- Company to Hold Conference Call with Accompanying Slide
Presentation at 5:30 p.m. E.T. on
August 11, 2017
WUHAN, China, Aug. 11, 2017 /PRNewswire/ -- Kingold Jewelry,
Inc. ("Kingold" or the "Company") (NASDAQ: KGJI), one of
China's leading manufacturers and
designers of high quality 24-karat gold jewelry, ornaments and
investment-oriented products, today announced its financial results
for the second quarter and six months ended June 30, 2017.
2017 Second Quarter Financial Highlights (all results
compared to prior year period)
- Net sales were $475.9 million, an
increase of 22% from $390.3
million
- Proceeded a total of 26.0 metric tons of 24-karat gold
products, increased 28.1% from 20.3 metric tons
- Net income was $8.0 million, or
$0.12 per diluted share, compared to
net income was $19.9 million, or
$0.30 per diluted share
Outlook for 2017
- Company reiterates guidance of between 70 metric tons and 80
metric tons of 24-karat gold products in 2017
Management Commentary
Mr. Zhihong Jia, Chairman and CEO
of the Company, commented, "We were pleased to continue to deliver
strong operating results in the second quarter of 2017, as we fully
leveraged the higher gold price along with the strong growing
demand and further expanded our production capacity. Meanwhile, we
continue to watch market dynamics and gold price trends to be able
to make timely adjustment of our business strategy. Based on our
team's extensive experience in the gold industry, we will further
explore upstream-downstream industries to establish an
all-round strategic plan for Kingold's overall
development."
2017 SECOND QUARTER OPERATIONAL REVIEW
Metric Tons of
Gold Processed
|
|
Three Months
Ended:
|
|
June 30,
2017
|
June 30,
2016
|
|
Volume
|
Volume
|
Volume
|
Volume
|
Branded*
|
12
|
46.2%
|
10.5
|
51.7%
|
Customized**
|
14
|
53.8%
|
9.8
|
48.3%
|
Total
|
26
|
100.0%
|
20.3
|
100%
|
|
Six Months
Ended:
|
|
June 30,
2017
|
June 30,
2016
|
|
Volume
|
% of Total
|
Volume
|
% of Total
|
Branded*
|
20.1
|
47.7%
|
18.7
|
53.1%
|
Customized**
|
22
|
52.3%
|
16.5
|
46.9%
|
Total
|
42.1
|
100%
|
35.2
|
100%
|
|
*
|
Branded
Production:
|
The Company acquires
gold from the Shanghai Gold Exchange to produce branded
products.
|
**
|
Customized
Production:
|
Clients who purchase
customized products supply gold to the Company for
processing.
|
For the three months ended June 30,
2017, the Company sold a total of 26 metric tons of gold, of
which branded production was 12 metric tons, representing 46.2% of
total gold sold, and customized production was 14 metric tons,
representing 53.8% of total gold sold in the second quarter of
2017. In the second quarter of 2016, the Company sold a total of
20.3 metric tons, of which branded production was 10.5 metric tons,
or 51.7% of the total gold sold, and customized production was 9.8
metric tons, or 48.3% of total gold sold.
CONSOLIDATED FINANCIAL AND OPERATING REVIEW
Net Sales
Net sales for the three months ended June
30, 2017 was $475.9 million,
representing an increase of $85.6
million, or 22%, from $390.3
million for the same period in 2016. The increase in net
sales was primarily driven by the higher sales volume and the
higher average selling price for branded production which increased
from RMB 238.42 per gram in the three
months ended June 30, 2016 to
RMB 264 per gram in three months
ended June 30, 2017.
For the six months ended June 30,
2017, the Company's net sales were $768.1 million, increased 14% from $672.4 million in the first half of 2016. The
increase in net sales was mainly due to the higher sales volume and
the higher average selling price for branded production which
increased from RMB 231.34 per gram in
the six months ended June 30, 2016 to
RMB 256.66 per gram in six months
ended June 30, 2017.
Gross Profit
Gross profit for the three months ended June 30, 2017 was $47.8
million, compared to $46.1
million for the same period in 2016.
For the six months ended June 30,
2017, the Company's gross profit was $64.9 million decreased from $74.6 million in the first half of 2016.
