Financial Performance - Revenue for Q1 2024 reached RMB 109,224,000, an increase of 15.3% compared to RMB 94,720,000 in Q1 2023[5] - Gross profit for Q1 2024 was RMB 57,547,000, up 21.6% from RMB 47,308,000 in the same period last year[5] - Net profit for Q1 2024 was RMB 36,299,000, representing a 28.0% increase from RMB 28,383,000 in Q1 2023[5] - Basic and diluted earnings per share for Q1 2024 were RMB 0.02, compared to RMB 0.01 in Q1 2023[5] - Revenue for the reporting period was approximately RMB 109,224,000, an increase of approximately 15.3% compared to RMB 94,720,000 in the comparable period, primarily due to an average selling price increase of approximately 17.3%[31] - Net profit for the reporting period was approximately RMB 36,299,000, an increase of approximately 27.9% compared to RMB 28,383,000 in the comparable period, driven by higher average selling prices and increased interest income from cash and cash equivalents[32] - Basic and diluted earnings per share for the reporting period were approximately RMB 0.02, an increase of about 100% compared to RMB 0.01 in the comparable period[33] - Gross profit for the reporting period was approximately RMB 57,547,000, an increase of about 21.6% from RMB 47,308,000 in the comparable period, with a gross profit margin of approximately 52.7%, up about 5.5% from 49.9% in the comparable period[37] - Other income and gains for the reporting period were approximately RMB 5,018,000, an increase of about 122.6% from RMB 2,254,000 in the comparable period, mainly due to increased interest income from cash and cash equivalents[38] - Administrative expenses for the reporting period were approximately RMB 9,843,000, an increase of about 43.7% from RMB 6,852,000 in the comparable period, attributed to increased administrative costs following the listing on the Hong Kong Stock Exchange and higher R&D costs[39] Cash Flow and Assets - Operating cash flow for Q1 2024 was RMB 41,632,000, a decrease from RMB 47,875,000 in Q1 2023[12] - Total assets as of March 31, 2024, were RMB 1,076,062,000, compared to RMB 1,039,815,000 as of December 31, 2023[9] - Cash and cash equivalents at the end of Q1 2024 were RMB 609,066,000, up from RMB 586,840,000 at the beginning of the quarter[15] - The group’s cash and cash equivalents increased from approximately RMB 586,840,000 as of December 31, 2023, to approximately RMB 609,066,000 as of March 31, 2024, primarily due to cash generated from operating activities[46] - The group’s operating working capital as of March 31, 2024, was approximately RMB 498,067,000, compared to RMB 458,108,000 as of December 31, 2023[46] - As of March 31, 2024, the group's trade receivables balance is zero, indicating a significant reduction in credit risk[53] - The group has no capital commitments related to contract costs that have not been accrued in the financial statements as of March 31, 2024[58] - The group has a pledged deposit of RMB 19,241,000 for environmental restoration guarantees, with no other assets pledged[57] Subsidiaries and Operations - The company operates in gold mining, processing, and sales in China, with a significant focus on investment holding through its subsidiary Majestic Gold Corp.[1] - The subsidiary Yantai Zhongjia Mining Co., Ltd. is 75% owned by the company and is engaged in gold mining and processing in China, with a registered capital of RMB 228,705,500.[2] - The consolidated financial statements include the financial results of the company and its subsidiaries for the three months ending March 31, 2024.[4] - The company maintains control over its subsidiaries, which are consolidated from the date control is obtained until the date control ceases.[5] - The company’s financial performance is evaluated based on the consolidated results of its subsidiaries, with all intercompany transactions eliminated upon consolidation.[6] - The company will reassess its control over subsidiaries if any changes in the factors indicating control occur.[7] - The company’s primary business activities are focused on gold extraction and sales, highlighting its strategic positioning in the mining sector.[10] Regulatory and Market Environment - The group is subject to regulatory changes in the gold mining and refining industry, which could impact its operations[56] - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[3] - The company is closely monitoring economic conditions and foreign exchange risk, considering appropriate hedging measures if necessary[54] - The group does not intend to hedge against foreign exchange risk, which primarily arises from cash held in USD and CAD[54] Governance and Financial Reporting - The financial statements are prepared in accordance with International Financial Reporting Standards and presented in Renminbi, with amounts rounded to the nearest thousand.[3] - The financial statements do not include all disclosures required by International Financial Reporting Standards for annual financial statements, thus should be read in conjunction with the annual consolidated financial statements.[8] - The board emphasizes that the financial and operational data presented are based on unaudited management accounts, advising investors to avoid over-reliance on such data[59] - The board of directors consists of experienced individuals, ensuring strong governance and oversight of the company's operations[62]

