CHNR released unaudited interim financial information for the three and six months ended June 30, 2011
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 21, 2011 – 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, 2011 as follows:
CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
(Amounts in thousands, except share and per share data)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2010 |
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2011 |
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2011 |
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2010 |
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2011 |
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2011 |
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CNY |
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CNY |
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US$ |
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CNY |
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CNY |
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US$ |
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NET SALES |
24,850 |
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61,809 |
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9,562 |
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33,623 |
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70,133 |
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10,850 |
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COST OF SALES |
(15,729) |
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(39,885) |
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(6,170) |
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(21,727) |
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(46,083) |
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(7,129) |
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GROSS PROFIT |
9,121 |
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21,924 |
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3,392 |
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11,896 |
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24,050 |
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3,721 |
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SELLING, GENERAL AND |
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ADMINISTRATIVE EXPENSES, |
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including share-based compensation |
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expense of CNY13,008 (US$1,904) and nil |
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for the six months ended June 30, 2010 and 2011, respectively, and CNY6,504 (US$952) and |
(24,940) |
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(18,232) |
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(2,821) |
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(37,877) |
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(35,451) |
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(5,484) |
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OTHER OPERATING EXPENSES |
(1,936) |
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— |
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— |
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(2,315) |
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— |
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— |
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OPERATING PROFIT (LOSS) |
(17,755) |
|
3,692 |
|
571 |
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(28,296) |
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(11,401) |
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(1,763) |
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FINANCE COST |
(436) |
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(6,561) |
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(1,015) |
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(436) |
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(11,831) |
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(1,830) |
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INTEREST INCOME |
293 |
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246 |
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38 |
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774 |
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372 |
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58 |
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LOSS ATTRIBUTABLE TO INVESTMENTS IN UNCONSOLIDATED INVESTEES |
(1,826) |
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— |
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— |
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(3,612) |
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— |
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— |
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GAIN ON DISPOSAL OF AN UNCONSOLIDATED INVESTEE |
— |
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— |
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— |
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7,269 |
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— |
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— |
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GAIN FROM BARGAIN PURCHASE OF A SUBSIDIARY |
— |
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— |
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— |
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624,148 |
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— |
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— |
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OTHER INCOME (EXPENSE), NET |
(58) |
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19 |
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3 |
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44 |
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(54) |
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(7) |
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PROFIT (LOSS) FROM BEFORE INCOME TAXES |
(19,782) |
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(2,604) |
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(403) |
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599,891 |
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(22,914) |
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(3,542) |
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INCOME TAXES |
(2,155) |
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(4,446) |
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(688) |
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(3,600) |
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(5,825) |
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(901) |
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NET INCOME (LOSS) |
(21,937) |
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(7,050) |
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(1,091) |
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596,291 |
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(28,739) |
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(4,443) |
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OTHER COMPREHENSIVE INCOME (LOSS) |
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Foreign currency translation adjustments |
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Attributable to CHNR Shareholders |
3,951 |
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5,394 |
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835 |
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3,844 |
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8,279 |
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1,281 |
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Attributable to non-controlling interests |
— |
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— |
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— |
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— |
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— |
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— |
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COMPREHENSIVE INCOME (LOSS) |
(17,986) |
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(1,656) |
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(256) |
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600,135 |
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(20,460) |
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(3,162) |
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COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: |
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CHNR Shareholders |
(17,616) |
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(1,445) |
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(223) |
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600,726 |
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(20,128) |
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(3,111) |
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Non-controlling interests |
(370) |
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(211) |
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(33) |
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(591) |
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(332) |
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(51) |
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(17,986) |
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(1,656) |
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(256) |
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600,135 |
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(20,460) |
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(3,162) |
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NET INCOME (LOSS) ATTRIBUTABLE TO: |
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CHNR Shareholders |
(21,567) |
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(6,839) |
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(1,058) |
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596,882 |
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(28,407) |
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(4,392) |
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Non-controlling interests |
(370) |
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(211) |
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(33) |
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(591) |
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(332) |
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(51) |
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(21,937) |
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(7,050) |
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(1,091) |
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596,291 |
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(28,739) |
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(4,443) |
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EARNINGS (LOSS) PER SHARE: |
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Basic |
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Income (loss) per share |
(0.96) |
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(0.30) |
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(0.05) |
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26.94 |
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(1.25) |
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(0.19) |
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Diluted |
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Income (loss) per share |
(0.96) |
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(0.30) |
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(0.05) |
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26.61 |
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(1.25) |
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(0.19) |
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WEIGHTED AVERAGE NUMBER |
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OF SHARES OUTSTANDING |
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Basic |
22,468,471 |
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22,748,141 |
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22,748,141 |
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22,158,775 |
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22,748,141 |
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22,748,141 |
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Diluted |
22,468,471 |
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22,748,141 |
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22,748,141 |
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22,430,086 |
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22,748,141 |
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22,748,141 |
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CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2011 AND DECEMBER 31, 2010
(Amounts in thousands, except share data)
