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 Companys
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 Companys 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
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