Kingold Jewelry Inc. (OTC:KGJI)

Kingold Jewelry, Inc. is one of the leading professional designers and manufacturers of gold jewelry in the central part of China including Hubei, Hunan, Henan, Jiangxi, Anhui and Sichuan Provinces. According to statistics provided by Gems and Jewelry Trade Association of China, KGJI ranked first and second in the PRC's gold industry nationwide in total volume of production in 2007 and 2006, respectively. KGJI offers a wide range of in-house designed products including but not limited to gold necklaces, rings, earrings, bracelets, and pendants. KGJI has historically sold their products directly to distributors, retailers and other wholesalers, who then sell their products to consumers through retail counters located in both department stores and other traditional stand-alone jewelry stores. Their product pricing model is based on the market price of the base material, plus a mark-up reflecting design fees and processing fees. Typically this mark-up ranges from 4-6% of the price of the base material.