News

CHNR released unaudited interim financial information for the three and six months ended June 30, 2013

EXHIBIT 99.1


 

CONTACT

Edward Wong, Chief Financial Officer

011-852-2810-7205 or cfo@chnr.net


 

FOR IMMEDIATE RELEASE


 

CHINA NATURAL RESOURCES RELEASES

INTERIM RESULTS OF OPERATIONS


 

HONG KONG, December 31, 2013 – CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR), a company based in the People’s Republic of China, today released unaudited interim financial information for the three and six months ended June 30, 2013 as follows:


 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES


 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

(Amounts in thousands, except share and per share data)


 

                                                 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2012

 

 

2013

 

 

2013

 

 

2012

 

 

2013

 

 

2013

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

37,841

 

 

 

41,268

 

 

 

6,724

 

 

 

66,903

 

 

 

70,555

 

 

 

11,496

 

COST OF SALES

 

 

(22,344

)

 

 

(31,937

)

 

 

(5,204

)

 

 

(38,687

)

 

 

(51,428

)

 

 

(8,379

)

GROSS PROFIT

 

 

15,497

 

 

 

9,331

 

 

 

1,520

 

 

 

28,216

 

 

 

19,127

 

 

 

3,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING AND DISTRIBUTION EXPENSES

 

 

(840

)

 

 

(1,363

)

 

 

(222

)

 

 

(1,525

)

 

 

(2,791

)

 

 

(455

)

ADMINISTRATIVE EXPENSES

 

 

(21,203

)

 

 

(42,090

)

 

 

(6,858

)

 

 

(39,166

)

 

 

(65,942

)

 

 

(10,744

)

IMPAIRMENT LOSS ON PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(184,417

)

 

 

(30,048

)

OTHER OPERATING EXPENSES

 

 

(3,591

)

 

 

(1,760

)

 

 

(287

)

 

 

(4,704

)

 

 

(3,372

)

 

 

(549

)

OPERATING LOSS

 

 

(10,137

)

 

 

(35,882

)

 

 

(5,847

)

 

 

(17,179

)

 

 

(237,395

)

 

 

(38,679

)

FINANCE COSTS

 

 

(11,368

)

 

 

(31,902

)

 

 

(5,198

)

 

 

(20,818

)

 

 

(43,912

)

 

 

(7,155

)

INTEREST INCOME

 

 

905

 

 

 

1,337

 

 

 

218

 

 

 

1,695

 

 

 

1,778

 

 

 

290

 

NON-OPERATING INCOME (EXPENSE), NET

 

 

(858

)

 

 

1,613

 

 

 

263

 

 

 

(889

)

 

 

1,215

 

 

 

198

 

PROFIT (LOSS) BEFORE INCOME TAXES

 

 

(21,458

)

 

 

(64,834

)

 

 

(10,564

)

 

 

(37,191

)

 

 

(278,314

)

 

 

(45,346

)

INCOME TAXES (EXPENSE) BENEFIT

 

 

(7,078

)

 

 

6,448

 

 

 

1,051

 

 

 

(8,361

)

 

 

50,083

 

 

 

8,160

 

LOSS FOR THE PERIOD

 

 

(28,536

)

 

 

(58,386

)

 

 

(9,513

)

 

 

(45,552

)

 

 

(228,231

)

 

 

(37,186

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(28,547

)

 

 

(56,840

)

 

 

(9,261

)

 

 

(47,707

)

 

 

(227,422

)

 

 

(37,054

)

Non-controlling interests

 

 

11

 

 

 

(1,546

)

 

 

(252

)

 

 

2,155

 

 

 

(809

)

 

 

(132

)

 

 

 

(28,536

)

 

 

(58,386

)

 

 

(9,513

)

 

 

(45,552

)

 

 

(228,231

)

 

 

(37,186

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSSES PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

(1.15

)

 

 

(2.28

)

 

 

(0.37

)

 

 

(1.92

)

 

 

(9.13

)

 

 

(1.49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

(1.15

)

 

 

(2.28

)

 

 

(0.37

)

 

 

(1.92

)

 

 

(9.13

)

 

 

(1.49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FOR THE PERIOD

 

 

(28,536

)

 

 

(58,386

)

 

 

(9,513

)

 

 

(45,552

)

 

 

(228,231

)

 

 

(37,186

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items to be classified to profit or loss in subsequent period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(2,794

)

 

 

