News

China Natural Resources Releases Interim Results of Operations

EXHIBIT 99.1


 

CONTACT

Maxine Ma, Chief Financial Officer

011-852-2810-7205 or maxine@chnr.net


 

FOR IMMEDIATE RELEASE

CHINA NATURAL RESOURCES RELEASES

INTERIM RESULTS OF OPERATIONS


 

HONG KONG, December 4, 2014 – 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, 2014 as follows:


 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013

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


 

                                                 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2013

 

 

2014

 

 

2014

 

 

2013

 

 

2014

 

 

2014

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

CNY

 

 

CNY

 

 

US$

 

CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

11,791

 

 

 

4,684

 

 

 

755

 

 

 

15,839

 

 

 

7,896

 

 

 

1,273

 

COST OF SALES

 

 

(7,933

)

 

 

(3,765

)

 

 

(607

)

 

 

(11,475

)

 

 

(6,028

)

 

 

(972

)

GROSS PROFIT

 

 

3,858

 

 

 

919

 

 

 

148

 

 

 

4,364

 

 

 

1,868

 

 

 

301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING AND DISTRIBUTION EXPENSES

 

 

(27

)

 

 

(21

)

 

 

(3

)

 

 

(63

)

 

 

(50

)

 

 

(8

)

ADMINISTRATIVE EXPENSES

 

 

(4,344

)

 

 

(2,610

)

 

 

(421

)

 

 

(8,519

)

 

 

(5,642

)

 

 

(910

)

IMPAIRMENT LOSS ON PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

(7,366

)

 

 

(1,187

)

 

 

 

 

 

(7,366

)

 

 

(1,187

)

OTHER OPERATING (EXPENSES)/INCOME, NET

 

 

158

 

 

 

13

 

 

 

2

 

 

 

(1,492

)

 

 

293

 

 

 

47

 

OPERATING LOSS

 

 

(355

)

 

 

(9,065

)

 

 

(1,461

)

 

 

(5,710

)

 

 

(10,897

)

 

 

(1,757

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCE COSTS

 

 

(90

)

 

 

(97

)

 

 

(16

)

 

 

(180

)

 

 

(194

)

 

 

(31

)

INTEREST INCOME

 

 

467

 

 

 

422

 

 

 

68

 

 

 

800

 

 

 

890

 

 

 

143

 

PROFIT/ (LOSS) BEFORE INCOME TAXES

 

 

22

 

 

 

(8,740

)

 

 

(1,409

)

 

 

(5,090

)

 

 

(10,201

)

 

 

(1,645

)

INCOME TAXES EXPENSE

 

 

(252

)

 

 

(106

)

 

 

(17

)

 

 

(385

)

 

 

(256

)

 

 

(41

)

LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS

 

 

(230

)

 

 

(8,846

)

 

 

(1,426

)

 

 

(5,475

)

 

 

(10,457

)

 

 

(1,686

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISCONTINUED OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period from discontinued operations, net of tax

 

 

(58,156

)

 

 

 

 

 

 

 

 

(222,756

)

 

 

(10,708

)

 

 

(1,726

)

LOSS FOR THE PERIOD

 

 

(58,386

)

 

 

(8,846

)

 

 

(1,426

)

 

 

(228,231

)

 

 

(21,165

)

 

 

(3,412

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From continuing operations

 

 

(230

)

 

 

(8,846

)

 

 

(1,426

)

 

 

(5,475

)

 

 

(10,457

)

 

 

(1,686

)

From discontinued operations

 

 

(56,610

)

 

 

 

 

 

 

 

 

(221,947

)

 

 

(9,925

)

 

 

(1,600

)

Non-controlling interests

 

 

(1,546

)

 

 

 

 

 

 

 

 

(809

)

 

 

(783

)

 

 

(126

)

 

 

 

(58,386

)

 

 

(8,846

)

 

 

(1,426

)

 

 

(228,231

)

 

 

(21,165

)

 

 

(3,412

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSSES PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- For loss from operating operations

 

 

(0.01

)

 

 

(0.36

)

 

 

(0.06

)

 

 

(0.22

)

 

 

(0.42

)

 

 

(0.07

)

- For loss from discontinued operations

 

 

(2.27

)

 

 

 

 

 

 

 

 

(8.91

)

 

 

(0.40

)

 

 

(0.06

)

- Net loss per share

 

 

(2.28

)

 

 

(0.36

)

 

 

(0.06

)

 

 

(9.13

)

 

 

(0.82

)

 

 

(0.13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- For loss from operating operations

 

 

(0.01

)

 

 

(0.36

)

 

 

(0.06

)

 

 

(0.22

)

 

 

(0.42

)

 

 

(0.07

)

- For loss from discontinued operations

 

 

(2.27

)

 

 

 

 

 

 

 

 

(8.91

)

 

 

(0.40

)

 

 

(0.06

)

- Net loss per share

 

 

(2.28

)

 

 

(0.36

)

 

 

(0.06

)

 

 

(9.13

)

 

 

(0.82

)

 

 

(0.13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FOR THE PERIOD

 

 

(58,386

)

 

 

(8,846

)

 

 

(1,426

)

 

 

(228,231

)

 

 

(21,165

)

 

 

