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的任何損失承擔任何責任。 ARTGO HOLDINGS LIMITED 雅 高 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3313） 變更香港主要營業地點 雅 高 控 股 有 限 公 司（「 本 公 司 」）董 事（「 董 事 」）會（「 董 事 會 」）宣 佈 ， 自 二 零 二 五 年 八 月 一 日 起 ， 本 公 司 於 香 港 的 主 要 營 業 地 點 將 更 改 為 香 港 中 環 德 輔 道 中 2 8 號 盤谷銀行大廈14樓A辦公室 C2室。 本公司的網址及電話號碼將維持不變。 承董事會命 雅高控股有限公司 執行董事 邱宇元 香港，二零二五年七月三十一日 於 本 公 告 日 期 ， 執 行 董 事 為 伍 晶 女 士 、 蔡 又 申 先 生 、 萬 堅 先 生 及 邱 宇 元 先 生 ； 非 執 行 董 事 為 顧 增 ...

[Announcement Overview and Background](index=1&type=section&id=%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88%E4%B8%8E%E8%83%8C%E6%99%AF) [Disclaimer](index=1&type=section&id=%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) HKEX disclaims responsibility for this announcement's content and makes no representation as to its accuracy or completeness - The Hong Kong Stock Exchange assumes no responsibility for the content of this announcement, nor does it guarantee its accuracy or completeness[1](index=1&type=chunk) [Purpose and Scope of the Announcement](index=1&type=section&id=%E5%85%AC%E5%91%8A%E7%9B%AE%E7%9A%84%E4%B8%8E%E8%8C%83%E5%9B%B4) This announcement clarifies the renewal status of the Dejiang Mine's mining permit in past annual reports of ArtGo Holdings Limited - This announcement aims to clarify and supplement the renewal status of the Dejiang Mine's mining permit in the company's past annual reports[2](index=2&type=chunk) - The clarification pertains to the annual reports from **2018 to 2023** and the **2024 annual report**[2](index=2&type=chunk) [Clarification and Supplement on the Dejiang Mine Mining Permit Renewal](index=1&type=section&id=%E5%BE%B7%E6%B1%9F%E7%9F%BF%E9%87%87%E7%9F%BF%E8%AE%B8%E5%8F%AF%E8%AF%81%E7%BB%AD%E6%9C%9F%E6%BE%84%E6%B8%85%E4%B8%8E%E8%A1%A5%E5%85%85) [Clarification on Past Disclosures and Current Status](index=1&type=section&id=%E8%BF%87%E5%BE%80%E6%8A%AB%E9%9C%B2%E4%B8%8E%E7%8E%B0%E7%8A%B6%E6%BE%84%E6%B8%85) The company clarifies the discrepancy between past disclosures of "approved, pending issuance" and the recent "rejected" status for its mining permit renewal - Past annual reports disclosed that the renewal application for the Dejiang Mine's mining permit was **approved in 2019**, with the renewed permit pending issuance[3](index=3&type=chunk) - The 2024 annual report disclosed that the company received a notice from the Guizhou Provincial Department of Natural Resources and Planning on **December 29, 2024**, rejecting the renewal application[3](index=3&type=chunk) - The company clarified that the application submitted in December 2018 was approved for "lodging the application" in February 2019, but formal issuance was subject to review and fulfillment of certain conditions, which were **ultimately not met**[3](index=3&type=chunk)[4](index=4&type=chunk) [Background and Conditions of the Renewal Application](index=2&type=section&id=%E7%BB%AD%E6%9C%9F%E7%94%B3%E8%AF%B7%E8%83%8C%E6%99%AF%E4%B8%8E%E6%9D%A1%E4%BB%B6) The permit renewal, applied for in December 2018, required a comprehensive environmental plan and a security deposit, both necessitating financial resources - The mining permit was originally set to expire in January 2019; the company submitted its application in December 2018 and it was approved for "lodging the application"[5](index=5&type=chunk) - Necessary conditions for issuance included submitting a comprehensive plan for geological environmental protection and restoration and paying a related security deposit[5](index=5&type=chunk) - Fulfilling these two conditions required the **Group's financial resources**[5](index=5&type=chunk) [Reasons for Adjusting Resource Allocation Priority](index=2&type=section&id=%E8%B5%84%E6%BA%90%E9%85%8D%E7%BD%AE%E4%BC%98%E5%85%88%E9%A1%BA%E5%BA%8F%E8%B0%83%E6%95%B4%E5%8E%9F%E5%9B%A0) The company shelved the Dejiang Mine plan due to market decline, financial constraints, operational difficulties, and the strategic priority of the Yongfeng Mine - The Group ultimately decided to **shelve the submission of the plan**, believing it was in the company's best interest to deprioritize its resource allocation[5](index=5&type=chunk) Market Environment and Financial Impact The COVID-19 pandemic led to a significant drop in marble demand from China's real estate sector, adversely affecting the Group's financial performance - Due to the COVID-19 pandemic, challenges in China's real estate development industry led to a **sharp decline in market demand** for marble blocks and slabs[5](index=5&type=chunk) - The reduced demand for the Group's marble products had a **significant adverse impact** on its overall business, financial position, and operating results[5](index=5&type=chunk) - The Group's available cash resources were limited and had to be prioritized for debt repayment, maintaining sufficient working capital, and investing in businesses with high cash-flow potential[7](index=7&type=chunk) Operational Constraints and Cash Flow Considerations Pandemic-related lockdowns hindered necessary site inspections, while limited cash was prioritized for debt and operations over the Dejiang Mine's requirements - Strict lockdown measures in Mainland China during the COVID-19 pandemic made it difficult for the Group to schedule necessary on-site surveys and inspections for preparing the plan[7](index=7&type=chunk) - The Group's **limited cash resources** were prioritized for debt repayment, maintaining sufficient working capital, and investing in businesses with higher cash-flow potential during that period[7](index=7&type=chunk) Strategic Priority of the Yongfeng Mine Resources were prioritized for the Yongfeng Mine due to its significantly larger reserves, higher permitted extraction volume, and better market acceptance - The Group decided to prioritize resources for the renewal of the Yongfeng Mine's mining permit in Jiangxi Province, which has been **renewed until June 5, 2030**[7](index=7&type=chunk) Comparison between Dejiang Mine and Yongfeng Mine | Metric | Dejiang Mine | Yongfeng Mine | | :--- | :--- | :--- | | **Reserves** | Indicated & Inferred resources approx. 2,100,000 m³ | Proven & Probable reserves approx. 44,000,000 m³ | | **Annual Permitted Extraction Volume** | Lower (unspecified) | 1,100,000 m³ | | **Market Acceptance** | Relatively unknown, requires extra marketing | Higher | | **Location** | Guizhou | Jiangxi | | **Processing Facilities** | Not mentioned | New marble processing facilities also located in Jiangxi | - Investing in the Yongfeng Mine was expected to **yield better returns** for the Group and allow for more effective use of cash resources[7](index=7&type=chunk) [Current Progress and Outlook on the Dejiang Mine Renewal Application](index=3&type=section&id=%E5%BE%B7%E6%B1%9F%E7%9F%BF%E7%BB%AD%E6%9C%9F%E7%94%B3%E8%AF%B7%E7%9A%84%E5%BD%93%E5%89%8D%E8%BF%9B%E5%B1%95%E4%B8%8E%E5%B1%95%E6%9C%9B) The Group has resubmitted the renewal application, which has not been denied, but approval remains conditional on submitting the plan and deposit - Since receiving the rejection notice, the Group has **resubmitted the renewal application** for the Dejiang Mine's mining permit, which has not been vetoed by the authorities[6](index=6&type=chunk) - Submission of the plan and payment of the security deposit **remain conditions** for the approval and issuance of the renewed mining permit[6](index=6&type=chunk) - The company will continue to monitor the business environment and its resource situation to assess if meeting these conditions is in its best interests[6](index=6&type=chunk) [Other Information](index=3&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Impact on Past Annual Reports](index=3&type=section&id=%E5%AF%B9%E8%BF%87%E5%BE%80%E5%B9%B4%E6%8A%A5%E7%9A%84%E5%BD%B1%E5%93%8D) This clarification does not alter any other information contained in past annual reports or the 2024 annual report - The aforementioned clarifications and supplementary information **do not affect other information** contained in past annual reports and the 2024 annual report[6](index=6&type=chunk) - Except as disclosed above, the contents of the past annual reports and the 2024 annual report **remain unchanged**[6](index=6&type=chunk) [Board of Directors Information](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98%E4%BF%A1%E6%81%AF) The announcement provides a list of the company's executive, non-executive, and independent non-executive directors as of the announcement date - The executive Directors are Ms. Wu Jing, Mr. Cai Youshen, Mr. Wan Jian, and Mr. Qiu Yuyuan[9](index=9&type=chunk) - The non-executive Director is Mr. Gu Zengcai[9](index=9&type=chunk) - The independent non-executive Directors are Ms. Long Yuequn, Mr. Xu Yi'an, and Mr. Zhai Feiquan[9](index=9&type=chunk)

