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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINA KINGSTONE MINING HOLDINGS LIMITED 中 國 金 石 礦 業 控 股 有 限 公 司 （於開曼群島註冊成立並於百慕達存續的有限公司） （股份代號：1380） 截至2023年6月30日止六個月 未經審核中期業績公告 業績摘要 截至6月30日止六個月 2023年 2022年 變動 （未經審核）（未經審核） 人民幣千元 人民幣千元 人民幣千元 % 收入 15,043 25,813 -10,770 -41.7 期內虧損 (8,986) (22,760) +13,774 不適用 人民幣分 人民幣分 人民幣分 % ...

Mining Operations - The renewed mining permit for Zhangjiaba Mine is valid from February 21, 2021, to February 21, 2026, ensuring continued operations for the largest beige marble mine in China[13] - The company is primarily engaged in the production and sales of marble slags and trading of marble slabs in the People's Republic of China, positioning itself as a key player in the mining sector[13] - The company’s headquarters is located in Jiangyou City, Sichuan Province, China, which is strategically important for its mining operations[8] - There were no material changes to the marble resources and reserves estimates from March 2011 to December 2022, with total resources at 34.47 million cubic meters and total reserves at 12.29 million cubic meters as of December 31, 2022[21][22] - 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 reserves[54] - The Group expects that large block production at the Zhangjiaba mine will commence no earlier than 2025[59] Financial Performance - For FY2022, the Group recorded revenue of approximately RMB72.3 million, a decrease of approximately 2.6% compared to RMB74.2 million for FY2021[26] - Gross profit for FY2022 was approximately RMB26.8 million, representing an increase of approximately 76.2% from RMB15.2 million for FY2021[26] - Net loss attributable to owners of the Company was approximately RMB61.9 million for FY2022, an increase of approximately 22.9% from RMB50.3 million for FY2021[27] - Sales of marble slags grew by 22.0% from approximately RMB58.6 million for FY2021 to approximately RMB71.6 million for FY2022[28] - The gross profit margin of the marble slag business improved from 24.3% to 37.6% due to increased sales prices[28] - The sales volume of marble slag increased by 6.4% from approximately 2.6 million tons to approximately 2.8 million tons during FY2022[47] - The average selling price of marble slag rose by 14.5% from RMB22.7 per ton to RMB26.0 per ton in FY2022[47] - The Group recorded no sales of marble slabs in FY2022, a decrease of approximately RMB15.5 million compared to RMB15.5 million in FY2021, due to tightened credit control[61] - Food services sales increased significantly by approximately RMB0.6 million, from RMB0.1 million in FY2021 to RMB0.732 million in FY2022, representing a growth of 571.6%[66] Business Strategy and Expansion - The company launched a virtual restaurant brand website (www.celeplate.co.uk) in August 2022, focusing on food delivery and ready-to-cook meal kits, expanding its business model into the food and beverage sector[14] - The company has initiated a click-and-mortar strategy to sell products through both online and offline channels, enhancing its market reach[14] - The company has established a franchise business model in the UK, diversifying its revenue streams beyond traditional mining operations[14] - The Company plans to develop a ground calcium carbonate (GCC) business to diversify its operations and is seeking cooperation partners for this initiative[33] - The company plans to temporarily exit the marble slab business until the real estate industry in China stabilizes and recovers[36] - The company is exploring new business opportunities to maximize shareholder value in the future[39] Governance and Management - The company has undergone changes in its board of directors, with new appointments made in September 2022, indicating a shift in governance structure[5] - The company has a significant focus on environmental, social, and governance (ESG) practices, as highlighted in its annual report[47] - The company believes that high standards of corporate governance provide a solid foundation for safeguarding the interests of shareholders and enhancing shareholder value[144] - The roles of Chairman and CEO are clearly defined and segregated to ensure independence and proper checks and balances[146] - The company has complied with all code provisions of the Corporate Governance Code for FY2022, except for deviations from provisions C.2.1, C.1.8, and F.2.2[145] - The Board currently consists of four executive Directors and three independent non-executive Directors, maintaining a balance of skills and experience[159] - The Company has established a Board Diversity Policy to ensure a balance of skills, experience, and diversity of perspectives appropriate to its business needs[193] Challenges and Risks - The property and construction industry remains challenged, impacting the growth potential of marble slab sales[34] - The company acknowledges the challenges posed by geopolitical tensions and a slowing global economy[39] - The Group is concerned about increasing counterpart credit risk amid an industry downturn in the property market in the PRC[52] Employee and Operational Insights - The total staff cost for FY2022 was approximately RMB 6.1 million, an increase from RMB 5.7 million in FY2021[120][123] - The Group employed a total of 38 employees as of December 31, 2022, compared to 36 employees in the previous year[120][123] - The Group emphasizes the importance of maintaining strong relationships with customers and suppliers to ensure business development and sustainability[118] - The Group recognizes employees as valuable assets and regularly reviews staff benefits to attract and retain suitable personnel[117]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA KINGSTONE MINING HOLDINGS LIMITED 中 國 金 石 礦 業 控 股 有 限 公 司 （於開曼群島註冊成立並於百慕達存續的有限公司） （股份代號：1380） 截至2022年12月31日止年度 年度業績公告 財務摘要 截至12月31日止年度 變動 2022年 2021年 收入（人民幣千元） 72,289 74,247 (1,958) -2.6% 本公司擁有人應佔年度 虧損（人民幣千元） (61,884) (50,342) (11,542) +22.9% （經重列） ...

