China Natural Resources Releases Interim Results Of Operations

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Dec 24, 2015, 11:08 ET

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.