6月11日，截至港股收盘，恒生指数上涨0.84%，报24366.94点。雅高控股（03313.HK）收报0.178港元/ 股，上涨9.2%，成交量111.1万股，成交额19.67万港元，振幅13.5%。 （以上内容为金融界基于公开消息，由程序或算法智能生成，不作为投资建议或交易依据。） 本文源自：金融界 作者：行情君 机构评级方面，目前暂无机构对该股做出投资评级建议。 行业估值方面，建筑行业市盈率（TTM）平均值为9.3倍，行业中值1.54倍。雅高控股市盈率-0.63倍， 行业排名第209位；其他饮食天王(环球)（08619.HK）为0.15倍、浦江国际（02060.HK）为1.01倍、饮 食天王(环球)（08561.HK）为1.38倍、进升集团控股（01581.HK）为1.51倍、靛蓝星（08373.HK）为 1.58倍。 资料显示，雅高控股有限公司(股票代码:3313.HK)是一家集大理石矿山开采、生产加工、产品研发、高 端订制、整体空间解决方案为一体的全产业链品牌运营商,拥有目前中国最大的灰白色大理石矿山,产品 覆盖大理石大板、标准板、工艺面、拼花、异形、卫浴、工艺品及家居订制产品等,分销网络覆盖全国 ...

Share Option and Award Plans - The total number of stock options and awards available for grant under the 2024 Share Option Scheme and 2024 Share Award Scheme is 92,587,462 shares, representing approximately 7.81% of the company's issued shares (excluding treasury shares) as of December 31, 2024[3] - The company has a structured approach to employee incentives through stock options and awards, reflecting its strategy to align employee interests with shareholder value[3] - The total number of shares available for issuance under the plans is consistent with the company's previous disclosures, indicating stability in its compensation strategy[3] - The company emphasizes the importance of the share option and award plans in its overall corporate strategy, which may impact future performance and employee retention[3] Corporate Governance - The announcement is made by the joint chairman and executive director, indicating ongoing corporate governance and leadership structure[4] - The board of directors includes both executive and independent non-executive members, suggesting a balanced governance structure[4] - The announcement does not provide specific financial performance metrics or future guidance, focusing instead on governance and incentive structures[2] Regulatory Environment - The company is registered in the Cayman Islands, which may have implications for its regulatory environment and investor relations[2] Reporting Timeline - The announcement date is May 30, 2025, which provides a timeline for stakeholders regarding the company's reporting and planning activities[3] Annual Report Changes - The company has not disclosed any changes to the content of the 2024 annual report, except for the additional information regarding the share option and award plans[2]

Financial Performance - The company reported a consolidated revenue of approximately RMB 716 million for the fiscal year ending December 31, 2024, a decrease of 7.6% compared to RMB 775 million in 2023[5]. - Revenue from the marble stone products business was approximately RMB 27 million, a significant decline of 75.8% from RMB 113 million in the previous year, primarily due to weak market demand in the real estate sector[10]. - The calcium carbonate business contributed approximately RMB 675 million in revenue, an increase of about RMB 22 million (or 3.3%) from RMB 653 million in 2023[10]. - The group's operating revenue for 2024 was approximately RMB 71.6 million, a decrease of about RMB 5.9 million (or 7.6%) compared to 2023[13]. - Total sales cost for 2024 was approximately RMB 60.4 million, a decrease of RMB 7.1 million from RMB 67.5 million in 2023, primarily due to reduced production and sales of marble products[15]. - Gross profit for 2024 was approximately RMB 11.2 million, with a gross profit margin of 15.7%, up from 13.0% in 2023[16]. - Other income and gains increased to approximately RMB 9.9 million in 2024 from RMB 5.2 million in 2023, mainly due to a one-time gain from loan restructuring[17]. - The company reported a net loss of RMB 285,206,000 for the year, a significant improvement from a loss of RMB 396,220,000 in 2023, representing a reduction of 28.1%[177]. - The company's total equity decreased to RMB 600,704,000 from RMB 856,660,000, a decline of 30.0%[179]. Capital and Financing - The company raised approximately HKD 12.2 million from the issuance of 61,720,000 new shares at HKD 0.20 per share on January 26, 2024, and approximately HKD 22.2 million from the placement of 197,500,000 new shares at HKD 0.1140 per share on September 27, 2024[6]. - The company plans to use approximately HKD 110 million from the proceeds of the rights issue for repaying loans and other payables, with about HKD 11.15 million allocated for general working capital[38]. - Total bank and other borrowings decreased to approximately RMB 225.5 million in 2024 from RMB 337.8 million in 2023, a reduction of RMB 112.3 million due to financing activities and improved cash flow[32]. - The company raised RMB 28,702,000 through share issuance in 2024, a decrease from RMB 123,146,000 in 2023[183]. Operational Strategy - The company plans to explore opportunities in the artificial intelligence (AI) sector as part of its diversification strategy[6]. - The company is seeking to monetize non-core assets, such as its warehousing and logistics business, to improve liquidity and reduce debt[6]. - The company has adopted a cautious approach, focusing on supporting sales and managing inventory levels effectively amid ongoing economic challenges[9]. - The company has implemented prudent strategies, including tightening credit terms and postponing significant investments until the economic outlook improves[5]. Corporate Governance - The company has maintained high levels of corporate governance to protect shareholder interests and enhance corporate value, accountability, and transparency[69]. - The company has complied with the corporate governance code except for specific deviations noted[69]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2024[72]. - The company has adopted a board diversity policy, considering measurable aspects such as gender, age, cultural and educational background, and professional experience[78]. - The company emphasizes ethical and responsible conduct as part of its corporate values, promoting a culture of integrity among all directors[70]. Risk Management - The company has established a comprehensive internal control framework applicable to all operating units to manage significant risks[105]. - The board regularly reviews the effectiveness of the risk management and internal control systems with the assistance of the audit committee[105]. - The group has identified key risks, including potential changes in consumer preferences that may affect the market acceptance of its marble products[111]. Shareholder Information - The group has reserves available for distribution to shareholders amounting to approximately RMB 496.4 million as of December 31, 2024, down from RMB 597.1 million in 2023[124]. - The group has not declared any final dividends for the year ending December 31, 2024, compared to no dividends declared in 2023[120]. - The company has maintained a sufficient public float of over 25% of the total issued share capital as required by listing rules[157]. Subsidiaries and Investments - The company has 100% ownership in several subsidiaries, including 雅高珺奇 (Xiamen) and 江西科越科技, focusing on mining machinery import/export and calcium carbonate production respectively[187]. - The registered capital of 贵州德江三鑫石材 is RMB 20 million, with an 80% ownership stake, focusing on marble mining and processing[187]. - The company has a significant presence in the mining and construction materials sector, with multiple subsidiaries contributing to its overall asset base[188]. Compliance and Reporting - The company has applied revised International Financial Reporting Standards (IFRS) for the first time in 2024, including IFRS 16 regarding lease liabilities[193]. - The financial statements are prepared based on historical cost principles, with values rounded to the nearest thousand RMB[189]. - The independent auditor's report is included in pages 43 to 47 of the financial statements[95].