2,475

 

 

 

403

 

 

 

(2,579

)

 

 

3,845

 

 

 

627

 

TOTAL OTHER COMPREHENSIVE INCOME

 

 

(2,794

)

 

 

2,475

 

 

 

403

 

 

 

(2,579

)

 

 

3,845

 

 

 

627

 

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX

 

 

(31,330

)

 

 

(55,911

)

 

 

(9,110

)

 

 

(48,131

)

 

 

(224,386

)

 

 

(36,559

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(31,341

)

 

 

(54,365

)

 

 

(8,858

)

 

 

(50,286

)

 

 

(223,577

)

 

 

(36,427

)

Non-controlling interests

 

 

11

 

 

 

(1,546

)

 

 

(252

)

 

 

2,155

 

 

 

(809

)

 

 

(132

)

 

 

 

(31,330

)

 

 

(55,911

)

 

 

(9,110

)

 

 

(48,131

)

 

 

(224,386

)

 

 

(36,559

)


 


 


 


 

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2013 AND DECEMBER 31, 2012

(Amounts in thousands)


 

                                 

 

 

 

 

 

December 31,

 

 

June 30,

 

 

June 30,

 

 

 

 

 

 

2012

 

 

2013

 

 

2013

 

 

 

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

  

                     

  

  

                     

  

  

                     

  

  

                     

  

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

 

  

2,349,914

 

 

  

2,308,729

 

 

  

376,168

  

Rehabilitation fund

 

 

 

 

 

 

33,052

 

 

 

44,942

 

 

 

7,323

 

Prepayments

 

 

 

 

 

 

117,123

 

 

 

118,629

 

 

 

19,329

 

Deferred tax assets

 

 

 

 

 

 

6,916

 

 

 

8,145

 

 

 

1,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

 

 

 

 

2,507,005

 

 

 

2,480,445

 

 

 

404,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

 

 

18,403

 

 

 

21,642

 

 

 

3,526

 

Trade and bill receivables

 

 

 

 

 

 

49,275

 

 

 

46,551

 

 

 

7,585

 

Prepayments

 

 

 

 

 

 

5,992

 

 

 

6,892

 

 

 

1,123

 

Other receivables

 

 

 

 

 

 

31,909

 

 

 

37,211

 

 

 

6,063

 

Restricted bank deposits

 

 

 

 

 

 

7,082

 

 

 

 

 

 

 

Term deposits with an original maturity over three months

 

 

 

 

 

 

23,650

 

 

 

3,699

 

 

 

603

 

Cash and cash equivalents

 

 

 

 

 

 

210,944

 

 

 

298,533

 

 

 

48,641

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

 

 

 

 

347,255

 

 

 

414,528

 

 

 

67,541

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

 

 

2,854,260

 

 

 

2,894,973

 

 

 

471,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and bills payables

 

 

 

 

 

 

104,199

 

 

 

99,783

 

 

 

16,258

 

Other payables and accrued liabilities

 

 

 

 

 

 

79,923

 

 

 

69,994

 

 

 

11,404

 

Interest bearing bank and other borrowings

 

 

 

 

 

443,900

 

 

 

861,900

 

 

 

140,432

 

Due to related companies

 

 

 

 

 

411,053

 

 

 

6,573

 

 

 

1,071

 

Interest payable

 

 

 

 

 

 

9,093

 

 

 

11,195

 

 

 

1,824

 

Taxes payable

 

 

 

 

 

 

24,143

 

 

 

24,398

 

 

 

3,975

 

Mining rights payable

 

 

 

 

 

 

25,568

 

 

 

31,368

 

 

 

5,111

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

 

 

 

 

1,097,879

 

 

 

1,105,211

 

 

 

180,075

 

NET CURRENT LIABILITIES

 

 

 

 

 

 

750,624

 

 

 

690,683

 

 

 

112,534

 

TOTAL ASSETS LESS CURRENT LIABILITIES

 

 

 

 

 

 

1,756,381

 

 

 

1,789,762

 

 

 

291,613

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing bank and other borrowings

 

 

 

 

 

569,630

 

 

 

897,449

 

 

 

146,224

 

Due to the Shareholder

 

 

 

 

 

266,610

 

 

 

257,041

 

 

 

41,880

 

Interest payable

 

 

 

 

 

 

17,894

 

 

 

18,788

 

 

 

3,061

 

Deferred tax liabilities

 