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 383,463,000, a decrease of about 8.4% compared to RMB 418,413,000 in 2022[21] - The net profit for the same period was approximately RMB 94,939,000, down approximately 21.5% from RMB 120,990,000 in 2022[21] - The total ore mined in 2023 was 1,830.70 thousand tons, a decrease from 1,989.20 thousand tons in 2022[14] - Gold production in 2023 was 882.3 kilograms, down from 1,072.5 kilograms in 2022[14] - The company achieved a gold recovery rate of 94.46% in 2023, slightly lower than 95.31% in 2022[14] - The earnings per share for 2023 was RMB 0.04, down from RMB 0.06 in 2022[11] - Revenue for the year was approximately RMB 383,463,000, down about 8.4% from RMB 418,413,000 in 2022, primarily due to a 19.6% decline in sales volume[27] - Net profit for the year was approximately RMB 94,939,000, a decrease of about 21.5% from RMB 120,990,000 in 2022, attributed to reduced gold sales due to mining activity suspension[28] - Basic and diluted earnings per share were approximately RMB 0.04, down about 33.3% from RMB 0.06 in 2022[29] - Gross profit for the year was approximately RMB 183,253,000, a decrease of about 16.2% from RMB 218,590,000 in 2022, with a gross margin of approximately 47.8%[42] - Other income and gains for the year were approximately RMB 9,851,000, down about 26.5% from RMB 13,403,000 in 2022, mainly due to a decline in sulfur sales[43] - Administrative expenses increased by approximately 28.3% to RMB 43,239,000, primarily due to increased listing expenses[44] - Financing costs increased by approximately 7.3% to about RMB 3,170,000 from RMB 2,955,000 in 2022, primarily due to rising actual interest rates[46] - Income tax expenses decreased by approximately RMB 12,600,000 to about RMB 51,318,000 from RMB 63,918,000 in 2022, attributed to a decline in pre-tax profit, with an effective tax rate of approximately 35.1%[47] - Profit attributable to equity holders of the parent company was approximately RMB 65,025,000, a decrease of about 21.9% from RMB 83,214,000 in 2022, mainly due to reduced sales resulting from a suspension of mining activities from May to mid-July 2023[48] Assets and Liabilities - Non-current assets as of December 31, 2023, were RMB 581,707,000, an increase from RMB 554,171,000 in 2022[12] - Current assets increased significantly to RMB 636,194,000 in 2023 from RMB 331,878,000 in 2022[12] - Cash and cash equivalents increased to approximately RMB 586,840,000 as of December 31, 2023, from about RMB 282,187,000 in 2022, primarily due to net proceeds from the successful IPO[50] - The group had outstanding bank borrowings of approximately RMB 30,000,000 as of December 31, 2023, unchanged from 2022, with all borrowings at fixed interest rates[52] - The company's distributable reserves as of December 31, 2023, amounted to approximately RMB 525,411,000, an increase from RMB 322,794,000 in 2022[110] Market and Growth Strategy - The company plans to expand its mining operations and improve gold processing operations to achieve sustainable growth in Shandong Province[22] - The company anticipates that gold spot prices in China will rise in 2024 due to increasing demand for safe-haven assets, with global gold prices expected to grow at a compound annual growth rate of 3.6% from USD 1,801.3 per ounce in 2022 to USD 2,148.4 per ounce by 2027[64] - The company plans to expand its mining operations and increase gold reserves through operational efficiency and acquisition of value-added assets in China[64] - On March 25, 2024, the company’s wholly-owned subsidiary signed a letter of intent to acquire 70% of the issued share capital of a target company engaged in gold mining and related activities in Shandong Province, China[65] IPO and Proceeds Utilization - The company’s market capitalization was marked by its successful listing on the Hong Kong Stock Exchange on December 22, 2023[20] - The net proceeds from the global offering amounted to approximately HKD 218.3 million after deducting underwriting fees and other expenses[66] - As of December 31, 2023, the company has utilized approximately HKD 3.0 million of the net proceeds from the global offering[67] - The allocation of net proceeds includes 20.4% (HKD 44.5 million) for further construction of mining infrastructure, expected to be utilized by June 2025[67] - 55.0% (HKD 120.1 million) of the proceeds is allocated for selective acquisitions of gold mining assets, with a revised timeline for utilization pushed to February 2025[67] - 12.6% (HKD 27.5 million) is designated for repaying existing bank loans, expected to be utilized by September 2024[67] - The company plans to use 10.0% (HKD 21.8 million) for working capital, with HKD 3.0 million already utilized and the remainder expected to be used by December 2025[67] - The