Gross Margin
The Company's gross margin was 10% for the three months ended
June 30, 2017, compared to 11.8% in
the prior year period. The decrease in gross margin was primarily
because the increase in unit cost of branded production sales
exceeded the increase of average selling price during the three
months ended June 30, 2017.
For the six months ended June 30,
2017, the Company's gross margin was 8.4%, compared to 11.1%
in the first half of 2016. The decrease in gross margin was
primarily due to the increase in unit cost of our branded
production sales exceeded the increase of average selling price of
our branded production during the six months ended June 30, 2017.
Net Income ((Loss)
Net income for the three months ended June 30, 2017 was $8.0
million, or $0.12 per diluted
share based on 66.4 million weighted average diluted shares
outstanding, compared to net income of $19.9
million in the prior year period, or $0.30 per diluted share based on 66.3 million
weighted average diluted shares outstanding in the prior-year
period. The decrease in net income was primarily due to significant
increase in interest expenses from $16.9
million in the three months ended June 30,2016 to $39
million in the three months ended June 30, 2017.
For the six months ended June 30,
2017, the Company's net loss was $13.3 million, or $(0.20) per basic and diluted share, compared to
net income of $35.1 million, or
$0.53 per basic and diluted share, in
the same period of 2016. The decrease in net income was primarily
due to significant increase in interest expenses from $21.5 million in the six months ended
June 30,2016 to $75.3 million in the six months ended
June 30, 2017.
Balance Sheet
Highlights (USD in Millions)
|
|
6/30/2017
|
|
12/31/2016
|
Percentage
Change
|
Cash and Cash
Equivalents
|
$9.2
|
|
$21.3
|
(56.8)
%
|
Inventories
|
$309.6
|
|
$119.4
|
159
%
|
Working
Capital
|
$861.0
|
|
$460.0
|
87.2
%
|
Stockholders'
Equity
|
$326.5
|
|
$282.5
|
15.6
%
|
Net cash used in operating activities was $257 million for the six months ended
June 30, 2017, compared with net cash
provided by operating activities of $185.5
million for the same period in 2016. The increase of net
cash used in operating was mainly due to the increase in
inventories of $204 million for the
increased production to meet the sales demand.
OUTLOOK FOR 2017
Based on the Company's existing resources and capacity along
with strong demand for 24-karat gold products in China, and its possession of 42.1 metric tons
of 24-karat gold products in the first half of 2017, the Company
reiterates its expectation that gold processed will be between 70
metric tons and 80 metric tons during 2017.
Conference Call Details
Kingold also announced that it will discuss these financial
results in a conference call on August 11,
2017 at 5:30 p.m. E.T.
The dial-in numbers
are:
|
|
Live Participant Dial
In (Toll Free):
|
877-407-9038
|
Live Participant Dial
In (International):
|
201-493-6742
|
The conference call will also be webcast live. To listen to the
call, please go to the Investor Relations section of Kingold's
website at www.kingoldjewelry.com, or click on the following link:
http://kingoldjewelry.equisolvewebcast.com/q2-2017 . The Company
will also have an accompanying slide presentation available in PDF
format on its homepage prior to the conference call.
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,
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. For more information, please
visitwww.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, as amended, and the Securities Exchange Act of 1934, as
amended. You can identify these forward -looking statements by
words such as "expects," "believe," "project," "anticipate," or
similar expressions. The forward-looking statements in this release
include statements regarding Kingold's outlook with respect to its
2017 outlook for gold processing, its expectations with respect to
completion of construction of the Jewelry Park and planned grand
opening, as well as its ability to engage in presales and finance
the remaining construction. Readers are cautioned that actual
results could differ materially from those expressed in any
forward-looking statements. Forward-looking statements are subject
to a number of risks, including those 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)
bl@kingoldjewelry.com
INVESTOR RELATIONS
The Equity Group Inc.
