Financial Performance - For FY2020, the Group recorded revenue of RMB72.8 million, representing an increase of approximately 10.8% compared to FY2019's revenue of RMB65.7 million[22]. - The gross profit for FY2020 was RMB6.9 million, which is a 56.8% increase from FY2019's gross profit of RMB4.4 million[22]. - The net loss attributable to owners of the Company for FY2020 was RMB30.4 million, a significant improvement from the net loss of RMB68.5 million in FY2019[23]. - Basic loss per share for FY2020 was RMB1.1 cents, compared to RMB2.4 cents per share for FY2019, indicating a reduction in loss per share[23]. - The Group's revenue increased by approximately RMB7.1 million or 10.8% from approximately RMB65.7 million for FY2019 to approximately RMB72.8 million for FY2020[54]. - Gross profit increased by approximately RMB2.5 million or 55.8% from RMB4.4 million in FY2019 to RMB6.9 million in FY2020, with the gross profit margin rising from 6.7% to 9.5%[59]. - The Group reported a loss of RMB30.4 million for FY2020, an improvement of RMB38.1 million compared to a loss of RMB68.5 million in FY2019[65]. Mining Operations - As of December 31, 2020, the Zhangjiaba Mine had total marble resources of 39.86 million cubic meters, down from 41.68 million cubic meters in 2019[18]. - The proved reserves of the Zhangjiaba Mine were 5.07 million cubic meters in 2020, a slight decrease from 5.30 million cubic meters in 2019[18]. - The probable reserves for the Zhangjiaba Mine were 9.14 million cubic meters in 2020, down from 9.56 million cubic meters in 2019[18]. - The mining permit for Zhangjiaba Mine expired on February 21, 2021, and the Company is in the process of renewing it for another 5 years[12]. - The block rate for marble resources is expected to be 38%, equivalent to an estimated 16.8 million cubic meters of proved and probable marble reserves[13]. - 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[47]. - The total expenditure of the mining operation was approximately RMB26.8 million in FY2020, compared to RMB23.9 million in FY2019[53]. Market Conditions - Marble slab demand remained weak due to construction project delays caused by the Covid-19 pandemic, affecting small and medium-sized construction companies financially[25]. - The average selling price of marble slags decreased during FY2020 due to slowing economic growth in China and a sudden increase in supply in the market[30]. - The Group's marble slag sales were impacted by increased supply in the market, leading to a temporary drop in prices[43]. - The Group believes that the selling price of marble slags will recover gradually as the Chinese economy regains positive momentum[30]. - The Group anticipates that the price of marble slags will gradually recover with the economic recovery in China[43]. Operational Strategy - The Group is focused on expanding its operations in the production and sales of marble and marble-related products in China[12]. - The Group plans to consolidate production and operations in the mining business while extending the customer base to improve marble business performance[31]. - The Group plans to integrate the GCC business with the existing marble slag business, utilizing its own marble resources for production[45]. - The Group has been seeking new cooperation partners for the GCC business plan, which has been delayed due to travel restrictions amid the Covid-19 pandemic[46]. - The Group will continue to explore new business opportunities to maximize shareholder value in the future[31]. Financial Position - As of December 31, 2020, total equity interests decreased by 9.9% to approximately RMB313.1 million, primarily due to the net loss recorded[66]. - As of December 31, 2020, the Group had cash and bank balances of approximately RMB4.3 million, a significant decrease from RMB49.0 million in FY2019[73]. - The total borrowings of the Group amounted to RMB8.3 million, with an interest rate ranging from 5.0% to 12% for the fiscal year 2020, compared to 10% in the previous fiscal year[79]. - Capital expenditure for FY2020 amounted to RMB6.3 million, up from RMB3.3 million in FY2019, mainly for the acquisition of property, plant, and equipment[75]. - The total staff cost for FY2020 was approximately RMB4.6 million, significantly reduced from RMB17.2 million in FY2019, with the number of employees decreasing from 31 to 28[99]. Corporate Governance - The Company deviated from code provision A.2.1 of the CG Code, as there was no CEO or appointed chairman during FY2020, with executive directors undertaking CEO responsibilities[144]. - The Board comprises four executive Directors and three independent non-executive Directors, maintaining a balance of skills and experience[152]. - The Company received annual confirmations of independence from its independent non-executive Directors, and the Board considers all of them independent as per the Listing Rules[162]. - The Company does not have insurance cover for legal actions against Directors, as the Board believes the risk of litigation is relatively low due to the current internal control system[150]. - The Company emphasizes the importance of Board diversity to enhance operating results and performance quality[182].

