News

CHNR released unaudited interim financial information for the three and six months ended June 30, 2010

EX-99.1 chnr_ex99z1.htm  

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 30, 2010 – 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, 2010 as follows:

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009

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



Three Months Ended June 30


Six Months Ended June 30


2009


2010


2010


2009


2010


2010


RMB


RMB


US$


RMB


RMB


US$













NET SALES

12,999


24,850


3,664

17,563


33,623


4,958

COST OF SALES

(12,371)


(15,729)


(2,319)

(16,268)


(21,727)


(3,204)

GROSS PROFIT

628


9,121


1,345

1,295


11,896


1,754












SELLING, GENERAL AND











ADMINISTRATIVE EXPENSES,











including share-based compensation expense of RMB13,008 (US$1,904) for the six months ended June 30, 2010 and 2009, and RMB6,504 (US$952) for the three months ended June 30, 2010 and 2009































(12,870)


(25,105)


(3,702)

(26,409)


(38,402)


(5,662)

OPERATING LOSS FROM CONTINUING OPERATIONS

(12,242)


(15,984)


(2,357)

(25,114)


(26,506)


(3,908)

FINANCE COST

-


(436)


(64)

-


(436)


(64)

INTEREST INCOME

65


293


43

421


774


114

OTHER INCOME (EXPENSE), NET

-


(1,829)


(270)

529


629,671


92,847

LOSS ATTRIBUTABLE TO INVESTMENT
IN UNCONSOLIDATED INVESTEES











(2,960)


(1,826)


(269)

(5,665)


(3,612)


(533)

PROFIT (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(15,137)


(19,782)


(2,917)

(29,829)


599,891


88,456

INCOME TAXES

(714)


(2,155)


(318)

(1,266)


(3,600)


(531)

PROFIT (LOSS) FROM CONTINUING OPERATIONS

(15,851)


(21,937)


(3,235)

(31,095)


596,291


87,925












DISCONTINUED OPERATION











INCOME (LOSS) FROM A DISCONTINUED OPERATION

5


-


-

(15,052)


-


-

NET INCOME (LOSS)

(15,846)


(21,937)


(3,235)

(46,147)


596,291


87,925

OTHER COMPREHENSIVE INCOME (LOSS)











Foreign currency translation adjustments











Attributable to CHNR Shareholders

(60)


3,951


583

438


3,844


567

Attributable to non-controlling interests

-


-


-


-


-


-

TOTAL COMPREHENSIVE INCOME (LOSS)

(15,906)


(17,986)


(2,652)

(45,709)


600,135


88,492












COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:











CHNR Shareholders

(15,073)


(17,616)


(2,597)

(38,142)


600,726


88,579

Non-controlling interests

(833)


(370)


(55)

(7,567)


(591)


(87)


(15,906)


(17,986)


(2,652)

(45,709)


600,135


88,492












NET INCOME (LOSS) ATTRIBUTABLE TO:











Continuing operations

(15,016)


(21,567)


(3,180)

(29,549)


596,882


88,012

Discontinued operation

3


-


-

(9,031)


-


-

CHNR Shareholders

(15,013)


(21,567)


(3,180)

(38,580)


596,882


88,012

Non-controlling interests

(833)


(370)


(55)

(7,567)


(591)


(87)


(15,846)


(21,937)


(3,235)

(46,147)


596,291


87,925


































EARNINGS (LOSS) PER SHARE:











Basic











Income (loss) from continuing operations

(0.71)


(0.96)


(0.14)

(1.42)


26.94


3.97

Loss from a discontinued operation

-


-


-

(0.43)


-


-

Income (loss) per share

(0.71)


(0.96)


(0.14)

(1.85)


26.94


3.97












Diluted











Income (loss) from continuing operations

(0.71)


(0.96)


(0.14)

(1.42)


26.61


3.92

Loss from a discontinued operation

-


-


-

(0.43)


-


-

Income (loss) per share

(0.71)


