China Daye Announces 2013 Interim Results

                  China Daye Announces 2013 Interim Results

Gross Margin Remains Stable amid the Challenging Operating Environment by
Enhancing Production Capacity and Efficiency

PR Newswire

HONG KONG, Aug. 30, 2013

HONG KONG, Aug. 30, 2013 /PRNewswire/ --

Results Highlights:

China Daye Non-Ferrous Metals Mining Limited

  oRevenue was approximately RMB16,944 million, up 15.1% year-on-year.
  oGross profit was approximately RMB456 million, up 10.3% year-on-year.
  oGross profit margin stabilized at around 2.7%.
  oLoss attributable to controlling equity holders was RMB2,066 million.
    Excluding the non-cash impairment of goodwill and mining rights, profit
    attributable to shareholders was RMB48.3 million.
  oBasic loss per share was RMB11.92 cent.

("China Daye" or the "Company") (Stock Code: 00661.HK) announced its unaudited
consolidated interim results of the Company and its subsidiaries (the "Group")
for the six months ended 30 June 2013 (the "Period").

In the first half of 2013, the global economy remained uncertain while the
previously rapid growth of China's economy slowed down. However, faced with
such a grim operating environment, the Group still recorded growth in revenue
thanks to its flexibility in response to the market conditions and a stable
production capacity of mines. During the Period, the Group's revenue rose by
15.1% year-on-year to RMB16,944 million, which was mainly attributable to the
increase in trading of metals. In face of market changes, the prices of major
products of the Group such as gold, silver and copper dropped substantially as
compared with the corresponding period of the previous year, which resulted in
a profit plunge of the Group in the first half of the year. However, gross
margin stabilized at 2.7% by reducing costs and increasing production capacity
as well as efficiency. The Group's EBITDA for the Period amounted to RMB531.3
million, representing an increase of RMB81.2 million from RMB450.1 million for
the same period of last year. Loss attributable to controlling equity holders
was RMB2,066 million. The significant decrease of results was mainly
attributable to the impairment of goodwill and mining rights for the Period
amounting to RMB2,115 million. Without taking into account of these impairment
losses, the Group recorded profit attributable to equity holders of RMB48.3
million, mainly due to the drop in prices of the Group's products and
increases in finance costs.

Mr. Zhang Lin, Chairman of China Daye said, "The Group faced with
unprecedented challenges in its operating environment for the first half of
2013, as the global economy was uncertain and the growth of China's GDP slowed
down. According to the General Administration of Customs of the PRC, imported
copper of China amounted to approximately 2,002,000 tonnes in the first half
of 2013, representing a decrease of 20% year-on-year. Moreover, the prices of
major products such as gold, silver and copper dropped substantially by 9%,
14% and 6% year-on-year. Furthermore, the prices of by-products such as
selenium dioxide also decreased at varying rates since the beginning of the
year. At this crucial moment, we shall increase production capacity and strive
to enhance efficiency while reducing costs. We will be committed to achieving
our annual targets despite the adverse environment."

Optimizing production processes to achieve annual targets

Under structural adjustment and industrial transformation, the Group carried
out restructuring based on environmental protection regulations and in line
with the increasing awareness of energy conservation and emission reduction.
During the Period, by optimizing our production processes, the Group operated
mines at full capacity and maintained stability of the metallurgical system.
The Group produced a total of 183,100 tonnes of copper cathode, up by 50.10 %
year-on-year; 235.6 tonnes of precious metals (including approximately 4,145
kg of gold, 231 tonnes of silver, 8 kg of platinum and 97 kg of palladium), up
by approximately 32.06% year-on-year; 504,838 tonnes of chemical products
(including 504,220 tonnes of sulfuric acid, 223 kg of ammonium perrhenate, 64
tonnes of selenium dioxide and 7 tonnes of tellurium), up by approximately
50.76% year-on-year and 120,770 tonnes of iron concentrate, up by
approximately 1.5% year-on-year.

The issuance of convertible bonds reinforces the Group's financial position
and drives the development and expansion of its overall operations

At the end of May, 2013, the Group successfully issued convertible bonds of
RMB820 million which are settled in the US dollar with a term of five years,
the net proceeds of which amounted to RMB806 million and will be used as the
Group's working capital as well as for general purposes. The issuance of such
convertible bonds marked a significant move of the Company to attract
independent significant shareholders who shared similar vision with the
Company and may introduce the best international practice to the business
strategies and corporate governance of China Daye. In addition, it also
created favorable opportunities for the Company to attract more quality
institutional investors and expand and diversify its shareholder base.
Moreover, it improved liquidity level and reduced financing cost of the Group.

An analysis of the Group's revenue by major product and service categories:

                                       For the period ended 30 June
                                       2013           2012
(RMB'000)                                                           Change (%)
                                       (Unaudited)    (Audited)
Sales of goods                         16,921,433     14,691,325    +15.2%
Copper cathodes                        11,240,594     9,633,243     +16.7%
Other copper products             1,757,594      318,624       +451.6%
Gold and other gold products           1,860,281      3,388,631     -45.1%
Silver and other silver products  1,148,970      1,060,951     +8.3%
Sulphuric and sulphuric           95,152         114,746       -17.1%
Iron ores                         116,809        120,103       -2.7%
Others                            702,033        55,027        +1,175.8%
Rendering of services                  22,821         31,370        -27.3%
Copper processing                      11,651         28,614        -59.3%
Others                                 11,170         2,756         +305.3%
Total Revenue                          16,944,254     14,722,695    +15.1%

Business outlook

Looking ahead, the global economy remains uncertain while China's economy
continues to undergo structural adjustments. The Group will consolidate its
"market-oriented and efficiency-focused" operation principle so as to enhance
marketing and trading operation. Meanwhile, the Group will strive to reduce
costs and expenses while optimizing the organization of production units.
Focusing on major cost items such as energy consumption and consumption of
materials, it will improve cost monitoring means and measures. By choosing the
most economical production process, the Group will refine and optimize cost
and expense control and formulate stringent management measures. The Group
will formulate and improve the Administrative Measures on Risk Control, thus
the overall process of risk identification, analysis, evaluation,
accountability and appraisal shall be streamlined.

Mr. Zhang Lin concluded, "It will lay a foundation for ensuring the
accelerated growth of the Group when we maintain an overall stability and
harmonious organization. The Group will take good advantage of the development
opportunities brought by reforms. By broadening the horizon and capacity of
key personnel, we will implement centralized decision making and planning as
well as expedited reform so as to realize synergistic growth. We believe that
by capitalizing on the efforts of every employee and the support from society,
the Group will achieve sustainable and rapid development."

~ End ~

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.

Investor and Media Enquiries:

PRChina Limited

Ivan Kau / Camille Xiong / David Shiu / Henry Chik

Tel: 852-2522 1838 / 852-2522 1368 / 852-2521 2823

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SOURCE China Daye Non-Ferrous Metals Mining Limited

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