Date
24 July 2017
Matthew Moy says the company's O2O business already accounts for 39 percent of revenue. Photo: HKEJ
Matthew Moy says the company's O2O business already accounts for 39 percent of revenue. Photo: HKEJ

China Silver Group bets on O2O segment to power sales

China Silver Group Ltd. (00815.HK) expects its online-to-offline (O2O) business to be its largest revenue contributor.

The segment already accounts for 39 percent of revenue after sales surged more than twofold to 214 million yuan (US$33.49 million) in the first half, the Hong Kong Economic Journal reports, citing chief financial officer Matthew Moy.  

That compares with a 9 percent revenue contribution from the segment last year.

Meanwhile, its core silver manufacturing business posted an income of 341 million yuan, down 45.6 percent from a year ago, mainly due to a 20 percent fall in the spot price of silver.

Net profit plunged 89.7 percent to 13.72 million yuan on non-recurring items, non-cash expenses and increased operating costs for the O2O business.

The company will continue to open new stores in Southeast Asia, Taiwan and other countries in the region while adding 50 outlets in mainland China.

The expansion will boost its mainland retail network to 150 stores across 14 provinces and cities.

[Chinese version中文版]

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