Mining Operations - The Zhangjiaba Mine has 44.2 million cubic meters of measured and indicated marble resources, with an estimated 16.8 million cubic meters of proved and probable marble reserves based on a block rate of 38%[22] - The mining permit for the Zhangjiaba Mine expired on February 21, 2021, and the renewed license was issued on March 7, 2022, valid until February 21, 2026[16] - The company owns the largest beige marble mine in China, certified by the China Stone Material Association in 2010[15] - The company is focused on consolidating its mining operations and expanding its customer base to improve business performance amid economic uncertainties[43] - The company expects further development of the Zhangjiaba Mine to lower benches for large block production, which is anticipated to commence no earlier than 2025[61][64] - The Zhangjiaba Mine has approximately 44.2 million cubic meters of measured and indicated marble resources, with 16.8 million cubic meters of proved and probable reserves[56] Financial Performance - For FY2021, the Group recorded revenue of RMB 74.2 million, an increase of approximately 2.0% compared to FY2020's revenue of RMB 72.8 million[29] - Gross profit for FY2021 was RMB 15.2 million, representing a significant increase of 120.3% from RMB 6.9 million in FY2020[29] - The net loss attributable to owners of the Company for FY2021 was RMB 50.3 million, an increase of 65.5% from a net loss of RMB 30.4 million in FY2020[30] - Sales of marble slabs dropped by 62.6% in FY2021 due to weak demand and tightened credit lines to customers[31] - Conversely, sales of marble slags increased by 87.1% in FY2021, with demand remaining strong and prices returning to pre-pandemic levels[36] - For FY2021, sales of marble slabs decreased to RMB15.5 million, a decline of RMB25.9 million or 62.6% compared to RMB41.4 million in FY2020[48] - Sales of marble slags increased to RMB58.6 million in FY2021, representing an increase of RMB27.2 million or 87.1% from RMB31.4 million in FY2020[54] - The Group recorded an impairment loss of RMB7.4 million on trade receivables for FY2021, a decrease of RMB7.0 million compared to RMB14.4 million for FY2020[76] - An impairment loss of HK$33.5 million on non-financial assets was recognized in FY2021, primarily due to decreased recoverable amounts from the Zhangjiaba Mine[77] - The Group reported a loss of RMB50.3 million for FY2021, an increase of RMB19.9 million from a loss of RMB30.4 million in FY2020[78] - Total equity interests decreased by 16.5% to approximately RMB261.6 million as of December 31, 2021, compared to RMB313.1 million as of December 31, 2020[84] - Cash and bank balances increased to approximately RMB7.1 million as of December 31, 2021, up from approximately RMB4.3 million as of December 31, 2020[85] - Total borrowings amounted to approximately RMB11.8 million as of December 31, 2021, compared to RMB8.3 million as of December 31, 2020, with an annual interest rate ranging from 5% to 10%[86] Business Diversification - In December 2021, the company commenced a franchise business related to a new mode of food and beverage consumption in the UK, involving virtual restaurant brands[17] - The Company launched a virtual restaurant brand for delivery-only operations in December 2021, aiming to diversify its business amid unpredictable economic conditions[38] - The company launched a virtual restaurant brand for delivery-only operations in December 2021, with its first brand "Burgogi Korean BBQ Burger" introduced in London[55] - The Group faced setbacks in its vertical diversification expansion plan for the ground calcium carbonate (GCC) business but continues to seek new cooperation partners[37] - The company is exploring new business opportunities to maximize shareholder value in the future[43] Governance and Compliance - The Company has complied with the Corporate Governance Code for FY2021, with deviations from provisions A.2.1, A.1.8, and E.1.2[146] - There was no CEO appointed during FY2021, with executive directors undertaking CEO responsibilities, and plans to appoint a Chairman and CEO in Q2 2022[148] - The Company currently does not have insurance cover for legal actions against Directors, believing the risk is low due to existing internal controls[153] - Only one board member attended the annual general meeting in FY2021, highlighting a non-compliance with the requirement for the Chairman to attend[154] - The Board consists of four executive Directors and three independent non-executive Directors, maintaining a balance of skills and experience[160] - The independent non-executive Directors include Mr. Yang Ruimin, Mr. Andreas