Revenue Performance - For the six months ended June 30, 2020, revenue from the marble slabs business was approximately RMB 26.8 million, an increase of approximately RMB 11.1 million or 71.3% compared to RMB 15.7 million for the same period in 2019[13]. - Revenue from the marble slags business reached approximately RMB 12.7 million, representing a decrease of approximately RMB 0.9 million or 7.2% compared to RMB 13.6 million in the first half of 2019[20]. - The Group's revenue increased by approximately RMB10.2 million or 34.8% from approximately RMB29.3 million for HY2019 to approximately RMB39.5 million for HY2020[38]. - Total revenue for the six months ended June 30, 2020, was RMB 39,487,000, an increase from RMB 29,298,000 in the same period of 2019, representing a growth of approximately 34.7%[184]. - Revenue from marble slabs accounted for 68% of total revenue in 2020, up from 53% in 2019, while revenue from marble slags decreased to 32% from 47%[184]. Profitability and Loss - Gross profit decreased by approximately RMB1.8 million or 40.9% from approximately RMB4.4 million for HY2019 to approximately RMB2.6 million for HY2020[45]. - Gross profit margin decreased by approximately 8.4 percentage points from approximately 14.9% for HY2019 to approximately 6.5% for HY2020[46]. - The Group recorded a loss of approximately RMB17.9 million for HY2020, a decrease of approximately RMB2.7 million compared to a loss of RMB20.6 million for HY2019[50]. - The group reported a loss of approximately RMB 17,854,000 for the six months ended June 30, 2020, compared to a loss of RMB 20,606,000 in the same period of 2019, indicating an improvement in financial performance[195]. - Basic loss per share attributable to owners of the company was RMB 0.0063 for the six months ended June 30, 2020, compared to RMB 0.0073 for the same period in 2019[200]. Market Conditions and Outlook - The Group does not foresee signs of recovery in the construction materials market in the near term, which is closely linked to the property development industry[13]. - The economic outlook for China remains cautious due to the ongoing effects of the COVID-19 pandemic and tensions with the US[21]. - The Group believes the decline in the price of marble slags is temporary and expects recovery as demand for marble blocks revives with the resumption of construction projects[21]. - The Group's marble slabs sales increase during HY2020 was primarily due to pent-up demand during the COVID-19 pandemic[13]. Operational Developments - The COVID-19 pandemic caused production disruptions, halting marble slags production until around March 2020[20]. - The Group is adapting to market conditions by potentially converting part of its production capacity from marble blocks to marble slags[21]. - The Group's mining operations are expected to commence large block production no earlier than 2021, requiring further development of the mine[32]. - The Group plans to integrate the GCC business with the existing marble slag business, expecting to enhance competitiveness through stable supply and cost advantages[25]. Financial Position - As of 30 June 2020, the Group's total equity interests were approximately RMB331.5 million, a decrease of approximately RMB16.0 million or 4.6% from approximately RMB347.5 million as of 31 December 2019[51]. - The Group's cash and bank balances decreased to approximately RMB20.6 million as of 30 June 2020, down from RMB49.0 million as of 31 December 2019[58]. - Total borrowings amounted to approximately RMB8.0 million as of 30 June 2020, an increase from RMB4.3 million as of 31 December 2019[59]. - Trade receivables increased significantly to RMB 81,851,000, up 37.9% from RMB 59,368,000 as of December 31, 2019[151]. - Net assets as of June 30, 2020, were RMB 331,510,000, down from RMB 347,524,000 at the end of 2019[152]. Governance and Compliance - The company has not complied with code provisions A.2.1, A.1.8, and A.5.1 of the Corporate Governance Code during HY2020[102]. - The company has not established a nomination committee in compliance with the Corporate Governance Code due to a lack of independent non-executive directors following the AGM[99]. - The audit committee must comprise a minimum of 3 members, with a majority being independent non-executive Directors, as per Listing Rules[111]. - The Company is actively seeking suitable candidates to fill the vacancies for independent non-executive Directors to comply with Listing Rules[113]. Share Options and Dividends - The Board does not recommend the payment of an interim dividend for HY2020[143]. - The New Share Option Scheme was adopted on June 29, 2020, providing flexibility for long-term planning in granting options[132]. - No share options were granted under the New Share Option Scheme since its adoption[133]. - The total number of unexercised share options under the 2011 Share Option Scheme as of June 30, 2020, was 263,247,287[139].