(3,412

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

2,475

 

 

 

1,221

 

 

 

197

 

 

 

3,845

 

 

 

(3,410

)

 

 

(550

)

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS)

 

 

2,475

 

 

 

1,221

 

 

 

197

 

 

 

3,845

 

 

 

(3,410

)

 

 

(550

)

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX

 

 

(55,911

)

 

 

(7,625

)

 

 

(1,229

)

 

 

(224,386

)

 

 

(24,575

)

 

 

(3,962

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From continuing operations

 

 

2,139

 

 

 

(7,625

)

 

 

(1,229

)

 

 

(1,785

)

 

 

(13,882

)

 

 

(2,236

)

From discontinued operations

 

 

(56,504

)

 

 

 

 

 

 

 

 

(221,792

)

 

 

(9,910

)

 

 

(1,600

)

Non-controlling interests

 

 

(1,546

)

 

 

 

 

 

 

 

 

(809

)

 

 

(783

)

 

 

(126

)

 

 

 

(55,911

)

 

 

(7,625

)

 

 

(1,229

)

 

 

(224,386

)

 

 

(24,575

)

 

 

(3,962

)


 


 



 

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2014 AND DECEMBER 31, 2013

(Amounts in thousands)


 

                         

 

 

December 31,

 

 

June 30,

 

 

June 30,

 

 

 

2013

 

 

2014

 

 

2014

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

21,488

 

 

 

14,372

 

 

 

2,317

 

Rehabilitation fund

 

 

3,248

 

 

 

3,839

 

 

 

619

 

Prepayments

 

 

1,081

 

 

 

690

 

 

 

111

 

Deferred tax assets

 

 

1,536

 

 

 

1,572

 

 

 

253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

27,353

 

 

 

20,473

 

 

 

3,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

4,727

 

 

 

10,602

 

 

 

1,709

 

Trade and bill receivables

 

 

5,500

 

 

 

5,300

 

 

 

854

 

Prepayments

 

 

 

 

 

143

 

 

 

23

 

Other receivables

 

 

74

 

 

 

326

 

 

 

53

 

Due from a related party

 

 

 

 

 

131,000

 

 

 

21,118

 

Term deposits with an original maturity over three months

 

 

3,758

 

 

 

3,699

 

 

 

596

 

Cash and cash equivalents

 

 

76,591

 

 

 

55,082

 

 

 

8,880

 

 

 

90,650

 

 

206,152

 

 

33,233

 

Assets classified as held for distribution

 

 

2,906,561

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

2,997,211

 

 

 

206,152

 

 

 

33,233

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

3,024,564

 

 

 

226,625

 

 

 

36,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Trade and bills payables

 

 

944

 

 

 

971

 

 

 

156

 

Other payables and accrued liabilities

 

 

19,837

 

 

 

14,968

 

 

 

2,413

 

Due to related companies

 

 

6,453

 

 

 

6,566

 

 

 

1,059

 

Taxes payable

 

 

20,725

 

 

 

19,012

 

 

 

3,064

 

 

 

 

47,959

 

 

 

41,517

 

 

 

6,692

 

Liabilities directly associated with the assets classified as held for distribution

 

 

2,520,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

2,568,144

 

 

 

41,517

 

 

 

6,692

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Due to the Shareholder

 

 

197,062

 

 

 

135,736

 

 

 

21,882

 

Asset retirement obligations

 

 

3,840

 

 

 

4,030

 

 

 

650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

200,902

 

 

 

139,766

 

 

 

22,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

2,769,046

 

 

 

181,283

 

 

 

29,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Issued capital

 

 

312,081

 

 

 

312,081

 

 

 

50,310

 

Other capital reserves

 

 

577,892

 

 

 

636,959

 

 

 

102,684

 

Reserves

 

 

53,059

 

 

 

49,019

 

 

 

7,902

 

Accumulated losses

 

 

(781,671

)

 

 

(948,167

)

 

 

(152,853

)

Other comprehensive losses

 

 

634

 

 

 

(4,550

)

 

 

(734

)

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY

 

 

161,995

 

 

 

45,342

 

 

 

7,309

 

NON-CONTROLLING INTERESTS

 

 

93,523

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

255,518

 

 

 

45,342

 

 

 

7,309

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

3,024,564

 

 

 

226,625

 

 

 

36,533

 


 


 



 

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$1.00 = CNY6.2031 as quoted by Bloomberg Finance L.P. as of June 30, 2014. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.


 

The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2014 (unaudited) and the condensed consolidated statements of financial position sheet as of June 30, 2014 (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, 2014 and 2013, as filed with the Securities and Exchange Commission on December 4, 2014 under cover of Form 6-K. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2014.


 

Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2014 interim results: "We completed a spin-off of coal business held by Feishang Anthracite Resources Limited by the distribution of our 100% equity interest in Feishang Anthracite, pro rata to all our shareholders on January 22, 2014 and listing of the shares of Feishang Anthracite by introduction on the Main Board of The Stock Exchange of Hong Kong Limited. Following the Spin-Off, our sole operations consist of the operation of our non-ferrous metal mining operations at Yangchong Mine in the PRC. The Group will continue to explore opportunities to acquire projects in China that will add value to our shareholders."


 

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 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.


 

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.