China Natural Resources Releases Interim Results Of Operations

Dec 21, 2012, 14:57 ET from China Natural Resources, Inc.

HONG KONG, Dec. 21, 2012 /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, 2012 as follows:

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011

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

Three Months Ended June 30,

Six Months Ended June 30,

2011

2012

2012

2011

2012

2012

CNY

CNY

US$

CNY

CNY

US$

REVENUE

59,977

37,841

5,950

68,070

66,903

10,519

COST OF SALES

(38,786)

(22,344)

(3,513)

(43,853)

(38,687)

(6,083)

GROSS PROFIT

21,191

15,497

2,437

24,217

28,216

4,436

SELLING AND DISTRIBUTION EXPENSES

(849)

(840)

(132)

(1,614)

(1,525)

(240)

ADMINISTRATIVE EXPENSES

(17,383)

(21,203)

(3,334)

(33,837)

(39,166)

(6,159)

OTHER OPERATING EXPENSES

(3,591)

(565)

(4,704)

(739)

OPERATING PROFIT (LOSS)

2,959

(10,137)

(1,594)

(11,234)

(17,179)

(2,702)

FINANCE COST

(6,561)

(11,368)

(1,787)

(11,831)

(20,818)

(3,273)

INTEREST INCOME

246

905

142

372

1,695

267

NON-OPERATING INCOME (EXPENSE), NET

19

(858)

(134)

(54)

(889)

(140)

LOSS BEFORE INCOME TAX

(3,337)

(21,458)

(3,373)

(22,747)

(37,191)

(5,848)

INCOME TAX EXPENSE

(4,446)

(7,078)

(1,113)

(5,825)

(8,361)

(1,315)

LOSS FOR THE PERIOD

(7,783)

(28,536)

(4,486)

(28,572)

(45,552)

(7,163)

ATTRIBUTABLE TO:

Owners of the Company

(7,565)

(28,547)

(4,488)

(28,241)

(47,707)

(7,502)

Non-controlling interests

(218)

11

2

(331)

2,155

339

(7,783)

(28,536)

(4,486)

(28,572)

(45,552)

(7,163)

LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY

Basic

(0.33)

(1.15)

(0.18)

(1.24)

(1.92)

(0.30)

Diluted

(0.33)

(1.15)

(0.18)

(1.24)

(1.92)

(0.30)

LOSS FOR THE PERIOD

(7,783)

(28,536)

(4,486)

(28,572)

(45,552)

(7,163)

Other comprehensive income (loss):

Foreign currency translation adjustments

5,394

(2,794)

(439)

8,279

(2,579)

(406)

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX

(2,389)

(31,330)

(4,925)

(20,293)

(48,131)

(7,569)

Attributable to:

Owners of the Company

(2,171)

(31,341)

(4,927)

(19,962)

(50,286)

(7,908)

Non-controlling interests

(218)

11

2

(331)

2,155

339

(2,389)

(31,330)

(4,925)

(20,293)

(48,131)

(7,569)

 

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2012 AND DECEMBER 31, 2011

(Amounts in thousands, except share data)

December 31,

June 30,

June 30,

2011

2012

2012

CNY

CNY

US$

(Unaudited)

(Unaudited)

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment

2,053,173

2,166,287

340,611

Rehabilitation fund

26,019

33,507

5,268

Prepayments

80,418

141,488

22,247

Deferred tax assets

2,825

2,384

375

TOTAL NON-CURRENT ASSETS

2,162,435

2,343,666

368,501

CURRENT ASSETS

Inventories

11,787

16,864

2,652

Trade and bill receivables

31,205

15,699

2,468

Prepayments

13,091

12,525

1,969

Other receivables

21,289

28,435

4,471

Due from related companies

774

Restricted bank deposits

21,000

10,791

1,697

Term deposits with an original maturity over three

months

20,000

20,000

3,145

Cash and cash equivalents

136,587

289,184

45,469

TOTAL CURRENT ASSETS

255,733

393,498

61,871

TOTAL ASSETS

2,418,168

2,737,164

430,372

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Trade and bill payables

70,882

76,113

11,967

Other payables and accrued liabilities

52,173

53,923

8,478

Interest bearing loans

225,000

297,000

46,698

Due to related companies

184,477

342,777

53,896

Interest payable

5,979

5,742

903

Taxes payable

23,923

28,334

4,456

Mining rights payable

22,612

20,860

3,280

TOTAL CURRENT LIABILITIES

585,046

824,749

129,678

NET CURRENT LIABILITIES

(329,313)

(431,251)

(67,807)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,833,122

1,912,415

300,694

NON-CURRENT LIABILITIES

Interest bearing loans

523,742

656,742

103,261

Due to the Shareholder

262,657

265,247

41,706

Interest payable

18,205

20,070

3,156

Deferred tax liabilities

290,043

291,017

45,757

Mining rights payable

103,378

91,718

14,421

Asset retirement obligations

9,204

9,861

1,550

TOTAL NON-CURRENT LIABILITIES

1,207,229

1,334,655

209,851

TOTAL LIABILITIES

1,792,275

2,159,404

339,529

EQUITY

Issued capital

312,081

312,081

49,069

Other capital reserves

536,872

536,872

84,414

Reserves

19,209

57,231

8,998

Accumulated losses

(322,714)

(408,445)

(64,221)

Other comprehensive losses

(5,240)

(7,820)

(1,230)

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY

540,208

489,919

77,030

NON-CONTROLLING INTERESTS

85,685

87,841

13,813

TOTAL EQUITY

625,893

577,760

90,843

TOTAL LIABILITIES AND EQUITY

2,418,168

2,737,164

430,372

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$1.00 = CNY6.36 as quoted by Bloomberg Finance L.P. as of June 30, 2012. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.

The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2012 (unaudited) and the condensed consolidated balance sheet as of June 30, 2012 (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, 2012 and 2011, which was filed with the Securities and Exchange Commission on December 21, 2012 under cover of Form 6-K. The results of operations for the six months ended June 30, 2012 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2012.

Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2012 interim results: "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 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 in Guizhou province."

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.