2019 年度報告 ANNUAL REPORT CONTENT 目錄 2 Corporate Information 公司資料 4 Corporate Profile 企業簡歷 6 Chairman's Statement 主席報告 9 Management Discussion and Analysis 管理層討論及分析 20 Profile of Directors and Senior Management 董事及高級管理層簡歷 23 Corporate Governance Report 企業管治報告 40 Environmental, Social and Governance Report 環境、社會及管治報告 50 Report of the Directors 董事會報告 63 Independent Auditor's Report 獨立審計師報告 71 Consolidated Statement of Profit or Loss and Other Comprehensive Income 綜合損益及其他全面收益表 72 Consolidated Statement of Financ ...

Financial Performance - Sales of marble slabs decreased by 21.8% from RMB20.0 million in HY2018 to RMB15.7 million in HY2019 due to reduced demand linked to the US-China trade standoff [18]. - Revenue from the marble slags business increased to approximately RMB13.6 million in HY2019, up from RMB5.1 million in HY2018, driven by increased production and strong demand from GCC manufacturers [19]. - The Group's revenue increased by RMB4.2 million or 16.7% from RMB25.1 million for HY2018 to RMB29.3 million for HY2019, primarily due to an increase in sales of marble slags [25]. - The Group recorded a loss of RMB20.6 million for HY2019 compared to a profit of RMB0.9 million for HY2018, influenced by litigation provisions and impairment losses [37]. - Gross profit rose by RMB1.2 million or 3.8% to RMB4.4 million for HY2019, with the gross profit margin increasing from 12.6% to 14.9% [31]. - The total comprehensive loss attributable to owners of the company for the period was RMB20,487,000, compared to a comprehensive income of RMB6,177,000 in 2018 [136]. - Basic and diluted loss per share for the period was RMB (0.73) cents, compared to earnings of RMB 0.03 cents per share in 2018 [127]. Sales and Production - Sales of marble slabs decreased by 21.8% from RMB20,042,000 in HY2018 to RMB15,663,000 in HY2019, attributed to reduced demand in the decoration sector [29]. - Sales of marble slags increased significantly by 168.9% from RMB5,071,000 in HY2018 to RMB13,635,000 in HY2019, driven by higher production and strong demand from manufacturers [29]. - The sales volume of marble slabs decreased by 28.4% to 56,562 square meters in HY2019, while marble slags sales volume increased by 146.4% to 485,704 tonnes [30]. - Average selling prices for marble slabs increased by 9.1% to RMB277 per square meter, while marble slags saw a 7.7% increase to RMB28 per tonne [30]. Expenditures and Costs - For the six months ended June 30, 2019, the Group's total expenditure on mining operations was approximately RMB9.4 million, including RMB3.6 million for depreciation, RMB3.5 million for fuel and materials, and RMB1.0 million for repair and safety protection costs [13]. - Administrative expenses increased from RMB18.6 million in HY2018 to RMB20.0 million in HY2019, primarily due to a rise in share option expenses [35]. - Capital expenditure amounted to RMB3.2 million during HY2019, up from RMB1.3 million in HY2018, mainly for acquiring plant and machinery [40]. - The total staff cost for the first half of 2019 was approximately RMB13.2 million, compared to RMB3.1 million in the first half of 2018, reflecting an increase in employee headcount from 23 to 28 [48]. Cash Flow and Financial Position - The Group's cash and bank balances decreased to RMB57.6 million as of June 30, 2019, from RMB65.1 million at the end of 2018 [39]. - The net current assets as of June 30, 2019, were RMB112,896,000, down from RMB118,541,000 at the end of 2018, indicating a decrease of about 4.5% [131]. - The company reported a net cash used in operating activities of RMB4,553,000 for the six months ended June 30, 2019, an improvement compared to RMB29,187,000 for the same period in 2018 [138]. - Cash and cash equivalents at the end of the period were RMB57,567,000, down from RMB65,058,000 at the beginning of the period, reflecting a decrease of approximately 11.5% [138]. Shareholder Information - As of June 30, 2019, Mr. Zheng Yonghui holds a total interest of 426,737,542 ordinary shares, representing 