Share Options - The total number of shares available for issuance under the 2020 share option scheme is 14,160,413 shares, accounting for approximately 4.19% of the total issued shares as of the 2024 annual report date[3]. - As of December 31, 2024, a total of 9,912,287 shares were vested, after accounting for 701,320 shares that were either expired or cancelled during the year[4]. - The total number of options granted to employees was 10,613,607, with 493,521 options expired or cancelled during the year[4].

Mining Operations and Resources - The Zhangjiaba Mine contains 44.2 million cubic meters of measured and indicated marble resources, with an estimated block rate of 38%, equating to approximately 16.8 million cubic meters of proved and probable marble reserves[16] - As of December 31, 2024, the total measured resource is 10.78 million cubic meters, down from 11.46 million cubic meters in 2023, indicating a decrease of approximately 5.93%[18] - The total indicated resource is 19.46 million cubic meters, a decrease from 20.68 million cubic meters in 2023, reflecting a decline of about 5.91%[18] - The total proved reserve is 3.84 million cubic meters, down from 4.08 million cubic meters in 2023, representing a decrease of approximately 5.88%[18] - The total probable reserve is 6.94 million cubic meters, reduced from 7.37 million cubic meters in 2023, indicating a decline of about 5.83%[18] - The total reserve stands at 10.78 million cubic meters, down from 11.45 million cubic meters in 2023, reflecting a decrease of approximately 5.85%[18] - The renewed mining permit for the Zhangjiaba Mine is valid from February 21, 2021, to February 21, 2026[11] - The Group entered into two MOUs for potential acquisition of mining rights in Chile, aiming to diversify its mining portfolio amid rising gold demand due to geopolitical tensions and economic recession concerns[33] - The Group has entered into a memorandum of understanding for the proposed acquisition of at least 50% equity interest in a company owning mining rights for the Pumillahue project in Chile, covering approximately 400 hectares[90] - The Group has also entered into a memorandum of understanding for the proposed acquisition of at least 50% equity interest in a company owning mining rights for the Pureo project in Chile, covering approximately 737 hectares[91] Financial Performance - For FY2024, the Group recorded revenue of approximately RMB48.9 million, a decrease of approximately 16.4% compared to FY2023's revenue of RMB58.5 million[23] - The gross profit for FY2024 was approximately RMB11.3 million, representing a decrease of approximately 47.7% from FY2023's gross profit of RMB21.7 million[23] - The net loss attributable to owners of the Company for FY2024 was approximately RMB85.3 million, an increase of approximately 43.1% compared to FY2023's net loss of approximately RMB59.6 million[24] - The average selling price per ton of marble slag decreased by 9.2% from approximately RMB26.0 in FY2023 to approximately RMB23.6 in FY2024, leading to a decrease in gross profit margin from 37.5% to 21.1%[29] - Sales of marble slags decreased by 26.4% from approximately RMB56.3 million in FY2023 to approximately RMB41.4 million in FY2024[25] - The Group's revenue decreased by approximately RMB9.6 million or 16.4%, from approximately RMB58.5 million for FY2023 to approximately RMB48.9 million for FY2024[54] - Sales of marble slags decreased by approximately RMB14.9 million or 26.4%, from approximately RMB56.3 million for FY2023 to approximately RMB41.4 million for FY2024[58] - Gross profit decreased by approximately RMB10.4 million or 47.7%, from approximately RMB21.7 million for FY2023 to approximately RMB11.3 million for FY2024[59] - Gross profit margin decreased by 13.8 percentage points, from 37.0% for FY2023 to 23.2% for FY2024[60] Business Operations and Strategy - The Group is also engaged in a food brand business in the UK, focusing on delivery-only operations with a central kitchen for ready-to-cook meal kits[12] - The Group operates an e-commerce platform for its food brand, integrating online and offline sales channels[12] - The Group's food brand business in the UK achieved sales of approximately RMB7.5 million, representing an increase of approximately 2.4 times compared to FY2023[30] - The Group's food brand business operates through e-commerce and retail distribution, with three main sales channels including OEM[42] - The Group decided not to renew the exclusive sales agreement with a GCC manufacturer, aiming to expand its customer base and improve bargaining power[29] - The Group plans to explore new business opportunities to maximize shareholder value in the future, while remaining vigilant to market risks[34] - The Group is adjusting its business operations, which may negatively impact sales in the first half of 2025[29] Economic Outlook and Market Conditions - The Group is cautious about China's economic outlook, indicating that a robust recovery may take time[29] - The property sector in China is expected to face challenges, impacting the demand for marble blocks, leading the Group to refrain from predicting the timing of resumption of block extraction[48] - China's economic uncertainty remains high, with the Group focusing on consolidating mining operations and expanding its customer base to enhance business performance[34] - The Group's marble slag business is expected to experience moderate growth in 2025 as demand in the property market begins to recover[29] Corporate Governance and Board Structure - The Company has complied with all code provisions of the Corporate Governance Code for FY2024, except for deviations from provisions C.2.1, C.1.8, and F.2.2[135] - The roles of the Chairman and CEO are clearly defined and