Increasing demand for gold in China has helped Kingold Jewelry rebound with a 56.5 per cent growth in net sales for its second quarter this year.
Sales had declined in the previous quarter, hit by a decline in gold prices.
Kingold Jewelry, which makes and designs 24-karat gold jewellery, ornaments and investment-oriented products, had net sales of US$390.3 million during this year’s second quarter compared to $249.4 million in the same period last year.
It processed 20.3 tonnes of 24-karat gold during the period, up 40.1 per cent from 14.5 tonnes.
Net income was $19.8 million, up from $0.6 million
“We have taken advantage of the increasing gold demand in China as well as a quick rebound of gold prices,” says chairman/CEO Zhihong Jia.
“Our management team made adjustments on our sales go-to-market strategy and achieved a 56.5 per cent increase in net sales, a 40.1 per cent increase in gold processed volume, plus more than 30 times growth in net income.”
On July 29, Kingold sold its interest in the Shanghai Creative Industry Park, or Kingold Jewelry Cultural Industry Park to Wuhan Lianfuda Investment Management for RMB1.14 billion (US$171 million). Kingold also leased space in the park for its new headquarters (office and exhibit centre).