Kingold Jewelry, Inc. (KGJI) SEC Filing 10-Q Quarterly report for the period ending Friday, June 30, 2017

Kingold Jewelry Reports 2016 Fourth Quarter and Year End Financial Results

Highlighted by Annual Sales of $1.4 Billion and Record Net Income

Company to Hold Conference Call with Accompanying Slide Presentation at 5 p.m. ET on March 29, 2017

WUHAN CITY, China, March 29, 2017 - 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 selected financial results for the fourth quarter and year ended December 31, 2016.

Company Intends to File Form 10-K by April 17, 2017

The Company will be filing an extension on Form 12b-25 with the U.S. Securities and Exchange Commission to allow for additional time to finalize its financial statements. First, several related and third party loans, gold leases and pledges were not properly recorded and disclosed during the quarters in question. Second, because such loans required the Company to pledge gold in favor of the lenders, such pledged gold should have been reflected as investment in gold (restricted). During 2016, the Company determined that certain gold reflected as inventory for production should instead be reflected as investment in gold (restricted) since the Company had excess gold not to be used for production. As a result, the Company required additional time for its filing and also intends to file amended filings on Form 10-Q for each period throughout 2016 by April 17, 2017. The Company does not anticipate this will have a material impact on its operating results for any of the corresponding periods, and any change would be accretive to net income. As a result, the Company is providing preliminary financial results in this announcement.

2016 Financial and Operating Highlights (all results are compared to prior year)

2016 Fourth Quarter Financial Highlights (all results compared to prior year period)

Outlook for 2017

Management Commentary

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, “The Company achieved exceptional results in 2016 as a result of an increased demand for gold as an investment product, a successful conclusion to our investment in the Jewelry Park, and stable demand from our customer base in our traditional jewelry business. We continued to see the prominence of 24-karat gold and its role as both a luxury item and as a savings proxy. While we continue to closely monitor demand over several years, we have not seen any lightening from our commercial partners in the end demand for the quality products that Kingold generates. The gold price remained volatile throughout 2016, reaching a high mid-year and then dropping to a low in December. Over the past few months in 2017 we have seen that price recover, and through it all have continued to balance our branded (acquires gold from Shanghai Exchange) and customized (clients acquire gold – no commodity risk) products in order to satisfy demand from our customers. We are still operating in the largest consumer gold market in the planet and have been taking advantage, and thus far in 2017 have been pleased with our Company’s progress.”