Kingold Jewelry Inc., through its subsidiary, designs and manufactures 24K gold jewelry and household ornaments.
In Apr 2014, the company’s management entered into a $52.4 million loan with a related party without receiving approval from the Company’s Board of Directors. It was also flagged for questionable business decisions.
In Nov 2016, the company was accused of making undisclosed asset pledges (primarily to the Chairman’s affiliates) in amounts that exceed Kingold’s Chinese-reported shareholders equity.
Kingold Jewelry: 2016 Annual Report, 15 Sep 2017
Seeking Alpha: Multiple Red Flags At Kingold Jewelry, 3 Apr 2014
Aurelius Value: KGJI: A ‘Fraud School’ Success Story, 21 Nov 2016