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)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2012 |
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2013 |
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2013 |
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2012 |
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2013 |
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2013 |
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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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REVENUE |
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37,841 |
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41,268 |
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6,724 |
|
|
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66,903 |
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|
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70,555 |
|
|
|
11,496 |
|
|
COST OF SALES |
|
|
(22,344 |
) |
|
|
(31,937 |
) |
|
|
(5,204 |
) |
|
|
(38,687 |
) |
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(51,428 |
) |
|
|
(8,379 |
) |
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GROSS PROFIT |
|
|
15,497 |
|
|
|
9,331 |
|
|
|
1,520 |
|
|
|
28,216 |
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|
19,127 |
|
|
|
3,117 |
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SELLING AND DISTRIBUTION EXPENSES |
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(840 |
) |
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(1,363 |
) |
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(222 |
) |
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(1,525 |
) |
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(2,791 |
) |
|
|
(455 |
) |
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ADMINISTRATIVE EXPENSES |
|
|
(21,203 |
) |
|
|
(42,090 |
) |
|
|
(6,858 |
) |
|
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(39,166 |
) |
|
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(65,942 |
) |
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(10,744 |
) |
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IMPAIRMENT LOSS ON PROPERTY, PLANT AND EQUIPMENT |
|
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— |
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— |
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|
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— |
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— |
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(184,417 |
) |
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(30,048 |
) |
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OTHER OPERATING EXPENSES |
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(3,591 |
) |
|
|
(1,760 |
) |
|
|
(287 |
) |
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(4,704 |
) |
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|
(3,372 |
) |
|
|
(549 |
) |
|
OPERATING LOSS |
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(10,137 |
) |
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(35,882 |
) |
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(5,847 |
) |
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(17,179 |
) |
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(237,395 |
) |
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|
(38,679 |
) |
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FINANCE COSTS |
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(11,368 |
) |
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|
(31,902 |
) |
|
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(5,198 |
) |
|
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(20,818 |
) |
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(43,912 |
) |
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(7,155 |
) |
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INTEREST INCOME |
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|
905 |
|
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1,337 |
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|
218 |
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1,695 |
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1,778 |
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|
290 |
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NON-OPERATING INCOME (EXPENSE), NET |
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(858 |
) |
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1,613 |
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|
263 |
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(889 |
) |
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1,215 |
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|
198 |
|
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PROFIT (LOSS) BEFORE INCOME TAXES |
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(21,458 |
) |
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(64,834 |
) |
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(10,564 |
) |
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(37,191 |
) |
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(278,314 |
) |
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(45,346 |
) |
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INCOME TAXES (EXPENSE) BENEFIT |
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(7,078 |
) |
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6,448 |
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1,051 |
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(8,361 |
) |
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50,083 |
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8,160 |
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LOSS FOR THE PERIOD |
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(28,536 |
) |
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(58,386 |
) |
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(9,513 |
) |
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(45,552 |
) |
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(228,231 |
) |
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(37,186 |
) |
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ATTRIBUTABLE TO: |
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Owners of the Company |
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(28,547 |
) |
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(56,840 |
) |
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(9,261 |
) |
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(47,707 |
) |
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(227,422 |
) |
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(37,054 |
) |
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Non-controlling interests |
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11 |
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(1,546 |
) |
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(252 |
) |
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2,155 |
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(809 |
) |
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(132 |
) |
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(28,536 |
) |
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(58,386 |
) |
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(9,513 |
) |
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(45,552 |
) |
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(228,231 |
) |
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(37,186 |
) |
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LOSSES PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: |
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Basic |
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(1.15 |
) |
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(2.28 |
) |
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(0.37 |
) |
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(1.92 |
) |
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(9.13 |
) |
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(1.49 |
) |
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Diluted |
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(1.15 |
) |
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(2.28 |
) |
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(0.37 |
) |
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(1.92 |
) |
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(9.13 |
) |
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(1.49 |
) |
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LOSS FOR THE PERIOD |
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(28,536 |
) |
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(58,386 |
) |
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(9,513 |
) |
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(45,552 |
) |
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(228,231 |
) |
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(37,186 |
) |
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Other comprehensive income (loss): |
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Items to be classified to profit or loss in subsequent period: |
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Foreign currency translation adjustments |
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(2,794 |
) |
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2,475 |
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|
403 |
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(2,579 |
) |
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3,845 |
|
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|
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 |
) |
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Attributable to: |
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|
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Owners of the Company |
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(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)
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December 31, |
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June 30, |
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|
June 30, |
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2012 |
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2013 |
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|
2013 |
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||||
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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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ASSETS |
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NON-CURRENT ASSETS |
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|
|
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|
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||||
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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 |
|
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|
2,480,445 |
|
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|
404,147 |
|
|
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|
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CURRENT ASSETS |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
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TOTAL CURRENT ASSETS |
|
|
|
|
|
|
347,255 |
|
|
|
414,528 |
|
|
|
67,541 |
|
|
|
|
|
|
|
|
|
|
|
|
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|||
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TOTAL ASSETS |
|
|
|
|
|
|
2,854,260 |
|
|
|
2,894,973 |
|
|
|
471,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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.