The Company Raises its Gold Production
Guidance to Between 80 Tons and 90 Tons from Between 70 Tons to 80
Tons
Company to Hold Conference Call with
Accompanying Slide Presentation at 8:30 a.m.
E.T. on November 10,
2017
WUHAN, China, Nov. 9, 2017 /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 its unaudited
financial results for the third quarter ended September 30, 2017.
2017 Third Quarter Financial Highlights (all results compared
to prior year period)
- Net sales were $584.5 million, an
increase of 50% from $390.5
million
- Proceeded a total of 30.1 metric tons of 24-karat gold
products, increased 46.1% from 20.6 metric tons
- 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%
Outlook for 2017
- Company raises its guidance of 24-karat gold production in 2017
to between 80 and 90 metric tons.
Management Commentary
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."
2017 THIRD QUARTER AND NINE MONTHS OPERATIONAL REVIEW
Metric Tons of
Gold Sales
|
|
Three Months
Ended:
|
|
September 30,
2017
|
September 30,
2016
|
|
Volume
|
% of
Total
|
Volume
|
% of
Total
|
Branded*
|
14.6
|
48.6%
|
10
|
48.3%
|
Customized**
|
15.5
|
51.4%
|
10.6
|
51.7%
|
Total
|
30.1
|
100%
|
20.6
|
100%
|
|
Nine Months
Ended:
|
|
September 30,
2017
|
September 30,
2016
|
|
Volume
|
% of
Total
|
Volume
|
% of
Total
|
Branded*
|
34.7
|
48.1%
|
28.6
|
51.4%
|
Customized**
|
37.5
|
51.9%
|
27.1
|
48.6%
|
Total
|
72.2
|
100%
|
55.7
|
100%
|
*
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
|
For the three months ended September 30,
2017, the Company sold a total of 30.1 metric tons of gold,
of which branded production was 14.6 metric tons, representing
48.6% of total gold sold, and customized production was 15.5 metric
tons, representing 51.4% of total gold sold in the third quarter of
2017. In the third quarter of 2016, the Company sold a total of
20.6 metric tons, of which branded production was 10 metric tons,
or 48.3% of the total gold sold, and customized production was 10.6
metric tons, or 51.7% of total gold sold.
For the nine months ended September 30,
2017, the Company sold a total of 72.2 metric tons of gold,
of which branded production was 34.7 metric tons, representing
48.1% of total gold sold, and customized production was 37.5 metric
tons, representing 51.9% of total gold sold for the period. In the
nine months ended September 30, 2016,
the Company sold a total of 55.7 metric tons, of which branded
production was 28.6 metric tons, or 51.4% of the total gold sold,
and customized production was 27.1 metric tons, or 48.6% of total
gold sold.
CONSOLIDATED FINANCIAL AND OPERATING REVIEW
Net Sales
Net sales for the three months ended September 30, 2017 was $584.5 million, representing an increase of
$194 million, or 50%, from
$390.5 million for the same period in
2016. The increase in net sales was mainly due to the higher sales
volume for branded production sales and customized production
sales. In addition, the average selling price for branded
production increased from RMB 257.06
per gram in the three months ended September
30, 2016 to RMB 260.91 per
gram in three months ended September
30, 2017.
For the nine months ended September 30,
2017, the Company's net sales were $1,352.7 million, increased 27% from $1,063 million in the nine months of 2016.
Gross Profit
Gross profit for the three months ended September 30, 2017 was $78.6 million, compared to $50.4 million for the same period in 2016.
For the nine months ended September 30,
2017, the Company's gross profit were $143.5 million increased from $125 million in the nine months of 2016.
Gross Margin
The Company's gross margin was 13.4% for the three months ended
September 30, 2017, compared to 12.9%
in the prior year period. The increase in gross margin was
primarily due to the much higher sales volumes for branded
production sales and customized production sales with a higher
average selling price.
For the nine months ended September 30,
2017, the Company's gross margin was 10.6%, compared to
11.8% in the nine months of 2016. The decrease was primarily due to
the increase in unit cost of branded production sales exceeded the
increase of average selling price, as the unit cost of branded
production sales was RMB 236.72 per
gram for the nine months ended September 30,
2017, increased by RMB 21.47
or 10% from RMB 215.25 per gram for
the same period in 2016. However, the average selling price of
branded production was RMB 258.45 per
gram for the nine months ended September 30,
2017, increased by RMB 18.19
or 7.6% from RMB 240.26 per gram for
the same period in 2016.