Revenue Performance - Revenue from the marble slags business for HY2022 was approximately RMB25.5 million, a decrease of approximately RMB2.8 million or 9.9% compared to RMB28.3 million for HY2021[12]. - The Group's revenue decreased by approximately RMB9.6 million or 27.1% from approximately RMB35.4 million for HY2021 to approximately RMB25.8 million for HY2022[38]. - For the six months ended June 30, 2022, total revenue decreased by 27.1% to approximately RMB25.8 million from RMB35.4 million in the same period of 2021[41]. - Revenue for the six months ended June 30, 2022, was RMB 25,813,000, a decrease of 27.2% compared to RMB 35,420,000 for the same period in 2021[121]. - Revenue from marble slags was RMB 25,498,000, while sales of marble slabs were RMB 0, down from RMB 7,133,000 in the previous year[160]. Sales and Demand - The average selling price of marble slags increased from approximately RMB20.1 per tonne to approximately RMB26.0 per tonne, which partially offset the revenue loss from decreased production volume[12]. - The Group did not record any sales of marble slabs during HY2022 due to tighter credit control measures implemented in response to the property debt crisis affecting construction firms in China[19]. - The Group anticipates continued low sales volume of marble slabs, which may pressure profit growth in the short term[20]. - The demand for marble slags is expected to remain weak in the forthcoming years, impacting business growth[12]. - Sales of marble slabs decreased by approximately RMB7.1 million due to tightened credit terms imposed by the Group[38]. - Sales volume of marble slags decreased by 30.4% to 980,673 tons compared to 1,408,575 tons in the first half of 2021[44]. Financial Losses and Impairments - The Group incurred a loss of approximately RMB22.8 million for HY2022, representing an increase of approximately RMB6.9 million from a loss of approximately RMB15.9 million for HY2021[53]. - The company recorded an impairment loss of RMB 13,951,000 on trade receivables, significantly higher than the RMB 6,729,000 recognized in the previous year[121]. - The total comprehensive loss attributable to owners of the company for the period was RMB 21,757,000, compared to RMB 16,401,000 in the same period last year, indicating a 32.5% increase in comprehensive loss[121]. Operational and Capital Expenditures - The total expenditure of the mining operation was approximately RMB16.3 million for HY2022, down from RMB23.2 million in HY2021[32]. - Capital expenditure for HY2022 amounted to approximately RMB41.2 million, significantly higher than RMB0.4 million in HY2021[60]. - The Group acquired property, plant, and equipment at a cost of RMB 41,200,000, a significant increase from RMB 412,000 in the same period last year[180]. Employee and Staffing Costs - The Group had a total of 42 employees as of June 30, 2022, with total staff costs increasing to approximately RMB4.5 million from RMB2.7 million in HY2021[62]. - The total employee cost for the first half of 2022 was approximately RMB 4,500,000, compared to RMB 2,700,000 in the same period of 2021, with the workforce increasing to 42 employees from 24[67]. Governance and Compliance - The Board of Directors comprised four executive directors and two independent non-executive directors as of June 30, 2022, which is below the minimum requirement under the Listing Rules[89]. - The Company has complied with the Corporate Governance Code except for deviations regarding the separation of the roles of chairman and CEO[73]. - The Company is currently seeking suitable candidates to fill the vacancies of independent non-executive directors to comply with listing rules[93]. - The Company is committed to ensuring compliance with corporate governance codes and listing rules regarding the composition of the board[93]. Cash Flow and Assets - Cash and bank balances decreased to approximately RMB2.9 million from RMB7.1 million as of December 31, 2021[55]. - The company reported a net cash outflow from operating activities of RMB 7,781,000 for the six months ended June 30, 2022, compared to a cash inflow of RMB 6,562,000 in the same period of 2021[130]. - Total assets less current liabilities amounted to RMB 242,530,000, a decrease of 8.2% from RMB 264,330,000 as of December 31, 2021[123]. Legal Matters - The company is currently involved in litigation with claims totaling approximately HK$23.7 million and HK$21.2 million against it, related to loan agreements and alleged breaches of trust[196]. - The company believes no provisions should be made for ongoing litigation as it is at an early stage and unlikely to incur further liability as of June 30, 2022[198].

