WUHAN CITY, China, April 8, 2011 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. ("Kingold" or the "Company") (NASDAQ:KGJI), one of China's leading manufacturers and designers of 24-karat gold jewelry and ornaments, today announced that it will be opening a new showroom and distribution center, totaling roughly 16,000 square feet, in Shenzhen, China's jewelry hub, on April 16, 2011. The launch of the new showroom and distribution center will be celebrated with a grand opening ceremony that is expected to be attended by over 600 people, including numerous Chinese jewelry wholesalers and retailers, senior members of the local government and celebrities from both China and Hong Kong.
At present, Kingold distributes all of its products directly from its manufacturing facility in Wuhan, where the Company has an approximately 10,000 square foot showroom on the premises; however, Wuhan, which is located in Central China, is not conveniently located for many of China's major jewelry wholesalers and distributors, which are based in Southern China. Opening the new showroom and distribution center on their doorstep, Kingold expects to more effectively address the large jewelry market in Southern China by attracting new customers and better servicing existing ones in the area.
"We are very pleased to announce the opening of our new showroom and distribution center in Shenzhen, a major new initiative for the Company," said Mr. Zhihong Jia, Chairman and CEO of Kingold. "Having a significant physical presence in Shenzhen will enable us to better serve the Southern region of China, the center of China's jewelry industry, whilst maintaining all of our design and manufacturing in Wuhan, which benefits from a lower cost base than Southern China, and which is ideally located for servicing our customers in Central China. We are optimistic that Kingold will see favorable results from the opening of this showroom as early as the third quarter, 2011. We will continue to consider ways of strengthening our customer relationships and distribution across China as we seek to expand our national footprint and consolidate our leadership position in the market. Towards this end, our strategic plan for 2011 includes the opening of an additional distribution facility to cover Northern China."
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 and ornaments sold by weight. 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. Sales have grown from $29 million in FY 2006 to $523 million in FY 2010 with net income attributable to common stockholders growing from $1.3 million to $18.2 million over the same period. 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 and the Securities Exchange Act of 1934. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors 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.
SOURCE Kingold Jewelry, Inc.