China Natural Resources Releases Interim Results Of Operations

        China Natural Resources Releases Interim Results Of Operations

PR Newswire

HONG KONG, Dec. 21, 2012

HONG KONG, Dec. 21, 2012 /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 June30, 2012 as follows:

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011
(Amounts in thousands, except share and per share data)
                      Three Months Ended June30,  Six Months Ended June30,
                      2011      2012      2012     2011      2012      2012
                      CNY       CNY       US$      CNY       CNY       US$
REVENUE               59,977    37,841    5,950    68,070    66,903    10,519
COST OF SALES         (38,786)  (22,344)  (3,513)  (43,853)  (38,687)  (6,083)
GROSS PROFIT          21,191    15,497    2,437    24,217    28,216    4,436
SELLING AND           (849)     (840)     (132)    (1,614)   (1,525)   (240)
DISTRIBUTION EXPENSES
ADMINISTRATIVE        (17,383)  (21,203)  (3,334)  (33,837)  (39,166)  (6,159)
EXPENSES
OTHER OPERATING       —         (3,591)   (565)    —         (4,704)   (739)
EXPENSES
OPERATING PROFIT      2,959     (10,137)  (1,594)  (11,234)  (17,179)  (2,702)
(LOSS)
FINANCE COST          (6,561)   (11,368)  (1,787)  (11,831)  (20,818)  (3,273)
INTEREST INCOME       246       905       142      372       1,695     267
NON-OPERATING INCOME  19        (858)     (134)    (54)      (889)     (140)
(EXPENSE), NET
LOSS BEFORE INCOME    (3,337)   (21,458)  (3,373)  (22,747)  (37,191)  (5,848)
TAX
INCOME TAX EXPENSE    (4,446)   (7,078)   (1,113)  (5,825)   (8,361)   (1,315)
LOSS FOR THE PERIOD   (7,783)   (28,536)  (4,486)  (28,572)  (45,552)  (7,163)
ATTRIBUTABLE TO:
Owners of the Company (7,565)   (28,547)  (4,488)  (28,241)  (47,707)  (7,502)
Non-controlling       (218)     11        2        (331)     2,155     339
interests
                      (7,783)   (28,536)  (4,486)  (28,572)  (45,552)  (7,163)
LOSS PER SHARE
ATTRIBUTABLE TO
ORDINARY EQUITY
HOLDERS OF THE
COMPANY
Basic                 (0.33)    (1.15)    (0.18)   (1.24)    (1.92)    (0.30)
Diluted               (0.33)    (1.15)    (0.18)   (1.24)    (1.92)    (0.30)
LOSS FOR THE PERIOD   (7,783)   (28,536)  (4,486)  (28,572)  (45,552)  (7,163)
Other comprehensive
income (loss):
Foreign currency
translation           5,394     (2,794)   (439)    8,279     (2,579)   (406)
adjustments
TOTAL COMPREHENSIVE
LOSS FOR THE          (2,389)   (31,330)  (4,925)  (20,293)  (48,131)  (7,569)
PERIOD, NET OF TAX
Attributable to:
Owners of the Company (2,171)   (31,341)  (4,927)  (19,962)  (50,286)  (7,908)
Non-controlling       (218)     11        2        (331)     2,155     339
interests
                      (2,389)   (31,330)  (4,925)  (20,293)  (48,131)  (7,569)



CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2012 AND DECEMBER 31, 2011
(Amounts in thousands, except share data)
                                     December31,  June30,     June30,
                                     2011          2012         2012
                                     CNY           CNY          US$
                                                   (Unaudited)  (Unaudited)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment        2,053,173     2,166,287    340,611
Rehabilitation fund                  26,019        33,507       5,268
Prepayments                          80,418        141,488      22,247
Deferred tax assets                  2,825         2,384        375
TOTAL NON-CURRENT ASSETS             2,162,435     2,343,666    368,501
CURRENT ASSETS
Inventories                          11,787        16,864       2,652
Trade and bill receivables           31,205        15,699       2,468
Prepayments                          13,091        12,525       1,969
Other receivables                    21,289        28,435       4,471
Due from related companies           774           —            —
Restricted bank deposits             21,000        10,791       1,697
Term deposits with an original
maturity over three                  20,000        20,000       3,145

months
Cash and cash equivalents            136,587       289,184      45,469
TOTAL CURRENT ASSETS                 255,733       393,498      61,871
TOTAL ASSETS                         2,418,168     2,737,164    430,372
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade and bill payables              70,882        76,113       11,967
Other payables and accrued           52,173        53,923       8,478
liabilities
Interest bearing loans               225,000       297,000      46,698
Due to related companies             184,477       342,777      53,896
Interest payable                     5,979         5,742        903
Taxes payable                        23,923        28,334       4,456
Mining rights payable                22,612        20,860       3,280
TOTAL CURRENT LIABILITIES            585,046       824,749      129,678
NET CURRENT LIABILITIES              (329,313)     (431,251)    (67,807)
TOTAL ASSETS LESS CURRENT            1,833,122     1,912,415    300,694
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing loans               523,742       656,742      103,261
Due to the Shareholder               262,657       265,247      41,706
Interest payable                     18,205        20,070       3,156
Deferred tax liabilities             290,043       291,017      45,757
Mining rights payable                103,378       91,718       14,421
Asset retirement obligations         9,204         9,861        1,550
TOTAL NON-CURRENT LIABILITIES        1,207,229     1,334,655    209,851
TOTAL LIABILITIES                    1,792,275     2,159,404    339,529
EQUITY
Issued capital                       312,081       312,081      49,069
Other capital reserves               536,872       536,872      84,414
Reserves                             19,209        57,231       8,998
Accumulated losses                   (322,714)     (408,445)    (64,221)
Other comprehensive losses           (5,240)       (7,820)      (1,230)
EQUITY ATTRIBUTABLE TO OWNERS OF THE 540,208       489,919      77,030
COMPANY
NON-CONTROLLING INTERESTS            85,685        87,841       13,813
TOTAL EQUITY                         625,893       577,760      90,843
TOTAL LIABILITIES AND EQUITY         2,418,168     2,737,164    430,372

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$1.00 = CNY6.36 as quoted by Bloomberg Finance L.P. as of
June30, 2012. No representation is made that the CNY amounts could have been,
or could be, converted into US$ at that rate, or at all.

The condensed consolidated statements of operations and comprehensive income
for the three and six months ended June30, 2012 (unaudited) and the condensed
consolidated balance sheet as of June30, 2012 (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 June30,
2012 and 2011, which was filed with the Securities and Exchange Commission on
December21, 2012 under cover of Form6-K. The results of operations for the
six months ended June30, 2012 are not necessarily indicative of the results
of operations that may be expected for the year ending December31, 2012.

Mr.Feilie Li, the Company's Chairman and CEO, commented on the 2012 interim
results: "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 are positive about the
prospects for the coal mining industry in the PRC and we will continue to
pursue growth through acquisition and consolidation of small to medium sized
coal mines in Guizhou province."

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 Form20-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.

Contact: Edward Wong, Chief Financial Officer, 011-852-2810-7205, or
cfo@chnr.net
 
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