China Natural Resources Releases Interim Results Of Operations

24 Dec, 2015, 11:08 ET from China Natural Resources, Inc.

HONG KONG, Dec. 24, 2015 /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, 2015 as follows:

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR

LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014

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

Three Months Ended

June 30,

Six Months Ended

June 30,

2014

2015

2015

2014

2015

2015

CNY

CNY

US$

CNY

CNY

US$

CONTINUING OPERATIONS

REVENUE

4,684

12,058

1,945

7,896

15,184

2,449

COST OF SALES

(3,765)

(13,482)

(2,174)

(6,028)

(17,220)

(2,777)

GROSS PROFIT

919

(1,424)

(229)

1,868

(2,036)

(328)

SELLING AND DISTRIBUTION EXPENSES

(21)

(5)

(1)

(50)

(19)

(3)

ADMINISTRATIVE EXPENSES

(2,679)

(2,188)

(353)

(5,718)

(6,025)

(972)

IMPAIRMENT LOSS OF PROPERTY, PLANT AND EQUIPMENT

(7,366)

(3,365)

(543)

(7,366)

(3,365)

(543)

WRITE DOWN OF INVENTORIES TO NET REALIZABLE VALUE, NET

(1,408)

(227)

(2,304)

(372)

OTHER OPERATING INCOME

13

120

19

293

120

20

OPERATING LOSS

(9,134)

(8,270)

(1,334)

(10,973)

(13,629)

(2,198)

FINANCE COSTS

(97)

(459)

(74)

(194)

(212)

(34)

INTEREST INCOME

422

463

75

890

684

110

EXCHANGE GAIN (LOSS)

69

76

(354)

(57)

NON-OPERATING EXPENSE, NET

(5)

(1)

(5)

(1)

LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS

(8,740)

(8,271)

(1,334)

(10,201)

(13,516)

(2,180)

INCOME TAXES EXPENSE

(106)

(1,132)

(183)

(256)

(1,132)

(183)

LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS

(8,846)

(9,403)

(1,517)

(10,457)

(14,648)

(2,363)

DISCONTINUED OPERATIONS

Loss for the period from discontinued operations, net of tax

(10,708)

LOSS FOR THE PERIOD

(8,846)

(9,403)

(1,517)

(21,165)

(14,648)

(2,363)

Other comprehensive income (loss):

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

Foreign currency translation adjustments

1,221

500

81

(3,410)

579

94

Available-for-sale investments:

Changes in fair value

221

36

335

54

Reclassification adjustments for gains included in the consolidated statement of profit or loss

- gain on disposal

(221)

(36)

(335)

(54)

TOTAL OTHER COMPREHENSIVE INCOME (LOSS)

1,221

500

81

(3,410)

579

94

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX

(7,625)

(8,903)

(1,436)

(24,575)

(14,069)

(2,269)

 

 

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR

LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) (Continued)

THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014

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

Three Months Ended

June 30,

Six Months Ended

June 30,

2014

2015

2015

2014

2015

2015

CNY

CNY

US$

CNY

CNY

US$

LOSS FOR THE PERIOD ATTRIBUTABLE TO:

Owners of the Company

From continuing operations

(8,846)

(9,403)

(1,517)

(10,457)

(14,648)

(2,363)

From discontinued operations

(9,925)

Non-controlling interests

(783)

(8,846)

(9,403)

(1,517)

(21,165)

(14,648)

(2,363)

Total comprehensive loss attributable to:

Owners of the Company

From continuing operations

(7,625)

(8,903)

(1,436)

(13,882)

(14,069)

(2,269)

From discontinued operations

(9,910)

Non-controlling interests

(783)

(7,625)

(8,903)

(1,436)

(24,575)

(14,069)

(2,269)

LOSS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:

Basic

- For loss from continuing operations

(0.36)

(0.38)

(0.06)

(0.42)

(0.59)

(0.09)

- For loss from discontinued operations

(0.40)

- Net loss per share

(0.36)

(0.38)

(0.06)

(0.82)

(0.59)

(0.09)

Diluted

- For loss from continuing operations

(0.36)

(0.38)

(0.06)

(0.42)

(0.59)

(0.09)

- For loss from discontinued operations

(0.40)

- Net loss per share

(0.36)

(0.38)

(0.06)

(0.82)

(0.59)

(0.09)

 

 

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2015 (UNAUDITED) AND DECEMBER 31, 2014

(Amounts in thousands)

December 31,

June 30,

June 30,

2014

2015

2015

CNY

CNY

US$

(Audited)

(Unaudited)

(Unaudited)

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment

13,632

11,028

1,778

Rehabilitation fund

3,850

3,946

636

Prepayments

30

30

5

TOTAL NON-CURRENT ASSETS

17,512

15,004

2,419

CURRENT ASSETS

Inventories

13,511

4,056

654

Trade and bill receivables

5,019

809

Prepayments

136

133

21

Other receivables

614

391

65

Term deposits

3,178

512

Cash and cash equivalents

48,263

39,863

6,428

TOTAL CURRENT ASSETS

62,524

52,640

8,489

TOTAL ASSETS

80,036

67,644

10,908

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Trade and bills payables

1,462

1,145

185

Other payables and accrued liabilities

16,151

14,976

2,415

Due to a related company

4,011

647

Taxes payable

20,214

22,871

3,688

TOTAL CURRENT LIABILITIES

37,827

43,003

6,935

NON-CURRENT LIABILITIES

Due to the Shareholder

15,374

11,236

1,812

Deferred Income

430

70

Asset retirement obligations

4,221

4,430

714

TOTAL NON-CURRENT LIABILITIES

19,595

16,096

2,596

TOTAL LIABILITIES

57,422

59,099

9,531

EQUITY

Issued capital

312,081

312,081

50,326

Other capital reserves

636,960

636,960

102,719

Reserves

58,171

61,202

9,870

Accumulated losses

(980,085)

(997,764)

(160,904)

Other comprehensive losses

(4,513)

(3,934)

(634)

TOTAL EQUITY

22,614

8,545

1,377

TOTAL LIABILITIES AND EQUITY

80,036

67,644

10,908

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$1.00 = CNY6.2010 as quoted by Bloomberg Finance L.P. as of June 30, 2015. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.

The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2015 (unaudited) and the condensed consolidated statements of financial position sheet as of June 30, 2015 (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, 2015 and 2014, as filed with the Securities and Exchange Commission on December 24, 2015 under cover of Form 6-K. The results of operations for the six months ended June 30, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015.

Mr. Feilie Li, the Company's Chairman and CEO, commented on the 2015 interim results: "Depressed prices for iron concentrates continue to pressure our ability to generate cash internally. It is not currently economical to conduct mining activities at Yangchong Mine, the Company's sole operating asset, and, until market conditions improve, exploitation will be temporarily suspended on December 27, 2015. We continue to explore opportunities to acquire other projects in China that can generate cash and add value to our shareholders."

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 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.

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.