China Natural Resources Releases Interim Results Of Operations

Dec 24, 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.