segregated to ensure independence, with the CEO's responsibilities temporarily taken over by executive directors following the resignation of Mr. Li Yunfei on June 6, 2024[137] - The Board consists of four executive Directors and three independent non-executive Directors, maintaining a balance of skills and experience appropriate for the Group's business requirements[147] - The Company confirmed that all Directors complied with the Model Code for Securities Transactions throughout FY2024, with no non-compliance reported[143] - The independent non-executive Directors are identified in all corporate communications as required by the Corporate Governance Code[148] - The Board consists of five Directors, with two being Independent Non-Executive Directors (INEDs), promoting critical review and control of management processes[176] - The Company has established a Board Diversity Policy to ensure a balance of skills, experience, and perspectives appropriate to its business needs[174] - The Nomination Committee has confirmed that the requirements of the Board Diversity Policy have been met[177] Financial Position and Borrowings - As of December 31, 2024, the Group's total equity interests decreased by 49.5% to approximately RMB76.2 million from approximately RMB150.9 million as of December 31, 2023[73] - The Group's cash and bank balances increased to approximately RMB8.6 million as of December 31, 2024, up from RMB4.7 million as of December 31, 2023[74] - Total borrowings as of December 31, 2024, were approximately RMB13.3 million, down from RMB16.3 million as of December 31, 2023, with a significant portion being unsecured loans[78] - The annual interest rate on borrowings for FY2024 ranged from 2.0% to 15.0%, compared to 2.0% to 12.7% in FY2023[78] - The Group did not incur any material capital expenditure during FY2024 and FY2023[79] - There were no significant contingent liabilities reported as of December 31, 2024, and 2023[83] - The Group is not exposed to significant foreign exchange risk as most transactions are denominated in RMB[82] - The Group's asset-to-equity ratio was approximately 0.17 as of December 31, 2024, compared to 0.10 as of December 31, 2023[84] Director Remuneration and Committees - The Remuneration Committee held one meeting during FY2024 to approve and review the remuneration policy and packages for the Directors and senior management[192] - For the year ended December 31, 2024, three individuals are in the remuneration band of Nil – HK$1,000,000, and two individuals are in the band of HK$1,000,001 – HK$1,500,000[196] - The Remuneration Committee has the delegated responsibility to determine the remuneration packages for individual executive Directors and senior management[193] - The Audit Committee's primary duties include making recommendations on the appointment of external auditors and reviewing financial statements[186] - The Audit Committee monitored the integrity of financial statements and assessed the external auditor's independence during its meetings[188] - The Nomination Committee has specific written terms of reference established by the Board[198] - The primary duties of the Nomination Committee include identifying qualified individuals for Board membership and considering Director reappointments[199]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 48,889,000, a decrease of 16.4% from RMB 58,491,000 in 2023[3] - The loss attributable to the owners of the company for the year was RMB 85,301,000, compared to a loss of RMB 59,600,000 in 2023, representing an increase in loss of RMB 25,701,000[3] - Basic loss per share for the year was RMB 40.7, compared to RMB 38.7 in 2023[4] - Gross profit for the year was RMB 11,327,000, down from RMB 21,654,000 in 2023, indicating a significant decline in profitability[4] - The group's pre-tax loss for 2024 was RMB 85,196 thousand, compared to a pre-tax loss of RMB 59,739 thousand in 2023, representing a 42.5% increase in losses[17] - The group incurred a loss of RMB 1,786 thousand from other income in 2024, contrasting with a profit of RMB 4,111 thousand in 2023[21] - The total financial costs for the group in 2024 were RMB 1,592 thousand, slightly higher than RMB 1,532 thousand in 2023[22] - The company reported a basic loss per share of approximately RMB 0.41 for the fiscal year 2024, compared to RMB 0.39 in 2023, based on a weighted average of 209,548,000 shares outstanding[26] - Total revenue decreased by approximately RMB 9,600,000 or 16.4% from about RMB 58,500,000 in fiscal year 2023 to about RMB 48,900,000 in fiscal year 2024[39] Asset and Liability Management - Total assets less current liabilities decreased to RMB 80,325,000 in 2024 from RMB 154,014,000 in 2023[5] - Current liabilities exceeded current assets by RMB 12,835,000, highlighting a liquidity challenge[5] - Cash and cash equivalents increased to RMB 8,551,000 in 2024 from RMB 4,656,000 in 2023, indicating improved liquidity[5] - Total equity decreased by 49.5% to approximately RMB 76,200,000 as of December 31, 2024, from RMB 150,900,000 as of December 31, 2023[49] - Total borrowings decreased to approximately RMB 13,300,000 in 2024 from RMB 16,300,000 in 2023, with a debt-to-equity ratio of approximately 0.17[50] Segment Performance - The marble slag segment generated revenue of RMB 41,402 thousand in 2024, down 26.4% from RMB 56,261 thousand in 2023[17] - The food brand segment reported revenue of RMB 7,487 thousand in 2024, an increase of 235.4% from RMB 2,230 thousand in 2023[17] - Sales of marble slag dropped by approximately RMB 14,900,000 from about RMB 56,300,000 in 2023 to about RMB 41,400,000 in 2024, reflecting a decline in demand[39] - The company’s food sales increased by approximately RMB 5,300,000, rising from about RMB 2,200,000 in 2023 