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China Silver Group Announces 2015 Annual Results Revenue from O2O Business Surged 187% to RMB835 Million Becoming a Fully-Integrated Silver Enterprise


[For Immediate Release]

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China Silver Group Announces 2015 Annual Results

Revenue from O2O Business Surged 187% to RMB835 Million

Becoming a Fully-Integrated Silver Enterprise

 

HONG KONG, 31 March 2016 - Leading Chinese silver brand China Silver Group Limited (“China Silver Group” or the “Group”; Stock Code: 815.HK) is pleased to announce its audited consolidated results for the year ended 31 December 2015. During the year, the Group achieved outstanding results in the O2O business, with revenue significantly increased by 187% to RMB835 million (2014: RMB291 million), which accounted for approximately 48.9% (2014: 19.1%) of its total revenue. The remarkable growth made the O2O business a main revenue contributor of the Group. In particular, B2C online sales recorded a sharp increase, representing approximately 25.8% (2014: 6.0%) of the O2O business.

 

To date, the Group’s proprietary online sales platform, www.CSmall.com (金貓銀貓), has over 2.1 million registered members and carries an aggregate of approximately 120 self-owned and third-party brands to offer customers a comprehensive range of products. In addition, the Group further took advantage of the rising popularity of social media as sales channels to distribute its products and had accumulated over 4,000 registered WeChat Social Distribution accounts.

 

Meanwhile, the Group also distribute products through various sales networks. For instance, it cooperated with third-party platforms such as Tmall, JD, Suning, Gome and Yihaodian, as well as a total of 18 television channels which covers an aggregate of over 300 million home viewers in the PRC. Its major partners include CCTV, Shanghai Oriental CJ Shopping, Shandong Lucky Pai and Shenzhen Eachome.

 

In order to cope with the highly-fragmented retail market in China, the Group opened around 120 outlets across China and introduced a new multi-brand CSmall store concept to fulfil different customers’ preferences. During the year, the Group entered into a strategic partnership with the PRC’s largest crowd-funding platform, Renrentou.com (人人投), to support  the expansion of the Group’s shop network.

 

Moreover, the Group extended its sales network to banking institutions by partnering with Bank of Ganzhou to distribute its silver collectibles to high-net-worth bank customers through their 77 bank branches across the PRC. The Group will continue to explore innovative ways to expand its sales network in the future.

 

To fulfil its long term goal of becoming a leading vertically integrated silver enterprise, the Group acquired a 25% equity interest in Shanghai White Platinum & Silver Exchange (“Shanghai Huatong”), which is one of the largest spot exchanges for silver trading in the PRC. In February 2016, the Group acquired the remaining 75% equity interest in Shanghai Huatong, which consequentially made Shanghai Huatong its wholly-owned subsidiary. Upon completion, the Group also effectively owns 94% attributable interest in Shanghai Huatong International Silver Exchange (上海華通白銀國際交易中心), currently the only approved spot silver trading exchange in China (Shanghai) Pilot Free Trade Zone which will become the first silver exchange in the PRC allowing foreign investors to directly participate in, taking a strategic step to integrate with the international commodity market.

 

Nonetheless, due to the decrease in international silver price and certain non-cash and non-operating expenses, the Group recorded a net loss attributable to owners of the Group of approximately RMB11.0 million during the transformation period (2014: a net profit attributable to owners of the Group RMB248.3 million).

 

Mr. Richard Sung, Chief Executive Officer and Executive Director of China Silver Group, said, “The year 2015 was another leap forward for the Group. Despite the loss during the Group’s initial transformation period, we have full confidence in our current business strategy and the silver market in the PRC. We believe all the investments will bring fruitful results in the future. While we endeavor to develop our existing channels, we also spend relentless effort to explore new business initiatives, including our newly-opened first overseas O2O shop in Taipei. We also plan to launch a new product “silver bar certificate” through our various sales channels. In addition, we project to gradually increase our annual design capacity to 360 tonnes of silver ingots by the end of 2016. In summary, we are pleased with the encouraging development of the Group while undergoing the transformation period. We expect the traditional smelting business to recover as the international silver price shows strong sign of recovery. We will continue to strive to become a leading vertically-integrated silver enterprise in the PRC.”

 

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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 one of the 17 Chinese members of the London Bullion Market Association (LBMA) and has been ranked as one of the 20 most popular silver brands in China for ten consecutive years. The Group has recently diversified into the downstream silver retailing business and launched an integrated online platform www.CSmall.com (金貓銀貓), 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: www.chinasilver.hk

 

 

For further enquiries, please contact:

Hill+Knowlton Strategies

Ka Wai Li

Tel: (852)   2894 6252

Email: kawai.li@hkstrategies.com

 

Jobie Cheung

Tel: (852)   2894 6260

Email: jobie.cheung@hkstrategies.com 

 

 


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