Net Income
Net income for the three months ended September 30, 2017 was $29
million, or $0.44 per diluted
share based on 66.48 million weighted average diluted shares
outstanding, compared to net income of $15.9
million in the prior year period, or $0.24 per diluted share based on 66.74 million
weighted average diluted shares outstanding in the prior-year
period.
For the nine months ended September 30,
2017, the Company's net income was $15.7 million, or $0.24 per basic and diluted share, compared to
net income of $51 million, or
$0.77 per basic and diluted share, in
the same period of 2016.
Balance Sheet
Highlights (USD in Millions)
|
|
9/30/2017
|
|
12/31/2016
|
Percentage
Change
|
Cash and Cash
Equivalents
|
$1
|
|
$21.3
|
(95.3)
%
|
Inventories
|
$239.1
|
|
$119.4
|
100.2
%
|
Working
Capital (Current Assets -- Current Liabilities)
|
$814.9
|
|
$459.9
|
77.2
%
|
Stockholders'
Equity
|
$387.1
|
|
$282.5
|
37.0
%
|
Net cash used in operating activities was $145.6 million for the nine months ended
September 30, 2017, compared with net
cash provided by in operating activities of $218.9 million for the same period in 2016. The
reason of net cash used in operating activities for the nine months
ended September 30, 2017 was mainly
due to the increased inventory of 119.6 million purchased to
prepare for the sales to match customer demand as well as increased
value added tax recoverable of 56.5 million, offset by increased
income tax payable of 7.7 million. The reason of net cash provided
by operating activities for the same period on 2016 was mainly due
to decreased inventory level of 127.5 million, collection of
deposit from Jewelry Park of $151.4
million, and increased income tax payable of 23.5 million,
offset by increased value added tax recoverable of 117.4
million.
The Company expects that the net cash it generates from
operating activities will continue to fluctuate as inventories,
receivables, accounts payables and the other factors other factors
described above change with increased production and the purchase
of larger or smaller quantities of raw materials (principally
gold). These fluctuations could cause net cash from operating
activities to increase or decrease. Although the Company
expects that net cash from operating activities will increase over
the long term, but cannot predict how these fluctuations will
affect Kingold's cash flow in any particular quarter.
OUTLOOK FOR 2017
Based on 2017 first nine months results, its existing resources
and capacity along with strong demand for 24-karat gold products in
China, the Company raised its
guidance for gold processed during 2017 from between 70 metric tons
and 80 metric tons to between 80 metric tons and 90 metric
tons.
Conference Call Details
Kingold also announced that it will discuss these financial
results in a conference call on November 10,
2017 at 8:30 a.m. E.T.
The dial-in numbers are:
Live Participant Dial In (Toll Free): +1- 877-407-9038
Live Participant Dial In (International): +1- 201-493-6742
The conference call will also be webcast live. To listen to the
call, please go to the Investor Relations section of Kingold's
website at www.kingoldjewelry.com, or click on the following link:
http://kingoldjewelry.equisolvewebcast.com/q3-2017. The
Company will also have an accompanying slide presentation available
in PDF format on its homepage prior to the conference call.
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
visitwww.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 statements regarding Kingold's outlook with respect to its
2017 outlook for gold processing, its 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. 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 COUNSEL
The Equity Group Inc.
