WUHAN CITY, China, Aug. 12,
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 its financial results
for the second quarter and six months ended June 30, 2016.
2016 Second Quarter Financial Highlights (all
results are compared to prior year comparative
period)
- Net sales were $390.3 million, an
increase of 56.5% from $249.4
million
- Processed 20.3 metric tons of 24-karat gold products during the
period, an increase of 40.1% from 14.5 metric tons
- Net income was $19.8 million, or
$0.30 per diluted share, an increase
from $0.6 million, or $0.01 per diluted share
- Book value per diluted share was $4.46 at June 30,
2016, compared to $4.03 at
December 31, 2015
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."
2016 SECOND QUARTER OPERATIONAL REVIEW
- In the second quarter of 2016, Kingold sold approximately 20.3
metric tons of 24-karat gold products, an increase of 40.1% over
the 14.5 metric tons sold in the second quarter of 2015.
Metric Tons of
Gold Processed
|
|
Three Months
Ended:
|
|
June 30,
2016
|
June 30,
2015
|
|
Volume
|
Volume
|
Volume
|
Volume
|
Branded*
|
10.5
|
51.7%
|
6.9
|
47.8%
|
Customized**
|
9.8
|
48.3%
|
7.6
|
52.2%
|
Total
|
20.3
|
100%
|
14.5
|
100.0%
|
|
Six Months
Ended:
|
|
June 30,
2016
|
June 30,
2015
|
|
Volume
|
% of Total
|
Volume
|
% of Total
|
Branded*
|
18.7
|
53.2%
|
12.5
|
46.6%
|
Customized**
|
16.5
|
46.8%
|
14.3
|
53.4%
|
Total
|
35.2
|
100%
|
26.8
|
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.
|
- For the three months ended June 30,
2016, the Company sold a total of 20.3 metric tons of gold,
of which branded production was 10.5 metric tons, representing
51.7% of total gold sold, and customized production was 9.8 metric
tons, representing 48.3% of total gold sold, in the second quarter
of 2016. In the second quarter of 2015, the Company sold a
total of 14.5 metric tons, of which branded production was 6.9
metric tons, or 47.8% of total gold sold, and customized production
was 7.6 metric tons, or 52.2% of total gold sold.
Kingold Jewelry sells Jewelry park for approXimately
$171 million
On July 29, 2016, Kingold
announced that it 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 headquarter office and exhibit
center for an aggregate of annual rent of RMB 1,718,400 (approximately US $258,600).
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$54.2 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).
Chairman Jia continued, "Our management team decided that it was
in our best interest for Kingold to focus our capital and personal
resources on expanding our core jewelry design and manufacturing
business. We expect to use the proceeds to continue to grow
both within China and
internationally."
CONSOLIDATED FINANCIAL AND OPERATING REVIEW
Net Sales
Net sales for the three months ended June
30, 2016 increased 56.5% to $390.3
million from $249.4 million
for the same period in 2015. The increase was primarily due
to an increase in sales volume, the increase of average unit
selling price for the Company's branded production, and offset by a
loss from currency translation.
The average unit selling price for the Company's branded
production sales increased from RMB
212.5 per gram in the three months ended June 30, 2015 to RMB
238.4 per gram in the three months ended June 30, 2016. As a result, approximately
$29.5 million increase in brand
production revenue was affected by the increase in our selling
price, partially offset against the decrease in customized
production revenue to certain extent.
For the six months ended June 30,
2016, the Company's net sales were $672.4 million, increased 47.6% from $455.6 million in the first half of 2015.
Gross Profit
Gross profit for the three months ended June 30, 2016 increased 1,821% to $46.1 million from $2.4
million for the same period in 2015.
For the six months ended June 30,
2016, the Company's Gross profit were $74.6 million increased from $13.2 million in the first half of 2015.
Gross Margin
The Company's gross margin was 11.8% for the three months ended
June 30, 2016, compared to 1.0% in
the prior year period. The substantial increase was due to the
increase of the unit price of branded production sales during the
period mentioned above.
For the six months ended June 30,
2016, the Company's gross margin was 11.1%, compared to 2.9%
for the same period of 2015.
Net Income
Net income for the three months ended June 30, 2016 was $19.8
million, or $0.30 per diluted
share based on 66.0 million weighted average diluted shares
outstanding, compared to net income of $0.6
million, or $0.01 per diluted
share based on 66.0 million weighted average diluted shares
outstanding in the prior-year period.
For the six months ended June 30,
2016, the Company's net income was $35.0 million, or $0.53 per basic and diluted share, compared to
net income of $7.2 million, or
$0.11 per basic and diluted share, in
the same period of 2015.
