The driver of the widening production is heightening demand that finds its base in preoccupations about inflation. The Bank of Communications and China Merchants Bank have signed on to vend the company's 24-karat gold investment products, according to Jia Zhihong, the company's chair and chief executive officer. Kingold is based in central Hubei province.
"We're targeting a 10 to 15 percent market share in three years," he told the news service. "Gold prices may continue to rise amid global unrest and people are seeking havens against inflation. As higher material costs erode profit margins, we will expand production of gold bars and coins to offset that."
Kingold last year captured 6.5 percent of the gold market.
Demand for gold in China last year climbed to 560 tons, 400 of which were used to manufacture jewelry. Gold bullion production last year grew 8.6 percent to 341 tons.
According to a company statement, net income surged to $5.3 million during the first quarter of 2011, representing a 34 percent increase.
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