WUHAN, China, February 23, 2012 /PRNewswire-Asia/ -- Kingold Jewelry, Inc (NASDAQ: KGJI), one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, today announced that it has entered into a definitive agreement with Shanghai Oriental CJ Company for selling investment-oriented products, such as gold bar, on Shanghai Oriental CJ's TV shopping channel.
Shanghai Oriental CJ Company is a joint venture between Shanghai Media Group and South Korea's CJ Home Shopping Company operates one of the first, largest and most influential TV home shopping channels in China. The channel broadcasts 24 hours a day, and 7 days a week. It has reached over RMB 5 billion (about US$ 793 million) in sales in 2010 by offering a wide range of consumer products to Chinese consumers, particularly the most affluent population in coastal area and Southeastern China.
Under the terms of the agreement, Kingold Jewelry will start selling its investment-oriented products, such as gold bars and coins on Oriental CJ channel and Oriental CJ's B2C online platform in the first half of 2012.
"This is another new initiative for us to expand our current sales channel to more direct B2C model. TV home shopping sector in China, while is in the early stage, has been experiencing explosive growth in both revenue and customer base, and it is estimated to reach total revenue of RMB 100 billion (approximately US$15.8 billion) by 2015. We believe this partnership with Oriental CJ will not only allow us to generate incremental revenue and profit with less upfront cost, but also benefit the company by building its brand awareness among Chinese consumers," commented by Mr. Zhihong Jia, Chairman and CEO of Kingold. "We will continuously leverage Oriental CJ's platform and its high-end customer base by introducing more of our branded gold products such as jewelry and household ornaments in the future. We are in a right direction to gradually shift our focus into retail market directly targeting end users from the traditional wholesale market. We are confident that our ultimate goal to build Kingold as a major national brand of 24 karat gold products in China will be achieved."
About Kingold Jewelry, Inc.:
Kingold Jewelry, Inc. (NASDAQ: KGJI), centrally located in Wuhan City, China's fourth largest city, 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. 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.
Company Contact:
Kingold Jewelry, Inc
Bin Liu, CFO
Phone: +1-847-660-3498 (US) / +86-27-6569-4977 (China)
Email: bl@kingoldjewelry.com
www.kingoldjewelry.com