Katherine Yao, Senior Associate
Phone: +86-10-6587-6435
kyao@equityny.com
KINGOLD JEWELRY,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(IN US
DOLLARS)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30,
|
For the six months
ended June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
(Restated)
|
|
|
|
(Restated)
|
NET
SALES
|
|
$
|
475,891,200
|
|
$
|
390,260,645
|
|
$
|
768,155,277
|
|
$
|
672,448,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(427,858,604)
|
|
|
(343,880,390)
|
|
|
(702,767,612)
|
|
|
(597,292,834)
|
Depreciation
|
|
|
(210,888)
|
|
|
(291,683)
|
|
|
(505,331)
|
|
|
(582,365)
|
Total cost of
sales
|
|
|
(428,069,492)
|
|
|
(344,172,073)
|
|
|
(703,272,943)
|
|
|
(597,875,199)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
47,821,708
|
|
|
46,088,572
|
|
|
64,882,334
|
|
|
74,573,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
3,069,142
|
|
|
3,181,568
|
|
|
6,766,525
|
|
|
6,020,161
|
Stock compensation
expenses
|
|
|
11,143
|
|
|
11,142
|
|
|
22,286
|
|
|
22,285
|
Depreciation
|
|
|
125,831
|
|
|
23,474
|
|
|
231,670
|
|
|
46,987
|
Amortization
|
|
|
2,755
|
|
|
2,891
|
|
|
5,498
|
|
|
5,781
|
Total operating
expenses
|
|
|
3,208,871
|
|
|
3,219,075
|
|
|
7,025,979
|
|
|
6,095,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
44,612,837
|
|
|
42,869,497
|
|
|
57,856,355
|
|
|
68,478,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income
|
|
|
132
|
|
|
130
|
|
|
65,497
|
|
|
130
|
Interest
Income
|
|
|
504,462
|
|
|
757,264
|
|
|
1,191,307
|
|
|
816,488
|
Interest expense,
including $6,403,986 and $3,692,330 of
amortization of financing costs for six months ended June 30,
2017 and 2016
|
|
|
(38,980,626)
|
|
|
(16,883,371)
|
|
|
(76,570,122)
|
|
|
(22,287,496)
|
Total other expenses,
net
|
|
|
(38,476,032)
|
|
|
(16,125,977)
|
|
|
(75,313,318)
|
|
|
(21,470,878)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS BEFORE TAXES
|
|
|
6,136,805
|
|
|
26,743,520
|
|
|
(17,456,963)
|
|
|
47,007,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION (BENEFIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
5,218,082
|
|
|
6,849,780
|
|
|
5,218,082
|
|
|
11,660,784
|
Deferred
|
|
|
(7,114,895)
|
|
|
64
|
|
|
(9,402,844)
|
|
|
255,738
|
Total income tax
provision (benefit)
|
|
|
(1,896,813)
|
|
|
6,849,844
|
|
|
(4,184,762)
|
|
|
11,916,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
8,033,618
|
|
|
19,893,676
|
|
|
(13,272,201)
|
|
|
35,090,889
|
Add: net loss
attributable to non-controlling interest
|
|
|
-
|
|
|
(268)
|
|
|
-
|
|
|
(1,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO KINGOLD JEWELRY, INC.
|
|
$
|
8,033,618
|
|
$
|
19,893,944
|
|
$
|
(13,272,201)
|
|
$
|
35,092,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized
gain (loss) related to investments in gold
|
|
$
|
(54,046,052)
|
|
$
|
50,778,172
|
|
$
|
48,861,337
|
|
$
|
68,343,038
|
Total foreign
currency translation gains (loss)
|
|
|
11,789,755
|
|
|
(8,624,477)
|
|
|
8,362,338
|
|
|
(6,661,783)
|
Less: foreign
currency translation gain attributable to non-
controlling interest
|
|
|
-
|
|
|
2,030
|
|
|
-
|
|
|
1,576
|
Total Other
comprehensive income (loss) attributable to
KINGOLD JEWELRY, INC.
|
|
$
|
(42,256,297)
|
|
$
|
42,151,665
|
|
$
|
57,223,675
|
|
$
|
61,679,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME (LOSS) ATTRIBUTABLE TO:
|
|
|
|
|
|
|
|
|
|
|
|
|
KINGOLD JEWELRY,
INC.