Balance Sheet and Cash Flow (UNAUDITED)
(in millions
except for per share data) percentages)
|
|
6/30/2016
|
|
12/31/2015
|
|
|
|
|
|
Cash
|
$
|
37.5
|
$
|
3.1
|
Inventories
(gold)
|
$
|
786.5
|
$
|
298.3
|
Working
Capital
|
$
|
637.2
|
$
|
174.9
|
Stockholders'
Equity
|
$
|
294.1
|
$
|
265.6
|
Book Value Per Share
(in $)
|
$
|
4.46
|
$
|
4.03
|
Net cash used in operating activities was $466.3 million for the six months ended
June 30, 2016, compared with
net cash used in operating activities of $23.6 million for the same period in 2015. The
significant increase in net cash used in operating activities was
mainly due to spending on purchase of inventory of $502.9 million in anticipation of the increased
production and sales demand when the Jewelry Park is completed
which may stimulate our sales starting from the second half of
2016. In addition, in connection with Kingold's significant bank
borrowings during the quarter ended June 30,
2016, the Company was required to pledge approximately 22
metric tons 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
Transaction, the Company received $90.1
million cash payment from Wuhan Lianfuda for the Jewelry
Park transfer and at the same time the Company transferred back
approximately $22.1 million customer
deposit to the Jewelry Park property buyers, which led to a net
change of deposit payable of $70.2
million. 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 six
months ended June 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 the other factors described
above change with increased production and the purchase of larger
quantities of raw materials (principally gold).
OUTLOOK FOR 2016
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.
Conference Call Details
Kingold also announced that it will discuss these financial
results in a conference call on Friday,
August 12, 2016, at 5:00 PM
ET.
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/q2-2016.
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 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
statements regarding Kingold's outlook with respect to its 2016
outlook for gold processing, its expectations with respect to
completion of transferring the Jewelry Park. 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 INCOME AND COMPREHENSIVE
INCOME
(IN U.S. DOLLARS)
(UNAUDITED)
|
|
|
|
For the three
months ended June 30,
|
|
|
For the six months
ended June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
|
390,260,645
|
|
|
$
|
249,421,052
|
|
|
$
|
672,448,702
|
|
|
$
|
455,616,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(343,880,390)
|
|
|
|
(246,684,484)
|
|
|
|
(597,292,834)
|
|
|
|
(441,805,439)
|
|
Depreciation
|
|
|
(291,683)
|
|
|
|
(311,110)
|
|
|
|
(582,365)
|
|
|
|
(620,110)
|
|
Total cost of
sales
|
|
|
(344,172,073)
|
|
|
|
(246,995,594)
|
|
|
|
(597,875,199)
|
|
|
|
(442,425,549)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
46,088,572
|
|
|
|
2,425,458
|
|
|
|
74,573,503
|
|
|
|
13,190,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
6,443,126
|
|
|
|
2,205,197
|
|
|
|
9,712,491
|
|
|
|
3,883,563
|
|
Stock compensation
expenses
|
|
|
11,142
|
|
|
|
102,344
|
|
|
|
22,285
|
|
|
|
315,127
|
|
Depreciation
|
|
|
23,474
|
|
|
|
25,237
|
|
|
|
46,987
|
|
|
|
50,428
|
|
Amortization
|
|
|
2,891
|
|
|
|
3,096
|
|
|
|
5,781
|
|
|
|
6,170
|
|
Total operating
expenses
|
|
|
6,480,633
|
|
|
|
2,335,874
|
|
|
|
9,787,544
|
|
|
|
4,255,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
39,607,939
|
|
|
|
89,584
|
|
|
|
64,785,959
|
|
|
|
8,935,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income
|
|
|
130
|
|
|
|
6,530
|
|
|
|
130
|
|
|
|
6,530
|
|
Interest
Income
|
|
|
624,199
|
|
|
|
133,803
|
|
|
|
683,423
|
|
|
|
151,072
|
|
Interest
expense
|
|
|
(13,621,813)
|
|
|
|
(84,616)
|
|
|
|
(18,595,166)
|
|
|
|
(382,153)
|
|
Total other income
(expenses), net
|
|
|
(12,997,484)
|
|
|
|
55,717
|
|
|
|
(17,911,613)
|
|
|
|
(224,551)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS BEFORE TAXES
|
|
|
26,610,455
|
|
|
|
145,301
|
|
|
|
46,874,346
|
|
|
|
8,710,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION (BENEFIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
6,849,780
|
|
|
|
557,373
|
|
|
|
11,660,784
|
|
|
|
3,286,274
|
|
Deferred
|
|
|
64
|
|
|
|
(985,503)
|
|
|
|
255,738
|
|
|
|
(1,730,028)
|
|