Katherine Yao, Senior Associate
Phone: +86-10-6587-6435
kyao@equityny.com
KINGOLD JEWELRY,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(IN US
DOLLARS)
|
(UNAUDITED)
|
|
|
|
For the three
months ended
September 30,
|
|
|
For the nine
months ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
(Restated)
|
|
NET
SALES
|
|
$
|
584,511,639
|
|
|
$
|
390,547,042
|
|
|
$
|
1,352,666,916
|
|
|
$
|
1,062,995,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(505,608,405)
|
|
|
|
(339,845,689)
|
|
|
|
(1,208,376,017)
|
|
|
|
(937,138,523)
|
|
Depreciation
|
|
|
(300,716)
|
|
|
|
(286,710)
|
|
|
|
(806,047)
|
|
|
|
(869,075)
|
|
Total cost of
sales
|
|
|
(505,909,121)
|
|
|
|
(340,132,399)
|
|
|
|
(1,209,182,064)
|
|
|
|
(938,007,598)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
78,602,518
|
|
|
|
50,414,643
|
|
|
|
143,484,852
|
|
|
|
124,988,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
3,779,728
|
|
|
|
2,037,688
|
|
|
|
10,546,253
|
|
|
|
8,057,849
|
|
Stock compensation
expenses
|
|
|
5,364
|
|
|
|
11,143
|
|
|
|
27,650
|
|
|
|
33,428
|
|
Depreciation
|
|
|
135,442
|
|
|
|
25,102
|
|
|
|
367,112
|
|
|
|
72,089
|
|
Amortization
|
|
|
2,832
|
|
|
|
2,836
|
|
|
|
8,330
|
|
|
|
8,617
|
|
Total operating
expenses
|
|
|
3,923,366
|
|
|
|
2,076,769
|
|
|
|
10,949,345
|
|
|
|
8,171,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
74,679,152
|
|
|
|
48,337,874
|
|
|
|
132,535,507
|
|
|
|
116,816,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income
|
|
|
661
|
|
|
|
(75,748)
|
|
|
|
66,158
|
|
|
|
(75,618)
|
|
Interest
Income
|
|
|
633,617
|
|
|
|
1,365,984
|
|
|
|
1,824,924
|
|
|
|
2,182,472
|
|
Interest expense,
including $7,751,818 and
$5,585,856 of amortization of financing costs for nine
months ended September 30, 2017 and 2016
|
|
|
(36,585,321)
|
|
|
|
(28,445,193)
|
|
|
|
(113,155,443)
|
|
|
|
(50,732,689)
|
|
Total other expenses,
net
|
|
|
(35,951,043)
|
|
|
|
(27,154,957)
|
|
|
|
(111,264,361)
|
|
|
|
(48,625,835)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS BEFORE TAXES
|
|
|
38,728,109
|
|
|
|
21,182,917
|
|
|
|
21,271,146
|
|
|
|
68,190,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION (BENEFIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
7,778,520
|
|
|
|
25,230,923
|
|
|
|
12,996,602
|
|
|
|
36,891,707
|
|
Deferred
|
|
|
1,962,539
|
|
|
|
(19,909,244)
|
|
|
|
(7,440,305)
|
|
|
|
(19,653,506)
|
|
Total income tax
provision
|
|
|
9,741,059
|
|
|
|
5,321,679
|
|
|
|
5,556,297
|
|
|
|
17,238,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
28,987,050
|
|
|
|
15,861,238
|
|
|
|
15,714,849
|
|
|
|
50,952,127
|
|
Add: net loss
attributable to non-controlling interest
|
|
|
-
|
|
|
|
445
|
|
|
|
-
|
|
|
|
1,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO KINGOLD JEWELRY, INC.
|
|
$
|
28,987,050
|
|
|
$
|
15,861,683
|
|
|
$
|
15,714,849
|
|
|
$
|
50,954,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized
gain (loss) related to
investments in gold
|
|
$
|
27,074,547
|
|
|
$
|
(9,822,756)
|
|
|
$
|
75,935,884
|
|
|
$
|
58,520,282
|
|
Total foreign
currency translation gains (loss)
|
|
|
4,455,163
|
|
|
|
(1,332,179)
|
|
|
|
12,817,501
|
|
|
|
(7,993,962)
|
|
Less: foreign
currency translation gain attributable to
non-controlling interest
|
|
|
-
|
|
|
|
271
|
|
|
|
-
|
|
|
|
1,847
|
|
Total Other
comprehensive income (loss) attributable
to KINGOLD JEWELRY, INC.
|
|
$
|
31,529,710
|
|
|
$
|
(11,155,206)
|
|
|
$
|
88,753,385
|
|
|
$
|
50,524,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME (LOSS) ATTRIBUTABLE TO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KINGOLD JEWELRY,
INC.