|
|
$
|
(34,222,679)
|
|
$
|
62,045,609
|
|
$
|
43,951,474
|
|
$
|
96,772,033
|
Non-controlling
interest
|
|
|
-
|
|
|
1,762
|
|
|
-
|
|
|
111
|
|
|
$
|
(34,222,679)
|
|
$
|
62,047,371
|
|
$
|
43,951,474
|
|
$
|
96,772,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.12
|
|
$
|
0.30
|
|
$
|
(0.20)
|
|
$
|
0.53
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
66,018,867
|
|
|
65,964,110
|
|
|
66,018,867
|
|
|
65,963,806
|
Diluted
|
|
|
66,415,601
|
|
|
66,273,246
|
|
|
66,018,867
|
|
|
65,970,164
|
KINGOLD JEWELRY,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(IN US
DOLLARS)
|
(UNAUDITED)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
9,181,584
|
|
$
|
21,333,193
|
Restricted
cash
|
|
|
17,940,508
|
|
|
52,786,257
|
Accounts
receivable
|
|
|
106,205
|
|
|
670,878
|
Inventories,
net
|
|
|
309,599,564
|
|
|
119,435,595
|
Investments in gold -
current
|
|
|
963,585,694
|
|
|
281,895,403
|
Other current assets
and prepaid expenses
|
|
|
119,521
|
|
|
698,217
|
Prepaid income
tax
|
|
|
-
|
|
|
3,330,468
|
Value added tax
recoverable
|
|
|
347,085,125
|
|
|
272,835,051
|
Total current
assets
|
|
|
1,647,618,201
|
|
|
752,985,062
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
|
7,592,339
|
|
|
7,224,698
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
Restricted
cash
|
|
|
8,351,285
|
|
|
7,558,173
|
Investments in
gold
|
|
|
1,175,797,769
|
|
|
1,493,938,551
|
Other
assets
|
|
|
289,993
|
|
|
283,003
|
Deferred income tax
assets
|
|
|
8,258,042
|
|
|
-
|
Land use
right
|
|
|
418,302
|
|
|
413,662
|
Total long-term
assets
|
|
|
1,200,707,730
|
|
|
1,509,418,087
|
TOTAL
ASSETS
|
|
$
|
2,848,325,931
|
|
$
|
2,262,403,149
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Short term loans,
less unamortized debt issuance costs of $196,644 and
$4,480,085
|
|
$
|
465,616,205
|
|
$
|
234,691,670
|
Third party
loan
|
|
|
-
|
|
|
28,798,526
|
Gold leases payable -
Bank
|
|
|
-
|
|
|
7,167,391
|
Other payables and
accrued expense
|
|
|
19,063,751
|
|
|
13,716,472
|
Related parties
loan
|
|
|
295,098,415
|
|
|
-
|
Due to related
party
|
|
|
3,299,524
|
|
|
7,223,321
|
Income tax
payable
|
|
|
1,880,651
|
|
|
-
|
Other taxes
payable
|
|
|
1,681,246
|
|
|
1,518,731
|
Total current
liabilities
|
|
|
786,639,792
|
|
|
293,116,111
|
Deferred income tax
liability
|
|
|
-
|
|
|
1,249,622
|
Related parties
loan
|
|
|
751,025,467
|
|
|
460,776,408
|
Long term loans, less
unamortized debt issuance costs of $4,383,067 and
$4,350,348
|
|
|
984,196,625
|
|
|
1,224,770,721
|
TOTAL
LIABILITIES
|
|
|
2,521,861,884
|
|
|
1,979,912,862
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 500,000 shares authorized, none issued or
outstanding as of June
30, 2017 and December 31, 2016
|
|
|
-
|
|
|
-
|
Common stock $0.001
par value, 100,000,000 shares authorized, 66,018,867 shares issued
and
outstanding as of June 30, 2017 and December 31, 2016
|
|
|
66,018
|
|
|
66,018
|
Additional paid-in
capital
|
|
|
80,253,254
|
|
|
80,230,968
|
Retained
earnings
|
|
|
|
|
|
|
Unappropriated
|
|
|
264,201,758
|
|
|
277,473,959
|
Appropriated
|
|
|
967,543
|
|
|
967,543
|
Accumulated other
comprehensive deficit
|
|
|
(19,024,526)
|
|
|
(76,248,201)
|
Total
stockholders' equity
|
|
|
326,464,047
|
|
|
282,490,287
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
2,848,325,931
|
|
$
|
2,262,403,149
|
KINGOLD JEWELRY,
INC.
