Share This

Public company info - China Silver Group Ltd. , 00815.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

China Silver Group Ltd., 00815.HK - Company Profile
Chairman Chen Wantian
Share Issued (share) 1,954,000,000
Par Currency Hong Kong Dollar
Par Value 0.01
Industry Precious Metal
Corporate Profile Business Summary: The principal activities of the Group are (i) the manufacture, sale and trading of silver ingots, palladium and other non-ferrous metals in the People’s Republic of China (the “PRC”); (ii) design and sale of gold, silver, gem-set and other jewellery products in the PRC; and (iii) provide professional electronic platform, related services for trading of silver ingots. Performance for the year: Revenue increased to approximately RMB4,759.3 million, representing a significant increase of approximately 21.2% as compared to that for 2019. Profit attributable to owners of the Company was approximately RMB227.5 million, as compared to a loss attributable to owners of the Company for 2019 of approximately RMB116.2 million. Business Review The group is pleased to see that, despite the unstable global economy and the downturn of the Chinese economy due to multiple factors, the Group’s Manufacturing segment and Silver Exchange segment realised strong sales growth during the year. For the year ended 31 December 2020, the Group’s Manufacturing segment generated sales of approximately RMB4,325.8 million (2019: RMB2,629.7 million), a tremendous increase of approximately 64.5% over the last year, and recorded a segment profit of approximately RMB239.5 million (2019: RMB245.9 million), a slight decrease of approximately 2.6% over the last year, mainly due to the increase in the cost of raw materials that offset the increase in sales of palladium. During the current year, palladium realised large-scale sales and its sales increased significantly by approximately 147.6% over the last year, accounting for approximately 84.1% of the revenue of the Manufacturing segment, making it another core precious metal product besides silver as well as gold and gold alloy products (collectively, “Gold Products”). The revenue from sales of silver ingots decreased by approximately 20.7% over the last year, while the revenue from sales of Gold Products increased by approximately 31.4% over the last year. During the year ended 31 December 2020, the group recognised large-scale increase in the sales of palladium with the strong support from the group’s suppliers, growing market demand for palladium and the group’s extensive experience and professional skills developed over the years. During the current year, taking into account the volume of internal sales, the sales of silver ingots and palladium as a proportion of the revenue of the Manufacturing segment was over 90%, and the proportion is expected to increase continuously in 2021. While continuously optimising the product mix and increasing the proportion of the precious metals business, the Group will continue to strictly control the cost of raw materials, improve profitability, and continue to seek and grasp future market opportunities against the backdrop of the global economic instability and the downturn of the Chinese economy. Since 2014, the group have diversified from the traditional Manufacturing segment to the downstream New Jewellery Retail segment which is now operated under the group’s subsidiary, CSMall Group Limited (Stock code: 1815) (“CSMall Group”). Apart from leveraging the group’s strength and resources in the upstream business, CSMall Group has optimized its sales and marketing strategies since 2018 and gradually shifted its focus to high-margin silver jewellery products. For the year ended 31 December 2020, external sales of CSMall Group amounted to approximately RMB347.8 million, representing approximately 7.3% of the Group’s total revenue of the current year (2019: 31.8%), and the New Jewellery Retail segment recorded a segment profit of approximately RMB9.6 million (2019: RMB32.0 million). However, on a comparable basis for illustration purposes only, if the one-off and non-cash share-based payment expenses of approximately RMB83.0 million for 2019 were excluded, the New Jewellery Retail segment would have contributed a segment profit of approximately RMB115.0 million for the year ended 31 December 2019. This would mean a substantial year-on-year decrease of approximately 91.7% to approximately RMB9.6 million for the year ended 31 December 2020. Such decrease was mainly due to the outbreak of the novel coronavirus (“COVID-19”) which resulted in overall economic downturn and sluggish consumption, and the epidemic prevention and control measures which caused the stagnation or delay of major operating activities including retail business, store sales, market development and supply chains. It should be noted that although the one-off net loss on termination of assignment contract in relation to acquisition of a land use right (see Note 11(i) to the consolidated financial statements for details) was recorded under CSMall Group, such net loss was treated as a non-segment item which