China Daye Announces 2012 Interim Results

HONG KONG, Aug. 31, 2012 /PRNewswire-Asia/ --

2012 Interim Results Highlights:

• Revenue was approximately RMB 14,723 million, up 7.68% year-on-year.
• Profit attributable to equity holders was RMB 80.31 million, down 14.13% year-on-year.
• Basic earnings per share were RMB 0.52 fen.

China Daye Non-Ferrous Metals Mining Limited ("China Daye" or the "Company") (Stock Code: 00661.HK) announced the interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2012 (the "Period").

In the first half of 2012, Daye Nonferrous Metals Corporation Holdings Limited (the "Parent Company") completed the injection of Daye Metal into the Group, marking a strategic move by the Parent Company to get its premier assets listed through China Daye. The move also laid a solid foundation for the robust growth of the Group's operations. During the Period, the Group's revenue increased by 7.68% year-on-year to a record high of approximately RMB 14,723 million. However, profit attributable to equity holders decreased by 14.13% year-on-year to RMB 80.31 million mainly due to higher finance costs. Basic earnings per share were RMB 0.52 fen.

Mr. Zhang Lin, Chairman of China Daye, commented, "In the face of severe economic conditions in the first half of this year, the Group carried out measures to improve its production, operations and management and accelerated the development of supportive works, thereby ensuring the smooth running and rapid growth of the Group. During the period, we not only achieved the production targets, but also made a great stride in resources acquisition and the development of mines. The development of Ausmelt Furnace project progressed well, while the civil construction of the main plant at our rare metals production facility was completed and it is expected to commence production in September this year. We have started benchmarking management to enhance our operating efficiency. Moreover, our production process and budget management was strengthened and the enterprise resources planning (ERP) system was put in place to reinforce our IT system. We also made breakthroughs in technological innovation, as evidenced by being granted 8 patents in the first half of this year."

Meeting the production targets

During the Period, the Group enhanced its production, with its production facilities operated at full capacity. Production of most of its products but copper cathode and iron ore concentrates was higher than the same period of last year. For the six months ended 30 June 2012, production volume of copper ores increased 13.19% year-on-year to 11,092 tons, while production volume of copper cathodes decreased 8.22% year-on-year to 12,200 tons. Production volume of rare metals increased 15.12% year-on-year to 178.4 tons (including 3,885 tons of gold, 174.44 tons of silver, 5 kg of platinum and 82 kg of palladium). Production volume of chemical products including sulfuric acid increased 25.25% year-on-year to 334,300 tons and production volume of iron concentrates was 119,000 tons.

Solid financial position

The Group maintained a strong financial position. As at 30 June 2012, the Group had approximately RMB 707 million in cash and bank deposits, up 2.36% from the year end of 2011. Its total equity surged 52.07% to RMB 5.752 billion from a year ago.

Business outlook

Commenting on business outlook, Chairman of China Daye, Mr. Zhang Lin commented, "Market concerns are deepening amid the complicated global and domestic economic conditions. However, although China's economy continues to slow down and will experience further correction, the effects of American economic recovery and the Chinese government's gradual adjustment policies will be seen in the later part of this year. It is still difficult to predict when the economy will bottom out and pick up again. Our products are exposed to the price fluctuations in the global market, which will remain volatile. Moreover, raw material sources and trading methods always change. As a result, we will keep a close watch on the market and made timely adjustments in our operating targets and measures accordingly. In the second half of this year, we will continue to optimize our production operations, expand our production scale and enhance the quality of our products. In addition, we will further explore mining resources in order to fully capture market opportunities. We will step up marketing efforts and improve our work on the collection of market pricing. Besides, we will further expand our trading business and improve our finance operations to more efficiently use our capital resources. On the other hand, we will exercise stricter cost control and use resources more efficiently. Through further internal reform, the Group plans to develop an operating system which lives up to international standards."

"Year 2012 is of opportunities as well as challenges for the Group. In response to the unfavorable situation of the changing global economic sentiment and the weaken domestic demand, we will proactively take countermeasures to ensure the Group to achieve development in an efficient operating environment with low cost, by leveraging on the favorable opportunity after the successful completion of acquisition for the Group's integration. We will ride on the momentum and work against the headwind. We believe that with the consistent effort from management and staff of the Group and the strong support from the community, the Group will achieve sustained and rapid development so as to create better returns for our shareholders."

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About the Parent Company

Daye Nonferrous Metals Corporation Holdings Limited ("Daye Nonferrous Metals") was founded by the State-owned Assets Supervision and Administration Commission of Hubei Provincial People's Government and China Nonferrous Metal Mining (Group) Co., Ltd. After several years of development, it evolved into a leading state-owned integrated copper enterprise with a value chain encompassing exploration, mining, smelting, chemicals, rolling processing, waste heat power generation, waste recycling, research and design, geological survey, shaft engineering, construction and installation, machinery repair and manufacturing and transportation. In 2010, it was selected as a major enterprise promoted by the government in the demonstration zone for the materials industry and newly industrialized enterprises in the central China. Daye Nonferrous Metals has a global business network that is spread around the world. It currently has over 20 wholly owned subsidiaries, associates and holding companies in southeastern Hubei, the Yangtze River Delta, the Pearl River Delta, Hunan, Xinjiang, Hong Kong, Kyrgyzstan and Mongolia.

About China Daye

China Daye and its subsidiaries are mainly engaged in exploration, mining and trading of non-ferrous metals.

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