China Natural Resources Releases Interim Results of Operations

30 Dec, 2010, 15:24 ET from China Natural Resources, Inc.

HONG KONG, Dec. 30, 2010 /PRNewswire-FirstCall/ -- 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

-  

-  

 

(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

-  

-  

 

(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 

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.

SOURCE China Natural Resources, Inc.