Mining Operations - The Zhangjiaba Mine has 44.2 million cubic meters of measured and indicated marble resources, with an estimated 16.8 million cubic meters of proved and probable marble reserves based on a block rate of 38%[22] - The mining permit for the Zhangjiaba Mine expired on February 21, 2021, and the renewed license was issued on March 7, 2022, valid until February 21, 2026[16] - The company owns the largest beige marble mine in China, certified by the China Stone Material Association in 2010[15] - The company is focused on consolidating its mining operations and expanding its customer base to improve business performance amid economic uncertainties[43] - The company expects further development of the Zhangjiaba Mine to lower benches for large block production, which is anticipated to commence no earlier than 2025[61][64] - The Zhangjiaba Mine has approximately 44.2 million cubic meters of measured and indicated marble resources, with 16.8 million cubic meters of proved and probable reserves[56] Financial Performance - For FY2021, the Group recorded revenue of RMB 74.2 million, an increase of approximately 2.0% compared to FY2020's revenue of RMB 72.8 million[29] - Gross profit for FY2021 was RMB 15.2 million, representing a significant increase of 120.3% from RMB 6.9 million in FY2020[29] - The net loss attributable to owners of the Company for FY2021 was RMB 50.3 million, an increase of 65.5% from a net loss of RMB 30.4 million in FY2020[30] - Sales of marble slabs dropped by 62.6% in FY2021 due to weak demand and tightened credit lines to customers[31] - Conversely, sales of marble slags increased by 87.1% in FY2021, with demand remaining strong and prices returning to pre-pandemic levels[36] - For FY2021, sales of marble slabs decreased to RMB15.5 million, a decline of RMB25.9 million or 62.6% compared to RMB41.4 million in FY2020[48] - Sales of marble slags increased to RMB58.6 million in FY2021, representing an increase of RMB27.2 million or 87.1% from RMB31.4 million in FY2020[54] - The Group recorded an impairment loss of RMB7.4 million on trade receivables for FY2021, a decrease of RMB7.0 million compared to RMB14.4 million for FY2020[76] - An impairment loss of HK$33.5 million on non-financial assets was recognized in FY2021, primarily due to decreased recoverable amounts from the Zhangjiaba Mine[77] - The Group reported a loss of RMB50.3 million for FY2021, an increase of RMB19.9 million from a loss of RMB30.4 million in FY2020[78] - Total equity interests decreased by 16.5% to approximately RMB261.6 million as of December 31, 2021, compared to RMB313.1 million as of December 31, 2020[84] - Cash and bank balances increased to approximately RMB7.1 million as of December 31, 2021, up from approximately RMB4.3 million as of December 31, 2020[85] - Total borrowings amounted to approximately RMB11.8 million as of December 31, 2021, compared to RMB8.3 million as of December 31, 2020, with an annual interest rate ranging from 5% to 10%[86] Business Diversification - In December 2021, the company commenced a franchise business related to a new mode of food and beverage consumption in the UK, involving virtual restaurant brands[17] - The Company launched a virtual restaurant brand for delivery-only operations in December 2021, aiming to diversify its business amid unpredictable economic conditions[38] - The company launched a virtual restaurant brand for delivery-only operations in December 2021, with its first brand "Burgogi Korean BBQ Burger" introduced in London[55] - The Group faced setbacks in its vertical diversification expansion plan for the ground calcium carbonate (GCC) business but continues to seek new cooperation partners[37] - The company is exploring new business opportunities to maximize shareholder value in the future[43] Governance and Compliance - The Company has complied with the Corporate Governance Code for FY2021, with deviations from provisions A.2.1, A.1.8, and E.1.2[146] - There was no CEO appointed during FY2021, with executive directors undertaking CEO responsibilities, and plans to appoint a Chairman and CEO in Q2 2022[148] - The Company currently does not have insurance cover for legal actions against Directors, believing the risk is low due to existing internal controls[153] - Only one board member attended the annual general meeting in FY2021, highlighting a non-compliance with the requirement for the Chairman to attend[154] - The Board consists of four executive Directors and three independent non-executive Directors, maintaining a balance of skills and experience[160] - The independent non-executive Directors include Mr. Yang Ruimin, Mr. Andreas Varianos, and Ms. Pei Bing, who was appointed on December 1, 2021[161] - The Company’s governance practices aim to safeguard the interests of shareholders and enhance shareholder value[145] - The Board plans to strengthen management by appointing a Chairman