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About Us

China Kingstone Mining Holdings Limited (“China Kingstone” or the ”Company”; stock code: 1380.HK) is the largest beige marble producer in China. We currently own and operate two marble mines which are Zhangjiaba Mine and Tujisi Mine. The Zhangjiaba Mine is the largest beige marble mine in China in terms of marble reserves, according to a certification issued by China Stone Material Association (CSMA). The Zhangjiaba Mine, located in Sichuan Province of China, contains 44.2 million m3 of measured and indicated marble resources, which represents 16.8 million m3 of proved and probable marble reserves based on a block rate of 38%, in accordance with the reserve report as examined and approved by the National Land Resources Bureau of Sichuan Province. Our mine contains high-quality beige marble reserves, and our principal products are premium beige marble slabs and blocks. We commenced commercial production at our Zhangjiaba Mine in September 2010 and began generating revenue in October 2010. The Group currently holds an extended mining permit to Zhangjiaba Mine, which was granted in February 2011 by the National Land Resources Bureau of Sichuan Province, with an initial term of 10 years, being the longest term which could be granted by the government. Since Zhangjiaba Mine is a massive mine, the Group paid the one-off consideration for the mining permit, which includes a reserve that can be mined for a term of 30 years. In other words, upon the expiry of the 10-year term for the mining permit, it will not be necessary for the Group to pay any fees for its extension. The mining permit covers an area of 0.44 km2 with an elevation from 590 m to 938 m above the Mean Sea Level. We were successfully listed on 18 March 2011 on the Main Board of the Stock Exchange of Hong Kong Limited, the first listed among our peers.

In addition, on 29 August 2011, the Group acquired 100% equity interests in Beichuan Lida Mining Co., Ltd. (“Beichuan Lida”), which holds a mining right of Tujisi Mine. We have successfully completed the geographical exploration in October 2011 and the exploration report has been issued. Situated on the same mineral vein as Zhangjiaba Mine, Tujisi Mine contains approximately 12,213,200 m3 of resources (331+332+333 under Chinese Standard), which is far higher than the preliminary estimate for resources of 6,100,000 m3 at acquisition. The mining capacity for blocks is anticipated to reach 50,000 m3 per annum.

To realize its objectives of becoming the best integrated stone operator, the Group has been planning and identifying suitable area for the construction of its self-owned processing plant with a view to optimize the industry chain. The Group has previously signed a co-operation agreement with the government of Jiangyou, but the government was unable to provide the original land for the processing plant given the policy adjustment on local industry structure, and upon active communication between the Group and the government, the Group has re-signed an intent of co-operation with the government of Jiangyou in November 2011, under which, the government of Jiangyou would provide other suitable sites for the construction of the Group’s processing plant, while undergoing discussion on the possibility of constructing processing plants and trading platforms via new construction and integration with certain important stone industry players in China. Upon the completion of the overall ramp-up plan for production capacity in 2014, it is expected that the Group’s annual mining capacity for marble blocks would reach 150,000 m3, and the processing capacity for marble slabs of the processing facilities is anticipated to reach 3,000,000 m2. According to the anticipation of China Stone Material Association, upon the completion of the capacity ramp-up plan, the Group would rank first among all beige marble mining companies in China in terms of mining and processing capacities for a single category of mine.

Our major products are premium beige marble slabs and blocks. According to an independent panel review organized by CSMA, our Sino Beige and Sandy Beige marbles are premium products and our Wood Grain and Gray Net products are mid- to high-end marble products. Our Pure Beige, Mixed Beige, Wood Grain and Gray Net marble account for 51.0%, 32.7%, 6.4% and 9.9% of our marble reserves, respectively, according to the Competent Person’s Report. The color and texture of our marble products are similar to those of internationally renowned brands such as Cream Marfil, Frans Beige and Royal Batticino currently available in the market, based on the physical specifications and the appearance of our marble samples. They are suitable for use in the decoration o premium commercial and public buildings such as hotel, office, museum and monument. Therefore, the prices of our beige marble slabs are comparable to those set by internationally renowned premium brands and substantially higher than those of other domestic brands in China.

Simultaneouly, to facilitate more effective resources integration and extend its competitive edges on quality mine resources, the Group consistently takes an active role in identifying partnership of development potential with an aim to put synergy effect into full play. In July 2011, the Group successfully acquired 49% equity interests in Guangdong Jiapeng Construction. Guangdong Jiapeng Construction is a professional engineering company on the design and construction of curtain wall engineering as well as decoration for construction, and has gained a certain degree of awareness in Guangzhou and Pearl River delta area. Such acquisition could complement the resources and strengths of both parties, allowing the Group to directly access to large high-end customers, and leverage on landmark construction projects to establish its brand awareness, while expanding the sales channel of its own mine products and increasing its market share.