ARTGO HOLDINGS (03313) announced that, as previously disclosed, the application for the renewal of the mining license was accepted by the relevant authorities in 2019, but the renewed license itself remained pending issuance. On December 29, 2024, the company received a notification from the authorities stating their decision to reject the renewal application. Following this notification, the Group resubmitted the application for the mining license renewal. Since the resubmission, the company's management has been actively following up on the status of the renewal; however, as of the date of this announcement, the approval for the renewal is still under review, and the company has not received any definitive feedback. Concurrently, the management has been continuously assessing the commercial viability of securing the license renewal. After careful consideration, and having weighed several factors, the Board of Directors has determined that it is in the best interests of the Group not to commit additional resources to pursuing the renewal of the mining license. The key factors include the Group's financial resources and the uncertainty surrounding regulatory approvals. As mentioned in previous announcements, the license renewal would require the Group to pay a deposit for the restoration of the relevant geological environment and to commit additional financial and management resources to the Dejiang Mine to fulfill these geological commitments, including the preparation and implementation of the required plan. Given the Group's current financial condition and the priority of allocating cash to ongoing operations and loan repayments, management has decided to deploy its financial resources more prudently. The Board believes that focusing the Group's efforts on the operations of the Yongfeng Mine is more advantageous, as this mine currently holds a valid mining license and has the capacity for expansion, which would enhance the Group's overall profitability. The Board is confident that allocating the Group's financial resources to the Yongfeng Mine will yield better returns. Furthermore, the renewal process for the mining license is subject to review by the authorities and requires meeting various conditions, including, but not limited to, the anticipated budget for the plan to comply with safety production and environmental protection requirements. This is deemed commercially unattractive for the company and would necessitate further significant investment of human and capital resources. Therefore, given the tightening of industry standards and increasingly strict enforcement norms, there is considerable uncertainty regarding whether the plan will be accepted and whether all related conditions can be met at a predictable and controllable cost within a reasonable timeframe. In recent years, the Chinese marble products industry has been adversely affected by the slowdown in the commercial and residential property markets and a general reduction in construction activity. These factors have led to decreased demand for marble products, putting greater pressure on sales prices and profit margins. In the current business environment, the Group has decided to streamline its business portfolio to enhance overall operational efficiency as part of effective cost-saving measures. Given the market challenges and uncertainties, the Board considers it commercially unviable to make further capital commitments solely for the purpose of renewing the Dejiang Mine's mining license with the Group's current resources. The Dejiang Mine has not generated any revenue for several years. Since the mining rights for the Dejiang Mine were fully impaired in 2024, the Group expects that the decision not to invest further in the license renewal, or its potential non-renewal, will not have any further material adverse impact on the Group's overall business and financial position. From an operational perspective, the sales of the Group's marble products division will continue to operate normally and remain a primary source of revenue. The Board will continue to allocate resources to these businesses and actively explore new business opportunities to enhance shareholder returns.