Kingold Jewelry Inc., (NASDAQ:KGJI) Shares Surges on Announcement of Agreement with China Merchants Bank Limited

Kingold Jewelry Inc., (NASDAQ:KGJI ) announced on Thursday that it has entered into an agreement with China Merchants Bank Limited to manufacture 24-Karat gold investment related products, such as gold coins and bars. On Thursday, the company announced that it has been selected by China Merchants Bank Limited, a leading retail bank in China which provides customers with both corporate and retail banking products and services and conducts treasury activities for proprietary purposes and on behalf of its customers to manufacture investment oriented products, including 24-Karat gold coins and bars, for resale by China Merchants Bank to its customers throughout its expansive retail banking network across China. To grow this new line of complimentary gold investment products which is expected to generate more than double the gross margin of the Company’s traditional gold jewelry and ornament line, the company has plan to leverage its gold jewelry manufacturing expertise, while capitalizing on available production capacity. During initial trials based on feedback from China Merchants Bank, the company has received a good response for its new products; including custom designed gold coins and gold bars. The Company expects gold investment oriented products, as a group, to begin contributing meaningfully to the Company’s overall revenue in the second half of 2011. Shares of the company centrally located in Wuhan City went up by 12 cents or 4.20%  to $2.98 after opening at $3.07 and traded with volume of 0.695 million shares compared to the daily average of 0.406 million shares. The market capitalization of the stock stands at $126.18 with P/E of 7.79 and beta of 0.60. The stock has 52 week range of $1.32-$11.95. Kingold Jewelry, Inc., formerly Activeworlds Corp. is engaged in the business of designing, manufacturing and sale of gold jewelry in the People's Republic of China (PRC) through a variable interest entity relationship with Wuhan Kingold Jewelry Company Limited. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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