to about RMB 7,500,000 in 2024, driven by enhanced brand promotion and new product launches[39] - The sales revenue of the group's marble slag decreased by 26.4% from approximately RMB 56,300,000 in the fiscal year 2023 to approximately RMB 41,400,000 in the fiscal year 2024[58] Impairment and Expenses - The company recorded an impairment loss on non-financial assets of RMB 55,764,000, significantly higher than RMB 27,317,000 in 2023[4] - The group reported a significant impairment loss of RMB 44,295 thousand on property, plant, and equipment in 2024, compared to RMB 21,668 thousand in 2023[23] - The total employee cost for the fiscal year 2024 was approximately RMB 8,500,000, compared to RMB 8,100,000 in the fiscal year 2023[57] - Selling and distribution expenses increased to approximately RMB 4,500,000 in 2024 from RMB 4,200,000 in 2023, mainly due to increased production and promotional costs in the food brand business[42] - Administrative expenses decreased to approximately RMB 22,000,000 in 2024 from RMB 32,600,000 in 2023, primarily due to reduced costs related to reclamation and greening projects[43] Future Outlook and Strategic Initiatives - The company plans to explore further equity fundraising opportunities to meet capital needs following the rights issue[10] - The group expects moderate growth in the marble slag business in 2025 as the real estate market demand gradually recovers[59] - The group anticipates a gradual recovery in the construction industry by 2025, supported by government policies aimed at stabilizing the real estate market[35] - The group is adjusting its business operations, which may negatively impact sales performance in the first half of 2025[59] - The group will continue to monitor market conditions closely and identify potential risks that may adversely affect its business performance[60] Compliance and Governance - The audit committee consists of two independent non-executive directors who reviewed the consolidated financial statements for the year ending December 31, 2024[67] - The financial data for the year ending December 31, 2024, has been verified by the auditor, confirming consistency with the audited consolidated financial statements[68] - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, including all information required by listing rules[69]

2024 INTERIM REPORT 中期報告 日 China Kingstone Mining Holdings Limited 中國金石礦業控股有限公司 (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (於開曼群島註冊成立並於百慕達存續的有限公司) r a Stock Code 股份代號：1380 - just supply of the first Public The res are and f The States of the Corporate Information 公司資料 Corporate Information 公司資料 | --- | --- | |-----------------------------------------------------------------------------------|---------------------------------------------------| | BOARD OF DIRECTORS | ...

Revenue Performance - Revenue for the six months ended June 30, 2024, was RMB 30,772,000, an increase of 104.6% compared to RMB 15,043,000 for the same period in 2023[1] - The group reported revenue of RMB 30,772 thousand for the six months ended June 30, 2024, compared to RMB 15,043 thousand for the same period in 2023, representing a growth of 104.5%[17] - The revenue from marble slag sales was RMB 27,676 thousand for the six months ended June 30, 2024, up from RMB 14,439 thousand in the previous year, indicating an increase of 92.0%[17] - The food brand segment generated revenue of RMB 3,096 thousand for the six months ended June 30, 2024, compared to RMB 604 thousand in the same period last year, reflecting a growth of 413.8%[17] - The revenue for the marble slag business reached approximately RMB 27,700,000 in the first half of 2024, an increase of approximately RMB 13,300,000 or 91.7% compared to RMB 14,400,000 in the first half of 2023[30] - The total revenue for the group increased from approximately RMB 15,000,000 in the first half of 2023 to approximately RMB 30,800,000 in the first half of 2024, representing a growth of approximately RMB 15,800,000 or 104.6%[33] - The sales volume of marble slag increased by 91.7% from 555,337 tons in the first half of 2023 to 1,064,477 tons in the first half of 2024[34] Profitability and Losses - The company reported a net loss of RMB 16,592,000 for the six months ended June 30, 2024, compared to a net loss of RMB 8,986,000 for the same period in 2023[2] - Basic loss per share was RMB (8.57) for the six months ended June 30, 2024, compared to RMB (6.19) for the same period in 2023[2] - The group reported a pre-tax loss of RMB 16,487 thousand for the six months ended June 30, 2024, compared to a loss of RMB 8,986 thousand in the same period last year[10] - The group recorded a loss of approximately RMB 16,600,000 in the first half of 2024, compared to a loss of approximately RMB 9,000,000 in the first half of 2023, an increase of approximately RMB 7,600,000[40] - Total other income and net profit for the six months ended June 30, 2024, was RMB 274,000, compared to RMB 1,883,000 for the same period in 2023, representing a decrease of approximately 85.5%[18] Gross Profit and Margins - Gross profit for the period was RMB 10,903,000, up from RMB 6,181,000 in the same period last year[2] - The gross profit rose from approximately RMB 6,200,000 in the first half of 2023 to approximately RMB 10,900,000 in the first half of 2024, an increase of approximately RMB 4,700,000 or 76.4%[34] - The gross margin decreased from approximately 41.1% in the first half of 2023 to approximately 35.4% in the first half of 2024, a decline of about 5.7 percentage points due to rising extraction costs[35] Assets and Liabilities - Total assets less current liabilities amounted to RMB 142,967,000 as of June 30, 2024, down from RMB 154,014,000 as of December 31, 2023[3] - Non-current assets were valued at RMB 