China Silver Group Limited — Earnings Release 2016

Feb 9, 2017

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.

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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)

POSITIVE PROFIT ALERT

This announcement is made by China Silver Group Limited (the ‘‘ Company’’ , together with its subsidiaries, collectively, the ‘‘ Group ’’) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘ Listing Rules ’’), and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company wishes to inform the shareholders of the Company and potential investors that, based on the following preliminary review of the information which includes, but without limitation to, the unaudited consolidated management accounts of the Group for the year ended 31 December 2016 (the “ Year ”), which have not been confirmed, reviewed or audited by the auditors of the Company and other information currently available to the Group, the Group is expected to record a significant improvement in the annual consolidated net profit attributable to equity shareholders of the Company in the range of RMB250 million to RMB300 million for the Year, as compared to the net loss attributable to equity shareholders of the Company for the year ended 31 December 2015 of RMB10,969,000. The expected turnaround from loss to profit is mainly attributable to the surge in silver price and the profit contribution from the Group’s strategicallydeveloped new business segments. Detailed reasons (including but not limited to) are as follows:

• (i) the significant increase in gross profit of the upstream manufacturing business due to rebound in international silver price and increase in sales volume;

• (ii) the continual strong growth recorded in the downstream new jewellery retail business (previously known as “the O2O business”); and

• (iii) the positive profit contribution from the newly acquired silver exchange business.

The Company is still in the process of finalising its annual results for the Year. Detailed financial information and performance of the Group for the Year will be disclosed in the Company’s annual results announcement for the Year which is expected to be published in March 2017. The information contained in this announcement is only based on the Company’s preliminary review of the unaudited consolidated management accounts of the Group, which have not been reviewed or confirmed by the Company’s auditor or audit committee and may be subject to adjustments.

Shareholders of the Company and potential investors are advised to exercise caution in dealing in the shares of the Company.

By order of the Board China Silver Group Limited Chen Wantian Chairman

9 February 2017, Hong Kong

As at the date of this announcement, the executive directors are Mr. Chen Wantian, Mr. Sung Kin Man, Mr. Song Guosheng, and Mr. Chen Guoyu; and the independent non-executive directors are Mr. Guo Bin, Mr. Song Hongbing, Dr. Li Haitao and Dr. Zeng Yilong.