Financial Performance - The group's revenue was approximately RMB 71.6 million, a decrease of 7.6% or about RMB 5.9 million compared to RMB 77.5 million in 2023[3]. - The group's loss before tax was approximately RMB 285.0 million, a reduction of RMB 108.1 million from RMB 393.1 million in 2023[3]. - The net loss for the group was approximately RMB 285.2 million, compared to RMB 396.2 million in 2023[3]. - Basic and diluted loss per share attributable to ordinary equity holders was approximately RMB 0.28, down from RMB 1.03 in 2023[3]. - Gross profit for the year was RMB 11.2 million, compared to RMB 10.1 million in 2023, indicating an increase in gross margin[4]. - Other income and gains amounted to RMB 9.9 million, up from RMB 5.2 million in 2023[4]. - Selling and distribution expenses decreased to RMB 801,000 from RMB 1.9 million in 2023, reflecting cost control measures[4]. - Administrative expenses were RMB 45.5 million, down from RMB 49.8 million in 2023, showing improved operational efficiency[4]. - The group recognized impairment losses on trade receivables of RMB 3.9 million, significantly reduced from RMB 18.2 million in 2023[4]. Assets and Liabilities - Total non-current assets increased from RMB 810,692 thousand in 2023 to RMB 1,068,849 thousand in 2024, representing a growth of approximately 31.7%[5]. - Current assets rose from RMB 188,944 thousand in 2023 to RMB 267,460 thousand in 2024, marking an increase of about 41.6%[5]. - Total liabilities decreased from RMB 163,582 thousand in 2023 to RMB 170,950 thousand in 2024, indicating a slight increase of approximately 4.2%[5]. - The company's total assets grew from RMB 836,054 thousand in 2023 to RMB 1,165,359 thousand in 2024, reflecting an increase of around 39.4%[5]. - The net current assets improved significantly from RMB 25,362 thousand in 2023 to RMB 96,510 thousand in 2024, showing an increase of approximately 280.5%[5]. - The company's cash and cash equivalents surged from RMB 16,053 thousand in 2023 to RMB 100,956 thousand in 2024, a remarkable increase of about 528.5%[5]. - The total equity attributable to the company's owners increased from RMB 600,704 thousand in 2023 to RMB 856,660 thousand in 2024, representing a growth of approximately 42.5%[6]. - The company's total liabilities and equity increased from RMB 600,704 thousand in 2023 to RMB 856,660 thousand in 2024, indicating a growth of around 42.5%[6]. - The company's retained earnings rose from RMB 496,431 thousand in 2023 to RMB 597,056 thousand in 2024, reflecting an increase of approximately 20.3%[6]. - The company's total non-current liabilities decreased from RMB 235,350 thousand in 2023 to RMB 308,699 thousand in 2024, indicating a decline of about 31.1%[6]. Accounting Standards - The group has adopted revised International Financial Reporting Standards (IFRS) for the current year, which took effect on January 1, 2024, with no significant impact on the financial position or performance[9]. - The group has not early adopted any newly issued or revised IFRS that are not yet effective, including IFRS 9 and IFRS 10, which may affect future financial reporting[10]. - IFRS 18 introduces new presentation requirements for income statements, categorizing all income and expenses into five categories: operating, investing, financing, income tax, and discontinued operations[11]. Business Segments - The group has two reportable operating segments for management purposes, which are monitored separately for performance evaluation and resource allocation[13]. - The marble products segment primarily produces marble and calcium carbonate products for further processing or trade[14]. Market Conditions and Strategy - The company is focused on enhancing its market position and exploring new strategies for growth in the upcoming fiscal year[2]. - The group adopted a cautious strategy, focusing on supporting sales and effectively managing inventory levels due to weak demand and ongoing pressures in the real estate sector[37]. - The company plans to focus on market expansion and new product development to improve future performance and mitigate losses[16]. - The calcium carbonate business maintained a moderate low-profit strategy to sustain its market share amid relatively better market conditions[39]. - The group has slowed down major investments and operational expansions until the business environment provides greater stability and predictability[37]. - The group is actively seeking legal advice regarding the mining license issue and aims to communicate with the local authorities to overturn the decision if possible[40]. Employee and Operational Costs - Employee benefits expenses totaled RMB 21,457,000 for the current year, up from RMB 16,355,000 in the previous year, reflecting a 31.5% increase[19]. - The company reported a total of RMB 33,307,000 in depreciation and amortization expenses for the current year, compared to RMB 29,963,000 in the previous year, representing an increase of approximately 11.5%[19]. - The company’s total employee benefits expenses included contributions to defined benefit plans amounting to RMB 2,073,000, up from RMB 1,623,000 in the previous year[19]. - Employee costs, including director remuneration, amounted to approximately RMB 16.4 million in 2024, down from RMB 21.5 million in 2023, reflecting a reduction of about 23.7%[74]. - Contributions to the central pension plan for 2024 were approximately RMB 1.6 million, compared to RMB 2.1 million in 2023, indicating a decrease of about 23.8%[76]. Shareholder Information - The company did not recommend any dividend payment for the year ending December 31, 2024, consistent with the previous year[23]. - The basic loss per share for the year ending December 31, 2024, was calculated based on 1,033,327,084 shares issued, compared to 384,383,287 shares in the previous year, indicating a substantial increase in shares outstanding[24]. - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2024[93]. Corporate Governance - The audit committee consists of three independent non-executive directors and has reviewed the accounting principles and practices adopted by the company[94]. - The company has adhered to corporate governance standards and has made efforts to maintain high levels of transparency and accountability[95]. - The company will regularly review and improve its corporate governance practices in line with recent developments[97]. - The company is led by a diverse board of directors[100]. - The meeting highlights the importance of corporate governance[100]. - The company emphasizes transparency in its operations[100]. - The board composition reflects a balance of executive and independent oversight[100]. - The company aims to enhance shareholder value through strategic decisions[100]. - The focus on leadership continuity is crucial for future growth[100]. Future Outlook - The company anticipates that China's economic recovery will continue to be constrained by weak domestic demand and a gradual rebound in the real estate sector[86]. - The company plans to explore opportunities in the artificial intelligence (AI) sector as part of its diversification strategy announced in October 2024[86]. - The company is seeking to divest non-core assets, such as its warehousing and logistics business, to increase liquidity and reduce debt[86].