146,740,000 as of June 30, 2024, compared to RMB 149,015,000 as of December 31, 2023[3] - The total assets of the group as of June 30, 2024, were RMB 212,447 thousand, slightly up from RMB 212,341 thousand as of December 31, 2023[13] - The total liabilities increased to RMB 72,595 thousand as of June 30, 2024, from RMB 61,440 thousand as of December 31, 2023, marking a rise of 18.0%[14] - The marble slag segment's assets increased to RMB 193,552 thousand as of June 30, 2024, compared to RMB 173,817 thousand at the end of 2023, showing a growth of 11.4%[13] - Trade receivables as of June 30, 2024, amounted to RMB 43,266,000, up from RMB 24,008,000 as of December 31, 2023, representing an increase of approximately 80.3%[25] - Trade payables as of June 30, 2024, were RMB 27,215,000, compared to RMB 10,268,000 as of December 31, 2023, showing an increase of about 164.5%[26] Cash Flow and Financial Condition - The company had current liabilities exceeding current assets by RMB 3,773,000 as of June 30, 2024, indicating significant uncertainty regarding its ability to continue as a going concern[5] - The company plans to take proactive measures to recover trade and other receivables to improve cash flow and financial condition[5] - The group has implemented various cost-saving measures to improve operating cash flow, ensuring sufficient working capital for future operations[6] - The group anticipates sufficient operating funds to meet its operational needs and fulfill its financial obligations in the foreseeable future[6] - As of June 30, 2024, the group's cash and bank balance was approximately RMB 3,800,000, down from RMB 4,700,000 as of December 31, 2023[42] Expenses and Costs - The cost of goods sold for the six months ended June 30, 2024, was RMB 1,714,000, significantly higher than RMB 463,000 for the same period in 2023, reflecting an increase of approximately 269.8%[21] - The administrative expenses increased from approximately RMB 11,500,000 in the first half of 2023 to approximately RMB 12,600,000 in the first half of 2024, primarily due to higher legal and professional fees[36] - Interest expenses for the six months ended June 30, 2024, totaled RMB 310,000, down from RMB 955,000 in the same period of 2023, indicating a reduction of about 67.5%[18] - Total employee costs for the first half of 2024 were approximately RMB 3,700,000, slightly up from RMB 3,600,000 in the first half of 2023[45] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code, with some deviations noted regarding the roles of the chairman and CEO[50] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules appendix C3, confirming compliance for the first half of 2024[52] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the first half of 2024 and recommended adoption by the board[53] Future Plans and Strategies - The company plans to utilize net proceeds from share issuances for general working capital, including repayment of any outstanding loans[27] - The company will continue to consolidate production and operations while expanding its customer base to enhance business performance and seek new opportunities for greater shareholder returns[49] Other Information - The company did not declare any dividends for the six months ended June 30, 2024, and 2023[24] - The company has no tax provisions for corporate income tax in the UK and China for the periods ended June 30, 2024, and 2023 due to no taxable profits generated[20] - The company operates a beige marble mine located in Jiangyou City, Sichuan Province, China, focusing on the production and sale of marble slag[29] - The company has no significant contingent liabilities or capital commitments as of June 30, 2024[47] - The group has no significant foreign exchange risk as most transactions, assets, and liabilities are denominated in RMB[44] - The company issued a total of 12,099,213 shares upon the conversion of convertible notes worth HKD 2,000,000 on February 27, 2024[47] - No purchase, sale, or redemption of the company's listed securities occurred during the six months ending June 30, 2024[54]

Financial Performance - The net loss attributable to owners of the Company for FY2023 was approximately RMB59.6 million, a decrease of approximately 3.7% compared to a net loss of RMB61.9 million for FY2022[8]. - Basic loss per share for FY2023 was approximately RMB38.7 cents, representing a decrease of approximately 11.4% from RMB43.7 cents per share for FY2022[8]. - Gross profit decreased by approximately RMB5.2 million or 19.3%, from approximately RMB26.8 million for FY2022 to approximately RMB21.6 million for FY2023[25]. - The Group's revenue decreased by approximately RMB 13.8 million or 19.1% from about RMB 72.3 million in FY2022 to approximately RMB 58.5 million in FY2023, primarily due to a decline in demand for marble slabs[53]. - For FY2023, the Group recorded revenue of approximately RMB58.5 million, a decrease of approximately 19.1% compared to FY2022's revenue of RMB72.3 million[191]. - The gross profit for FY2023 was approximately RMB21.6 million, representing a decrease of approximately 19.3% from FY2022's gross profit of RMB26.8 million[191]. Operational Highlights - The total marble resources at the Zhangjiaba Mine were reported at 32.14 million cubic meters for FY2023, down from 34.47 million cubic meters in FY2022[7]. - The total marble reserves for FY2023 were reported at 11.45 million cubic meters, a decrease from 12.29 million cubic meters in FY2022[7]. - The renewed mining permit for Zhangjiaba Mine is valid from February 21, 2021, to February 21, 2026[158]. - The Group has the largest beige marble mine in China, located in Sichuan Province, based on certification from the China Stone Material Association[158]. - The Group aims to maintain stable