Kingold Jewelry Signs Agreement with Shanghai Laofengxiang
Kingold Jewelry, Jewelry, Accessories
Kingold Jewelry, Inc., one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, announced it has entered into a major gold-processing agreement with Shanghai Laofengxiang Jewelry Research Institute Co., Ltd. ("Shanghai Laofengxiang"), a subsidiary of Shanghai Laofengxiang Co., Ltd -- the leading gold jewelry retailer in China listed on the Shanghai Stock Exchange.
Pursuant to the agreement, Kingold will process a variety of 24-karat gold jewelry products (rings, necklaces, bracelets) for Shanghai Laofengxiang beginning immediately until December 31, 2013. Kingold will process at least 5 tons, or approximately 176,370 ounces, of jewelry products until the expiration date of the agreement. In contrast, Kingold processed around 2 tons of gold jewelry for Shanghai Laofengxiang in 2011. Based on the processing fee of RMB 10.6 yuan per 1 gram of 24-karat gold, this would equate to approximately RMB 53 million or US $8.4 million of processing fees in the next five quarters.
Shanghai Laofengxiang Co., Ltd. is a leading jewelry research, production, trade and retail company, which has been based in Mainland China since 1848. Shanghai Laofengxiang is one of the "Time-Honored Brands" and "Famous TradeMarks of China", and its products have been distributed in its 700 plus chain-stores and 2000 sales network across China, with 98% market coverage and Shanghai Laofengxiang's brand equity is approximately to RMB 7.6 billion.