Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained 8,000m³ Approval and commenced limited commercial production in September 2014. Implemented water management system including water drainage, recycling system and settling pond, approved by Nanzhang Environmental Protection Bureau in July 2014.
• Commenced an ongoing rehabilitation program using local flora and soil to reduce soil erosion and minimize impact on local flora and fauna.

Social Achievements

• Complied with relevant laws and regulations in relation to occupational health and production safety (confirmed by Nanzhang Production Safety Bureau).

Governance Achievements

• Appointed compliance advisor (Guotai Junan Capital).

Climate Goals & Targets

Environmental Challenges

• Limited operating history.
• Dependence on a single mining project.
• Risks associated with mining operations (e.g., weather, accidents, equipment failures).
• Uncertainties relating to marble resource and reserve estimations.
• Potential penalties for not meeting minimum sales quantities.
• Reliance on a limited number of customers.
• Competition in the fragmented marble market.
• Capital-intensive development plan.
• Potential for cost overruns.
• Reliance on contractors.
• Dependence on reliable road networks and transportation.
• Potential loss of key personnel.
• Potential changes in tax treatment.
• Inadequate insurance coverage.
• Substantial influence of Controlling Shareholders.
• Potential impairment losses related to mining rights.
• Potential infringement of intellectual property rights.
• Fluctuations in market price for white series marble.
• Dependence on real estate development industry.
• Changes in environmental protection regulations.
• Changes in PRC laws and regulations for the mining industry.
• Changes in PRC economic, political, and social conditions.
• Uncertainties in the PRC legal system.
• Government control of currency conversion and exchange rate fluctuations.
• Difficulties in enforcing foreign judgments in the PRC.
• Potential income tax on capital gains from transfer of equity interests in PRC subsidiary.
• Potential PRC tax residency and taxation on worldwide income.
• PRC regulations relating to offshore special purpose companies.
• Potential income tax on gains from share transfers for foreign corporate shareholders.
• Reliance on dividends from PRC subsidiary.
• Restrictions on foreign investment in the PRC mining industry.
• PRC regulations relating to loans and direct investment by offshore holding companies.
• Inflation in the PRC.

Mitigation Strategies

• Detailed risk assessments and control procedures.
• Ongoing joint and void mapping program.
• Geotechnical study.
• Mine management regularly reviews production data and modifies mine planning and scheduling.
• Close monitoring of capital spending.
• Long-term waste rock management system.
• Water management system.
• Comprehensive OHS management system.
• Broadening customer base.
• Cost-cutting strategies.
• Lowering production rate in response to weaker market demand.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: JORC Code

Environmental Metrics

ESG Focus Areas

• Corporate ESG governance
• Anti-corruption
• Employment and equality
• Occupational health and safety
• Pollution discharge
• Ecological protection

Environmental Achievements

• Reduced total non-hazardous solid waste from 29,885.74 tons in 2018 to 21,731.98 tons in 2019.
• Implemented "Five Implementations" for dust control, including dust suppression schemes for rock drills and wire saws, and a scheme for recycling water used for production.

Social Achievements

• Amended the Staff Handbook, adjusting contents related to working hours, holidays, and working arrangements for special weather conditions.
• Increased the maximum amount of medical reimbursement for employees and provided employee training subsidies.
• Organized employees to participate in a healthy run, enhancing teamwork and communication.
• Achieved 100% safety training coverage for production employees with a total of 1,059 training hours (27.15 hours per employee on average).

Governance Achievements

• Adopted a top-down ESG governance structure with the Board as the leader and the ESG Working Group as the main operating unit.
• Established a compliance management system including daily compliance consulting, material matter review, compliance training, compliance inspection, feedback and improvement opinion.

Climate Goals & Targets

Environmental Challenges

• 38% employee turnover rate in 2019 due to re-engineering of operation.
• Impact of COVID-19 outbreak in early 2020 on business operations.

Mitigation Strategies

• Implemented various flexible work arrangements to ensure employee health and safety during the COVID-19 outbreak.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement Management System, amended in 2019; standardized supply chain management; focus on long-term cooperation with suppliers; verification of corporate operating conditions, product and service quality, ESG performance, actual supply capacity and compliance through various on-site visits and off-site investigations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (as amended) issued by The Stock Exchange of Hong Kong Limited

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate compliance governance
• Quality driven
• Talent development
• Green operations
• Contributions to communities

Environmental Achievements

• Reduced greenhouse gas emissions from 436.34 tCO2e in 2020 to 104.24 tCO2e in 2021.
• Implemented 5S on-site management method to enhance green management.
• Reduced total sewage discharge from 12,806 tonnes in 2020 to 13,651 tonnes in 2021 (note: data revision explained in report).
• Reduced total energy consumption from 1,637.19 MWh in 2020 to 203.29 MWh in 2021.
• Implemented green recovery plan to restore natural scenery by covering soil and greening roads no longer in use.

