China Natural Resources Releases Interim Results Of Operations

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Dec 31, 2013, 08:37 ET

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.