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].
中国金石(01380) - 2020 - 年度财报