WUHAN, China, Feb. 12, 2020 /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 provided an update on the
impact of the Coronavirus outbreak on its business and
operation.
Headquartered in Wuhan, the
provincial capital of Hubei
province, China, Kingold is in the
epicenter of the Coronavirus outbreak. The entire city of
Wuhan has been locked down by the
central government of China since
January 23, 2020. In compliance with
the government health emergency rules in place, the Company has
been temporarily closed and its jewelry production operations have
been halted since January 12, 2020.
All company personnel have been required to stay at home until
further notice by the government based on the development of this
medical epidemic. In the short term, the Company expects the
situation to have a material impact on its operations in the first
quarter of 2020. The impact of the Coronavirus on the Company's
operation and financial results for 2020 remains to be seen.
While the Company's business operation and financial results for
the year ended December 31, 2019 were
not affected by this health crisis, its financial statements
preparation and auditing process have been delayed due to
government imposed quarantines, office closings and travel
restrictions affecting the Company's personnel and service
providers. It is impossible to predict when the 2019 year-end
procedures can resume or be completed at this time.
On January 30, 2020, in a public
statement, Securities and Exchange Commission (SEC) Chairman
Jay Clayton stated that he had
requested the SEC staff "to monitor and, to the extent necessary or
appropriate, provide guidance and other assistance to issuers and
other market participants regarding disclosures related to the
current and potential effects of the coronavirus." The SEC
recognized that such effects may be difficult to assess or predict
both generally and on an issuer-specific basis and that actual
effects will depend on many factors beyond the control and
knowledge of any issuer. The Coronavirus situation continues to
evolve and accordingly, the Company is closely minoring the
development of the medical crisis and will provide an update on the
operational and financial impacts as it obtains further
information.
Chairman and CEO, Mr. Zhihong
Jia, stated, "We are continuing to work closely with our
provincial government to take all necessary precautions during this
outbreak until such time as conditions to resume operations are
suitable. As always, our top priority is on the safety and security
of our employees, customers, and their families. We expect to
provide regular updates as we evaluate any impact on our operations
in the coming weeks."
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 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, 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. 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 Counsel:
The Equity Group Inc.
Adam Prior (in US)
Phone: +212 836-9606
aprior@equityny.com
Lucy Ma (in China)
Phone: 86-10 5661 7012
lma@equityny.com
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SOURCE Kingold Jewelry, Inc.