15.07% of the company's issued capital [106]. - Mr. Zheng Yonghui directly owns 138,740,000 ordinary shares, which accounts for 4.90% of the company's issued capital [106]. - Oasis Tycoon Investments Limited, controlled by Mr. Zheng, holds 287,997,542 ordinary shares, representing 10.17% of the company's issued capital [106]. Legal and Regulatory Matters - The company is currently involved in multiple litigation cases, including a claim for approximately HK$23.7 million against a former director's company and a claim for approximately HK$21.2 million against the Company itself [78]. - A provision of RMB1.2 million was made for ongoing litigation related to a loan assignment agreement dispute [80]. - The joint venture for heavy calcium carbonate production was temporarily suspended due to legal issues surrounding mining rights [67]. Accounting Standards and Policies - The Group's interim financial statements for the six months ended June 30, 2019, were prepared in accordance with IAS 34 and the relevant disclosure requirements of the Hong Kong Listing Rules [147]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, except for IFRS 16, which has introduced a single accounting model for lessees [152]. - The Group recognized the cumulative effect of the initial application of IFRS 16 as an adjustment to the opening balance of equity at January 1, 2019 [158]. - The adoption of IFRS 16 positively impacted reported profit from operations compared to the previous IAS 17, as interest expense and depreciation replaced rental expenses [177].

Financial Performance - For the year ended December 31, 2018, the Group recorded revenue of RMB67.7 million, representing an increase of approximately 115.6% compared to RMB31.4 million in FY2017[19] - The gross profit for FY2018 was RMB4.5 million, a significant increase of 309.1% from RMB1.1 million in FY2017[19] - The net loss attributable to owners of the Company for FY2018 was RMB19.3 million, compared to a net profit of RMB7.8 million in FY2017[20] - Basic loss per share for FY2018 was RMB0.7 cents, compared to basic earnings per share of RMB0.5 cents for FY2017[20] - The Group's revenue for the fiscal year 2018 was approximately RMB 67.7 million, representing an increase of about 115.6% from RMB 31.4 million in fiscal year 2017[24] - Gross profit for the fiscal year 2018 was approximately RMB 4.5 million, a significant increase of 309.1% compared to RMB 1.1 million in fiscal year 2017[24] - The Group reported a net loss attributable to shareholders of RMB 19.3 million for fiscal year 2018, compared to a net profit of RMB 7.8 million in fiscal year 2017[24] - Sales volume of marble slabs increased by 113.1% to 204,566 square meters in fiscal year 2018, while sales volume of marble slags rose by 44.8% to 563,187 tonnes[35] - Average selling price of marble slabs increased by 4.5% to RMB 257 per square meter, and average selling price of marble slags increased by 35.9% to RMB 26.9 per tonne[35] Resource Management - The Zhangjiaba Mine contains 44.2 million cubic meters of measured and indicated marble resources, with a block rate expected to be 38%[10] - As of December 31, 2018, the total marble reserves at Zhangjiaba Mine were estimated at 13.69 million cubic meters, down from 15.21 million cubic meters in 2017[15] - The total resources at Zhangjiaba Mine decreased from 42.65 million cubic meters in 2017 to 42.24 million cubic meters in 2018[15] - 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[36] Business Challenges and Strategies - The Group is facing challenges due to escalating US-China trade disputes and competition from overseas marble stone importers[21] - The Group continues to produce and sell marble slags and is also engaged in trading marble slabs sourced from other suppliers[22] - The Group is developing the Zhangjiaba mine to lower benches for higher quality large block production, though timelines for production remain uncertain[22] - The Group continues to explore new business opportunities