CHINA SILVER GROUP LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
CHINA SILVER GROUP LIMITED
中 國 白 銀 集 團 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 815)
INTERIM RESULTS ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2019
HIGHLIGHTS OF 2019 INTERIM RESULTS
- Benefiting from the substantial growth of the precious metals business including silver and Gold Products, the segment profit of the Manufacturing segment involving the production of silver, gold and other precious metals and the metal by-products derived therefrom increased to approximately RMB55.8 million, representing an increase of approximately 47.7% as compared to 1H2018
- Due to the economic downturn and the interim effects of proactive strategic adjustment, the New Jewellery Retail segment operated under our subsidiary CSMall Group contributed a segment profit of approximately RMB58.1 million, representing a decrease of approximately 38.8% as compared to 1H2018
- As a result of the significant increase in the proportion of precious metals business including silver and Gold Products and the decline in cost of raw materials, as well as the optimisation of product mix of the New Jewellery Retail segment operated under CSMall Group, which resulted in a higher proportion of the sales of high-margin jewellery products including silver, the Group's overall gross profit margin for the six months ended 30 June 2019 increased to approximately 17.5% (1H2018: 15.2%)
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The board of directors (individually, a "Director", or collectively, the "Board" or the "Directors") of China Silver Group Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the "Group" or "we") for the six months ended 30 June 2019 together with the comparative figures for the corresponding period in 2018 ("1H2018"). The results for the current interim period have been reviewed by our auditor, Deloitte Touche Tohmatsu, Certified Public Accountants in Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants and the audit committee of the Company (the "Audit Committee") with no disagreement.
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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2019
Six months ended 30 June | |||||||
2019 | 2018 | ||||||
Notes | RMB'000 | RMB'000 | |||||
(unaudited) | (unaudited) | ||||||
Revenue | 3 | 1,141,923 | 1,863,348 | ||||
Cost of sales and services provided | (942,318) | (1,580,009) | |||||
Gross profit | 199,605 | 283,339 | |||||
Other income | 5,367 | 6,771 | |||||
Other gains and losses | 475 | 1,078 | |||||
Impairment losses, net of reversal | 10 | (3,342) | 390 | ||||
Selling and distribution expenses | (18,257) | (19,407) | |||||
Administrative expenses | (63,100) | (84,898) | |||||
Finance costs | (2,441) | (3,281) | |||||
Research and development expenses | (1,233) | (990) | |||||
Other expenses | (60) | (9,647) | |||||
Share of results of associates | - | (280) | |||||
Profit before tax | 117,014 | 173,075 | |||||
Income tax expense | 5 | (22,892) | (46,843) | ||||
Profit for the period | 6 | 94,122 | 126,232 | ||||
Other comprehensive expense | |||||||
Item that may be reclassified subsequently to | |||||||
profit or loss: | |||||||
Exchange differences arising on | (23) | ||||||
translation of foreign operations | (1,214) | ||||||
Total comprehensive income for the period | 94,099 | 125,018 | |||||
Profit for the period attributable to: | |||||||
71,372 | |||||||
Owners of the Company | 94,149 | ||||||
Non-controlling interests | 22,750 | 32,083 | |||||
94,122 | 126,232 | ||||||
Total comprehensive income for the period | |||||||
attributable to: | 71,349 | ||||||
Owners of the Company | 92,935 | ||||||
Non-controlling interests | 22,750 | 32,083 | |||||
94,099 | 125,018 | ||||||
Earnings per share | 8 | RMB | RMB | ||||
Basic | 0.044 | 0.058 | |||||
Diluted | 0.044 | 0.058 | |||||
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2019
30 June | 31 December | |||
2019 | 2018 | |||
Notes | RMB'000 | RMB'000 | ||
(unaudited) | (audited) | |||
NON-CURRENT ASSETS | ||||
Property, plant and equipment | 148,448 | 156,752 | ||
Right-of-use assets | 25,038 | - | ||
Prepaid lease payments | - | 17,266 | ||
Goodwill | 330,262 | 330,262 | ||
Intangible assets | 95,574 | 101,004 | ||
Deferred tax assets | 5,903 | 3,419 | ||
Equity instrument at fair value through other | ||||
comprehensive income | 8,963 | 8,963 | ||
Deposits paid on acquisition of a land use right | 242,828 | 138,046 | ||
857,016 | 755,712 | |||
CURRENT ASSETS | ||||
Prepaid lease payments | - | 432 | ||
Inventories | 2,133,450 | 2,107,302 | ||
Trade and other receivables | 9 | 389,742 | 440,163 | |
Tax recoverable | 2,378 | 6,364 | ||
Restricted bank balances | 116,565 | 162,052 | ||
Bank balances and cash | 754,088 | 541,242 | ||
3,396,223 | 3,257,555 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | 11 | 603,945 | 535,167 | |
Lease liabilities - current portion | 6,549 | - | ||
Contract liabilities | 25,160 | 24,063 | ||
Deferred income | 715 | 715 | ||
Income tax payable | 16,522 | 16,831 | ||
Bank borrowings | 12 | 110,000 | 60,000 | |
762,891 | 636,776 | |||
NET CURRENT ASSETS | 2,633,332 | 2,620,779 | ||
TOTAL ASSETS LESS CURRENT | ||||
LIABILITIES | 3,490,348 | 3,376,491 | ||
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30 June | 31 December | |||
2019 | 2018 | |||
RMB'000 | RMB'000 | |||
(unaudited) | (audited) | |||
CAPITAL AND RESERVES | ||||
Share capital | 13,246 | 13,246 | ||
Share premium and reserves | 2,755,819 | 2,684,470 | ||
EQUITY ATTRIBUTABLE TO OWNERS OF | ||||
THE COMPANY | 2,769,065 | 2,697,716 | ||
Non-controlling interests | 693,325 | 650,575 | ||
TOTAL EQUITY | 3,462,390 | 3,348,291 | ||
NON-CURRENT LIABILITIES | ||||
Deferred tax liabilities | 21,567 | 22,547 | ||
Lease liabilities - non-current portion | 1,093 | - | ||
Deferred income | 5,298 | 5,653 | ||
27,958 | 28,200 | |||
TOTAL EQUITY AND | ||||
NON-CURRENT LIABILITIES | 3,490,348 | 3,376,491 | ||
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China Silver Group Ltd. published this content on 01 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2019 10:12:09 UTC