[Company Information](index=3&type=section&id=%E5%85%AC%E5%B8%83%E8%B3%87%E6%96%99) [Interim Financial Information](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E8%A1%A8) For the six months ended June 30, 2024, the company recorded revenue of approximately RMB 27.81 million, a 10.6% year-on-year decrease; despite the revenue decline and increased administrative expenses, the loss for the period narrowed by 39.3% to RMB 24.54 million from RMB 40.43 million in the prior period, primarily due to significant reductions in cost of sales, impairment losses, and finance costs, coupled with a substantial increase in other income Consolidated Statement of Profit or Loss Summary | Metric | Six Months Ended June 30 (RMB thousands) | YoY Change | | :--- | :--- | :--- | | | **2024 (Unaudited)** | **2023 (Unaudited)** | | | **Revenue** | 27,805 | 31,108 | -10.6% | | **Gross Profit** | 7,546 | 7,742 | -2.5% | | **Other Income and Gains** | 10,039 | 1,931 | +420.0% | | **Administrative Expenses** | (26,935) | (22,286) | +20.9% | | **Finance Costs** | (7,402) | (10,231) | -27.6% | | **Loss Before Tax** | (24,202) | (38,594) | -37.3% | | **Loss for the Period** | (24,543) | (40,426) | -39.3% | | **Loss Attributable to Owners of the Company** | (24,526) | (40,384) | -39.3% | - Basic and diluted loss per share was **RMB 0.025**, a significant narrowing from the restated loss of **RMB 0.150** in the prior year[8](index=8&type=chunk)[37](index=37&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the company's total assets were RMB 1.228 billion and net assets were RMB 844 million, both slightly decreased from the end of 2023; notably, cash and bank balances significantly dropped from approximately RMB 101 million to approximately RMB 6.98 million, leading to a sharp decline in net current assets from RMB 96.51 million to RMB 0.37 million, indicating a notable tightening of liquidity Consolidated Statement of Financial Position Summary | Metric | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Non-current Assets** | 1,056,634 | 1,068,849 | -1.1% | | **Total Current Assets** | 171,759 | 267,460 | -35.8% | | *Of which: Cash and Bank Balances* | *6,976* | *100,956* | *-93.1%* | | **Total Current Liabilities** | 171,391 | 170,950 | +0.3% | | **Net Current Assets** | 368 | 96,510 | -99.6% | | **Total Non-current Liabilities** | 213,119 | 308,699 | -31.0% | | **Net Assets** | 843,883 | 856,660 | -1.5% | | **Total Equity** | 843,883 | 856,660 | -1.5% | [Interim Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2024, the company's total equity slightly decreased from RMB 857 million at the beginning of the period to RMB 844 million, primarily due to a loss of RMB 24.54 million for the period, partially offset by RMB 11.22 million from the issuance of new shares - During the period, the company increased share capital by issuing new shares of **RMB 11.22 million**[12](index=12&type=chunk) - Loss for the period led to an increase in accumulated losses of **RMB 24.53 million**, which was the primary reason for the decrease in equity[12](index=12&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2024, the company's net decrease in cash and cash equivalents was RMB 93.98 million, with the period-end balance falling to RMB 6.98 million; operating, investing, and financing activities all recorded net cash outflows, with financing activities' net outflow reaching RMB 80.67 million primarily due to loan repayments, indicating significant cash flow pressure during the period Cash Flow Statement Summary | Activity Category | Six Months Ended June 30 (RMB thousands) | | :--- | :--- | | | **2024 (Unaudited)** | | **Net Cash Used in Operating Activities** | (10,116) | | **Net Cash Used in Investing Activities** | (3,193) | | **Net Cash Used in Financing Activities** | (80,671) | | **Net Decrease in Cash and Cash Equivalents** | (93,980) | | **Cash and Cash Equivalents at Beginning of Period** | 100,956 | | **Cash and Cash Equivalents at End of Period** | 6,976 | [Notes to the Interim Condensed Consolidated Financial Information](index=11&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) The notes detail the financial statements' composition, highlighting key information such as the company's main businesses being marble mining, processing and sales, calcium carbonate products, and logistics services; a significant change in revenue structure with calcium carbonate products accounting for 96.6%; a one-off gain of RMB 8.07 million from loan restructuring; funds raised from new share issuance during the period; and the completion of capital reduction and share split after the reporting period [Note 3: Revenue and Segment Information](index=12&type=section&id=3.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) Total revenue for the period was RMB 27.81 million, a 10.6% year-on-year decrease, with a significant shift in business structure where calcium carbonate product sales amounted to RMB 26.86 million, accounting for 96.6% of total revenue, while marble stone products recorded no revenue this period, and all revenue originated from the Mainland China market Revenue by Product | Product/Service | H1 2024 Revenue (RMB thousands) | Proportion | H1 2023 Revenue (RMB thousands) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Marble Stone Products | - | 0.0% | 2,560 | 8.2% | | Calcium Carbonate Products | 26,856 | 96.6% | 28,312 | 91.0% | | Logistics and Warehousing Services | 949 | 3.4% | 236 | 0.8% | | **Total** | **27,805** | **100.0%** | **31,108** | **100.0%** | - The marble products segment recorded an operating loss of **RMB 14.11 million** during the period, compared to a loss of **RMB 18.79 million** in the prior year[25](index=25&type=chunk)[26](index=26&type=chunk) [Note 4: Other Income and Gains](index=15&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains significantly increased year-on-year to RMB 10.04 million, primarily due to a one-off gain of RMB 8.07 million from the waiver of loan principal and interest due to loan restructuring - A one-off gain from the waiver of loan principal and interest due to loan restructuring amounted to **RMB 8.071 million**, which was the main reason for the significant increase in other income[32](index=32&type=chunk) [Note 11: Trade and Bills Receivables](index=18&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2024, net trade and bills receivables amounted to RMB 26.01 million, with impairment losses recognized during the period totaling RMB 2.45 million, a significant reduction from RMB 7.91 million in the prior period - Impairment loss provision recognized for trade and bills receivables during the period was **RMB 2.454 million**, a significant decrease from the prior period[34](index=34&type=chunk)[42](index=42&type=chunk) [Note 14: Interest-bearing Bank and Other Borrowings](index=21&type=section&id=14.%20%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2024, total interest-bearing bank and other borrowings amounted to RMB 237 million, a decrease of approximately RMB 101 million from RMB 338 million at the end of 2023, with RMB 58.55 million classified as current liabilities due within one year Changes in Total Borrowings | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Bank Loans | 49,850 | 49,900 | | Other Borrowings | 187,320 | 287,910 | | **Total** | **237,170** | **337,810** | [Note 16: Share Capital](index=21&type=section&id=16.