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]

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].

2020 中期報告 INTERIM REPORT Corporate Information 公司資料 BOARD OF DIRECTORS Executive Directors Mr. Zheng Yonghui Mr. Zhang Jianzhong (ceased on 29 June 2020) Mr. Zhang Weijun Ms. Zhang Cuiwei Mr. Zhang Mian Independent Non-executive Directors Ms. Wang Yihua (ceased on 29 June 2020) Mr. Sheng Guoliang (ceased on 29 June 2020) Mr. Yang Ruimin Mr. Andreas Varianos (appointed on 17 July 2020) AUDIT COMMITTEE Mr. Andreas Varianos (Chairman) (appointed on 17 July 2020) Ms. Wang Yihua (Chairman) (ceased on 29 June 202 ...

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].