did not affect the segment profit of the New Jewellery Retail segment. In 2016, the Group further expanded the downstream business by the acquisition of Shanghai Huatong Silver Exchange (“Shanghai Huatong”), an operator of an integrated silver exchange platform in the PRC. For the year ended 31 December 2020, the Silver Exchange segment recorded a segment profit of approximately RMB70.4 million (2019: loss of RMB303.2 million). However, on a comparable basis for illustration purposes only, if the non-recurring impairment loss on goodwill of approximately RMB330.3 million for 2019 was excluded, the Silver Exchange segment would have contributed a segment profit of approximately RMB27.0 million for the year ended 31 December 2019. This would mean a substantial year-on-year increase of approximately 160.2% to approximately RMB70.4 million for the year ended 31 December 2020. Such increase was mainly attributable to the increase in transaction volume as the sharp fluctuations of international silver prices stimulated investors’ desire for trade. The Group recorded gross profit of approximately RMB433.2 million (2019: RMB531.1 million) for the year ended 31 December 2020, representing a decrease of approximately 18.4% as compared to that for 2019, mainly due to the substantial decrease in gross profit of the New Jewellery Retail segment operated under CSMall Group. The overall gross profit margin of the Group decreased from approximately 13.5% for the year ended 31 December 2019 to approximately 9.1% for the year ended 31 December 2020, which is mainly due to the decreased contribution of sales by high-margin silver jewellery products under the New Jewellery Retail segment as compared to the last year. For the year ended 31 December 2020, the profit attributable to owners of the Company amounted to approximately RMB227.5 million (2019: loss of RMB116.2 million). However, on a comparable basis for illustration purposes only, if the one-off net loss on termination of assignment contract in relation to acquisition of a land use right of approximately RMB27.4 million (see Note 11(i) to the consolidated financial statements for details) and the one-off net loss of approximately RMB12.5 million on inventory write-off upon expiry in relation to the pilot expansion into a new business of COVID-19 diagnostic kit distribution in collaboration with a pharmaceutical company in the PRC (see Note 5(i) to the consolidated financial statements for details) for 2020 were excluded, and the one-off and non-cash share-based payment expenses for the New Jewellery Retail segment of approximately RMB83.0 million and non-recurring impairment loss on goodwill for the Silver Exchange segment of approximately RMB330.3 million for 2019 were also excluded, then the profit attributable to owners of the Company would have decreased by approximately 3.9% from approximately RMB253.5 million for the year ended 31 December 2019 to approximately RMB243.6 million for the year ended 31 December 2020. This was mainly because, as a result of the COVID-19 epidemic, the New Jewellery Retail segment saw a considerable decline, while the significant increase in the sales of the Manufacturing segment, in particular palladium, and the increase in the transaction volume of the Silver Exchange segment offset part of the decline in the New Jewellery Retail segment. As always, the group’s long-term vision is to become a leading fully-integrated silver, palladium, gold and precious metals enterprise in the PRC and the group is moving full speed towards this goal. Manufacturing segment The Group applied a proprietary production model to manufacture high quality silver ingots, Gold Products, palladium and other precious metals and the metal by-products derived therefrom. Sales of silver ingot decreased from approximately RMB361.6 million for the year ended 31 December 2019 to approximately RMB286.9 million for the year ended 31 December 2020, representing a decrease of approximately 20.7%, mainly due to the focus of the Group on palladium which saw a rapidly growing demand in recent years, resulting in a relative decrease in the number of silver ingots produced. During year ended 31 December 2020, the group sold approximately 62 tonnes (2019: 96 tonnes) of silver ingots and approximately 7.8 tonnes of palladium (2019: 4.0 tonnes) to the group’s customers. The group have been working closely with the local authorities on compliance with regulatory requirements and have been devising ways to improve the group’s production process in view of the tightening environmental measures Due to the continuously bullish market price of palladium, the Group continued to record strong growth in the sales of palladium after the last year and realized sales of approximately RMB3,636.4 million for the year ended 31 December 2020 (2019: RMB1,468.6 million). Palladium is extracted from three major raw materials, including smelting slag（熔煉渣）, smoke dust（煙塵灰）and sludge from wet smelting（濕法泥）, purchased from both the group’s new and existing suppliers. The price of the raw materials is determined mainly based on the