%20%E8%82%A1%E6%9C%AC) As of June 30, 2024, the company's issued ordinary shares increased to 987,594,625 shares, with 61,720,000 new shares issued during the period under a share subscription agreement, raising RMB 11.22 million - For the six months ended June 30, 2024, the company issued 61,720,000 new shares for a consideration of **RMB 11,218,000**, all credited to share capital[47](index=47&type=chunk)[48](index=48&type=chunk) [Note 18: Disposal of a Subsidiary](index=23&type=section&id=18.%20%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) On June 30, 2024, the Group disposed of its entire equity interest in the Vigoroso Group, which is engaged in the marble business, for a cash consideration of RMB 0.1 million, resulting in a disposal loss of RMB 0.157 million - The Group disposed of its entire equity interest in Vigoroso Holdings Limited and its subsidiaries ("Vigoroso Group") for a total cash consideration of **RMB 0.1 million**, and recorded a disposal loss of **RMB 0.157 million**[50](index=50&type=chunk) [Note 21: Events After the Reporting Period](index=25&type=section&id=21.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) After the reporting period, the company completed a capital reduction and share split on July 31, 2024, reducing the par value of issued shares from HKD 0.20 to HKD 0.01 per share, and splitting unissued shares at a 1-for-20 ratio - The company implemented a capital reduction and share split effective July 31, 2024, reducing the par value of issued shares from **HKD 0.20** to **HKD 0.01**[55](index=55&type=chunk) [Management Discussion and Analysis](index=26&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review](index=26&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2024, facing challenges from weak economic recovery in China and the prolonged downturn in the real estate sector, the company adopted a cautious operating strategy; the marble business was suspended with no revenue due to weak market demand and tightened credit policies, while the calcium carbonate business contributed most of the revenue despite a slight decline in sales; additionally, renewal applications for mining rights of two mines were rejected, significantly impacting assets, and one related subsidiary was subsequently sold - Due to weak market demand in the real estate and construction industry, the Group scaled down and restructured its marble stone products business, resulting in no revenue recorded from this business during the review period[58](index=58&type=chunk) - The calcium carbonate business became the primary revenue source, contributing approximately **RMB 26.9 million**, but slightly decreased year-on-year[58](index=58&type=chunk) - Renewal applications for mining rights of Lichuan Mine and Zhangxi Mine were rejected by local authorities, leading to significant losses for the Group in FY2023 and the disposal of the subsidiary holding the former during the period[59](index=59&type=chunk) [Financial Review](index=30&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The company's financial performance shows a trend of decreasing revenue but narrowing losses, with total revenue decreasing by 10.6% to RMB 27.80 million year-on-year; gross profit margin improved from 24.9% to 27.1%, mainly due to an increased proportion of higher-margin calcium carbonate products; administrative expenses rose by 20.6% due to salary adjustments and consulting fees; however, net loss attributable to owners narrowed from RMB 40.40 million to RMB 24.50 million, benefiting from lower finance costs, significantly reduced impairment losses, and a one-off gain; the current ratio decreased from 1.6 to 1.0, indicating tightening liquidity - Total revenue was approximately **RMB 27.80 million**, a year-on-year decrease of **10.6%**, with calcium carbonate product sales accounting for **96.6%** of total revenue[69](index=69&type=chunk) - Gross profit margin increased from **24.9%** in the prior year to **27.1%**, primarily due to an increased proportion of higher-margin calcium carbonate product sales[72](index=72&type=chunk) - Administrative expenses increased year-on-year by **RMB 4.6 million**, mainly due to staff salary adjustments and consulting fees for software system evaluation[75](index=75&type=chunk) - The reduction in net loss was primarily attributable to: (i) decreased finance costs; (ii) reduced impairment losses on trade receivables; (iii) increased other income and gains; partially offset by (iv) increased administrative expenses[79](index=79&type=chunk) - The current ratio decreased from **1.6** at the end of 2023 to **1.0**, primarily due to a significant decrease in cash and bank balances[81](index=81&type=chunk) [Use of Proceeds](index=33&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The report details the utilization of proceeds from two financing activities: the HKD 121 million from the November 2023 rights issue was almost entirely used for loan repayment and general working capital, and proceeds from the February 2024 share subscription were also used as planned for debt repayment and working capital supplementation Use of Proceeds from November 2023 Rights Issue (HKD millions) | Planned Use | Planned Amount (HKD millions) | Total Utilized as of June 30, 2024 (HKD millions) | | :--- | :--- | :--- | | Repayment of loans and other payables | 110.00 | 110.00 | | General working capital | 11.15 | 11.15 | | **Total** | **121.15** | **121.15** | [Outlook](index=34&type=section&id=%E5%89%8D%E6%99%AF) Looking ahead, the company acknowledges the continued uncertainty and challenges in the Chinese and global economic environment; the Group will remain vigilant to market changes, assess their financial and operational impacts, and flexibly adjust business plans, while continuing to seek favorable projects or business opportunities and striving to improve and reduce overall debt levels - Facing an uncertain macroeconomic environment, the Group will adopt a cautious approach, assessing potential impacts and adjusting business plans[90](index=90&type=chunk) - Future priorities include identifying new projects or businesses beneficial to shareholders, and improving/reducing overall debt levels[90](index=90&type=chunk) [Other Information](index=35&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Disclosure of Interests](index=35&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) As of June 30, 2024, the company's major shareholder is Casado Co., Limited (wholly owned by Yang Haobo), holding 27.64% of shares; other major shareholders include Xu Xiaodong with 13.97% and Wu Hailong with 6.25% Major Shareholder Holdings Status | Shareholder Name | Identity | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Casado Co., Limited (and parties acting in concert) | Beneficial owner/Interest in controlled corporation | 273,000,647 | 27.64% | | Xu Xiaodong | Beneficial owner | 138,000,000 | 13.97% | | Wu Hailong | Beneficial owner | 61,720,000 | 6.25% | [Corporate Governance and Compliance](index=36&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company is committed to maintaining a high level of corporate governance; during the reporting period, the company complied with the Corporate Governance Code except for one deviation, where Ms. Wu Jing concurrently served as both Chairperson and Acting Chief Executive Officer; the Board believes this arrangement facilitates efficient decision-making and is in the Group's best interest; the Audit Committee has reviewed these interim results - The company has one deviation from the Corporate Governance Code: Chairperson Ms. Wu Jing concurrently serves as Acting Chief Executive Officer, violating the principle of segregation of duties[100](index=100&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim condensed financial information[102](index=102&type=chunk)