(0.96)


(0.14)

(1.85)


26.61


3.92






WEIGHTED AVERAGE NUMBER











OF SHARES OUTSTANDING











Basic

21,123,416


22,468,471


22,468,471

20,883,085


22,158,775


22,158,775












Diluted

21,123,416


22,468,471


22,468,471

20,883,085


22,430,086


22,430,086
















CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2010 AND DECEMBER 31, 2009

(Amounts in thousands, except share data)






December 31,


June 30,


June 30,





2009


2010


2010





RMB


RMB


US$







(Unaudited)


(Unaudited)










CURRENT ASSETS









Cash




186,582


95,650


14,104

Trade receivables:









Related parties




68,740


-


-

Others




1,070


7,696


1,135

Bills receivable




1,000


2,500


369

Notes and advances receivable




169,018


9,384


1,384

Advances to an unconsolidated investee




37,432


-


-

Inventories




4,187


10,463


1,543

Deferred tax assets




2,073


224


33

Other assets




11,662


43,283


6,382










TOTAL CURRENT ASSETS




481,764


169,200


24,950










DEFERRED TAX ASSETS




-


1,705


251










INVESTMENTS IN UNCONSOLIDATED INVESTEES




12,856


9,395


1,385










PROPERTY AND EQUIPMENT, NET




198,456


1,610,412


237,460










TOTAL NON-CURRENT ASSETS




211,312


1,621,512


239,096










TOTAL ASSETS




693,076


1,790,712


264,046










CURRENT LIABILITIES









Bills payable




20,000


-


-

Short-term bank loan




-


30,000


4,424

Accounts payable




17,851


56,906


8,391

Advances from customers




339


2,159


318

Accrued liabilities




4,807


8,105


1,195

Income tax and other taxes payable




2,198


333


49

Other payables




30,534


49,197


7,254

Interest payable – current




648


3,854


568

Payables to related parties




55,460


531,774


78,412










TOTAL CURRENT LIABILITIES




131,837


682,328


100,611










Long-term debt and other obligations




165,538


242,358


35,736

Interest payable – non current




7,743


12,648


1,865

Deferred tax liabilities




-


290,236


42,796

Other payables




8,681


-


-










TOTAL NON-CURRENT LIABILITIES




181,962


545,242


80,397










TOTAL LIABILITIES




313,799


1,227,570


181,008










EQUITY









China Natural Resources, Inc. equity:









Common shares, no par:
Authorized - 200,000,000 shares;
Issued and outstanding – 21,123,416 shares and 22,723,416 at December 31, 2009 and June 30, 2010, respectively




















312,081


312,081


46,017

Other equity




77,002


193,504


28,533

Other comprehensive loss




(35,662)


(31,818)


(4,691)










TOTAL CHINA NATURAL RESOURCES, INC. EQUITY




353,421


473,767


69,859

NON-CONTROLLING INTERESTS




25,856


89,375


13,179





379,277


563,142


83,038










TOTAL LIABILITIES AND EQUITY




693,076


1,790,712


264,046



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For the convenience of the reader, amounts in Renminbi (“RMB”) have been translated into United States dollars (“US$”) at the applicable rate of US$1.00 = RMB6.7818 as quoted by Bloomberg Finance L.P. as of June 30, 2010. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate, or at all.


The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2010 (unaudited) and the condensed consolidated balance sheet as of June 30, 2010 (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, 2010 and 2009, which was filed with the Securities and Exchange Commission on December 30, 2010 under cover of Form 6-K. The results of operations for the six months ended June 30, 2010 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2010.


Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2010 interim results "The positive results for the six months ended June 30, 2010 signify the success of our strategy in pursuing growth through acquisition and consolidation of small to medium sized coal mines in Guizhou Province. In view of the continuing economic growth in the PRC, we believe that demand for coal will continue to be robust in the foreseeable future. We are positive about the prospects of 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 mines 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.


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