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.