China Natural Resources Releases Interim Results of Operations

HONG KONG, Dec. 21, 2011 /PRNewswire/ -- 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)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2010

 

2011

 

2011

 

2010

 

2011

 

2011

 

CNY

 

CNY

 

US$

 

CNY

 

CNY

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

24,850

 

61,809

 

9,562

 

33,623

 

70,133

 

10,850

COST OF SALES

(15,729)

 

(39,885)

 

(6,170)

 

(21,727)

 

(46,083)

 

(7,129)

GROSS PROFIT

9,121

 

21,924

 

3,392

 

11,896

 

24,050

 

3,721

 

 

 

 

 

 

 

 

 

 

 

 

SELLING, GENERAL AND

 

 

 

 

 

 

 

 

 

 

 

ADMINISTRATIVE EXPENSES,

 

 

 

 

 

 

 

 

 

 

 

including share-based compensation

 

 

 

 

 

 

 

 

 

 

 

expense of CNY13,008 (US$1,904) and nil

 

 

 

 

 

 

 

 

 

 

 

   for the six months ended June 30, 2010 and 2011,

 

 

 

 

 

 

 

 

 

 

 

   respectively, and CNY6,504 (US$952) and nil for the

 

 

 

 

 

 

 

 

 

 

 

 three months ended June 30, 2010 and 2011, respectively

(24,940)

 

(18,232)

 

(2,821)

 

(37,877)

 

(35,451)

 

(5,484)

OTHER OPERATING EXPENSES

(1,936)

 

 

 

(2,315)

 

 

OPERATING PROFIT (LOSS)

(17,755)

 

3,692

 

571

 

(28,296)

 

(11,401)

 

(1,763)

FINANCE COST

(436)

 

(6,561)

 

(1,015)

 

(436)

 

(11,831)

 

(1,830)

INTEREST INCOME

293

 

246

 

38

 

774

 

372

 

58

LOSS ATTRIBUTABLE TO INVESTMENTS
  IN UNCONSOLIDATED INVESTEES

(1,826)

 

 

 

(3,612)

 

 

GAIN ON DISPOSAL OF AN UNCONSOLIDATED INVESTEE

 

 

 

7,269

 

 

GAIN FROM BARGAIN PURCHASE OF A SUBSIDIARY

 

 

 

624,148

 

 

OTHER INCOME (EXPENSE), NET

(58)

 

19

 

3

 

44

 

(54)

 

(7)

PROFIT (LOSS) FROM BEFORE INCOME TAXES

(19,782)

 

(2,604)

 

(403)

 

599,891

 

(22,914)

 

(3,542)

INCOME TAXES

(2,155)

 

(4,446)

 

(688)

 

(3,600)

 

(5,825)

 

(901)

NET INCOME (LOSS)

(21,937)

 

(7,050)

 

(1,091)

 

596,291

 

(28,739)

 

(4,443)

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

  Attributable to CHNR Shareholders

3,951

 

5,394

 

835

 

3,844

 

8,279

 

1,281

  Attributable to non-controlling interests

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

(17,986)

 

(1,656)

 

(256)

 

600,135

 

(20,460)

 

(3,162)

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

CHNR Shareholders

(17,616)

 

(1,445)

 

(223)

 

600,726

 

(20,128)

 

(3,111)

Non-controlling interests

(370)

 

(211)

 

(33)

 

(591)

 

(332)

 

(51)

 

(17,986)

 

(1,656)

 

(256)

 

600,135

 

(20,460)

 

(3,162)

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

CHNR Shareholders

(21,567)

 

(6,839)

 

(1,058)

 

596,882

 

(28,407)

 

(4,392)

Non-controlling interests

(370)

 

(211)

 

(33)

 

(591)

 

(332)

 

(51)

 

(21,937)

 

(7,050)

 

(1,091)

 

596,291

 

(28,739)

 

(4,443)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

   Income (loss) per share

(0.96)

 

(0.30)

 

(0.05)

 

26.94

 

(1.25)

 

(0.19)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

   Income (loss) per share

(0.96)

 

(0.30)

 

(0.05)

 

26.61

 

(1.25)

 

(0.19)

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER

 

 

 

 

 

 

 

 

 

 

 

OF SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

Basic

22,468,471

 

22,748,141

 

22,748,141

 