|
|
$
|
60,516,760
|
|
|
$
|
4,706,477
|
|
|
$
|
104,468,234
|
|
|
$
|
101,478,510
|
|
Non-controlling
interest
|
|
|
-
|
|
|
|
(174)
|
|
|
|
-
|
|
|
|
(63)
|
|
|
|
$
|
60,516,760
|
|
|
$
|
4,706,303
|
|
|
$
|
104,468,234
|
|
|
$
|
101,478,447
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.44
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.77
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
66,049,726
|
|
|
|
66,018,867
|
|
|
|
66,029,266
|
|
|
|
65,982,294
|
|
Diluted
|
|
|
66,484,717
|
|
|
|
66,740,085
|
|
|
|
66,337,069
|
|
|
|
66,291,236
|
|
KINGOLD JEWELRY,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(IN US
DOLLARS)
|
(UNAUDITED)
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
1,001,830
|
|
|
$
|
21,333,193
|
|
Restricted
cash
|
|
|
3,170,596
|
|
|
|
52,786,257
|
|
Accounts
receivable
|
|
|
38,313
|
|
|
|
670,878
|
|
Inventories,
net
|
|
|
239,063,059
|
|
|
|
119,435,595
|
|
Investments in gold -
current
|
|
|
1,214,191,166
|
|
|
|
281,895,403
|
|
Other current assets
and prepaid expenses
|
|
|
538,485
|
|
|
|
698,217
|
|
Prepaid income
tax
|
|
|
-
|
|
|
|
3,330,468
|
|
Value added tax
recoverable
|
|
|
342,538,255
|
|
|
|
272,835,051
|
|
Total current
assets
|
|
|
1,800,541,704
|
|
|
|
752,985,062
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
|
7,701,829
|
|
|
|
7,224,698
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
7,753,685
|
|
|
|
7,558,173
|
|
Investments in
gold
|
|
|
1,081,378,533
|
|
|
|
1,493,938,551
|
|
Other
assets
|
|
|
295,331
|
|
|
|
283,003
|
|
Deferred income tax
assets
|
|
|
6,305,739
|
|
|
|
-
|
|
Land use
right
|
|
|
423,162
|
|
|
|
413,662
|
|
Total long-term
assets
|
|
|
1,103,858,279
|
|
|
|
1,509,418,087
|
|
TOTAL
ASSETS
|
|
$
|
2,904,399,983
|
|
|
$
|
2,262,403,149
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Short term loans,
less unamortized debt issuance costs of $2,895,841 and
$4,480,085
|
|
$
|
657,820,323
|
|
|
$
|
234,691,670
|
|
Third party
loan
|
|
|
-
|
|
|
|
28,798,526
|
|
Gold leases payable -
Bank
|
|
|
-
|
|
|
|
7,167,391
|
|
Other payables and
accrued expense
|
|
|
18,721,443
|
|
|
|
13,716,472
|
|
Related parties
loan
|
|
|
300,530,436
|
|
|
|
-
|
|
Due to related
party
|
|
|
2,114,933
|
|
|
|
7,223,321
|
|
Income tax
payable
|
|
|
4,426,300
|
|
|
|
-
|
|
Other taxes
payable
|
|
|
2,078,214
|
|
|
|
1,518,731
|
|
Total current
liabilities
|
|
|
985,691,649
|
|
|
|
293,116,111
|
|
Deferred income tax
liability
|
|
|
-
|
|
|
|
1,249,622
|
|
Related parties
loan
|
|
|
646,140,438
|
|
|
|
460,776,408
|
|
Long term loans, less
unamortized debt issuance costs of $2,599,276 and
$4,350,348
|
|
|
885,468,163
|
|
|
|
1,224,770,721
|
|
TOTAL
LIABILITIES
|
|
|
2,517,300,250
|
|
|
|
1,979,912,862
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 500,000 shares authorized, none issued or
outstanding as of
September 30, 2017 and December 31,
2016
|
|
|
-
|
|
|
|
-
|
|
Common stock $0.001
par value, 100,000,000 shares authorized, 66,113,502 and 66,018,867
shares
issued and outstanding as of
September 30, 2017 and December 31, 2016
|
|
|
66,113
|
|
|
|
66,018
|
|
Additional paid-in
capital
|
|
|
80,372,085
|
|
|
|
80,230,968
|
|
Retained
earnings
|
|
|
|
|
|
|
|
|
Unappropriated
|
|
|
293,188,808
|
|
|
|
277,473,959
|
|
Appropriated
|
|
|
967,543
|
|
|
|
967,543
|
|
Accumulated other
comprehensive income (deficit)
|
|
|
12,505,184
|
|
|
|
(76,248,201)
|
|
Total
stockholders' equity
|
|
|
387,099,733
|
|
|
|
282,490,287
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
2,904,399,983
|
|
|
$
|
2,262,403,149
|
|
|
|
KINGOLD JEWELRY,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN US
DOLLARS)
(UNAUDITED)
|
|
|
For the nine
months ended September 30,