growth in the mining business in China while focusing on overseas expansion as a growth driver[160]. Business Development - The Company has entered into a memorandum of understanding to develop gold mining opportunities in Chile, capitalizing on the upward trend in gold demand[12]. - The Group commenced a food service business in the UK in December 2021, operating a delivery-only model with a central kitchen for meal kits[180]. - The Group's e-commerce operations include an online platform (www.celeplate.co.uk) for consumers and sales to retailers as distribution channels[180]. - The Group has launched a new distribution channel for ready-to-cook meal kits, selling products to retail stores and supermarkets since 2023[195]. - The Company is expanding its mining operations into Chile, capitalizing on the rising demand for gold amid geopolitical tensions and economic concerns[196]. Employee and Governance - The Group employed a total of 36 employees as of December 31, 2023, down from 38 employees in the previous year[33]. - Total staff costs for FY2023 were approximately RMB8.1 million, an increase of 33% from RMB6.1 million in FY2022[33]. - The Group's emolument policies are based on individual performance and salary trends in Hong Kong and the PRC, with discretionary bonuses subject to profitability[33]. - The Board has not identified any significant non-compliance with laws and regulations impacting the Group's operations during FY2023[33]. - The Board has yet to appoint a Chairman, with independent members temporarily fulfilling this role to ensure effective governance[45]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code for FY2023, except for deviations from provisions C.2.1, C.1.8, and F.2.2[76]. - The Company believes that the risk of legal claims against directors is relatively low due to existing internal controls[79]. - The Company currently does not have insurance cover for legal actions against Directors, believing the risk is relatively low[47]. - The Company is committed to high standards of corporate governance to protect shareholder interests and enhance shareholder value[77]. - The Board ensures the appointment of at least three independent non-executive directors (INEDs), with at least one-third of its members being INEDs[174]. Market Conditions - The property sector in China continues to face a liquidity crisis, impacting overall economic recovery and investor confidence[200]. - The Chinese government has implemented support measures to alleviate cash flow pressures, which are expected to gradually improve market confidence[194]. - The Company anticipates that China's economic growth momentum will stabilize and gradually improve as government support measures take effect in 2024[194]. Impairment and Receivables - The Group recorded an impairment loss of RMB 9.6 million on trade receivables for FY2023, a decrease of RMB 28.3 million compared to RMB 37.9 million in FY2022[56]. - The Group has made a full provision for impairment of outstanding trade receivables overdue for more than two years according to its accounting policies[56]. - The impairment loss for trade receivables was primarily due to delayed payments from marble slab customers affected by financial difficulties[152]. - The Group's customers have repaid overdue debts amounting to approximately RMB 3,600,000 during FY2023[152]. Sales and Marketing - The virtual restaurant business saw a sales increase of approximately 204.6% compared to FY2022, indicating significant growth potential[19]. - Sales of marble slabs dropped from approximately RMB 71.6 million in FY2022 to about RMB 56.3 million in FY2023, a decrease of approximately RMB 15.3 million[53]. - In FY2023, sales of marble slags decreased by approximately 21.4% from RMB 71.6 million in FY2022 to 56.3 million due to subdued demand and weak consumption[192][194]. - The gross profit margin for the marble slags business slightly increased from approximately 37.4% in FY2022 to approximately 37.5% in FY2023[194]. - Sales volume of marble slags decreased from 2.8 million tons in FY2022 to 2.2 million tons in FY2023, a decline of 21.4%[200].

Financial Performance - China Kingstone Mining Holdings Limited reported its annual performance for the year ending December 31, 2023[3] - The financial figures in the announcement are consistent with the audited consolidated financial statements for the year[4] Accuracy and Guarantees - The company has not provided any guarantees regarding the accuracy of the announcement's content[4] Board of Directors - The board of directors includes both executive and independent non-executive members[7] Announcement Details - The announcement was made on March 27, 2024, following the annual performance report[6]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 58,491,000, a decrease of 19.1% from RMB 72,289,000 in 2022[3] - The loss attributable to the owners of the company for the year was RMB 59,600,000, an improvement of RMB 2,284,000 compared to a loss of RMB 61,884,000 in 2022[3] - Basic loss per share for the year was RMB 38.7, an improvement of RMB 5.0 from RMB 43.7 in 2022[3] - Gross profit for the year was RMB 21,654,000, down from RMB 26,848,000 in 2022, reflecting a decrease of 19.3%[5] - Total revenue from external customers for 2023 was RMB 58,491,000, a decrease of 19% from RMB 72,289,000 in 2022[17] - Revenue from major customer A contributed RMB 56,261,000 in 2023, down from RMB 71,557,000 in 2022, representing a decline of 21%[18] - Other income and net gains for 2023 totaled RMB 4,111,000, an increase of 102% compared to RMB 2,040,000 in 2022[20] - The company reported a pre-tax loss of RMB 59,600,000 for 2023, slightly improved from a loss of RMB 61,884,000 in 2022[27] - Basic loss per share for 2023 was RMB 