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was approximately RMB 27.8 million, a decrease of 10.6% or RMB 3.3 million compared to RMB 31.1 million in the same period in 2023[1] - Pretax loss for the six months ended June 30, 2024, was approximately RMB 24.2 million, a decrease of RMB 14.4 million compared to RMB 38.6 million in the same period in 2023[1] - Net loss for the six months ended June 30, 2024, was approximately RMB 24.5 million, compared to RMB 40.4 million in the same period in 2023[1] - Gross profit for the six months ended June 30, 2024, was RMB 7.5 million, slightly down from RMB 7.7 million in the same period in 2023[3] - Loss attributable to the company's owners was RMB 24.5 million in the six months ended June 30, 2024, compared to RMB 40.4 million in the same period in 2023[5] - The company reported a pre-tax loss of RMB 24,202 thousand for the six months ended June 30, 2024, compared to a pre-tax loss of RMB 38,594 thousand for the same period in 2023[16][17] - The company reported a pre-tax loss from continuing operations of RMB 19,492 thousand for the six months ended June 30, 2024, compared to RMB 23,366 thousand for the same period in 2023[21] - The company's revenue for the first half of 2024 was RMB 27.8 million, a decrease of 10.6% compared to the same period in 2023, with calcium carbonate products accounting for 96.6% of total revenue[54][55] - Gross profit for the first half of 2024 was RMB 7.5 million, with a gross profit margin of 27.1%, up from 24.9% in the same period in 2023[57] - The company's net loss attributable to owners decreased to RMB 24.5 million from RMB 40.4 million in the same period last year, driven by reduced financial costs, lower trade receivables impairment, increased other income, and higher administrative expenses[65] Expenses and Costs - Administrative expenses increased to RMB 26.9 million in the six months ended June 30, 2024, from RMB 22.3 million in the same period in 2023[3] - Financial costs decreased to RMB 7.4 million in the six months ended June 30, 2024, from RMB 10.2 million in the same period in 2023[3] - Employee benefit expenses, including director and senior executive compensation, increased to RMB 7,586 thousand in 2024 from RMB 6,800 thousand in 2023[21] - Depreciation of property, plant, and equipment was RMB 7,994 thousand in 2024, slightly up from RMB 7,911 thousand in 2023[21] - Sales and distribution expenses for the first half of 2024 were RMB 3.8 million, accounting for 13.8% of revenue, a slight decrease from RMB 3.9 million in the same period in 2023[59] - Administrative expenses for the first half of 2024 were RMB 26.9 million, accounting for 96.9% of revenue, an increase of RMB 4.6 million compared to the same period in 2023[60] - Financial costs for the first half of 2024 decreased by RMB 2.8 million to RMB 7.4 million, primarily due to a reduction in overall loan levels[61] Assets and Liabilities - Total non-current assets decreased to RMB 1,056,634 thousand as of June 30, 2024, compared to RMB 1,068,849 thousand at the end of 2023[6] - Total current assets dropped significantly to RMB 171,759 thousand as of June 30, 2024, from RMB 267,460 thousand at the end of 2023[6] - Cash and bank balances sharply declined to RMB 6,976 thousand as of June 30, 2024, from RMB 100,956 thousand at the end of 2023[6] - Total current liabilities slightly increased to RMB 171,391 thousand as of June 30, 2024, compared to RMB 170,950 thousand at the end of 2023[6] - Net current assets drastically reduced to RMB 368 thousand as of June 30, 2024, from RMB 96,510 thousand at the end of 2023[6] - Total assets minus current liabilities decreased to RMB 1,057,002 thousand as of June 30, 2024, from RMB 1,165,359 thousand at the end of 2023[6] - Interest-bearing bank and other borrowings under non-current liabilities decreased to RMB 178,620 thousand as of June 30, 2024, from RMB 274,510 thousand at the end of 2023[8] - Total equity decreased to RMB 843,883 thousand as of June 30, 2024, from RMB 856,660 thousand at the end of 2023[8] - Prepayments, deposits, and other receivables totaled RMB 118,911 thousand as of June 30, 2024, down from RMB 122,135 thousand as of December 31, 2023[27] - The company's impairment provision for prepayments, deposits, and other receivables was RMB 9,994 thousand as of June 30, 2024, compared to RMB 9,729 thousand as of December 31, 2023[27] - Trade receivables and bills receivable increased to RMB 89,552 thousand as of June 30, 2024, compared to RMB 86,031 thousand as of December 31, 2023[28] - Credit loss allowance for trade receivables and bills receivable increased to RMB 63,539 thousand as of June 30, 2024, from RMB 61,085 thousand as of December 31, 2023[28] - Trade payables increased to RMB 22,414 thousand as of June 30, 2024, compared to RMB 21,133 thousand as of December 31, 2023[31] - Other payables and accrued expenses decreased to RMB 54,765 thousand as of June 30, 2024, from RMB 55,639 thousand as of December 31, 2023[32] - Interest-bearing bank and other borrowings decreased to RMB 237,170 thousand as of June 30, 2024, from RMB 337,810 thousand as of December 31, 2023[33] - The company's bank loans with collateral remained stable at RMB 15,000 thousand as of June 30, 2024, unchanged from December 31, 2023[33] - Unsecured other borrowings decreased significantly to RMB 187,320 thousand as of June 30, 2024, from RMB 287,910 thousand as of December 31, 2023[33] - Deferred income from government grants decreased slightly to RMB 3,904 thousand as of June 30, 2024, from RMB 4,009 thousand as of January 1, 2024[34] - Net current assets dropped significantly to RMB 0.4 million as of June 30, 2024, compared to RMB 96.5 million as of December 31, 2023[66] - The current ratio declined to 1.0 as of June 30, 2024, from 1.6 as of December 31, 2023, mainly due to a decrease in cash and bank balances from RMB 101.0 million to RMB 7.0 million[67] - Total borrowings decreased by RMB 100.6 million to RMB 237.2 million as of June 30, 2024, compared to RMB 337.8 million as of December 31, 2023[68] - The debt-to-equity ratio slightly decreased to 27.3% as of June 30, 2024, from 27.6% as of December 31, 2023[69] Business Operations - The company's main business activities include marble mining, processing, trading, and sales, calcium carbonate products, and warehousing and logistics services[10] - Total revenue from external customers for the six months ended June 30, 2024, was RMB 27,805 thousand, with marble products contributing 96.6% (RMB 26,856 thousand) and logistics and storage services contributing 3.4% (RMB 949 thousand)[15] - Revenue from major customers (contributing 10% or more of total revenue) included Customer A with RMB 4,347 thousand and Customer C with RMB 6,859 thousand for the six months ended June 30, 2024[18] - Marble and calcium carbonate business recorded no revenue during the review period, compared to RMB 2.6 million in the same period last year, due to weak market demand and restructuring efforts[42] - Calcium carbonate business contributed RMB 26.9 million in revenue, a slight decrease from RMB 28.3 million in the same period last year[43] - The commodity trading business recorded no revenue during the review period, as the company decided to suspend further transactions due to the uncertain trade environment[45] - The warehousing and logistics business generated revenue of RMB 0.95 million, a 296% increase from RMB 0.24 million in the same period last year, with ongoing efforts to sell the business[47] - The Dejiang mine has a total estimated marble resource of 2.1 million cubic meters, with no exploration, development, or