Total income tax
provision (benefit)
|
|
|
6,849,844
|
|
|
|
(428,130)
|
|
|
|
11,916,522
|
|
|
|
1,556,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
19,760,611
|
|
|
|
573,431
|
|
|
|
34,957,824
|
|
|
|
7,154,638
|
|
Add: net loss attributable to non-controlling interest
|
|
|
(268)
|
|
|
|
(188)
|
|
|
|
(1,465)
|
|
|
|
(188)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
|
$
|
19,760,879
|
|
|
$
|
573,619
|
|
|
$
|
34,959,289
|
|
|
$
|
7,154,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total foreign
currency translation gains (loss)
|
|
|
(8,622,381)
|
|
|
|
488,151
|
|
|
|
(6,659,687)
|
|
|
|
1,587,816
|
|
Less: foreign
currency translation gain attributable to non-controlling
interest
|
|
|
2,030
|
|
|
|
81
|
|
|
|
1,576
|
|
|
|
81
|
|
Foreign currency
translation gains (loss) attributable to common
stockholders
|
|
$
|
(8,624,411)
|
|
|
$
|
488,070
|
|
|
$
|
(6,661,263)
|
|
|
$
|
1,587,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME ATTRIBITABLE TO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stockholders
|
|
$
|
11,136,468
|
|
|
$
|
1,061,689
|
|
|
$
|
28,298,026
|
|
|
$
|
8,742,561
|
|
Non-controlling interest
|
|
|
1,762
|
|
|
|
-
|
|
|
|
111
|
|
|
|
-
|
|
|
|
$
|
11,138,230
|
|
|
$
|
1,061,689
|
|
|
$
|
28,298,137
|
|
|
$
|
8,742,561
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
|
|
$
|
0.01
|
|
|
$
|
0.53
|
|
|
$
|
0.11
|
|
Diluted
|
|
$
|
0.30
|
|
|
$
|
0.01
|
|
|
$
|
0.53
|
|
|
$
|
0.11
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
65,964,110
|
|
|
|
65,963,502
|
|
|
|
65,963,806
|
|
|
|
65,963,502
|
|
Diluted
|
|
|
66,273,246
|
|
|
|
65,963,502
|
|
|
|
65,970,164
|
|
|
|
65,963,502
|
|
KINGOLD JEWELRY,
INC
CONDENSED
CONSOLIDATED BALANCE SHEETS
(IN U.S. DOLLARS)
(UNAUDITED)
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
37,496,173
|
|
|
$
|
3,100,569
|
|
Restricted
cash
|
|
|
46,107,680
|
|
|
|
26,649,687
|
|
Accounts
receivable
|
|
|
403,267
|
|
|
|
1,624,323
|
|
Inventories
|
|
|
786,485,088
|
|
|
|
298,303,185
|
|
Other current assets
and prepaid expenses
|
|
|
4,954,662
|
|
|
|
1,046,032
|
|
Value added tax
recoverable
|
|
|
86,193,253
|
|
|
|
15,526,002
|
|
Total current
assets
|
|
|
961,640,123
|
|
|
|
346,249,798
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
|
7,158,325
|
|
|
|
7,622,509
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
|
Deposit on land use
right - Jewelry Park
|
|
|
9,084,474
|
|
|
|
9,296,763
|
|
Construction in
progress- Jewelry Park
|
|
|
153,484,370
|
|
|
|
105,844,259
|
|
Other
assets
|
|
|
145,317
|
|
|
|
148,713
|
|
Land use
right
|
|
|
438,119
|
|
|
|
454,180
|
|
Total long-term
assets
|
|
|
170,310,605
|
|
|
|
123,366,424
|
|
TOTAL
ASSETS
|
|
$
|
1,131,950,728
|
|
|
$
|
469,616,222
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Short term
loans
|
|
$
|
165,878,918
|
|
|
$
|
55,455,428
|
|
Debts payable,
net
|
|
|
-
|
|
|
|
61,471,962
|
|
Construction
payables-Jewelry Park
|
|
|
54,189,120
|
|
|
|
23,876,642
|
|
Deposit
payable-Jewelry Park
|
|
|
90,736,671
|
|
|
|
22,182,171
|
|
Other payables and
accrued expenses
|
|
|
5,849,813
|
|
|
|
6,355,979
|
|
Due to related
party
|
|
|
449,809
|
|
|
|
200,059
|
|
Income tax
payable
|
|
|
6,740,793
|
|
|
|
1,119,918
|
|
Other taxes
payable
|
|
|
608,321
|
|
|
|
710,104
|
|
Total current
liabilities
|
|
|
324,453,445
|
|
|
|
171,372,263
|
|
Deferred income tax
liability
|
|
|
1,986,173
|
|
|
|
1,774,993
|
|
Long term
loans
|
|
|
511,334,558
|
|
|
|
30,808,571
|
|
TOTAL
LIABILITIES
|
|
|
837,774,176
|
|
|
|
203,955,827
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 500,000 shares authorized, none issued or
outstanding as of June 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 June 30, 2016 and December 31,
2015
|
|
|
66,018
|
|
|
|
65,963
|
|
Additional paid-in
capital
|
|
|
80,208,682
|
|
|
|
79,990,717
|
|
Retained
earnings
|
|
|
|
|
|
|
|
|
Unappropriated
|
|
|
219,523,436
|
|
|
|
184,564,147
|
|
Appropriated
|
|
|
967,543
|
|
|
|
967,543
|
|
Accumulated other
comprehensive loss
|
|
|
(6,662,512)
|
|
|
|
(1,249)
|
|
Total
stockholders' equity
|
|
|
294,103,167
|
|
|
|
265,587,121
|
|
Non-controlling
interest
|
|
|
73,385
|
|
|
|
73,274
|
|
Total
Equity
|
|
|
294,176,552
|
|
|
|
265,660,395
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
1,131,950,728
|
|
|
$
|
469,616,222
|
|
KINGOLD JEWELRY,
INC.