0.387, compared to RMB 0.437 in 2022, indicating a reduction in loss per share[27] - Revenue declined by approximately RMB 13,800,000 or 19.1% from about RMB 72,300,000 in FY2022 to approximately RMB 58,500,000 in FY2023, primarily due to decreased demand for marble slag[41] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 213,341,000, down from RMB 292,243,000 in 2022[7] - Current liabilities decreased to RMB 58,327,000 from RMB 87,005,000 in 2022, indicating improved liquidity[7] - The company's net asset value as of December 31, 2023, was RMB 150,901,000, down from RMB 201,201,000 in 2022[7] - Trade receivables at the end of 2023 amounted to RMB 24,008,000, a significant decrease of 63% from RMB 64,305,000 in 2022[32] - Trade payables at the end of 2023 were RMB 10,268,000, down from RMB 37,249,000 in 2022, reflecting a decrease of 72%[33] - Total equity as of December 31, 2023, was approximately RMB 150,900,000, a decrease of 25.0% from RMB 201,200,000 as of December 31, 2022, mainly due to the net loss recorded in the fiscal year 2023[54] - Cash and bank balances as of December 31, 2023, were approximately RMB 4,700,000, an increase from RMB 3,200,000 as of December 31, 2022[54] - The group had total borrowings of approximately RMB 16,200,000 as of December 31, 2023, down from RMB 19,100,000 as of December 31, 2022[55] Operational Efficiency - The company reported a significant reduction in expected credit loss impairment to RMB 19,889,000 from RMB 41,009,000 in 2022[5] - Selling and distribution expenses decreased from RMB 8,500,000 in FY2022 to RMB 4,200,000 in FY2023, mainly due to the decline in marble slag sales[46] - Administrative expenses decreased from RMB 38,300,000 in FY2022 to RMB 32,600,000 in FY2023, influenced by a reduction in impairment losses on other receivables[47] - Impairment losses on trade receivables were RMB 9,600,000 in FY2023, a decrease of RMB 28,300,000 from RMB 37,900,000 in FY2022[48] Market Outlook - Future outlook remains cautious due to market conditions, with a focus on cost management and operational efficiency[8] - The company expects improvements in the Chinese economy in the coming years due to government support policies aimed at boosting investor confidence[36] Business Development - The company has made investments in new technologies and product development, although specific details were not disclosed in the report[8] - The company has expanded its online restaurant business, which is anticipated to be one of the most promising growth areas[37] - Food sales increased by approximately RMB 1,500,000 in FY2023, contributing to a total food sales revenue of RMB 2,230,000, representing a growth of 204.6% compared to FY2022[42] - The online restaurant business's food sales increased by approximately 204.6% compared to the fiscal year 2022, indicating significant growth potential[64] - The company has signed a memorandum of understanding to jointly develop gold mining rights in Chile, aiming to expand its mining operations overseas[65] Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the fiscal year 2023, with specific deviations noted in sections C.2.1, C.1.8, and F.2.2[70] - The roles of the Chairman and CEO are clearly defined to ensure independence and proper checks and balances, although the board has not appointed a Chairman for the fiscal year 2023[71] - The company has not made any insurance arrangements for directors against legal claims, believing the risk is relatively low under current internal controls[72] - The Chairman of the board did not attend the annual general meeting due to other commitments, which is a noted non-compliance with corporate governance guidelines[73] - The audit committee, composed of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending December 31, 2023[75] Other Information - The group recorded an impairment loss of RMB 27,300,000 for non-financial assets in the fiscal year 2023, primarily due to a decrease in the recoverable amount of cash-generating units from the Zhangjiaba Mine[51] - The group did not incur any capital expenditures in the fiscal year 2023, while capital expenditures in the fiscal year 2022 were RMB 1,300,000[56] - The group had no significant contingent liabilities or capital commitments as of December 31, 2023[60][61] - No significant events affecting the group occurred after December 31, 2023, up to the date of this announcement[76] - The annual performance announcement and the 2023 annual report will be published on the Stock Exchange and the company's website, containing all required information[77]

Revenue Performance - Revenue from the marble slags business for HY2023 was approximately RMB 14.4 million, a decrease of approximately RMB 11.1 million or 43.4% compared to RMB 25.5 million for HY2022[12]. - The Group's revenue decreased by approximately RMB10.8 million or 41.7%, from approximately RMB25.8 million for HY2022 to approximately RMB15.0 million for HY2023[31]. - Sales of marble slags dropped by approximately RMB11.1 million, from approximately RMB25.5 million for HY2022 to approximately RMB14.4 million for HY2023, primarily due to decreased demand amid the economic downturn in China[32]. - Revenue for the six months ended June 30, 2023, was RMB 15,043,000, a decrease of 41.2% compared to RMB 25,813,000 for the same period in 2022[116]. - Revenue from marble slags was RMB 14,439,000, down 43.3% from RMB 25,498,000 in the previous year[156]. - Revenue from food sales increased to RMB 604,000, up 91.5% from RMB 315,000 in the same period last year[156]. Profitability and Loss - The Group's gross profit decreased by approximately RMB2.8 million or 31.1%, from approximately RMB9.0 million for HY2022 to approximately RMB6.2 million for HY2023[36]. - The gross profit margin