production activities conducted during the review period[50] - The company's mining permit has been extended for 10 years, from June 5, 2020, to June 5, 2030, with an annual permitted production capacity increased from 0.25 million cubic meters to 1.1 million cubic meters[52] - The total estimated marble resources for Yongfeng Mine as of June 30, 2024, are 106.6 million cubic meters, with proven and probable reserves totaling 44.0 million cubic meters[53] Other Income and Gains - Other income and gains increased significantly to RMB 10.0 million in the six months ended June 30, 2024, compared to RMB 1.9 million in the same period in 2023[3] - Other income and gains for the six months ended June 30, 2024, totaled RMB 10,039 thousand, including government subsidies of RMB 1,583 thousand and loan restructuring gains of RMB 8,071 thousand[19] - Other income and gains for the first half of 2024 included a one-time gain of RMB 8.1 million from loan restructuring and government subsidies of RMB 1.6 million[58] Impairment and Losses - The company recognized an impairment loss on trade receivables and bills receivable of RMB 2,454 thousand in 2024, a significant decrease from RMB 7,910 thousand in 2023[21] - Trade receivables and bills impairment loss increased by RMB 5.4 million, reaching RMB 2.5 million, compared to RMB 7.9 million in the same period of 2023, primarily due to a challenging business environment and liquidity issues among real estate and construction clients[62] - The company incurred a loss of RMB 165.5 million due to the rejection of the mining license renewal for the Lichuan mine, leading to the sale of its 80% stake in Hehua Building Materials for RMB 100,000[44] - The company incurred a loss of RMB 116.6 million due to the rejection of the mining license renewal for the Zhangxi mine, with plans to seek potential buyers for its stake in Ji'an Mining in the second half of 2024[44] Share Capital and Dividends - Basic and diluted loss per share attributable to ordinary equity holders was RMB 0.025, compared to RMB 0.150 in the same period in 2023[1] - The company's basic loss per share was RMB 0.025 for the six months ended June 30, 2024, compared to RMB 0.150 for the same period in 2023[24] - The company issued 61,720,000 new shares under a share subscription agreement, with a total consideration of RMB 11,218,000, all of which was recorded as share capital[37] - The company completed a rights issue in 2023, issuing 617,249,750 shares at HKD 0.20 per share, raising approximately HKD 121.15 million (equivalent to RMB 111.51 million)[37] - The company's issued and fully paid ordinary shares increased from 925,874,625 shares in 2023 to 987,594,625 shares in 2024[36] - The company's share capital increased from RMB 166,551,000 in 2023 to RMB 177,769,000 in 2024[36] - The company did not recommend an interim dividend for the six months ended June 30, 2024[40] - The company adopted a new share option plan and a share award plan in 2024, but no options or awards were granted during the period[38] - The company issued 61,720,000 new shares at HKD 0.20 per share, raising a total of HKD 12.34 million, which was primarily used to repay existing debt and for general working capital[71] - As of June 30, 2024, the company had 987,594,625 issued ordinary shares[71] - The remaining unused balance of HKD 1.89 million from the share subscription is expected to be fully utilized in the second half of 2024[72] - The company issued 617,249,750 rights shares on November 6, 2023, with net proceeds allocated as follows: HKD 110 million for loan repayment and other payables, and HKD 11.15 million for general working capital, including HKD 4.10 million for salaries, HKD 4.10 million for raw materials, HKD 2.05 million for professional fees, and HKD 0.90 million for daily operational expenses[73] - As of December 31, 2023, HKD 10 million of the proceeds were used for loan repayment, with HKD 100 million remaining. For working capital, HKD 3.34 million was spent on salaries, HKD 4.10 million on raw materials, HKD 0.41 million on professional fees, and HKD 0.23 million on daily operational expenses[73] - A capital reduction and share split were proposed on April 29, 2024, with each issued share's par value reduced from HKD 0.20 to HKD 0.01, and each unissued share split into 20 new shares with a par value of HKD 0.01[77] Subsidiaries and Acquisitions - The company sold its subsidiary, Vigoroso Holdings Limited, for a total cash consideration of RMB 100,000, resulting in a loss of RMB 157,000[39] - The company's total liabilities from the sale of Vigoroso Holdings Limited amounted to RMB 257,000[39] - The company's cash and bank balances from the sale of Vigoroso Holdings Limited amounted to RMB 1,493,000[39] - The company's net cash outflow from the sale of Vigoroso Holdings Limited amounted to RMB 1,493,000[39] Capital Expenditure and Investments - The company acquired property, plant, and equipment worth RMB 1,700 thousand in 2024, a substantial increase from RMB 40 thousand in 2023[25] - The company's capital expenditure for purchasing property, plant, and equipment during the review period was RMB 1.7 million[74] Corporate Governance and Compliance - The company maintains high corporate governance standards, with deviations only in the dual roles of the Chairman and Acting CEO, which were deemed necessary for efficient business planning and decision-making[79] - The company has adopted the Model Code for Securities Transactions as set out in Appendix 10 of the Listing Rules, and all directors have confirmed compliance with the code during the review period[80] - The Audit Committee, composed of three independent non-executive directors, reviewed the accounting principles, internal controls, and financial reporting matters, including the interim financial information for the review period[81] - During the review period, the company or its subsidiaries did not purchase, sell, or redeem any of the company's listed securities[82] - The 2024 interim results announcement and interim report will be published on the company's website and the Hong Kong Stock Exchange website, and will be sent to shareholders at the appropriate time[82] - The executive directors of the company are Mr. Gu Weiwen, Mr. Zhang Jian, Ms. Wu Jing, and Mr. Wan Jian, with Mr. Gu Zengcai as a non-executive director, and Ms. Long Yuequn, Mr. Xu Yi'an, and Mr. Zhai Feiquan as independent non-executive directors[83] Risk and Outlook - The company remains cautious about the uncertain global economic environment, particularly due to tensions between China and the US and the Russia-Ukraine war, and will continue to assess potential impacts on its financial and operational performance[78] - The company faces limited foreign exchange risk as most transactions are denominated in RMB, with some cash holdings in HKD. No financial instruments were used for hedging during the review period[75] - No assets were mortgaged to secure bank or other borrowings as of June 30, 2024[76]

Fund Utilization - The remaining unused balance from the rights issue raised is HKD 107.17 million as of December 31, 2023[1]. - Total planned uses of the raised funds include loan repayments and general working capital, amounting to HKD 121.15 million[1]. - Specific allocations include HKD 4.10 million for purchasing raw materials and HKD 2.05 million for professional fees[1]. - The company has utilized HKD 110.00 million for loan repayments and other payables[1]. - The total amount utilized for operational expenses is HKD 13.98 million, with HKD 0.90 million for daily operational costs[1].

