WUHAN, China, Oct. 18, 2011 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. ("Kingold") (NASDAQCM: KGJI), one of the leading manufacturers of 24-carat gold jewelry in China, today announced that it has entered into an agreement with Wuhan Rural Commercial Bank ("the Bank") for the distribution of Kingold's investment-related products such as gold coins, bars and ornaments. It is anticipated that Kingold's investment-related products will be available for purchase by customers throughout the Bank's network of 230 branches across Wuhan, one of the largest cities in China with a population of approximately 9 million inhabitants.
"This is the first of what we anticipate will be a series of initiatives with local banks across China to target increasingly affluent suburban residents, who are not typically served by the larger national banks," commented Chairman Jia. "This push into suburban China is complementary to our existing relationships with two of China's largest national banks, China Merchants Bank and the Bank of Communications, who are currently rolling out our investment products across their network of over 3,000 branches. We anticipate that Kingold's investment related business will start to significantly impact revenues by the end of this year, and become a meaningful contributor in 2012."
About Kingold Jewelry, Inc.:
Kingold Jewelry, Inc. (NASDAQ: KGJI - News), 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.