increased by approximately 6.4 percentage points, from approximately 34.7% for HY2022 to approximately 41.1% for HY2023, mainly due to a decrease in average subcontracting cost per ton[36]. - The Group recorded a loss of approximately RMB 9.0 million in HY2023, an improvement of about RMB 13.8 million compared to a loss of approximately RMB 22.8 million in HY2022[45]. - Loss before tax for the period was RMB 8,986,000, an improvement from a loss of RMB 22,405,000 in the previous year[116]. - Loss attributable to owners of the company was RMB 8,986,000, compared to RMB 22,760,000 in the same period last year[116]. - Total comprehensive loss for the period attributable to owners of the company was RMB 9,489,000, down from RMB 21,757,000 in 2022[116]. Expenses and Cost Management - Selling and distribution expenses decreased by approximately RMB0.7 million, from approximately RMB1.8 million for HY2022 to approximately RMB1.1 million for HY2023[37]. - Administrative expenses decreased by approximately RMB3.2 million, from approximately RMB14.7 million for HY2022 to approximately RMB11.5 million for HY2023[38]. - The Group recorded an impairment loss of RMB3.5 million on trade receivables, a decrease of approximately RMB10.5 million compared to RMB14.0 million for HY2022[39]. - Interest on amounts due to a director decreased from RMB 219,000 in 2022 to RMB 61,000 in 2023, reflecting a significant reduction of approximately 72%[191]. Assets and Liabilities - As of June 30, 2023, total equity interests were approximately RMB 194.7 million, a decrease of about RMB 6.5 million or 3.2% from RMB 201.2 million as of December 31, 2022[46]. - Cash and bank balances as of June 30, 2023, were approximately RMB 2.4 million, down from RMB 3.2 million as of December 31, 2022[47]. - Total borrowings amounted to approximately RMB 17.9 million as of June 30, 2023, a decrease from RMB 19.0 million as of December 31, 2022[48]. - Trade receivables as of 30 June 2023 totaled RMB62,598,000, slightly down from RMB64,305,000 as of 31 December 2022, a decrease of about 2.7%[182]. - Trade payables increased to RMB41,961,000 as of 30 June 2023 from RMB37,249,000 as of 31 December 2022, representing an increase of approximately 12.5%[185]. Business Operations and Strategy - The Group believes that weak domestic and global demand will persist, leading to a slowdown in marble slags business growth in the coming years[12]. - The Group has launched a virtual restaurant brand for delivery-only operations, including ready-to-cook meal kits sold through its website and retail channels[18]. - The Group aims to find cooperation partners to develop the ground calcium carbonate (GCC) business plan, leveraging its marble resources[13]. - The Group's virtual restaurant is considered a key growth potential business[18]. - The Group plans to continue consolidating production and operations while exploring new business opportunities to maximize shareholder value in the future[27]. - The Group expects challenges for business growth in the forthcoming years due to weakening domestic demand and geopolitical tensions[27]. Mining and Resources - The Zhangjiaba Mine contains 44.2 million cubic meters of measured and indicated marble resources, with 16.8 million cubic meters of proved and probable marble reserves[20]. - The renewed mining permit for the Zhangjiaba Mine is valid from 21 February 2021 to 21 February 2026[19]. - The initial term of the mining permit for the Zhangjiaba Mine was granted for a 10-year period in February 2011[19]. - There was no geological exploration activity conducted during HY2023[20]. Shareholder and Corporate Governance - The company has complied with all code provisions of the CG Code throughout HY2023, except for deviations from provisions C.2.1, C.1.8, and F.2.2[74]. - The audit committee, consisting of three independent non-executive Directors, has reviewed the unaudited interim results for HY2023 and recommended their adoption to the Board[80]. - The chairman of the Board attended the annual general meeting, while other members were unable to attend due to business commitments[76]. - The company confirms that all Directors have complied with the Model Code for Securities Transactions throughout HY2023[79]. - The Board comprises four executive Directors and three independent non-executive Directors as of June 30, 2023[81]. - The company did not recommend the payment of an interim dividend for the first half of 2023[114]. Legal and Compliance Issues - The company is currently involved in litigation with claims totaling approximately HK$23.7 million against a related party and HK$21.2 million against the company itself[192]. - The High Court dismissed a summary judgment application related to a claim of approximately HK$61.4 million against the company, indicating ongoing legal challenges[196]. - The company does not anticipate incurring further liabilities from ongoing litigation as of June 30, 2023, due to the early stage of the proceedings[197]. - The company has not made provisions for ongoing litigation, assessing that it is unlikely to incur additional liabilities[197]. Financial Reporting and Compliance - The interim financial statements were prepared in accordance with International Accounting Standard 34 and were approved for issue by the board of directors on August 28, 2023[128]. - The Group has not applied any new IFRS amendments that have been issued but not yet effective for the current accounting period[146]. - The application of amendments to IFRSs in the current period has had no material impact on the Group's financial positions and performance[145]. - The financial statements for the six months ended June 30, 2023, remain unaudited, indicating a need for further review before finalization[191].

