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Kingold Jewelry Inc (KGJI US)

Year: 2020

Kingold Jewelry's application to list in China was denied by the Chinese regulatory authorities in 2008. Instead, the company listed on the NASDAQ in 2010 via a reverse merger. It was originally attacked by Sneaky Pete on Seeking Alpha alleging that profits had likely been faked. It was then attacked by another blogger, J Mintzymer, on Seeking Alpha in 2014, who highlighted a number of corporate governance issues. In 2016, short-seller Marcus Aurelius Value published a report alleging that Kingold was faking profits. None of these reports appeared to have any impact. Finally, in June 2020, Chinese media group Caixin published a story which claimed that Kingold's inventory was nothing but gold-plated copper. In August. Kingold announced a voluntary delisting from the NASDAQ and its independent auditor Friedman resigned. Kingold was a fraud, likely hiding fake profits in inflated gold-related inventory and cash.  

Last updated September 2021

The information on this page has been compiled from publicly available sources. GMT Research Limited has not verified the information and does not warrant its accuracy. Any claims made or views expressed are not necessarily those of GMT Research Limited.

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