false purchase prices of raw materials

Overestimate the level of gross profit, false purchase prices of raw materials

Disclosed in the prospectus of gold jewelry in 2010 the company achieved sales of 3.041 billion yuan, the corresponding number Silver Rings of non-commissioned sales to 12,719.46 kg of gold ornaments, which calculated the company's 2010 average selling price of gold jewelry was 239.08 yuan / gram, not only significantly lower than the market general market price of gold jewelry, and this price based on reference to the product prospectus disclosed in the gross margin to calculate the unit cost is 218.9 yuan / gram, even lower than the company disclosed the purchase of raw materials in 2010 the average price of 226.61 yuan gold / grams, it also did not include the inevitable and reasonable processing costs of material loss, which is obviously contrary to logic. If the company disclosed the amount and volume of sales is correct, then either over-the product gross margin, or false purchase prices of raw materials, Sterling Silver Pendants otherwise there can not explain the price difference.

And the publication noted that the prospectus disclosure of sales of gold jewelry sales and calculations, sales price in 2009 was significantly lower than the gold market price and the average purchase price of the company, while a negative spread of gold in 2010 and 2009 jewelry there is a positive gross margin was significantly higher than the spread in 2008, Is it just a coincidence (see Table 1)?

Average price below the market price of raw material procurement

Prospectus based on information disclosed, Sterling Silver Pendant winning numbers to purchase gold jewelry price in 2010 was 226.61 yuan / gram, the price even lower than in February 2010 set a minimum price of 239.08 yuan for the year / g, the discount rate was 5.22%, but But the company can not effectively explain the procurement model.

Winning numbers gold jewelry purchase of raw materials are mainly three models: accounting for approximately 55.5% of the gold spot trading, accounting for about 26% of the delayed delivery of gold T + D models and accounting for about 18.5% of the gold leasing. Reference to the Shanghai Gold Exchange in Q1 2011, transaction data, transaction price of gold T + D at the same point with the spot price spread is extremely small, the first three months the average spread is only 0.24% (see Table 2), so the companies T + D, silver pendants said the main advantage of the business exchange savings deposit cost of funds leveraged and can not directly reduce the cost of procurement of raw materials.