The board of directors of China Silver Group Limited announced that based on the preliminary review of the unaudited consolidated management accounts of the group for the six months ended 30 June 2015, it is expected that the group may record a significant decline of not less than 90% in its consolidated net profit as compared to the corresponding period in 2014 amounted to RMB 133,726,000. The expected decline in unaudited consolidated net profit is mainly attributable to, including but not limited to the absence of one-off tax reversal of approximately RMB 19 million recorded in corresponding period in 2014; the decrease in gross profit of the smelting business due to further decline in international silver price and the initial adoption of the new environmental laws by the government of the People's Republic of China; the non-recurring expenses of approximately RMB 19 million incurred for acquisitions and fund-raising activities during corresponding period in 2014; the increase in non-cash share option expense of RMB 13 million; and the significant increase in operating costs in the retail business during the rapid development stage.