and CEO to ensure effective governance[148] - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors throughout FY2021[155] - The Board is committed to reviewing the need for insurance cover for Directors periodically[153] Employee and Operational Management - As of December 31, 2021, the Group employed a total of 36 employees, an increase from 28 employees as of December 31, 2020[113][117] - Total staff costs for FY2021 were approximately RMB 5.7 million, up from RMB 4.6 million in FY2020, reflecting a year-over-year increase of about 24%[113][117] - The Group emphasizes the importance of maintaining strong relationships with customers and suppliers, which is critical for business sustainability[111][112] - The Group's emolument policies are based on individual performance and market salary trends, with discretionary bonuses potentially distributed based on profitability[114][116] - The Group's strategy includes regular contact with major distributors and manufacturers to optimize transportation and management costs, mitigating risks associated with reliance on a few key customers[112][116] - The management team is responsible for formulating business strategies and development plans, which are subject to Board approval[188] - The management team is accountable to the Board for the execution of business strategies and initiatives[188] Financial Strategy and Fund Utilization - The net proceeds from the rights issue amounted to approximately HK$ 276.5 million, allocated for various business operations including a joint venture for calcium carbonate production[120][122] - Approximately HK$ 191.8 million (RMB 170.0 million) of the proceeds is designated for funding a joint venture, with HK$ 149.2 million (RMB 132.2 million) for manufacturing setup and HK$ 42.6 million (RMB 37.8 million) for working capital[120][122] - An additional HK$ 33.8 million (RMB 30.0 million) is allocated for the Group's general working capital, covering daily production and operational expenses[120][122] - The remaining net proceeds of approximately HK$ 50.9 million (RMB 45.2 million) are intended for settling potential damages from litigation related to a previous underwriting agreement[120][122] - The Group's financial strategy included addressing shortfalls in working capital through the reallocation of funds[127] - The overall financial management reflects a strategic pivot in response to operational challenges faced in the GCC business[127] - The total actual use of proceeds during FY2021 was HK$20,045,000, indicating a significant reallocation from the original plan[126] Board Meetings and Attendance - The Board held 5 board meetings and 1 general meeting during FY2021[180] - Mr. Zheng Yonghui attended all 5 board meetings but did not attend the general meeting[181] - Ms. Zhang Cuiwei attended all 5 board meetings and the general meeting[181] - Mr. Mehmet Ahmed resigned as an independent non-executive director on September 2, 2021[169] - Ms. Pei Bing was appointed as an independent non-executive director on December 1, 2021[169] - The Company complied with the requirements under Rule 3.10(1), Rule 3.10(2), and Rule 3.10A of the Listing Rules throughout the year ended December 31, 2021[170] Risk Management and Compliance - The Board is responsible for overall management, including strategic decisions and risk management[182] - Independent non-executive directors are appointed for a term of three years, subject to re-election at least once every three years[167] - The Company Secretary assists in preparing the agenda for board meetings and provides updates on governance matters[175] - All minutes of board meetings are recorded in detail and are open for inspection by directors[175] - The Board comprises eight Directors, including three Independent Non-executive Directors, promoting critical review and control of management processes[194] - The Company emphasizes the importance of Board diversity, considering skills, regional and industry experience, and gender to maintain a competitive advantage[193] - The Company regularly reviews delegated functions and powers to ensure they remain appropriate[188] - All Directors have timely access to relevant information and can seek independent professional advice at the Company's expense[187] - The Nomination Committee has confirmed that the requirements of the Board Diversity Policy have been met[195]