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December 31, |
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June 30, |
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June 30, |
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2010 |
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2011 |
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2011 |
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CNY |
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CNY |
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US$ |
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(Unaudited) |
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(Unaudited) |
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CURRENT ASSETS |
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Cash |
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126,685 |
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105,099 |
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16,259 |
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Restricted cash |
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— |
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21,000 |
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3,249 |
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Available-for-sale financial asset |
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— |
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7,000 |
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1,083 |
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Trade receivables |
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13,807 |
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27,032 |
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4,182 |
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Bills receivable |
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2,200 |
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6,000 |
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928 |
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Prepayment |
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7,791 |
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26,334 |
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4,074 |
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Inventories |
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11,454 |
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13,042 |
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2,018 |
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Deferred tax assets |
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439 |
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140 |
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22 |
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Other receivables |
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14,538 |
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17,561 |
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2,717 |
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TOTAL CURRENT ASSETS |
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176,914 |
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223,208 |
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34,532 |
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DEFERRED TAX ASSETS |
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1,695 |
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1,667 |
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258 |
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REHABILITATION FUND |
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20,402 |
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28,023 |
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4,335 |
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PREPAYMENTS |
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15,825 |
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84,579 |
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13,085 |
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PROPERTY AND EQUIPMENT, NET |
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1,823,992 |
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1,915,642 |
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296,360 |
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TOTAL NON-CURRENT ASSETS |
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1,861,914 |
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2,029,911 |
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314,038 |
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TOTAL ASSETS |
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2,038,828 |
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2,253,119 |
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348,570 |
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CURRENT LIABILITIES |
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Mining rights payable – current |
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19,192 |
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25,104 |
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3,884 |
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Short-term bank loan |
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100,000 |
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120,000 |
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18,565 |
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Accounts payable |
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82,897 |
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60,673 |
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9,386 |
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Bills payable |
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— |
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70,000 |
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10,829 |
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Advances from customers |
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1,306 |
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7,273 |
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1,125 |
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Accrued liabilities |
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7,117 |
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7,491 |
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1,159 |
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Income tax and other taxes payable |
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22,034 |
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23,188 |
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3,587 |
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Other payables |
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46,880 |
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51,395 |
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7,953 |
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Interest payable – current |
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4,253 |
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3,886 |
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601 |
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Payables to related parties |
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44,782 |
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95,836 |
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14,826 |
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TOTAL CURRENT LIABILITIES |
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328,461 |
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464,846 |
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71,915 |
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Long-term bank loans |
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318,742 |
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438,742 |
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67,876 |
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Mining rights payable – non-current |
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132,966 |
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112,578 |
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17,416 |
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Interest payable – non-current |
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13,205 |
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14,035 |
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2,171 |
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Long-term payable to the Shareholder |
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404,093 |
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375,255 |
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58,054 |
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Deferred tax liabilities |
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|
294,250 |
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296,255 |
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45,832 |
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Asset retirement obligations |
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9,036 |
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9,484 |
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1,467 |
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TOTAL NON-CURRENT LIABILITIES |
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1,172,292 |
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1,246,349 |
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192,816 |
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TOTAL LIABILITIES |
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1,500,753 |
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1,711,195 |
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264,731 |
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EQUITY |
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China Natural Resources, Inc. equity: |
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Common shares, no par: |
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Authorized – 200,000,000 shares; |
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— |
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— |
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— |
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Issued and outstanding – 22,723,416 shares and 23,098,416 at December 31, 2010 |
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312,081 |
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312,081 |
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48,281 |
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Other equity |
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161,048 |
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156,950 |
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24,281 |
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Other comprehensive loss |
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(20,902) |
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(12,623) |
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(1,953) |
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TOTAL CHINA NATURAL RESOURCES, INC. EQUITY |
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452,227 |
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456,408 |
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70,609 |
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NON-CONTROLLING INTERESTS |
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85,848 |
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85,516 |
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13,230 |
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538,075 |
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541,924 |
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83,839 |
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TOTAL LIABILITIES AND EQUITY |
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2,038,828 |
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2,253,119 |
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348,570 |
2
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$1.00 = CNY6.4639 as quoted by Bloomberg Finance L.P. as of June 30, 2011. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.
The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2011 (unaudited) and the condensed consolidated balance sheet as of June 30, 2011 (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, 2011 and 2010, which was filed with the Securities and Exchange Commission on December 14, 2011 under cover of Form 6-K. The results of operations for the six months ended June 30, 2011 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2011.
Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2011 interim results "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 for the coal mining industry in the PRC and we will continue to pursue growth through acquisition and consolidation of small to medium sized coal mines.”
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.
3