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
(IN US
DOLLARS)
|
(UNAUDITED)
|
|
|
|
For the six months
ended June 30,
|
|
|
2017
|
|
2016
|
|
|
|
|
(Restated)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(13,272,201)
|
|
$
|
35,090,889
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
737,001
|
|
|
629,352
|
Amortization of
intangible assets
|
|
|
5,498
|
|
|
5,781
|
Amortization of
deferred financing costs
|
|
|
6,403,986
|
|
|
3,692,330
|
Share based
compensation for services and warrants and shares issued for
consulting services
|
|
|
22,286
|
|
|
151,580
|
Inventory valuation
allowance
|
|
|
17,597,804
|
|
|
-
|
Deferred tax
provision (benefit)
|
|
|
(9,402,844)
|
|
|
255,738
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
(Increase) decrease
in:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
572,975
|
|
|
1,202,904
|
Inventories
|
|
|
(204,138,326)
|
|
|
148,835,117
|
Other current assets
and prepaid expenses
|
|
|
587,453
|
|
|
(4,128,476)
|
Value added tax
recoverable
|
|
|
(66,550,772)
|
|
|
(72,157,904)
|
Increase (decrease)
in:
|
|
|
|
|
|
|
Other payables and
accrued expenses
|
|
|
5,063,398
|
|
|
(3,936,552)
|
Deposit payable,
Jewelry Park, net
|
|
|
-
|
|
|
70,165,780
|
Income tax
payable
|
|
|
5,218,082
|
|
|
5,649,770
|
Other taxes
payable
|
|
|
123,225
|
|
|
67
|
Net cash provided by
(used in) operating activities
|
|
|
(257,032,435)
|
|
|
185,456,376
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,141,219)
|
|
|
(334,586)
|
Investments in
gold
|
|
|
(270,889,242)
|
|
|
(651,747,004)
|
Construction in
progress-Jewelry Park
|
|
|
-
|
|
|
(19,506,468)
|
Net cash used in
investing activities
|
|
|
(272,030,461)
|
|
|
(671,588,058)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Proceeds from bank
loans – short term
|
|
|
29,090,063
|
|
|
611,580,106
|
Repayments of bank
loans – short term
|
|
|
(72,870,607)
|
|
|
(9,175,996)
|
Proceeds from bank
loans – long term
|
|
|
95,997,207
|
|
|
-
|
Repayments of bank
loans – long term
|
|
|
(101,815,220)
|
|
|
-
|
Proceeds from related
party loans – short term
|
|
|
290,900,628
|
|
|
152,933,260
|
Proceeds from related
party loans – long term
|
|
|
690,888,992
|
|
|
-
|
Repayments of related
party loans – long term
|
|
|
(415,987,899)
|
|
|
-
|
Payments of loan
origination fees
|
|
|
(1,998,723)
|
|
|
-
|
Proceeds from third
party loans
|
|
|
-
|
|
|
37,631,334
|
Repayment of third
party loans
|
|
|
(29,090,063)
|
|
|
-
|
Restricted
cash
|
|
|
35,037,526
|
|
|
(208,544,198)
|
Due to related
party
|
|
|
(3,988,513)
|
|
|
(2,157,701)
|
Proceeds from
exercise of warrants
|
|
|
-
|
|
|
66,439
|
(Repayment) proceeds
from debt financing instruments under private placement
|
|
|
-
|
|
|
(61,173,304)
|
Net cash provided by
financing activities
|
|
|
516,163,391
|
|
|
521,159,940
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
|
|
747,896
|
|
|
(632,654)
|
|
|
|
|
|
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(12,151,609)
|
|
|
34,395,604
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
21,333,193
|
|
|
3,100,569
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
9,181,584
|
|
$
|
37,496,173
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
56,674,744
|
|
$
|
19,126,073
|
Cash paid for income
tax
|
|
$
|
-
|
|
$
|
11,660,842
|
|
|
|
|
|
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES
|
|
|
|
|
|
|
Investments in gold
obtained in a lease from a related party
|
|
$
|
131,117,303
|
|
$
|
219,495,527
|
Investments in gold
transferred to inventories
|
|
$
|
180,786,694
|
|
$
|
-
|
Unrealized gain on
investments in gold
|
|
$
|
48,861,337
|
|
$
|
68,343,038
|
View original
content:http://www.prnewswire.com/news-releases/kingold-jewelry-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2017-300503231.html
SOURCE Kingold Jewelry, Inc.