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Revenue from O2O Segment Significantly Increased by 245% to RMB214 Million Recorded Interim Net Profit of RMB13.7 Million


 

Revenue from O2O Segment Significantly Increased

by 245% to RMB214 Million

Recorded Interim Net Profit of RMB13.7 Million

 

HONG KONG, 17 August 2015 - 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 interim results for the six months ended 30 June 2015. Revenue from O2O Segment has once again achieved a record breaking result. During the period, the Group has achieved encouraging results of O2O business, owing to a rapid expansion of its retail sales channels. Revenue from O2O segment has significantly increased by 245% to RMB214 million (1H2014: RMB62 million), representing 38.6% of total revenue (1H2014: 9.0%). Profit attributable to owners of the Group decreased to RMB13.7 million (1H 2014: RMB134 million) mainly due to the decrease in gross profit of manufacturing business as international silver price has further declined as well as the increase in one-off and non-cash expenses. In consideration of future development, the Board resolved to grant an interim dividend of HK$0.01 per share (1H 2014: HK$0.02 per share).

 

During the period, the Group achieved significant developments in its rapidly expanding downstream O2O business. As at the end of July 2015, the Group’s proprietary online platform, www.CSmall.com (金貓銀貓), surpassed 800,000 registered members, with monthly page views (PV) of 8.5 million, unique visitors (UV) of 4.0 million and internet protocols (IP) of 2.3 million. The platform now carries an aggregate of over 100 self-owned and third party brands, offering a comprehensive range of products to its customers. Meanwhile, the Group also worked with third party platforms such as Tmall, JD, Suning, Gome and Yihaodian to distribute our products online.

 

As for the O2O store, in order to cope with the highly-fragmented retail market in China, the Group introduced a new multi-brand CSmall store concept to fulfil different customers’ needs. During the period, the Group opened approximately 50 outlets with 17 CSmall stores, accumulating over 100 outlets across China. Moreover, in August 2015, the Group partnered with China’s largest crowd-funding platform, Renrentou.com (人人投), to open the Group’s 100th store in Shenzhen. The Group also signed a strategic partnership agreement with Renrentou.com, planning to open up to 200 O2O stores with an estimated funding of RMB300 million in the future.

 

Leveraging the huge success with CCTV last year, the Group has established cooperation with a total of 14 TV shopping channels in China with an aggregate coverage of over 300 million home viewers. Meanwhile, the Group is working with social media and mobile platforms to promote self-branded products through different channels. Going onwards, the Group will continue to allocate more resources to brand building and organize diversified marketing events to enhance brand recognition. For instance, the Group is currently working with one of the largest media group in China, the Trends Group, which CSmall products will be promoted by celebrities. The Group is also collaborating with the China Railway Corporation to promote its online platform, www.CSmall.com, allowing passengers to shop comfortably on trains during their journeys.

 

In addition, the Group is planning to enter the silver exchange market in China. In July 2015, the Group acquired 25% equity interest in Shanghai White Platinum and Silver Exchange (上海華通鉑銀交易市場), the largest spot silver exchange in China. Meanwhile, the Group also owns over 50% of attributable interest in Shanghai Huatong International Silver Exchange (上海華通白銀國際交易中心), the only approved spot silver trading exchange in China (Shanghai) Pilot Free Trade Zone, which will become the first silver exchange in China allowing foreign investors to directly participate.

 

Mr. Richard Sung, Chief Executive Officer of China Silver Group, said, “Looking ahead, we are very confident about the future of the silver market in China. The group is now going through a crucial transformation period in which we will focus on developing downstream O2O and silver exchange businesses. We believe all initial investments will bring fruitful returns in the future and we aim to become the leading vertically-integrated silver enterprise in China.”

 

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China Silver Group Limited

 

{C}{C}{C}{C}{C}{C}{C}{C}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 purity grade of 99.999%, currently the world’s highest standard. The Group is one of the 17 Chinese members of London Bullion Market Association (LBMA) and has been ranked as one of the 20 most popular silver brands in China for nine consecutive years. The group has recently diversified into the downstream silver retailing business and launched an integrated online platform “金貓銀貓www.CSmall.com”, aiming to become the leading vertically-integrated silver enterprise in China.

 

 

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


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