WHO WE ARE

Success Dragon is a business engaged in gold processing and trading in PRC. Incorporated in Bermuda, the company is listed in the Hong Kong Stock Exchange (Stock Code: 1182), with headquarters in Hong Kong and operating units in PRC. The gold processing and trading business of the Group comprised two main categories of Gold-laden Carbon and Gold Ore Processing, The Group’s processing plant of gold-laden carbon is located in Yunnan Province of the PRC where the processing plant of gold-ore is located in Henan Province.

OUR VISION

Our vision is to focus on gold processing and trading as its core business, so as to diversify the Group into an industry with promising prospects. It is expected to broaden the Group’s income stream and increase shareholders’ return.

GOLD PROCESSING AND TRADING BUSINESS

Gold-laden Carbon Processing

The Group’s processing plant of gold-laden carbon is located in Yunnan Province of the PRC, with an annual processing capacity of 990 tonnes of gold-laden carbon. The gold-laden carbon processed is a side product in the gold smelting process, which typically contains over 99% activated carbon and less than 1% of gold and other precious metals such as silver, and for the extraction of gold and other precious metals from gold-laden carbon. The Group purchases the gold-laden carbon from suppliers including mining enterprises and traders. At the Group’s production line, it processes the gold-laden carbon by way of a series of mechanical and chemical reactions and steps. The gold and other precious metals are extracted from the gold-laden carbon using processes such as desorption and electrodeposition and turn into bullion (i.e. non-standard gold) which is highly marketable among the gold industry. The extracted gold and other precious metals will be sold to buyers and dealers in the PRC. The Group recognizes revenue upon sale of the extracted gold (i.e. bullion) and other precious metals (e.g. silver) to its customers according to the price quoted on the Shanghai Gold Exchange.

Gold Ore Processing

The gold processing plants of the Group will purchase gold ore from suppliers and process the gold ore by way of a series of crushing and grinding, gravity separation/flotation, concentration and dehydration, and turn it into gold powder. The Group will sell the gold powder to gold smelters and recognize revenue upon such sale.

The Group in order to maintain its business momentum and expediate the expansion of its gold processing and trading business, the Group entered into lease agreements with independent third parties in respect of the three gold processing plants located in (i) Longtan Village of Miaozi Town*（廟子鎮龍潭村）(the “Tianfang Plant”); (ii) Kangshan Village of Baitu Xiang, Luanchuan County*（欒川縣白土鄉康山村）(the “Xingxingyin Plant”); and (iii) Tongzizhuang Village of Rixuan Town, Song County* （嵩縣日縣鎮童子莊村）(the “Tongzizhuang Plant”) in Henan Province of the PRC in 2022, respectively. The Group choosing to leased those new plants in Henan Province of the PRC was due to Henan Province is one of the top 10 provinces in China with the most measured gold resources. Pursuant to information published by Luanchuan County Government, Luanchuan County is situated at the polymetallic metallogenic belt of Western Henan, which is one of the 16 important polymetallic metallogenic belts in China of which the area is rich in resources including molybdenum, copper, zinc, gold, silver and iron etc.