China Natural Resources Releases Interim Results Of Operations

        China Natural Resources Releases Interim Results Of Operations

PR Newswire

HONG KONG, Dec. 31, 2013

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 June30, 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                  Six Months Ended

                 June 30,                            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      (840)       (1,363)     (222)       (1,525)     (2,791)      (455)
EXPENSES
ADMINISTRATIVE    (21,203)    (42,090)    (6,858)     (39,166)    (65,942)     (10,744)
EXPENSES
IMPAIRMENT LOSS
ON PROPERTY,      —           —           —           —           (184,417)    (30,048)
PLANT AND
EQUIPMENT
OTHER OPERATING   (3,591)     (1,760)     (287)       (4,704)     (3,372)      (549)
EXPENSES
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            (858)       1,613       263         (889)       1,215        198
(EXPENSE), NET
PROFIT (LOSS)
BEFORE INCOME     (21,458)    (64,834)    (10,564)    (37,191)    (278,314)    (45,346)
TAXES
INCOME TAXES
(EXPENSE)         (7,078)     6,448       1,051       (8,361)     50,083       8,160
BENEFIT
LOSS FOR THE      (28,536)    (58,386)    (9,513)     (45,552)    (228,231)    (37,186)
PERIOD
ATTRIBUTABLE
TO:
Owners of the     (28,547)    (56,840)    (9,261)     (47,707)    (227,422)    (37,054)
Company
Non-controlling   11          (1,546)     (252)       2,155       (809)        (132)
interests
                  (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      (28,536)    (58,386)    (9,513)     (45,552)    (228,231)    (37,186)
PERIOD
Other
comprehensive
income (loss):
Items to be
classified to
profit or loss
in subsequent
period:
Foreign
currency          (2,794)     2,475       403         (2,579)     3,845        627
translation
adjustments
TOTAL OTHER
COMPREHENSIVE     (2,794)     2,475       403         (2,579)     3,845        627
INCOME
TOTAL
COMPREHENSIVE
LOSS FOR THE      (31,330)    (55,911)    (9,110)     (48,131)    (224,386)    (36,559)
PERIOD, NET OF
TAX
Attributable
to:
Owners of the     (31,341)    (54,365)    (8,858)     (50,286)    (223,577)    (36,427)
Company
Non-controlling   11          (1,546)     (252)       2,155       (809)        (132)
interests
                  (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          23,650         3,699         603
maturity over three months
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              79,923         69,994        11,404
liabilities
Interest bearing bank and other         443,900        861,900       140,432
borrowings
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               1,756,381      1,789,762     291,613
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing bank and other         569,630        897,449       146,224
borrowings
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        452,934        229,355       37,369
THE COMPANY
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$1.00 = CNY6.1375 as quoted by Bloomberg Finance L.P. as
of June30, 2013. No representation is made that the CNY amounts could have
been, or could be, converted into US$ at that rate, or at all.

The condensed consolidated statements of operations and comprehensive income
for the three and six months ended June30, 2013 (unaudited) and the condensed
consolidated statements of financial position sheet as of June30, 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 June30, 2013 and 2012, as filed with the Securities and
Exchange Commission on December31, 2013 under cover of Form6-K. The results
of operations for the six months ended June30, 2013 are not necessarily
indicative of the results of operations that may be expected for the year
ending December31, 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 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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