Core Viewpoint - The company has decided not to pursue the renewal of the mining license for the Dejiang mine due to financial constraints and regulatory uncertainties, focusing instead on the operations of the Yongfeng mine, which has a valid mining license and potential for capacity expansion [1][2]. Group 1: Mining License Renewal - The renewal application for the mining license was accepted in 2019, but the authorities rejected it on December 29, 2024, leading the company to resubmit the application [1]. - The company has not received any positive feedback regarding the renewed application, and the board has decided against investing additional resources into the renewal process due to financial and regulatory uncertainties [1][2]. - The renewal process requires significant financial and management resources, which the company deems not in its best commercial interest given the current market conditions [2]. Group 2: Financial Strategy - The company is prioritizing cash for current operations and loan repayments, opting for a more prudent use of financial resources [2]. - The board believes that focusing on the Yongfeng mine, which has an effective mining license and room for capacity expansion, will yield better returns for the company [2]. - The tightening industry standards and increasing regulatory enforcement create significant uncertainty regarding the approval of the renewal application and the associated costs [2]. Group 3: Market Conditions - The marble products industry in China has faced challenges due to a slowdown in the commercial and residential property markets, leading to reduced demand and pressure on sales prices and profit margins [2]. - The Dejiang mine has not generated any revenue in recent years, and its mining rights have been fully impaired as of 2024, indicating that the decision not to pursue the license renewal will not significantly impact the company's overall business and financial status [3]. - The marble products division will continue to operate normally and remain a primary source of revenue, with the board committed to allocating resources to this segment and exploring new business opportunities [3].
雅高控股(03313)决定不再进一步投入德江矿采矿许可证续期