Weak Demand Dents Sales at China’s Kingold

RAPAPORT… Sales and profit at Kingold Jewelry decreased in the second
quarter as the China-based gold supplier noted a decline in demand for its
branded jewelry.



Total revenue dropped 12% year on year to $598 million in
the three months ending June 30, the manufacturer and designer of jewelry,
ornaments and investment products said last week. Profit fell 7% to $12.6
million.


The decrease in sales was primarily driven by a decline in
purchases for the company’s branded products, as well as a foreign-currency
loss due to the depreciation of the yuan, Kingold noted. Those factors outweighed
increased sales of the company’s customized products and a rise in the average
selling price.


Image: Gold jewelry. (Max Pixel)