to maximize shareholder value in the future[28] - The Group plans to expand its downstream business in ground calcium carbonate production through a joint venture established in August 2018, with a 51% stake held by the Group[27] Financial Management - Total expenditure for mining operations in fiscal year 2018 was approximately RMB 20.7 million, an increase from RMB 15.1 million in fiscal year 2017[41] - Cash and bank balances as of December 31, 2018, were approximately RMB65.1 million, down from RMB168.6 million in FY2017, indicating a need for future liquidity management[54] - The Group's capital expenditure for FY2018 amounted to RMB2.8 million, primarily related to stripping costs capitalized for mine platforms[55] - The five largest customers accounted for 90% of total sales in FY2018, with the largest customer representing 46% of total sales, indicating a high customer concentration risk[66] - The Group aims to broaden its customer base by offering new packages to distributors and integrating downstream production, which may reduce reliance on major customers[67] - The Group's credit terms for marble slabs business customers typically allow for a 90-day payment period, while marble slags business customers have a payment period of 0 to 90 days[72] Governance and Compliance - The company has complied with the Corporate Governance Code for the fiscal year ended December 31, 2018, with some deviations noted[109] - The roles of chairman and CEO were not separated during FY2018, with Mr. Wang Minliang holding both roles until his resignation on September 12, 2018[110] - The company did not have a designated CEO during FY2018, with executive directors undertaking CEO responsibilities[110] - The chairman position remained vacant after Mr. Wang's resignation, with independent board members temporarily assuming the role to ensure effective governance[110] - The company did not arrange appropriate insurance cover for legal actions against directors, believing the risk of litigation to be low due to existing internal controls[114] - The company confirmed that all directors complied with the Model Code for Securities Transactions throughout the year ended December 31, 2018[121] - The Board is tasked with overseeing the Group's businesses, strategic decisions, internal control, risk management, and performance evaluation[141] - The Board's governance framework aims to protect shareholder interests and enhance shareholder value[111] Audit and Risk Management - The Audit Committee comprises three Independent Non-executive Directors, with Ms. Wang Yihua serving as the chairman[161] - The Audit Committee is responsible for recommending the appointment and removal of external auditors and overseeing internal control procedures[156] - The Audit Committee continuously reviews the risk management and internal controls significant to the Group, considering the adequacy of resources and qualifications of staff[199] - The management is tasked with designing, maintaining, implementing, and monitoring the risk management and internal control system to protect the Group's assets[200] - The Board acknowledges its responsibility to safeguard the Group's assets and prevent fraud and irregularities[194] Board Composition and Diversity - The Board consists of seven Directors, including three Independent Non-executive Directors, promoting critical review and control of management processes[147] - The Company emphasizes the importance of Board diversity in maintaining a competitive advantage, considering skills, experience, and other qualities[146] - The Board's composition is characterized by significant diversity in terms of gender, age, professional experience, skills, and knowledge[147] - The Nomination Policy ensures diversity in the Board's skills, experience, and perspectives to meet the Group's business development requirements[1] - The independent non-executive directors serve a term of three years, subject to re-election at least once every three years[130][135]