Varianos, and Ms. Pei Bing, who was appointed on December 1, 2021[161] - The Company’s governance practices aim to safeguard the interests of shareholders and enhance shareholder value[145] - The Board plans to strengthen management by appointing a Chairman and CEO to ensure effective governance[148] - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors throughout FY2021[155] - The Board is committed to reviewing the need for insurance cover for Directors periodically[153] Employee and Operational Management - As of December 31, 2021, the Group employed a total of 36 employees, an increase from 28 employees as of December 31, 2020[113][117] - Total staff costs for FY2021 were approximately RMB 5.7 million, up from RMB 4.6 million in FY2020, reflecting a year-over-year increase of about 24%[113][117] - The Group emphasizes the importance of maintaining strong relationships with customers and suppliers, which is critical for business sustainability[111][112] - The Group's emolument policies are based on individual performance and market salary trends, with discretionary bonuses potentially distributed based on profitability[114][116] - The Group's strategy includes regular contact with major distributors and manufacturers to optimize transportation and management costs, mitigating risks associated with reliance on a few key customers[112][116] - The management team is responsible for formulating business strategies and development plans, which are subject to Board approval[188] - The management team is accountable to the Board for the execution of business strategies and initiatives[188] Financial Strategy and Fund Utilization - The net proceeds from the rights issue amounted to approximately HK$ 276.5 million, allocated for various business operations including a joint venture for calcium carbonate production[120][122] - Approximately HK$ 191.8 million (RMB 170.0 million) of the proceeds is designated for funding a joint venture, with HK$ 149.2 million (RMB 132.2 million) for manufacturing setup and HK$ 42.6 million (RMB 37.8 million) for working capital[120][122] - An additional HK$ 33.8 million (RMB 30.0 million) is allocated for the Group's general working capital, covering daily production and operational expenses[120][122] - The remaining net proceeds of approximately HK$ 50.9 million (RMB 45.2 million) are intended for settling potential damages from litigation related to a previous underwriting agreement[120][122] - The Group's financial strategy included addressing shortfalls in working capital through the reallocation of funds[127] - The overall financial management reflects a strategic pivot in response to operational challenges faced in the GCC business[127] - The total actual use of proceeds during FY2021 was HK$20,045,000, indicating a significant reallocation from the original plan[126] Board Meetings and Attendance - The Board held 5 board meetings and 1 general meeting during FY2021[180] - Mr. Zheng Yonghui attended all 5 board meetings but did not attend the general meeting[181] - Ms. Zhang Cuiwei attended all 5 board meetings and the general meeting[181] - Mr. Mehmet Ahmed resigned as an independent non-executive director on September 2, 2021[169] - Ms. Pei Bing was appointed as an independent non-executive director on December 1, 2021[169] - The Company complied with the requirements under Rule 3.10(1), Rule 3.10(2), and Rule 3.10A of the Listing Rules throughout the year ended December 31, 2021[170] Risk Management and Compliance - The Board is responsible for overall management, including strategic decisions and risk management[182] - Independent non-executive directors are appointed for a term of three years, subject to re-election at least once every three years[167] - The Company Secretary assists in preparing the agenda for board meetings and provides updates on governance matters[175] - All minutes of board meetings are recorded in detail and are open for inspection by directors[175] - The Board comprises eight Directors, including three Independent Non-executive Directors, promoting critical review and control of management processes[194] - The Company emphasizes the importance of Board diversity, considering skills, regional and industry experience, and gender to maintain a competitive advantage[193] - The Company regularly reviews delegated functions and powers to ensure they remain appropriate[188] - All Directors have timely access to relevant information and can seek independent professional advice at the Company's expense[187] - The Nomination Committee has confirmed that the requirements of the Board Diversity Policy have been met[195]
中国金石(01380) - 2021 - 年度财报