Financial Performance - The company's overall revenue for the year was approximately RMB 775 million, a decrease of about 13.0% compared to RMB 891 million in 2022[5]. - Revenue from marble stone products was approximately RMB 113 million, a significant decrease of 67.2% from RMB 344 million in the previous year[9]. - The calcium carbonate business contributed total revenue of approximately RMB 653 million, an increase of about RMB 122 million or 23.0% compared to RMB 531 million last year[9]. - The company recorded a total revenue of approximately RMB 77.5 million for the fiscal year ending December 31, 2023, a decrease of about RMB 11.6 million (or 13.0%) compared to RMB 89.1 million in 2022[14]. - Sales of calcium carbonate products accounted for 84.2% of total revenue, approximately RMB 65.3 million, up from 59.6% or RMB 53.1 million in 2022[14]. - The gross profit for 2023 was approximately RMB 10.1 million, with a gross margin of 13.0%, down from a gross margin of 14.4% in 2022[17]. - Other income and gains decreased to approximately RMB 5.2 million in 2023 from RMB 10.4 million in 2022, primarily due to a reduction in gains from the sale of non-operating subsidiaries and government subsidies[18]. - The company’s administrative expenses were approximately RMB 49.8 million, a decrease of about RMB 5.3 million compared to RMB 55.1 million in 2022, mainly due to reduced equity-settled share option expenses[21]. - The company’s logistics division generated revenue of approximately RMB 0.91 million in 2023, a decrease of 40.9% from RMB 1.54 million in 2022[13]. - The total cost of sales for 2023 was approximately RMB 67.5 million, down from RMB 76.3 million in 2022, with costs for calcium carbonate products accounting for 84.1% of total sales costs[16]. - The company has decided to continue suspending any further commodity trading transactions until the trading activities return to a controllable state, resulting in no revenue from this segment in 2023[12]. - The impairment losses related to mining rights were zero in 2023, a significant decrease from RMB 65.2 million in 2022, indicating improved asset management[22]. - Financial costs decreased by approximately RMB 3.7 million to RMB 20.6 million from RMB 24.3 million in 2022, mainly due to reduced interest-bearing bonds and seeking lower-cost debt restructuring opportunities[23]. - Income tax expenses increased by approximately RMB 4.1 million, from a tax credit of RMB 1.0 million in 2022 to a tax expense of RMB 3.1 million in 2023[24]. - Net loss attributable to the company's owners increased by RMB 247.9 million to RMB 396.1 million, primarily due to a decrease in revenue and other income by RMB 11.6 million and RMB 5.2 million, respectively, along with a write-off of mining rights amounting to RMB 282.1 million[25]. - Inventory decreased by approximately 57.0% from RMB 43.7 million to RMB 18.8 million, mainly due to reduced procurement from RMB 52.9 million in 2022 to RMB 36.1 million in 2023[26]. - Trade receivables decreased from approximately RMB 29.0 million to RMB 24.9 million, primarily due to a decrease in sales of approximately RMB 11.6 million and an increase in trade receivables impairment losses of approximately RMB 16.8 million[28]. - Net current assets increased by 439% from approximately RMB 17.9 million to RMB 96.5 million, mainly due to fundraising activities from share subscriptions and rights issues, which raised a net amount of RMB 123.1 million[30]. - The current ratio improved to 1.6 as of December 31, 2023, compared to 1.1 as of December 31, 2022[31]. - The debt-to-equity ratio decreased to 27.6% from 29.1% in 2022[33]. Capital Raising and Expenditure - The company raised approximately RMB 1,231 million through the issuance of new shares to improve overall liquidity and debt levels[5]. - The company raised approximately RMB 111.51 million from a rights issue, with net proceeds intended for loan repayments and general working capital[36][40]. - The company issued 46 million new shares at a subscription price of HKD 0.28 per share, raising a net amount of approximately RMB 11.6 million[35]. - The net proceeds from the rights issue completed on November 6, 2023, will be utilized as follows: HKD 110 million for loan repayment, with a remaining balance of HKD 100 million; operational expenses include HKD 4.1 million for payroll, HKD 4.1 million for raw materials, HKD 2.05 million for professional fees, and HKD 0.9 million for daily operations, totaling HKD 121.15 million with a remaining balance of HKD 107.17 million[41]. - Capital expenditure for 2023 amounted to approximately RMB 5.8 million, a decrease from RMB 45.8 million in 2022, indicating a significant reduction in investment in property, plant, and equipment[42]. - The total employee cost for 2023 was approximately RMB 21.5 million, down from RMB 25.2 million in 2022, reflecting a decrease in workforce from 209 to 201 full-time employees[46]. Market Outlook and Risks - The company anticipates further declines in demand for marble and calcium carbonate products in the first half of 2024 due to weak economic momentum in China and global economic slowdown[4]. - The real estate sector, which is a significant part of the supply chain for the company's marble products, continues to face severe liquidity issues, impacting new project developments[4]. - The company remains vigilant regarding unpredictable international developments that may adversely affect its business[5]. - The company faces risks related to changing consumer preferences that may affect the market acceptance of its marble products[138]. - The company is subject to various risks and uncertainties that could impact its financial condition and operational performance[138]. Corporate Governance - The company has maintained a high level of corporate governance to protect shareholder interests and enhance corporate value, accountability, and transparency[83]. - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[87]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance throughout the year[85]. - The chairman and the chief executive officer roles are held by the same individual, which deviates from corporate governance guidelines, but the board believes this arrangement supports efficient business planning and decision-making[83]. - The company has a strong management team with over 30 years of experience in corporate finance and financial services, ensuring effective financial planning and budgeting[79]. - The company is committed to regular reviews and improvements of its corporate governance practices in line with recent developments[84]. - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to oversee various aspects of the company's affairs[102]. - The company has implemented a whistleblowing policy to maintain transparency and accountability, encouraging employees and stakeholders to report any misconduct[103]. - The remuneration committee reviews the remuneration policies for all directors and senior management, ensuring no director participates in determining their own remuneration[106]. - The investment committee, formed on September 19, 2019, evaluates long-term investment projects and provides recommendations to the board on major investments[110]. - The company confirms no significant uncertainties that may cast doubt on its ability to continue as a going concern[116]. - The attendance record of directors at board and committee meetings shows full participation, with Ms. Wu Jing attending all 5 board meetings[111]. - The company secretary provides advice on corporate governance matters and ensures compliance with applicable laws and regulations[120]. Strategic Initiatives - The company plans to explore opportunities to monetize non-core assets, particularly in its warehousing and logistics business, to generate immediate liquidity and further reduce debt levels[5]. - The company is focused on exploring and developing new mining technologies to improve production efficiency and resource management[64]. - The management team is committed to expanding market reach and exploring potential mergers and acquisitions to enhance growth opportunities[64]. - The company aims to leverage its expertise in stone production and processing to capture a larger share of the international market[71]. - The company is focused on market expansion and has a dedicated team for technology and quality research, emphasizing strict quality control in material processing[78]. - The company has been actively involved in the acquisition and management of new resources, enhancing its operational capabilities in the stone processing industry[78]. - The company has a clear strategy for optimizing its product quality and market positioning based on customer demand[78]. Environmental and Social Responsibility - The company has implemented various measures to mitigate environmental pollution, including water conservation and recycling in marble mining[141]. - The company has a management system in place to promote energy conservation and environmental protection, achieving notable success in environmental management[140]. - The company has provided health insurance benefits to employees, highlighting its commitment to employee health and well-being[145]. Share Option Plans - The 2013 Share Option Plan was adopted on December 9, 2013, and is set to expire on December 8, 2023, aimed at incentivizing eligible participants to enhance performance efficiency and retain talent[169]. - The 2024 Share Option Plan was adopted on January 19, 2024, allowing the board to grant options to employees, with a maximum of 10% of the total issued shares available for subscription[176]. - The purpose of the 2024 Share Option Plan is to recognize and reward participants for their contributions to the group's growth and development, aiming to align their interests with those of shareholders[177]. - The maximum number of shares that can be issued under the 2024 Share Option Plan is capped at 1% of the total issued shares, with independent non-executive directors limited to 0.1%[181]. - The vesting period for both the 2024 Share Option Plan and the 2024 Share Award Plan is set at a minimum of 12 months from the grant date[186]. - The exercise price for options granted under the 2024 Share Option Plan will be determined by the board, ensuring it is at least equal to the highest of the closing price on the offer date or the average closing price over the preceding five trading days[180].