22,158,775

 

22,748,141

 

22,748,141

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

22,468,471

 

22,748,141

 

22,748,141

 

22,430,086

 

22,748,141

 

22,748,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2011 AND DECEMBER 31, 2010
(Amounts in thousands, except share data)

 

 

 

 

December 31,

 

June 30,

 

June 30,

 

 

 

 

2010

 

2011

 

2011

 

 

 

 

CNY

 

CNY

 

US$

 

 

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash

 

 

 

126,685

 

105,099

 

16,259

Restricted cash

 

 

 

 

21,000

 

3,249

Available-for-sale financial asset

 

 

 

 

7,000

 

1,083

Trade receivables

 

 

 

13,807

 

27,032

 

4,182

Bills receivable

 

 

 

2,200

 

6,000

 

928

Prepayment

 

 

 

7,791

 

26,334

 

4,074

Inventories

 

 

 

11,454

 

13,042

 

2,018

Deferred tax assets

 

 

 

439

 

140

 

22

Other receivables

 

 

 

14,538

 

17,561

 

2,717

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

 

176,914

 

223,208

 

34,532

 

 

 

 

 

 

 

 

 

DEFERRED TAX ASSETS

 

 

 

1,695

 

1,667

 

258

 

 

 

 

 

 

 

 

 

REHABILITATION FUND

 

 

 

20,402

 

28,023

 

4,335

 

 

 

 

 

 

 

 

 

PREPAYMENTS

 

 

 

15,825

 

84,579

 

13,085

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

 

1,823,992

 

1,915,642

 

296,360

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

 

1,861,914

 

2,029,911

 

314,038

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

2,038,828

 

2,253,119

 

348,570

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Mining rights payable – current

 

 

 

19,192

 

25,104

 

3,884

Short-term bank loan

 

 

 

100,000

 

120,000

 

18,565

Accounts payable

 

 

 

82,897

 

60,673

 

9,386

Bills payable

 

 

 

 

70,000

 

10,829

Advances from customers

 

 

 

1,306

 

7,273

 

1,125

Accrued liabilities

 

 

 

7,117

 

7,491

 

1,159

Income tax and other taxes payable

 

 

 

22,034

 

23,188

 

3,587

Other payables

 

 

 

46,880

 

51,395

 

7,953

Interest payable – current

 

 

 

4,253

 

3,886

 

601

Payables to related parties

 

 

 

44,782

 

95,836

 

14,826

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

 

328,461

 

464,846

 

71,915

 

 

 

 

 

 

 

 

 

Long-term bank loans

 

 

 

318,742

 

438,742

 

67,876

Mining rights payable – non-current

 

 

 

132,966

 

112,578

 

17,416

Interest payable – non-current

 

 

 

13,205

 

14,035

 

2,171

Long-term payable to the Shareholder

 

 

 

404,093

 

375,255

 

58,054

Deferred tax liabilities

 

 

 

294,250

 

296,255

 

45,832

Asset retirement obligations

 

 

 

9,036

 

9,484

 

1,467

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

 

1,172,292

 

1,246,349

 

192,816

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

1,500,753

 

1,711,195

 

264,731

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

China Natural Resources, Inc. equity:

 

 

 

 

 

 

 

 

 Common shares, no par:

 

 

 

 

 

 

 

 

Authorized – 200,000,000 shares;

 

 

 

 

 

     Issued and outstanding – 22,723,416

 

 

 

 

 

 

 

 

     shares and 23,098,416 at December

 

 

 

 

 

 

 

 

     31, 2010 and June 30, 2011, respectively

 

 

 

312,081

 

312,081

 

48,281

Other equity

 

 

 

161,048

 

156,950

 

24,281

Other comprehensive loss

 

 

 

(20,902)

 

(12,623)

 

(1,953)

 

 

 

 

 

 

 

 

 

TOTAL CHINA NATURAL RESOURCES, INC. EQUITY

 

 

 

452,227

 

456,408

 

70,609

NON-CONTROLLING INTERESTS

 

 

 

85,848

 

85,516

 

13,230

 

 

 

 

538,075

 

541,924

 

83,839

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

 

2,038,828

 

2,253,119

 

348,570

 

 

 

 

 

 

 

 

 

 

 

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 21, 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.

SOURCE China Natural Resources, Inc.



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