Revenue Performance - Revenue from the marble slags business for HY2023 was approximately RMB 14.4 million, a decrease of approximately RMB 11.1 million or 43.4% compared to RMB 25.5 million for HY2022[12] - The Group's revenue decreased by approximately RMB10.8 million or 41.7%, from approximately RMB25.8 million for HY2022 to approximately RMB15.0 million for HY2023[31] - Sales of marble slags dropped by approximately RMB11.1 million, from approximately RMB25.5 million for HY2022 to approximately RMB14.4 million for HY2023, due to decreased demand amid economic downturn[32] - Revenue for the six months ended June 30, 2023, was RMB 15,043,000, a decrease of 42.5% compared to RMB 25,813,000 for the same period in 2022[116] - Revenue from marble slags was RMB 14,439,000, down 43.3% from RMB 25,498,000 in the previous year[156] - Revenue from food sales increased to RMB 604,000, up 91.5% from RMB 315,000 in the same period last year[156] Profit and Loss - Gross profit decreased by approximately RMB2.8 million or 31.1%, from approximately RMB9.0 million for HY2022 to approximately RMB6.2 million for HY2023, with gross profit margin increasing by 6.4 percentage points to approximately 41.1%[36] - Loss before tax for the period was RMB 8,986,000, compared to a loss of RMB 22,405,000 in the previous year, indicating an improvement of 60.0%[116] - Loss attributable to owners of the company for the period was RMB 8,986,000, a reduction from RMB 22,760,000 in 2022[116] - The Group recorded a loss of approximately RMB9.0 million for HY2023, representing a decrease of approximately RMB13.8 million compared to a loss of RMB22.8 million for HY2022[40] - The Group reported a loss of approximately RMB8,986,000 for the six months ended June 30, 2023, a decrease from a loss of RMB22,760,000 in the same period of 2022, indicating an improvement of approximately 60.5%[171] Expenses and Costs - Administrative expenses decreased by approximately RMB3.2 million, from approximately RMB14.7 million for HY2022 to approximately RMB11.5 million for HY2023, primarily due to reduced legal and professional fees[38] - The Group's total expenditure for mining operations was approximately RMB8.4 million in HY2023, down from RMB16.3 million in HY2022[26] - Cost of inventories sold decreased to RMB8,862,000 for the six months ended June 30, 2023, down from RMB16,854,000 in 2022, representing a reduction of about 47.4%[169] - The Group's finance costs for the six months ended June 30, 2023, totaled RMB 955,000, slightly up from RMB 922,000 in the same period of 2022[159] Assets and Liabilities - As of June 30, 2023, total equity interests were approximately RMB 194.7 million, a decrease of approximately RMB 6.5 million or 3.2% from RMB 201.2 million as of December 31, 2022[46] - Cash and bank balances as of June 30, 2023, were approximately RMB 2.4 million, down from RMB 3.2 million as of December 31, 2022[47] - Total borrowings as of June 30, 2023, were approximately RMB 17.9 million, a decrease from RMB 19.0 million as of December 31, 2022[48] - Trade receivables as of June 30, 2023, were RMB 62,598,000, slightly down from RMB 64,305,000 at the end of 2022[117] - Trade payables increased to RMB41,961,000 as of June 30, 2023, from RMB37,249,000 as of December 31, 2022, reflecting an increase of approximately 12.5%[185] Mining Operations - The Zhangjiaba Mine contains 44.2 million cubic meters of measured and indicated marble resources, with 16.8 million cubic meters classified as proved and probable reserves[20] - The renewed mining permit for the Zhangjiaba Mine is valid from February 21, 2021, to February 21, 2026[19] - There was no geological exploration activity conducted during HY2023[20] - The initial term of the mining permit for the Zhangjiaba Mine was granted for a 10-year period, covering reserves extractable for 30 years based on approved capacity[19] Business Strategy and Future Outlook - The Group aims to find cooperation partners to develop the ground calcium carbonate (GCC) business plan, leveraging its rich marble resources[13] - The Company does not plan to set a timeline for the expansion of the GCC business due to current negative market sentiment[13] - The Group expects challenges for business growth in the coming years due to weakening domestic demand and geopolitical tensions[27] - The Group plans to consolidate production and operations while exploring new business opportunities to maximize shareholder value[27] Corporate Governance - The company has complied with all code provisions of the CG Code throughout HY2023, except for deviations from provisions C.2.1, C.1.8, and F.2.2[74] - The audit committee, consisting of three independent non-executive Directors, has reviewed and recommended the adoption of the unaudited interim results for HY2023[80] - The chairman of the Board attended the annual general meeting in HY2023, while other Board members were unable to attend due to business commitments[76] - The company confirms that all Directors have complied with the Model Code for Securities Transactions throughout HY2023[79] Share Capital and Dividends - The Board does not recommend the payment of an interim dividend for HY2023[113] - The Group did not recommend any dividend for the six months ended June 30, 2023, consistent with the decision for the same period in 2022[174] - The Group's share capital increased to RMB25,679,000 as of June 30, 2023, from RMB24,435,000 as of December 31, 2022, an increase of approximately 5.1%[186] Litigation and Legal Matters - The company is involved in ongoing litigation with claims amounting to approximately HK$23.7 million and HK$21.2 million against different defendants, related to loan agreements and alleged breaches of trust[192][196] - The High Court dismissed a summary judgment application from Zhongtai International Wealth Management Limited, which claimed the company was liable for returning approximately HK$61.4 million from an open offer bank account[196] - The company does not anticipate incurring further liabilities from ongoing litigation as of June 30, 2023, due to the early stage of the proceedings[197] - The company reported no provisions for the ongoing litigation cases, indicating a low likelihood of incurring additional liabilities[197]