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN U.S. DOLLARS)
(UNAUDITED)
|
|
|
|
For the six months
ended June 30,
|
|
|
|
2016
|
|
|
2015
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
34,957,824
|
|
|
$
|
7,154,638
|
|
Adjustments to
reconcile net income to cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
629,352
|
|
|
|
670,538
|
|
Amortization of
intangible assets
|
|
|
5,781
|
|
|
|
6,170
|
|
Amortization of
deferred financing costs
|
|
|
144,134
|
|
|
|
326,509
|
|
Share based
compensation for services and
warrants and shares issued for
consulting services
|
|
|
151,580
|
|
|
|
315,127
|
|
Inventory valuation
allowance
|
|
|
-
|
|
|
|
10,315,970
|
|
Deferred tax provision
(benefit)
|
|
|
255,738
|
|
|
|
(1,730,028)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
1,202,904
|
|
|
|
372,622
|
|
Inventories
|
|
|
(502,911,887)
|
|
|
|
(37,695,661)
|
|
Other current assets
and prepaid expenses
|
|
|
(3,995,411)
|
|
|
|
(120,344)
|
|
Value added tax
recoverable
|
|
|
(72,157,904)
|
|
|
|
(5,280,553)
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
|
Other payables and
accrued expenses
|
|
|
(388,356)
|
|
|
|
1,086,129
|
|
Deposit payable,
Jewelry Park, net
|
|
|
70,165,780
|
|
|
|
-
|
|
Income tax
payable
|
|
|
5,649,770
|
|
|
|
581,994
|
|
Other taxes
payable
|
|
|
67
|
|
|
|
366,577
|
|
Net cash used in
operating activities
|
|
|
(466,290,628)
|
|
|
|
(23,630,312)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(334,586)
|
|
|
|
(29,825)
|
|
Payment for
construction in progress-Jewelry Park
|
|
|
(19,506,468)
|
|
|
|
(24,233,680)
|
|
Net cash used in
investing activities
|
|
|
(19,841,054)
|
|
|
|
(24,263,505)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital contribution
from minority interest for the new subsidiary
|
|
|
-
|
|
|
|
73,465
|
|
Proceeds from bank
loans
|
|
|
611,580,106
|
|
|
|
6,530,186
|
|
Repayments of bank
loans
|
|
|
(9,175,996)
|
|
|
|
(13,060,372)
|
|
Restricted
cash
|
|
|
(20,387,531)
|
|
|
|
(9,991,098)
|
|
Proceeds from related
party loan
|
|
|
250,226
|
|
|
|
-
|
|
Proceeds from
exercise of warrants
|
|
|
66,439
|
|
|
|
-
|
|
(Repayment) proceeds
from debt financing instruments under private placement
|
|
|
(61,173,304)
|
|
|
|
65,301,858
|
|
Deferred financing
costs
|
|
|
-
|
|
|
|
(653,019)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
521,159,940
|
|
|
|
48,201,020
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
|
(632,654)
|
|
|
|
(140,539)
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
|
34,395,604
|
|
|
|
166,664
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
3,100,569
|
|
|
|
1,331,658
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
37,496,173
|
|
|
$
|
1,498,322
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
19,126,073
|
|
|
$
|
2,584,438
|
|
Cash paid for
income tax
|
|
$
|
11,660,842
|
|
|
$
|
2,704,280
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kingold-jewelry-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2016-300313039.html
SOURCE Kingold Jewelry, Inc.