2014

China Natural Resources Releases Interim Results Of Operations

HONG KONG, Dec. 31, 2013 /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, 2013 as follows:

 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

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




Three Months Ended

June 30,



Six Months Ended

June 30,




2012



2013



2013



2012



2013



2013




CNY



CNY



US$



CNY



CNY



US$





















REVENUE



37,841




41,268




6,724




66,903




70,555




11,496


COST OF SALES



(22,344)




(31,937)




(5,204)




(38,687)




(51,428)




(8,379)


GROSS PROFIT



15,497




9,331




1,520




28,216




19,127




3,117



























SELLING AND DISTRIBUTION EXPENSES



(840)




(1,363)




(222)




(1,525)




(2,791)




(455)


ADMINISTRATIVE EXPENSES



(21,203)




(42,090)




(6,858)




(39,166)




(65,942)




(10,744)


IMPAIRMENT LOSS ON PROPERTY, PLANT AND EQUIPMENT















(184,417)




(30,048)


OTHER OPERATING EXPENSES



(3,591)




(1,760)




(287)




(4,704)




(3,372)




(549)


OPERATING LOSS



(10,137)




(35,882)




(5,847)




(17,179)




(237,395)




(38,679)


FINANCE COSTS



(11,368)




(31,902)




(5,198)




(20,818)




(43,912)




(7,155)


INTEREST INCOME



905




1,337




218




1,695




1,778




290


NON-OPERATING INCOME (EXPENSE), NET



(858)




1,613




263




(889)




1,215




198


PROFIT (LOSS) BEFORE INCOME TAXES



(21,458)




(64,834)




(10,564)




(37,191)




(278,314)




(45,346)


INCOME TAXES (EXPENSE) BENEFIT



(7,078)




6,448




1,051




(8,361)




50,083




8,160


LOSS FOR THE PERIOD



(28,536)




(58,386)




(9,513)




(45,552)




(228,231)




(37,186)





















ATTRIBUTABLE TO:

























Owners of the Company



(28,547)




(56,840)




(9,261)




(47,707)




(227,422)




(37,054)


Non-controlling interests



11




(1,546)




(252)




2,155




(809)




(132)





(28,536)




(58,386)




(9,513)




(45,552)




(228,231)




(37,186)



























LOSSES PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:

























Basic



(1.15)




(2.28)




(0.37)




(1.92)




(9.13)




(1.49)



























Diluted



(1.15)




(2.28)




(0.37)




(1.92)




(9.13)




(1.49)



























LOSS FOR THE PERIOD



(28,536)




(58,386)




(9,513)




(45,552)




(228,231)




(37,186)



























Other comprehensive income (loss):

























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

























Foreign currency translation adjustments



(2,794)




2,475




403




(2,579)




3,845




627


TOTAL OTHER COMPREHENSIVE INCOME



(2,794)




2,475




403




(2,579)




3,845




627


TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX



(31,330)




(55,911)




(9,110)




(48,131)




(224,386)




(36,559)



























Attributable to:

























Owners of the Company



(31,341)




(54,365)




(8,858)




(50,286)




(223,577)




(36,427)


Non-controlling interests



11




(1,546)




(252)




2,155




(809)




(132)





(31,330)




(55,911)




(9,110)




(48,131)




(224,386)




(36,559)


 


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2013 AND DECEMBER 31, 2012

(Amounts in thousands)














December 31,



June 30,



June 30,




2012



2013



2013




CNY



CNY



US$







(Unaudited)



(Unaudited)











ASSETS










NON-CURRENT ASSETS










Property, plant and equipment




2,349,914




2,308,729




376,168

Rehabilitation fund




33,052




44,942




7,323

Prepayments




117,123




118,629




19,329

Deferred tax assets




6,916




8,145




1,327














TOTAL NON-CURRENT ASSETS




2,507,005




2,480,445




404,147














CURRENT ASSETS













Inventories




18,403




21,642




3,526

Trade and bill receivables




49,275




46,551




7,585

Prepayments




5,992




6,892




1,123

Other receivables




31,909




37,211




6,063

Restricted bank deposits




7,082







Term deposits with an original maturity over three months




23,650




3,699




603

Cash and cash equivalents




210,944




298,533




48,641











TOTAL CURRENT ASSETS




347,255




414,528




67,541











TOTAL ASSETS




2,854,260




2,894,973




471,688














LIABILITIES AND EQUITY


























CURRENT LIABILITIES













Trade and bills payables




104,199




99,783




16,258

Other payables and accrued liabilities




79,923




69,994




11,404

Interest bearing bank and other borrowings




443,900




861,900




140,432

Due to related companies




411,053




6,573




1,071

Interest payable




9,093




11,195




1,824

Taxes payable




24,143




24,398




3,975

Mining rights payable




25,568




31,368




5,111











TOTAL CURRENT LIABILITIES




1,097,879




1,105,211




180,075

NET CURRENT LIABILITIES




750,624




690,683




112,534

TOTAL ASSETS LESS CURRENT LIABILITIES




1,756,381




1,789,762




291,613











NON-CURRENT LIABILITIES













Interest bearing bank and other borrowings




569,630




897,449




146,224

Due to the Shareholder




266,610




257,041




41,880

Interest payable




17,894




18,788




3,061

Deferred tax liabilities




267,004




216,332




35,248

Mining rights payable




77,810




66,150




10,778

Asset retirement obligations




10,558




11,515




1,876














TOTAL NON-CURRENT LIABILITIES




1,209,506




1,467,275




239,067














TOTAL LIABILITIES




2,307,385




2,572,486




419,142














EQUITY













Issued capital




312,081




312,081




50,848

Other capital reserves




536,872




536,872




87,474

Reserves




49,793




52,706




8,588

Accumulated losses




(443,001)




(673,338)




(109,709)

Other comprehensive losses




(2,811)




1,034




168














EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY




452,934




229,355




37,369

NON-CONTROLLING INTERESTS




93,941




93,132




15,177

TOTAL EQUITY




546,875




322,487




52,546












TOTAL LIABILITIES AND EQUITY




2,854,260




2,894,973




471,688

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$1.00 = CNY6.1375 as quoted by Bloomberg Finance L.P. as of June 30, 2013. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.

The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2013 (unaudited) and the condensed consolidated statements of financial position sheet as of June 30, 2013 (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, 2013 and 2012, as filed with the Securities and Exchange Commission on December 31, 2013 under cover of Form 6-K. The results of operations for the six months ended June 30, 2013 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2013.

Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2013 interim results: "Our metal segment resumed normal operation in the first half of 2013. The operation of Gouchang Coal Mine has been temporarily suspended by the Guizhou government since March 2013 pending the acquisition by us of a nearby coal mine and Gouchang Coal Mine achieving certain production capacity targets, as required by Guizhou province's coal mine consolidation policy.  As a result, we incurred an impairment loss on property, plant and equipment of CNY184.42 million (US$30.05 million) for the six months ended June 30, 2013. The drop in the market price of coal in Guizhou in the first half of 2013 also contributed to the loss of the Group. 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 remain positive about the prospects for 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 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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