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The Group remains committed to adapting to the evolving economic landscape while seeking sustainable pathways for recovery and development. |
On behalf of the Board of Directors, I hereby present the Annual Report of China Mining International Limited (the “Company”) and its subsidiaries (the “Group”) for the fiscal year ended 31 December 2024 (“FY2024”).
FINANCIAL REVIEW
FY2024 was a challenging year for the Group. The Group reported a net loss of RMB78.16 million, compared to a net loss of RMB84.53 million in FY2023.
The significant loss was primarily attributable to impairment losses of non-financial assets amounted to RMB15.8 million and bearer plants written off of
RMB53.2 million incurred in FY2024 due to lease terminations and the write-off of biological assets, resulting from changes in the operating environment
and regulatory policies.
Compared to FY2023, the Group generated no revenue from its core pomegranate sales business. This was due to severe damage to biological assets caused by land expropriation for infrastructure projects (such as railways and pipelines) in the agricultural project area, which began in 2023. In 2024, government administrative orders required the return of large leased agricultural land, leading to significant losses in biological assets and other related assets.
Amid a deteriorating external market environment, creditors tightened lending conditions and accelerated the repayment of existing bank loans.
Given these circumstances, the fundamental conditions for agricultural operations no longer exist, and there is no indication that the business can continue as a going concern.
OPERATIONS REVIEW
During FY2024, the Group actively responded to the impairment of biological assets caused by local government land expropriation policies and complied with administrative directives requiring the return of large-scale agricultural land. As part of the Group’s efforts to streamline operations and reduce costs, the following subsidiaries were divested:
1. Xinxiang Huilong Real Estate Co., Ltd;
2. Henan Central Agriculture and Commerce Co., Ltd;
3. Henan Younong Future Supply Chain Management Co., Ltd;
4. Nice Rhythms Limited (BVI);
5. Henan Xinyouji Trading Co., Ltd; and
6. China Mining Singapore Pte Ltd.
The Group will continue to implement appropriate costcontrol measures to reduce operational expenditures without compromising efficiency.
MOVING FORWARD
In recent years, China’s economy has faced multiplechallenges, including persistently weak consumer spending, a real estate market crisis, and sluggish export performance. Chinese consumers have shifted their spending patterns from discretionary purchases to essential goods, moving away from luxury or non-essential items. At the regional level, land expropriation policies for infrastructure projects (such as railways and pipelines) and administrative directives requiring the return of large-scale agricultural land have severely impacted the pomegranate plantation operations, compelling the Company to suspend its agricultural activities.
Despite the prevailing negative business sentiment, the Group is actively exploring new initiatives for the future, including FY2025:
1. Adopting a “light-asset” business model to establish future growth drivers while avoiding projects with significant capital expenditures or investments;
2. Implementing prudent cost-control measures to reduce expenditures without compromising operational efficiency;
3. Proactively engaging in the pursuit of new business opportunities to identify potential growth areas.
The Group remains committed to adapting to the evolving economic landscape while seeking sustainable pathways for recovery and development.
ACKNOWLEDGEMENTS
I would like to extend my deepest gratitude to our dedicated management team and employees for their unwavering commitment, hard work, and invaluable contributions. My sincere appreciation also goes to our partners, suppliers, and clients for their steadfast support over the years. I am equally
grateful to our Board of Directors for their insightful guidance and contributions, which have been instrumental in helping the Group navigate numerous challenges in recent times.
Lastly, I express my profound thanks to our loyal shareholders who have stood by us resolutely in the past years. I look forward to your continued support as we work together to realize our shared vision in FY2025 and beyond.
Guo Wenjun
Chief Executive Officer and Executive Chairman
FINANCIAL REVIEW
FY2024 was a challenging year for the Group. The Group reported a net loss of RMB78.16 million, compared to a net loss of RMB84.53 million in FY2023.
The significant loss was primarily attributable to impairment losses of non-financial assets amounted to RMB15.8 million and bearer plants written off of
RMB53.2 million incurred in FY2024 due to lease terminations and the write-off of biological assets, resulting from changes in the operating environment
and regulatory policies.
Compared to FY2023, the Group generated no revenue from its core pomegranate sales business. This was due to severe damage to biological assets caused by land expropriation for infrastructure projects (such as railways and pipelines) in the agricultural project area, which began in 2023. In 2024, government administrative orders required the return of large leased agricultural land, leading to significant losses in biological assets and other related assets.
Amid a deteriorating external market environment, creditors tightened lending conditions and accelerated the repayment of existing bank loans.
Given these circumstances, the fundamental conditions for agricultural operations no longer exist, and there is no indication that the business can continue as a going concern.
OPERATIONS REVIEW
During FY2024, the Group actively responded to the impairment of biological assets caused by local government land expropriation policies and complied with administrative directives requiring the return of large-scale agricultural land. As part of the Group’s efforts to streamline operations and reduce costs, the following subsidiaries were divested:
1. Xinxiang Huilong Real Estate Co., Ltd;
2. Henan Central Agriculture and Commerce Co., Ltd;
3. Henan Younong Future Supply Chain Management Co., Ltd;
4. Nice Rhythms Limited (BVI);
5. Henan Xinyouji Trading Co., Ltd; and
6. China Mining Singapore Pte Ltd.
The Group will continue to implement appropriate costcontrol measures to reduce operational expenditures without compromising efficiency.
MOVING FORWARD
In recent years, China’s economy has faced multiplechallenges, including persistently weak consumer spending, a real estate market crisis, and sluggish export performance. Chinese consumers have shifted their spending patterns from discretionary purchases to essential goods, moving away from luxury or non-essential items. At the regional level, land expropriation policies for infrastructure projects (such as railways and pipelines) and administrative directives requiring the return of large-scale agricultural land have severely impacted the pomegranate plantation operations, compelling the Company to suspend its agricultural activities.
Despite the prevailing negative business sentiment, the Group is actively exploring new initiatives for the future, including FY2025:
1. Adopting a “light-asset” business model to establish future growth drivers while avoiding projects with significant capital expenditures or investments;
2. Implementing prudent cost-control measures to reduce expenditures without compromising operational efficiency;
3. Proactively engaging in the pursuit of new business opportunities to identify potential growth areas.
The Group remains committed to adapting to the evolving economic landscape while seeking sustainable pathways for recovery and development.
ACKNOWLEDGEMENTS
I would like to extend my deepest gratitude to our dedicated management team and employees for their unwavering commitment, hard work, and invaluable contributions. My sincere appreciation also goes to our partners, suppliers, and clients for their steadfast support over the years. I am equally
grateful to our Board of Directors for their insightful guidance and contributions, which have been instrumental in helping the Group navigate numerous challenges in recent times.
Lastly, I express my profound thanks to our loyal shareholders who have stood by us resolutely in the past years. I look forward to your continued support as we work together to realize our shared vision in FY2025 and beyond.
Guo Wenjun
Chief Executive Officer and Executive Chairman
