China Natural Resources Releases Interim Results Of Operations

Dec 31, 2013, 08:37 ET from China Natural Resources, Inc.

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.