Revenue Performance - Revenue from the marble slabs business for HY2021 was approximately RMB 7.1 million, a decrease of RMB 19.7 million or 73.4% compared to RMB 26.8 million for HY2020[13] - Revenue from the marble slags business for HY2021 was approximately RMB 28.3 million, an increase of RMB 15.6 million or 123.5% compared to RMB 12.7 million for HY2020[18] - The Group's revenue decreased by approximately RMB4.1 million or 10.3% from approximately RMB39.5 million for HY2020 to approximately RMB35.4 million for HY2021[31] - Sales of marble slabs decreased by approximately RMB19.7 million from approximately RMB26.8 million for HY2020 to approximately RMB7.1 million for HY2021, a decline of 73.4%[35] - Sales of marble slags increased by approximately RMB15.6 million from approximately RMB12.7 million for HY2020 to approximately RMB28.3 million for HY2021, an increase of 123.5%[31] - Revenue for the six months ended June 30, 2021, was RMB 35,420,000, a decrease of 10.5% from RMB 39,487,000 in the same period of 2020[134] - For the six months ended June 30, 2021, the Group's revenue from marble slags was RMB 28,287,000, while revenue from marble slabs was RMB 7,133,000, totaling RMB 35,420,000, a decrease of 10.5% compared to RMB 39,487,000 in the same period of 2020[173] Profitability and Loss - The Group's gross profit increased by approximately RMB4.4 million or 169.2% from approximately RMB2.6 million for HY2020 to approximately RMB7.0 million for HY2021[38] - Gross profit increased from approximately RMB2.6 million in HY2020 to approximately RMB7.0 million in HY2021, representing a growth of 169.2%[44] - Gross profit margin rose by approximately 13.3 percentage points from about 6.5% in HY2020 to approximately 19.8% in HY2021, primarily due to an increase in the gross profit margin of marble slags[44] - The Group incurred a loss of approximately RMB15.9 million for HY2021, a decrease of approximately RMB2.0 million from a loss of RMB17.9 million in HY2020[43] - The company reported a total comprehensive loss of RMB 16,401,000 for the six months ended June 30, 2021, compared to a loss of RMB 16,014,000 for the same period in 2020[139] - Loss before tax narrowed to RMB 15,723,000 from RMB 17,854,000 year-on-year, indicating a reduction in operational losses[134] - For the six months ended June 30, 2021, the company reported a loss of approximately RMB 15,909,000, compared to a loss of RMB 17,854,000 for the same period in 2020, indicating a 10.9% improvement in loss[187][191] Cash Flow and Financial Position - Cash and bank balances increased to approximately RMB9.6 million as of June 30, 2021, up from RMB4.3 million as of December 31, 2020[50] - Trade receivables decreased to RMB 60,666,000 from RMB 78,852,000, showing improved cash flow management[135] - Cash and cash equivalents increased to RMB 9,593,000 from RMB 4,254,000, indicating a stronger liquidity position[135] - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 6,562,000, compared to a net cash used of RMB 31,657,000 for the same period in 2020[142] - The cash and cash equivalents at the end of the reporting period on June 30, 2021, were RMB 9,593,000, down from RMB 20,568,000 at the end of June 30, 2020[142] - Net assets decreased to RMB 296,684,000 from RMB 313,085,000, reflecting the impact of losses during the period[137] Operational Challenges and Strategies - The Group is focusing on a conservative approach to additional investments in working capital due to anticipated lower credit quality of customers[13] - The Group is facing challenges in rolling out the GCC business plan due to the Covid-19 pandemic and difficulties in securing cooperation partners[19] - The demand for marble slags remained stable, primarily due to its use as a raw material for manufacturing ground calcium carbonate (GCC)[18] - The Group aims to strengthen production and operations while expanding the client base to improve the performance of the marble business[27] - The Group remains vigilant against unpredictable international developments that might adversely affect its business[27] Corporate Governance - The Company complied with the Corporate Governance Code for HY2021, with some deviations noted regarding the roles of chairman and CEO[85][86] - The Board temporarily assigned independent members to fulfill the roles of chairman and CEO due to the absence of formal appointments during HY2021[86] - The company has complied with all code provisions of the Corporate Governance Code throughout HY2021, except for deviations from provisions A.2.1 and A.1.8[93] - As of June 30, 2021, the board consists of four executive directors and three independent non-executive directors[96] - The audit committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for HY2021 and recommended their adoption to the board[95] Share Options and Dividends - The Board does not recommend the payment of an interim dividend for HY2021[129] - The company has not granted any share options under the New Share Option Scheme since its adoption on June 29, 2020[119] - The New Share Option Scheme provides the company with more flexibility in long-term planning for granting options to eligible persons over a longer period[118] - The company terminated the 2011 Share Option Scheme on January 24, 2011, to adopt the New Share Option Scheme[117] - The company did not recommend any dividend payment for the six months ended June 30, 2021, and 2020[189][193]