content of silver and palladium and their unit market price, and the production process is carried out twice or three times a month. The group’s customers for palladium are mainly trading companies and their end customers are usually large-scale enterprises. The Group’s foray into the palladium market has led to an explosive increase in its sales under the Manufacturing segment to approximately RMB4,325.8 million (2019: RMB2,629.7 million), up by approximately 64.5% over 2019. New Jewellery Retail segment operated under CSMall Group (Stock code: 1815) For the year ended 31 December 2020, CSMall Group recorded sales of approximately RMB347.8 million (2019: RMB1,248.9 million), representing a significant year-on-year decrease of approximately 72.2%, mainly due to the impact of the COVID-19 on the jewellery retail atmosphere. CSMall Group’s business model incorporates four critical elements which complement each other, comprising (i) a comprehensive e-commerce platform, (ii) easily accessible offline retail and service network, (iii) data mining and utilisation capabilities, and (iv) innovative crossover sales and marketing initiatives. Online Sales Channels (i) Self-operated online platform The Group’s past implementation of the established strategy of attracting user traffic through promotion of low-margin gold bars has achieved significant expected results. As of 31 December 2020, the number of registered members on the group’s self-operated online jewellery platform, which consists of www.csmall.com, m.csmall.com and the mobile app of “金貓銀貓CSmall”, surpassed approximately 9.9 million. The platform has been upgraded to a membership-based platform. The focus of the platform was adjusted from the original vigorous solicitation of new members to the stimulation and enhancement of benefits for existing members, which generated remarkable results. In 2020, the repeat purchase rate of members was approximately 8.1%, representing an increase of approximately 26.6% as compared with 2019. (ii) Television and video shopping channels As of 31 December 2020, the group cooperated with a total of 17 television and video shopping channels in the PRC to promote and sell the group’s jewellery products and become a core supplier of gold, silver and jewellery category of all top television channels, which enabled us to achieve satisfactory sales performance. With a daily coverage of over 100 million home viewers in the PRC, the group’s brand awareness among Chinese viewers of television and video shopping channels was enhanced substantially. Short-video promotion and online celebrity (KOL) promotion are a standard part of the group’s brand marketing. Their content becomes the core of every aspect of the group’s brand marketing, sales and operation. (iii) Third-party online marketplaces During the year ended 31 December 2020, the group cooperated with third-party online platforms such as Tmall（天貓）, JD.com（京東）, Suning（蘇寧）, WeChat（微信）and Xiaohongshu（小紅書）, etc. During the year, the Group enhanced its online sales through new marketing models including short video marketing, e-commerce live streaming and KOL, relying on the strong traffic of third-party platforms. Offline Retail and Service Network (i) CSmall Shops The group offer intimate on-the-ground sales and services to the group’s customers, including jewellery fitting and maintenance services, which the group believe are indispensable to the jewellery shopping experience, at the group’s CSmall Shops. In 2020, due to the impact of COVID-19 on offline retail sales, the group slowed down the group’s offline store expansion plan, adjusted the layout of offline business outlets, and closed 62 stores and opened 39 new stores. As of 31 December 2020, the group had 98 CSmall Shops located in 25 provinces and municipalities in the PRC, consisting of 4 self-operated CSmall Shops and 94 franchised CSmall Shops with presence in Anhui, Beijing, Chongqing, Fujian, Gansu, Guangdong, Hainan, Hebei, Heilongjiang, Henan, Hubei, Inner Mongolia, Jiangsu, Jilin, Liaoning, Ningxia, Shaanxi, Shandong, Shanghai, Shanxi, Sichuan, Tianjin, Xinjiang, Yunnan and Zhejiang. (ii) Shenzhen Exhibition Hall The group sell products at the group’s Shenzhen Exhibition Hall with a gross floor area of approximately 1,500 square meters in Shuibei, Shenzhen, which is generally believed to be home to the PRC’s largest and leading jewellery trading and wholesale market. The group’s Shenzhen Exhibition Hall showcases the product designs of the group’s self-owned brands and certain third-party brands, and also serves as an interactive exhibition and sales platform primarily for the group’s wholesale customers as well as the group’s franchisees. (iii) Third-party offline points of sale The group also distribute the group’s jewellery products and provide product customization service through various third-party offline points of sale, which are certain commercial banks the group cooperated with. The group also cooperate with branded retailers, entertainment service providers, commercial banks, telecommunications service providers and insurance companies. Silver