 

 

 

 

 

267,004

 

 

 

216,332

 

 

 

35,248

 

Mining rights payable

 

 

 

 

 

 

77,810

 

 

 

66,150

 

 

 

10,778

 

Asset retirement obligations

 

 

 

 

 

 

10,558

 

 

 

11,515

 

 

 

1,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

 

 

 

 

1,209,506

 

 

 

1,467,275

 

 

 

239,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

 

 

 

2,307,385

 

 

 

2,572,486

 

 

 

419,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued capital

 

 

 

 

 

 

312,081

 

 

 

312,081

 

 

 

50,848

 

Other capital reserves

 

 

 

 

 

536,872

 

 

 

536,872

 

 

 

87,474

 

Reserves

 

 

 

 

 

 

49,793

 

 

 

52,706

 

 

 

8,588

 

Accumulated losses

 

 

 

 

 

 

(443,001

)

 

 

(673,338

)

 

 

(109,709

)

Other comprehensive losses

 

 

 

 

 

 

(2,811

)

 

 

1,034

 

 

 

168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY

 

 

 

 

 

 

452,934

 

 

 

229,355

 

 

 

37,369

 

NON-CONTROLLING INTERESTS

 

 

 

 

 

 

93,941

 

 

 

93,132

 

 

 

15,177

 

TOTAL EQUITY

 

 

 

 

 

 

546,875

 

 

 

322,487

 

 

 

52,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

 

 

 

 

2,854,260

 

 

 

2,894,973

 

 

 

471,688

 


 


 


 


 


 


 

For the convenience of the reader, amounts in Renminbi, the Chinese currency (CNY), have been translated into United States dollars (US$) at the applicable rate of US$1.00 = CNY6.1375 as quoted by Bloomberg Finance L.P. as of June 30, 2013. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.

The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2013 (unaudited) and the condensed consolidated statements of financial position sheet as of June 30, 2013 (unaudited) are derived from, and should be read in conjunction with, the Company’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2013 and 2012, as filed with the Securities and Exchange Commission on December 31, 2013 under cover of Form 6-K. The results of operations for the six months ended June 30, 2013 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2013.

Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2013 interim results: "Our metal segment resumed normal operation in the first half of 2013. The operation of Gouchang Coal Mine has been temporarily suspended by the Guizhou government since March 2013 pending the acquisition by us of a nearby coal mine and Gouchang Coal Mine achieving certain production capacity targets, as required by Guizhou province’s coal mine consolidation policy.  As a result, we incurred an impairment loss on property, plant and equipment of CNY184.42 million (US$30.05 million) for the six months ended June 30, 2013. The drop in the market price of coal in Guizhou in the first half of 2013 also contributed to the loss of the Group. In view of the continuing economic growth in the PRC, we believe that demand for coal, in particular coal used in the chemical industry, will continue to be robust in the medium and long run. We remain positive about the prospects for the coal mining industry in the PRC.”


 

About China Natural Resources, Inc.:

China Natural Resources, Inc., a British Virgin Islands corporation, through its operating subsidiaries in the People's Republic of China, is currently engaged in (a) the acquisition and exploitation of mining rights, including the exploration, mineral extraction, processing and sale of iron, zinc and other nonferrous metals, extracted or produced at mine primarily located in Anhui Province in the PRC, and (b) the acquisition, exploration, development and production of coal resources in Guizhou Province in the PRC.

Forward-Looking Statements:

This press release includes forward-looking statements within the meaning of federal securities laws. These statements include, without limitation, statements regarding the intent, belief and current expectations of management with respect to the Company's policies regarding investments, dispositions, financings, conflicts of interest and other matters; and trends affecting the Company's financial condition or results of operations. Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, many of which are outside of our control, and actual results may differ materially from those in the forward-looking statement. Among the risks and uncertainties that could cause our actual results to differ from our forward-looking statements are: uncertainties relating to our business operations and operating results; uncertainties regarding the governmental, economic and political environment in the People’s Republic of China; uncertainties associated with metal and coal price volatility; uncertainties associated with the Company’s reliance on third-party contractors and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including without limitation the information set forth in our Annual Report on Form 20-F under the heading "Risk Factors". While management believes that its assumptions forming the bases for forward looking statements are reasonable, assumed facts or bases generally vary from actual results, and there can be no assurance that the expectations or beliefs expressed in forward looking statements will be achieved or accomplished.