Social Achievements

• Employee turnover rate was only 4.35% in 2021.
• 100% training achieved for production employees.
• Total training hours for all directors and staff were 579 hours (average 26.32 hours per person).
• Achieved zero work-related fatalities for three consecutive years.
• Contributed approximately RMB48,000 to community welfare activities and in-kind donations.

Governance Achievements

• Distributed anti-corruption training materials and held a training seminar for all directors and employees.
• Established a whistleblower policy.
• No corruption cases involving the company or its employees during the reporting period.
• No litigations against the company due to unfair competition or violation of antimonopoly laws during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Potential impact of climate change on business and operations, including extreme weather events and transition risks (regulatory changes, technological advancements).
• Renewing the Production Safety License and Level 3 Enterprise Certificate for Safety Production Standardization.

Mitigation Strategies

• Implemented countermeasures for extreme weather events, including flexible working arrangements and precautions.
• Continuously monitoring changes in laws or regulations and global trends in climate change.
• Taking comprehensive measures to protect the environment, including reducing greenhouse gas emissions and setting targets to gradually reduce energy consumption and greenhouse gas emissions.
• Engaging qualified third-party institution and experts to prepare safety reports and conduct safety facility acceptance inspection.

Supply Chain Management

Supplier Audits: Supplier evaluation implemented for all suppliers and sub-contractors.

Responsible Procurement

• Focus on developing suppliers with long-term cooperation opportunities.
• Verify indicators including corporate operating conditions, product and service quality, ESG performance, actual supply capability and compliance of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events

Transition Risks

• Tightening of national policies and the Listing Rules, generation of environment-related taxes.

Reporting Standards

Frameworks Used: ESG Reporting Guide issued by The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Quality assurance
• Integrity and compliance
• Pollution discharge
• Use of energy and resources
• Environmental protection
• Climate change
• Suppliers management
• Employment and equality
• Employee development and training
• Employee remuneration and welfare
• Community involvement

Environmental Achievements

• Achieved zero work-related fatalities for three consecutive years (including the Reporting Period).
• Reduced total greenhouse gas emissions from 104.24 tCO2e in 2021 to 112.63 tCO2e in 2022 (Note: Significant decrease in Scope 2 emissions due to suspended mining operations).

Social Achievements

• 100% training for production employees.
• Total training hours of 2,063 hours for all Directors and staff; average of 52.90 hours per person.
• RMB134,000 in monetary and in-kind donations to external voluntary organisations.
• Donations of books, sports equipment, school supplies to local schools and communities.

Governance Achievements

• Distributed anti-corruption training materials and hosted a training seminar for all Directors and management.
• Established a whistle-blowing policy.
• No corruption cases involving the Company or its employees during the Reporting Period.
• No litigations against the Company due to unfair competition or violation of antimonopoly laws during the Reporting Period.

Climate Goals & Targets

Environmental Challenges

• Renewal of mining permit and exploration work resulted in no mining operations during the reporting period, impacting business scale and comparability to previous years.
• Potential climate-related physical risks (extreme weather events) and transition risks (regulatory changes, market shifts).
• Maintaining a fair and clean business environment and working ambience.

Mitigation Strategies

• Data provided in the report takes into consideration the temporary change in business scale.
• Implementation of flexible working arrangements and precautions in severe or extreme weather conditions.
• Continuous monitoring of changes in laws or regulations and global trends in climate change.
• Comprehensive measures to protect the environment, including targets to gradually reduce energy consumption and greenhouse gas emissions.
• Formulated and implemented the Procurement Management System to reduce procurement costs and enhance quality and economic benefits.

Supply Chain Management

Supplier Audits: 100% during the Reporting Period

Responsible Procurement

• Prioritising local suppliers and environmentally friendly products and services.
• Monitoring compliance of suppliers with laws and regulations related to health, safety, forced labour and child labour.
• Conducting visits to suppliers’ operating locations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events threatening employee safety and damaging facilities.

Transition Risks

• Tightening of national policies and regulations, generation of environment-related taxes.

Reporting Standards

Frameworks Used: ESG Reporting Guide issued by The Stock Exchange of Hong Kong Limited