
23,374,347
|
Income tax
payable
|
|
|
23,499,156
|
|
|
|
(886,440)
|
Other taxes
payable
|
|
|
990,281
|
|
|
|
1,052,294
|
Net cash used in
operating activities
|
|
|
(726,339,615)
|
|
|
|
(33,997,165)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(306,652)
|
|
|
|
(59,406)
|
Cash payment in
construction in progress-Jewelry Park
|
|
|
(20,440,112)
|
|
|
|
(26,111,485)
|
Net cash used in
investing activities
|
|
|
(20,746,764)
|
|
|
|
(26,170,891)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Capital contribution
from minority interest for the new subsidiary
|
|
|
-
|
|
|
|
73,045
|
Proceeds from bank
loans
|
|
|
1,076,863,691
|
|
|
|
55,189,430
|
Repayments of bank
loans
|
|
|
(54,861,388)
|
|
|
|
(16,232,185)
|
Restricted
cash
|
|
|
(86,705,385)
|
|
|
|
(14,250,445)
|
Proceeds from related
party loan
|
|
|
842,226
|
|
|
|
-
|
Proceeds from exercise
of warrants
|
|
|
66,439
|
|
|
|
-
|
(Repayment) proceeds
from debt financing instruments under private placement
|
|
|
(60,788,241)
|
|
|
|
64,928,741
|
Deferred financing
costs
|
|
|
-
|
|
|
|
(649,287)
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
875,417,342
|
|
|
|
89,059,299
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
|
(1,781,822)
|
|
|
|
(608,719)
|
|
|
|
|
|
|
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
|
126,549,141
|
|
|
|
28,282,524
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
3,100,569
|
|
|
|
1,331,658
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
129,649,710
|
|
|
$
|
29,614,182
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Cash paid for interest
expense
|
|
$
|
45,155,522
|
|
|
$
|
3,751,584
|
Cash paid for income
tax
|
|
$
|
12,692,294
|
|
|
$
|
4,243,891
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kingold-jewelry-reports-financial-results-for-the-third-quarter-and-nine-months-ended-september-30-2016-300362416.html
SOURCE Kingold Jewelry, Inc.