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Business Overview

Zhangjiaba Mine, which is owned by the Company, has the most abundant beige marble reserve in China. The Company has acquired 10 years of mining rights and consideration paid by the Company for such certificate confers the right to our reserve mined in a period of 30 years, which made the Company practically possessing the largest resource for beige marble production in China. Such mine contains high-quality beige marble reserves, while premium beige marble slabs and blocks are currently the major products of the Company.

The Company mainly engages in the production of quality premium beige marble slabs and blocks. The Zhangjiaba Mine of the Company contains various kinds of beige marbles, including Pure Beige, Mixed Beige, Wood Grain and Gray Net marbles, which account for 51.0%, 32.7%, 6.4% and 9.9% of our marble reserves respectively. The Company mainly produces Sino Beige and Sandy Beige marbles at present and both products are premium marbles, with Pure Beige marble commanding the highest price and Mixed Beige marble ranking behind.

Competitive Strengths

We believe the following strengths distinguish us from our competitors:
•  Our Zhangjiaba Mine has abundant marble reserves, significant planned mining and processing capacities and immediate expansion potential.
•  Our Zhangjiaba Mine produces high-quality marble blocks that can be processed into high- end marble slabs commanding high prices.
•  Our cost-effective and efficient mining and processing methods ensure low operating costs.
•  We benefit from the convenient location of our Zhangjiaba Mine and processing facilities.
•  Our mining and production processes are safe and environmentally friendly.
•  We have a strong and experienced management team with extensive industry and management experience.

Core Technology

Digital Mining Management System for Marble Mines
The Group has invested a lot of resources and currently adopted the digital mining management system for marble mines in its Zhangjiaba Mine, which is a set of unique digital practical technique invented in the production process in Zhangjiaba Mine. The system inputs the geological characteristics of the mine into the three-dimensional (the “3D”) orientation system, which collects the texture and types of mines found, and establishes the 3D model for the mine. With the 3D orientation numbering on every block and determination of the space and location of blocks, the management on the distance, shape, quality examination, transportation and stocking for blocks is conducted based on such numbering. This is the most precise management method which accurately regulates the design on exploration of the mine, formulation of production planning and quality control of the marble mine. According to our knowledge, such digitalized mining management system is unprecedented in global marble mining industry, thereby making us the leader in the whole world.