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
(Restated)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
|
|
$
|
15,714,849
|
|
|
$
|
50,952,127
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,173,159
|
|
|
|
941,164
|
Amortization of
intangible assets
|
|
|
8,330
|
|
|
|
8,617
|
Amortization of
deferred financing costs
|
|
|
7,751,818
|
|
|
|
5,585,856
|
Share based
compensation for services and warrants and shares issued for
consulting services
|
|
|
27,650
|
|
|
|
229,162
|
Deferred tax
benefit
|
|
|
(7,440,305)
|
|
|
|
(19,653,506)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
647,049
|
|
|
|
788,112
|
Inventories
|
|
|
(119,627,463)
|
|
|
|
127,479,484
|
Other current assets
and prepaid expenses
|
|
|
185,892
|
|
|
|
(4,081,575)
|
Value added tax
recoverable
|
|
|
(56,530,224)
|
|
|
|
(117,388,028)
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
Other payables and
accrued expenses
|
|
|
4,331,048
|
|
|
|
(1,769,201)
|
Deposit payable,
Jewelry Park, net
|
|
|
-
|
|
|
|
151,362,720
|
Income tax
payable
|
|
|
7,725,853
|
|
|
|
23,499,156
|
Other taxes
payable
|
|
|
482,337
|
|
|
|
990,281
|
Net cash provided by
(used in) operating activities
|
|
|
(145,550,007)
|
|
|
|
218,944,369
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,551,847)
|
|
|
|
(306,652)
|
Investments in
gold
|
|
|
(358,279,503)
|
|
|
|
(945,283,984)
|
Construction in
progress-Jewelry Park
|
|
|
-
|
|
|
|
(20,440,112)
|
Net cash used in
investing activities
|
|
|
(359,831,350)
|
|
|
|
(966,030,748)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from bank
loans – short term
|
|
|
169,103,063
|
|
|
|
1,076,863,691
|
Repayments of bank
loans – short term
|
|
|
(147,212,224)
|
|
|
|
(54,861,388)
|
Proceeds from bank
loans – long term
|
|
|
96,966,135
|
|
|
|
-
|
Repayments of bank
loans – long term
|
|
|
(102,695,952)
|
|
|
|
-
|
Proceeds from related
party loans – short term
|
|
|
293,836,774
|
|
|
|
150,762,768
|
Proceeds from related
party loans – long term
|
|
|
771,321,531
|
|
|
|
-
|
Repayments of related
party loans – long term
|
|
|
(609,711,305)
|
|
|
|
-
|
Payments of loan
origination fees
|
|
|
(4,114,687)
|
|
|
|
-
|
Proceeds from third
party loans
|
|
|
-
|
|
|
|
37,480,135
|
Repayment of third
party loans
|
|
|
(29,383,677)
|
|
|
|
-
|
Restricted
cash
|
|
|
50,889,591
|
|
|
|
(274,106,062)
|
Due to related
party
|
|
|
(5,212,812)
|
|
|
|
-
|
Proceeds from
exercise of warrants
|
|
|
113,562
|
|
|
|
66,439
|
Repayment from debt
financing instruments under private placement
|
|
|
-
|
|
|
|
(60,788,241)
|
Net cash provided by
financing activities
|
|
|
483,899,999
|
|
|
|
875,417,342
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
|
1,149,995
|
|
|
|
(1,781,822)
|
|
|
|
|
|
|
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(20,331,363)
|
|
|
|
126,549,141
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
21,333,193
|
|
|
|
3,100,569
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
1,001,830
|
|
|
$
|
129,649,710
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
92,580,544
|
|
|
$
|
45,155,522
|
Cash paid for income
tax
|
|
$
|
5,270,750
|
|
|
$
|
12,692,294
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Investments in gold
obtained in a lease from a related party
|
|
$
|
132,748,925
|
|
|
$
|
438,349,470
|
Investments in gold
transferred to inventories
|
|
$
|
350,761,730
|
|
|
$
|
-
|
Unrealized gain on
investments in gold
|
|
$
|
75,935,884
|
|
|
$
|
58,520,282
|
View original
content:http://www.prnewswire.com/news-releases/kingold-jewelry-reports-financial-results-for-the-third-quarter-and-nine-months-ended-september-30-2017-300553161.html
SOURCE Kingold Jewelry, Inc.