WUHAN CITY, P.R. China, May 12, 2010 (GLOBE NEWSWIRE) -- Kingold Jewelry, Inc. (OTCBB:KGJI - News), one of the leading manufacturers of 24-carat gold jewelry in China, today announced that it has retained RedChip Companies, Inc. to lead its public and investor relations programs.
"We selected RedChip to lead our investor relations effort as they were highly recommended for their track record of success in increasing the retail and institutional shareholder base for emerging growth companies," said Jia Zhi Hong, Chairman and Chief Executive Officer of Kingold Jewelry. "Their platform of research, radio, outbound telemarketing, road shows, Internet and social media marketing, investor conferences and virtual conferences is very powerful and effective."
"We are very excited about the opportunity to represent Kingold Jewelry," said Dave Gentry, President and CEO of RedChip Companies, Inc. "We look forward to leveraging our comprehensive investor relations program and introducing them to RedChip's network of international retail and institutional investors."
Value Proposition
- According to Global Industry Analysts, Inc. ("GIA"), the precious jewelry market in China has increased by 35% since 2001, reaching $14.9 billion in 2006. GIA has predicted that the total market size for precious jewelry will exceed $18.2 billion in 2010.
- KGJI has received numerous industry awards and is one of only 162 members of the Shanghai Gold Exchange. Non-members who want to purchase gold must make deals with members and pay higher prices.
- Revenue grew at a CAGR of 105% from $29.3 million in FY06 to $250.5 million in FY09.
- Net income grew at a CAGR of 91% from $1.3 million in FY06 to $9.1 million in FY09.
- Cash and cash equivalents of $8.0 million and net working capital of $37 million with a current ratio of 4.5x.
KGJI has historically sold their products directly to distributors, retailers and other wholesalers, who then sell their products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores. Their product pricing model is based on the market price of the base material, plus a mark-up reflecting design fees and processing fees. Typically this mark-up ranges from 4-6% of the price of the base material.
|
0.18
|
No comments:
Post a Comment