|June 08, 2011|
Kingold Jewelry, Inc. Announces Share Purchase Plan by Company's Chairman
|Wuhan City, China, June 8, 2011 - Kingold Jewelry, Inc. ("Kingold" or the "Company") (NASDAQ: KGJI), a leading Chinese manufacturer and designer of 24-karat gold jewelry and ornaments, today announced that Mr. Zhihong Jia, the Company's Chairman and Chief Executive Officer, has entered into a Rule 10b5-1 plan, under which he intends to purchase up to $500,000 of the Company's common stock. Once the maximum dollar amount of shares has been purchased under the plan, the Chairman currently intends to enter into a subsequent Rule 10b5-1 plan to purchase up to an additional $1 million of the Company's common stock, for a total investment of up to $1.5 million dollars. |
The purchase plan has been adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The share purchases will be made in open-market transactions on the NASDAQ at prevailing market prices. Transactions under this plan will be disclosed publicly through filings with the U.S. Securities and Exchange Commission. As of March 31, 2011, Mr. Jia beneficially owned approximately 17.4 million shares of Kingold common stock, or approximately 35% of total Company shares outstanding.
Mr. Jia commented, "I firmly believe that Kingold's stock is significantly undervalued and does not adequately reflect our Company's solid financial condition, strong recent operating performance, excellent near-term growth outlook, and market leading position in China's 24-karat gold industry. I plan to purchase additional shares with my own funds as a way to demonstrate my optimism in Kingold's future and my dedication to enhancing shareholder value. Our entire management team, under the guidance of our board of directors, remains highly focused on our day-to-day operations and is working hard to deliver superior products to our customers and increased value to our shareholders."
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 and ornaments sold by weight. 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.
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