remaining unutilized net proceeds are held in a licensed bank in Hong Kong as of December 31, 2023[69] - The company is conducting due diligence on a potential gold mine in Yantai, with a letter of intent signed on March 25, 2024[69] - The timeline for utilizing the remaining proceeds for business expansion through selective acquisitions has been adjusted from September 2024 to February 2025[69] - The company emphasizes a cautious approach to utilizing the proceeds to maintain flexibility in response to changing market conditions[69] Corporate Governance - The company appointed Dr. Jeffrey Francis Malaihollo as an independent non-executive director in November 2023[75] - The board consists of eight members, including four executive directors and four independent non-executive directors[157] - The company has established mechanisms for independent non-executive directors to express their opinions openly and provide independent professional judgment[159] - The board of directors consists of four independent non-executive directors, accounting for 50% of the total board members[168] - All independent non-executive directors confirmed their independence in accordance with the listing rules[168] - The company has complied with the corporate governance code regarding the appointment and re-election of directors[169] - The company has established a nomination committee to evaluate the board's structure and composition, ensuring alignment with corporate strategy[183] - The nomination committee consists of four members, including the executive director and chairman of the committee, ensuring a diverse representation[183] Employee and Social Responsibility - The company is committed to providing equal opportunities and a harmonious work environment for its employees[86] - The company has adopted environmental policies to minimize the impact of its operations on the environment[85] - The company maintains good relationships with its customers and has not experienced any significant disputes or controversies with employees, suppliers, or customers during the year[88] - As of December 31, 2023, approximately 86% of the company's employees are male, while about 14% are female, indicating a significant gender imbalance in the workforce[175] - The company emphasizes the importance of gender diversity and aims to improve the representation of women in its workforce[175] - The company will continue to promote gender diversity in future board appointments without specific targets, focusing on overall merit and contribution[174] Risk Management - The board is responsible for risk management and internal control systems, which are regularly reviewed for effectiveness[197] - The company has established risk management policies to regulate its risk management, including ESG risks, and aims to enhance operational management levels[197] - The board reviews significant risks, including ESG risks, and the effectiveness of the internal control systems annually[198] - The group has engaged independent professional consultants to conduct an annual review of the effectiveness of risk management and internal control systems as of December 31, 2023[200] - The group believes that its risk management and internal control procedures are sufficient to meet the demands of its current operating environment[200] - The group has established a whistleblowing system to allow employees and stakeholders to report serious concerns about potential misconduct confidentially and anonymously[199] - The risk management process involves identifying, assessing, responding to, monitoring, and reporting risks[199]

Financial Performance - For the year ended December 31, 2023, the group's revenue was approximately RMB 383,463,000, a decrease of about 8.4% compared to RMB 418,413,000 in 2022[3]. - The group's net profit for the year was approximately RMB 94,939,000, down approximately 21.5% from RMB 120,990,000 in 2022[3]. - Basic and diluted earnings per share attributable to ordinary shareholders of the parent company were approximately RMB 0.04, a decrease of about 33.3% from RMB 0.06 (restated) in 2022[3]. - The total comprehensive income for the year was RMB 94,425,000, compared to RMB 131,126,000 in 2022, reflecting a decline[8]. - The group reported a gross profit of RMB 183,253,000 for the year, down from RMB 218,590,000 in 2022, indicating a decline in profitability[5]. - Administrative expenses rose to RMB 43,239,000 in 2023 from RMB 33,711,000 in 2022, reflecting increased operational costs[5]. - Revenue from gold bar sales decreased to RMB 383,463 thousand in 2023, down 8.3% from RMB 418,413 thousand in 2022[35]. - Total other income and gains fell to RMB 9,851 thousand in 2023, a decline of 26.5% from RMB 13,403 thousand in 2022[35]. - The group's profit before tax was impacted by a cost of sold inventory amounting to RMB 200,210 thousand in 2023, slightly up from RMB 199,823 thousand in 2022[37]. - The group incurred employee benefit expenses totaling RMB 50,125 thousand in 2023, an increase of 34.3% compared to RMB 37,270 thousand in 2022[37]. - The income tax