EX-99.1 2 chnr_ex99z1.htm PRESS RELEASE Press Release

 


EXHIBIT 99.1

CONTACT

Yue Ming Wai Bonaventure, Chief Financial Officer

011-852-2810-7205 or bonyue@chnr.net


FOR IMMEDIATE RELEASE

CHINA NATURAL RESOURCES RELEASES

INTERIM RESULTS OF OPERATIONS


HONG KONG, December 15, 2017 – 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, 2017 as follows:


CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR

LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016

(Amounts in thousands, except per share data)



 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2016

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2017

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

(Restated)

 

 

 

 

 

 

 

 

(Restated)

 

 

 

 

 

 

 

CONTINUING OPERATIONS

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

 

(2,075

)

 

 

(3,124

)

 

 

(461

)

 

 

(3,826

)

 

 

(5,741

)

 

 

(847

)

Other operating expense

 

 

(305

 

 

 

 

 

 

 

 

(1,059

 

 

 

 

 

 

OPERATING LOSS FROM CONTINUING OPERATIONS

 

 

(2,380

)

 

 

(3,124

)

 

 

(461

)

 

 

(4,885

)

 

 

(5,741

)

 

 

(847

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

(7

)

 

 

(44

)

 

 

(6

)

 

 

(23

)

 

 

(107

)

 

 

(16

)

Interest income

 

 

23

 

 

 

9

 

 

 

1

 

 

 

27

 

 

 

19

 

 

 

3

 

Non-operating expenses, net

 

 

(39

)

 

 

(70

)

 

 

(10

)

 

 

(43

)

 

 

(391

)

 

 

(58

)

LOSS BEFORE INCOME TAX FROM CONTINUING OPERATIONS

 

 

(2,403

)

 

 

(3,229

)

 

 

(476

)

 

 

(4,924

)

 

 

(6,220

)

 

 

(918

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS

 

 

(2,403

)

 

 

(3,229

)

 

 

(476

)

 

 

(4,924

)

 

 

(6,220

)

 

 

(918

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISCONTINUED OPERATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit for the period from a discontinued operation

 

 

(4,103

)

 

 

 

 

 

 

 

 

(6,078

)

 

 

10,978

 

 

 

1,619

 

(LOSS)/PROFIT FOR THE PERIOD

 

 

(6,506

)

 

 

(3,229

)

 

 

(476

)

 

 

(11,002

)

 

 

4,758

 

 

 

701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items to be classified to profit or loss in subsequent period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(238

 

 

(571

)

 

 

(84

 

 

(3,287

 

 

(745

)

 

 

(110

)

TOTAL OTHER COMPREHENSIVE LOSS

 

 

(238

 

 

(571

)

 

 

(84

 

 

(3,287

 

 

(745

)

 

 

(110

)

TOTAL COMPREHENSIVE (LOSS)/ INCOME FOR THE PERIOD, NET OF TAX

 

 

(6,744

)

 

 

(3,800

)

 

 

(560

)

 

 

(14,289

)

 

 

4,013

 

 

 

591

 

BASIC AND DILUTED (LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (PRESENTED IN CNY PER SHARE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For (loss)/profit for the period

 

 

(0.26

)

 

 

(0.13

)

 

 

(0.02

)

 

 

(0.44

)

 

 

0.19

 

 

 

0.03

 

For loss from continuing operations

 

 

(0.10

)

 

 

(0.13

)

 

 

(0.02

)

 

 

(0.20

)

 

 

(0.25

)

 

 

(0.04

)




 


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2017 (UNAUDITED) AND DECEMBER 31, 2016

(Amounts in thousands)


 

 

December 31,

 

 

June 30,

 

 

June 30,

 

 

 

2016

 

 

2017

 

 

2017

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

(Audited)

 

 

(Unaudited)

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

54,523

 

 

 

47,817

 

 

 

7,053

 

Rehabilitation fund

 

 

3,972

 

 

 

 

 

 

 

Prepayments

 

 

56

 

 

 

71

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

58,551

 

 

 

47,888

 

 

 

7,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

10,557

 

 

 

4,498

 

 

 

663

 

Prepayments

 

 

330

 

 

 

250

 

 

 

37

 

Other receivables

 

 

6,127

 

 

 

6,567

 

 

 

969

 

Cash and cash equivalents

 

 

19,228

 

 

 

14,860

 

 

 

2,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

36,242

 

 

 

26,175

 

 

 

3,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

94,793

 

 

 

74,063

 

 

 

10,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

2,736

 

 

 

1,147

 

 

 

169

 

Other payables and accrued liabilities

 

 

17,361

 

 

 

3,186

 

 

 

469

 

Taxes payable

 

 

22,627

 

 

 

17,610

 

 

 

2,597

 

Due to related companies

 

 

21,007

 

 

 

22,444

 

 

 

3,311

 

Due to the Shareholder

 

 

12,565

 

 

 

12,082

 

 

 

1,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

76,296

 

 

 

56,469

 

 

 

8,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations

 

 

5,302

 

 

 

386

 

 

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

5,302

 

 

 

386

 

 

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

81,598

 

 

 

56,855

 

 

 

8,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Issued capital

 

 

312,081

 

 

 

312,081

 

 

 

46,034

 

Reserves

 

 

(298,886

)

 

 

(294,873

 

 

(43,495

)

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

13,195

 

 

 

17,208

 

 

 

2,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

94,793

 

 

 

74,063

 

 

 

10,924

 






 


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$1.00 = CNY6.7794 as quoted by UKForex as of June 30, 2017, except as disclosed otherwise. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.


The condensed consolidated statements of profit or loss and other comprehensive income for the three and six months ended June 30, 2017 (unaudited) and the condensed consolidated statements of financial position as of June 30, 2017 (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, 2017 and 2016, as furnished to the Securities and Exchange Commission on December 15, 2017 under cover of Form 6-K. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2017.


Mr. Edward Wong, the Company's Chairman and CEO, commented on the 2017 interim results: "In March 2017, we sold our non-ferrous mining operation to an unrelated third party after concluding that then prevailing market prices for non-ferrous metals coupled with the corresponding costs of extraction did not warrant continued production. In November 2017, we acquired a mining company which holds an exploration permit to a mine located in Bayannaoer City, Inner Mongolia which is believed to contain minable amounts of lead and silver resources, with the prospect that further surveying and exploration may indicate the presence of other minable ore such as copper. We will continue to explore new business opportunities to contribute to revenues and enhance shareholder values."


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 and Bolivia, is currently engaged in (i) the acquisition and exploitation of mining rights in Inner Mongolia, including exploring for lead, silver and other nonferrous metals, and  (ii) trial production at our copper smelting plant in Bolivia in preparation for commercial production of copper cathodes.


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 related to the governmental, economic and political environment in the People’s Republic of China and Bolivia; uncertainties associated with metal price volatility; uncertainties related to our ability to fund operations; 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.