Exchange segment Shanghai Huatong is the operator of an integrated silver exchange platform in the PRC which provides professional and standardized spot goods supply, trading, logistic and e-commerce services. Its official website, www.huatongsilver.com (formerly www.buyyin.com), has been one of the authoritative web portals for the silver industry in the PRC. The daily spot silver prices quoted by such website are the general reference prices for the silver industry in the PRC. For the year ended 31 December 2020, the Silver Exchange segment recorded sales of approximately RMB85.8 million (2019: RMB48.5 million), representing a significant year-on-year increase of approximately 76.8%, mainly due to the increase in transaction volume of trading silver ingots as stimulated by sharp fluctuations of silver price during the year. Prospects: The global economic turmoil, the pandemic of COVID-19, the PRC’s economic slowdown and other unstable factors will continue to cast a shadow over the global and Chinese economy for a prolonged period, and a larger demand for hedge assets such as silver, palladium and Gold Products will continue to emerge in the market. The group therefore remain fully confident in the manufacture and sale of precious metals including silver, Gold Products and palladium. Based on the Group’s forward-looking strategic planning and strong execution power which have led to the Group’s continuous optimisation of product mix, the revenue from the sale of precious metals including silver, Gold Products and palladium accounted for more than 90% of the Manufacturing segment in 2020, with the rest contributed by the metal by-products produced in the process of manufacturing the abovementioned precious metal products. This demonstrates the Group has transformed into an integrated enterprise mainly engaged in the manufacture and sale of silver, palladium, gold and other precious metals as its core business after the continuous optimisation of product mix over the years. Meanwhile, the Group also seized the opportunities arising from the global economic turmoil and the downturn of the Chinese economy in a timely manner, strictly controlled the cost of raw materials and improved its profitability. In addition, the Group has also leveraged its constant strategic planning and strength to continue to seek opportunities arising from an unfavourable economic environment to invest in and acquire upstream high quality precious metal mines including silver and gold mines as well as poly-metallic mines containing silver and gold, thereby continuously enhancing the Group’s profitability and achieving persistent strong growth in the Group’s performance in the future. The group do not expect COVID-19 to last long but will remain vigilant in the tough retail environment. Meanwhile, the group will not neglect the deployment of offline channels. The Group’s franchisees are well-financed and demonstrate strong anti-risk capabilities. Added to that, with the introduction of Mr. Yao Runxiong, chairman of King Tai Fook which owns over 1,000 jewellery stores across China, as a strategic shareholder of CSMall Group in 2019, the group’s future expansion plan for the group’s offline retail network will resume this year. Relying on the online and offline digital operations and strong supply chain foundation of CSMall Group, the Group will accelerate digital marketing, adjust the layout of offline business outlets, and intensify the operation of new marketing models such as short video and e-commerce live streaming, to ultimately turn the corner. In addition, the Group has taken advantage of its strengths as a leader among internet-based new retail enterprises to build well-developed technologies, systems and capabilities in digitization, big data and supply chains. It utilised new technologies such as artificial intelligence and blockchain to empower the traditional jewellery industry for development towards a technological innovation platform supported by new technologies including artificial intelligence, big data and blockchain, in order to continuously improve the Group’s sustainable profitability. Furthermore, as the PRC proposed the development strategy of “Integrated Reform Plan for Promoting Ecological Progress”, hazardous waste treatment is generally recognized as the focus of the environmental technology industry. Therefore, the Group planned to enter the hazardous waste treatment business. The group will expand the group’s business scale and leverage the experience and expertise gained from recycling rare metals extracted from the manufacturing process of silver ingots, thereby becoming one of the leading influential environmental technology industry players in the near future. In summary, the group is pleased with the positive news and future development prospects of the business segments and fully confident in the continued strong growth of the Group’s performance in the future, and will strive to become a leading fully-integrated silver, palladium, gold and precious metals enterprise in the PRC.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.