expense for the group was RMB 51,318 thousand in 2023, down 19.8% from RMB 63,918 thousand in 2022[39]. - The total tax expense for the year was RMB 51,318,000, down from RMB 63,918,000 in 2022, reflecting a decrease of approximately 19.8%[40]. - The group's mother company owners' profit attributable was approximately RMB 65,025,000, a decrease of about 21.9% from RMB 83,214,000 in 2022, mainly due to reduced sales volume[69]. - Gross profit decreased by approximately 16.2% to about RMB 183,253,000 (2022: RMB 218,590,000), with a gross margin of approximately 47.8% (2022: 52.2%) due to increased sales costs and reduced gold production[62]. Assets and Liabilities - The group's total assets less current liabilities increased to RMB 1,039,815,000 in 2023 from RMB 739,618,000 in 2022[10]. - Non-current assets totaled RMB 581,707,000 in 2023, up from RMB 554,171,000 in 2022[10]. - Cash and cash equivalents increased significantly to RMB 586,840,000 in 2023 from RMB 282,187,000 in 2022[10]. - The company's inventory totaled RMB 21,821,000, an increase from RMB 18,652,000 in 2022, representing a growth of approximately 11.6%[43]. - Trade payables amounted to RMB 10,273,000, a decrease from RMB 12,426,000 in 2022, indicating a reduction of about 17.4%[43]. - The group had outstanding bank loans of approximately RMB 30,000,000 as of December 31, 2023, unchanged from 2022, which were fully repaid on August 25, 2023[74]. - The group’s deferred tax liabilities increased to RMB 4,555 thousand in 2023, compared to RMB 3,762 thousand in 2022[39]. Gold Production and Sales - The total gold production for the year was approximately 882.3 kg (or about 28,366.4 ounces), a decrease of approximately 18.7% compared to the previous year[45]. - The group's gold production for the year was approximately 882.3 kg (equivalent to about 28,366.4 ounces), a decrease of approximately 190.2 kg (equivalent to about 6,114.7 ounces) or 17.7% compared to last year[53]. - Revenue decreased by approximately 8.4% to about RMB 383,463,000 (2022: RMB 418,413,000), primarily due to the reduction in gold production[59]. - The average selling price increased by 14% compared to last year despite the decrease in gold production[59]. Corporate Governance and Management - The company operates as an investment holding company with subsidiaries engaged in gold mining, processing, and sales in China[1]. - The company is led by Dr. Shao, who serves as both Chairman and CEO, ensuring effective management and business development since 2019[103]. - The board believes that having the same person in both roles enhances internal leadership consistency and strategic planning efficiency[103]. - The audit committee, composed of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year[108]. - The company has complied with the corporate governance code during the year ending December 31, 2023, with no significant deviations reported[101]. Future Outlook and Plans - The group anticipates that gold spot prices in China will rise in 2024, driven by recovering demand for safe-haven assets and supportive consumption policies[87]. - Global gold spot prices are projected to increase from USD 1,801.3 per ounce in 2022 to USD 2,148.4 per ounce by 2027, reflecting a compound annual growth rate of 3.6%[87]. - The company aims to expand its mining operations and increase gold reserves through the acquisition of valuable assets in China, solidifying its position in Shandong Province[89]. - On March 25, 2024, the company's wholly-owned subsidiary PRG Res Holding 2 Ltd. signed a letter of intent to acquire 70% of the issued share capital of a target company engaged in gold mining and related activities in Yantai, Shandong Province[89]. - The allocation of the net proceeds includes 20.4% (HKD 44.5 million) for optimizing mining operations, 55.0% (HKD 120.1 million) for selective acquisitions, and 12.6% (HKD 27.5 million) for repaying existing bank loans[92]. Financial Reporting and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards and presented in Renminbi[4]. - The consolidated financial statements include the company and its subsidiaries as of December 31, 2023[5]. - The company maintains control over its subsidiaries through direct or indirect ownership and assesses control based on voting rights and other relevant factors[6]. - The group has adopted new and revised International Financial Reporting Standards for the current financial year[8]. - The group has adopted the revised International Financial Reporting Standards (IFRS) 1, 8, and 12, which do not significantly impact the financial statements for the years ended December 31, 2023, and 2022[22]. - The group has disclosed significant accounting policy information in the notes to the financial statements, aligning with the revised IFRS requirements[22]. - The group has not experienced any significant impact on earnings per share or comprehensive income due to the adoption of the revised IFRS standards[22]. - The group has applied the revised standards retrospectively, ensuring consistency in financial reporting practices[24].