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China Silver Group Announces 2016 Interim Results


[For Immediate Release]

 

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China Silver Group Announces 2016 Interim Results

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O2O Business Revenue Surged 481% to RMB1,243 million

Newly-acquired Silver Exchange Business Contributed Segment Profit of RMB40 million*

Net Profit Jumped 587% to RMB94 million

 HONG KONG, 22 August 2016 - Leading Chinese silver brand China Silver Group Limited (“China Silver Group” or the “Group”; Stock Code: 815.HK) is pleased to announce its unaudited consolidated results for the six months ended 30 June 2016. The Group’s revenue rose 244% year-on-year to RMB1,906 million (1H2015: RMB555 million). Profit attributable to owners of the Company significantly increased by 587% to RMB94 million, mainly attributable to the rebound in traditional manufacturing business, strong growth in O2O business, positive contribution from the newly-acquired silver exchange business and a one-off net gain resulting from the Shanghai Huatong acquisition. Excluding non-cash share option expenses and a one-off net gain resulting from the Shanghai Huatong acquisition, adjusted net profit amounted to approximately RMB101 million. The Board resolved to declare an interim dividend of HK$0.02 per share (1H2015: HK$0.01 per share).

 Since the beginning of 2016, the global commodity market showed strong signs of recovery. As a result, segment profit from the traditional manufacturing business rose to RMB82 million due to a surge in the international silver price and sales volume.

 By implementing series of business initiatives and marketing campaigns, the Group’s O2O business achieved an outstanding growth during the period with aggregate sales surged over five times year-on-year to approximately RMB1,243 million, accounting for approximately 65% of total revenue (2015 1H: 39%). In particular, B2C online sales experienced significant growth and contributed over 70% of sales of the O2O segment. Up to 30 June 2016, the Group’s proprietary online sales platform, www.CSmall.com (金貓銀貓) surpassed 2.9 million registered members with 33.6 million monthly page views (PV), 15.8 million unique visitors (UV) and 10.0 million internet protocols (IP). The platform now carries an aggregate of over 130 self-owned and third-party brands offering a comprehensive range of products to customers. 

 In February 2016, the Group further expanded downstream by completing the acquisition in the Shanghai White Platinum & Silver Exchange (Shanghai Huatong”), an operator of an integrated silver exchange platform in China. The newly-acquired silver exchange segment contributed an encouraging segment revenue of RMB94 million and segment profit of RMB40 million*.

 Mr. Chen Wantian, Chairman of China Silver Group, said, “We are pleased with the positive developments in our three business segments. Looking ahead, while we expect the global financial markets to remain highly uncertain in coming years, the ‘flight-to-safety’ investments trend will continue to drive substantial interest in gold and silver products which is vastly beneficial to all our businesses. While we endeavor to improve our existing businesses, we are relentlessly exploring new initiatives and potential acquisitions. As disclosed earlier, we are considering to acquire high-quality mine resources to meet the growing demand for gold and silver products in our downstream businesses. In conclusion, we are very confident about the future of the silver, precious metals and jewellery market in China and will strive our best to become the leading fully-integrated silver and precious metals enterprise in China.”

 *Excluding a one-off net gain resulting from the Shanghai Huatong acquisition

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China Silver Group Limited

Founded in 2002, China Silver Group is a leading silver producer in China and one of the few Chinese companies capable of producing silver ingots with a purity grade of 99.999%, currently the world's highest standard. The Group is a member of the London Bullion Market Association (LBMA) and has been ranked as one of the 20 most popular silver brands in China for eleven consecutive years. In recent years, the Group has diversified into the downstream retail businesses and launched an integrated O2O sales platform “金貓銀貓www.CSmall.com”. Furthermore, the Group has fully acquired Shanghai White Platinum and Silver Exchange to develop the silver exchange business, aiming to become the leading fully-integrated silver and precious metals enterprise in China.

 

To learn more about the Group, please visit China Silver Group’s website at: www.chinasilver.hk.

 

For further enquiries, please contact:

Hill+Knowlton Strategies

Ka Wai Li

Tel: (852) 2894 6252

Email: kawai.li@hkstrategies.com

 

Agnes Suen

Tel: (852) 2894 6258

Email: agnes.suen@hkstrategies.com  

 

 


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