News

China Natural Resources Releases Interim Results Of Operations

EXHIBIT 99.1

CONTACT

Yue Ming Wai Bonaventure, Chief Financial Officer

011-852-2810-7205 or bonyue@e222e.com


FOR IMMEDIATE RELEASE

CHINA NATURAL RESOURCES RELEASES

INTERIM RESULTS OF OPERATIONS


HONG KONG, November 17, 2016 – 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, 2016 as follows:


CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR

LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2016 AND 2015

(Amounts in thousands, except per share data)


 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2015

 

 

2016

 

 

2016

 

 

2015

 

 

2016

 

 

2016

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

  

                    

  

  

                    

  

  

                    

  

  

                    

  

  

                    

  

  

                    

 

REVENUE

 

 

12,058

 

 

 

 

 

 

 

 

 

15,184

 

 

 

 

 

 

 

COST OF SALES

 

 

(13,482

)

 

 

 

 

 

 

 

 

(17,220

)

 

 

 

 

 

 

GROSS LOSS

 

 

(1,424

)

 

 

 

 

 

 

 

 

(2,036

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELLING AND DISTRIBUTION EXPENSES

 

 

(5

)

 

 

(5

)

 

 

(1

)

 

 

(19

)

 

 

(12

)

 

 

(2

)

ADMINISTRATIVE EXPENSES

 

 

(2,188

)

 

 

(2,118

)

 

 

(319

)

 

 

(6,025

)

 

 

(4,439

)

 

 

(669

)

LOSSES ARISING FROM TEMPORARY SUSPENSION OF PRODUCTION

 

 

 

 

 

(1,021

)

 

 

(154

)

 

 

 

 

 

(2,453

)

 

 

(370

)

IMPAIRMENT LOSS OF PROPERTY, PLANT AND EQUIPMENT

 

 

(3,365

)

 

 

 

 

 

 

 

 

(3,365

)

 

 

 

 

 

 

(WRITE DOWN)/REVERSAL OF WRITE DOWN OF INVENTORIES TO NET REALIZABLE VALUE, NET

 

 

(1,408

)

 

 

251

 

 

 

38

 

 

 

(2,304

)

 

 

784

 

 

 

118

 

OTHER OPERATING INCOME

 

 

120

 

 

 

71

 

 

 

11

 

 

 

120

 

 

 

142

 

 

 

22

 

OPERATING LOSS

 

 

(8,270

)

 

 

(2,822

)

 

 

(425

)

 

 

(13,629

)

 

 

(5,978

)

 

 

(901

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCE COSTS

 

 

(459

)

 

 

(86

)

 

 

(13

)

 

 

(212

)

 

 

(116

)

 

 

(17

)

INTEREST INCOME

 

 

463

 

 

 

65

 

 

 

10

 

 

 

684

 

 

 

164

 

 

 

25

 

EXCHANGE LOSS

 

 

 

 

 

 

 

 

 

 

 

(354

)

 

 

 

 

 

 

NON-OPERATING EXPENSE, NET

 

 

(5

)

 

 

(2,220

)

 

 

(334

)

 

 

(5

)

 

 

(2,191

)

 

 

(330

)

LOSS BEFORE INCOME TAX

 

 

(8,271

)

 

 

(5,063

)

 

 

(762

)

 

 

(13,516

)

 

 

(8,121

)

 

 

(1,223

)

INCOME TAX EXPENSE

 

 

(1,132

)

 

 

 

 

 

 

 

 

(1,132

)

 

 

 

 

 

 

LOSS FOR THE PERIOD

 

 

(9,403

)

 

 

(5,063

)

 

 

(762

)

 

 

(14,648

)

 

 

(8,121

)

 

 

(1,223

)

Other comprehensive income/ (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

500

 

 

 

(1

)

 

 

 

 

 

579

 

 

 

(9

)

 

 

(1

)

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in fair value

 

 

221

 

 

 

 

 

 

 

 

 

335

 

 

 

 

 

 

 

Reclassification adjustments for gains included in the condensed consolidated statement of profit or loss -gain on disposal

 

 

(221

)

 

 

 

 

 

 

 

 

(335

)

 

 

 

 

 

 

TOTAL OTHER COMPREHENSIVE INCOME /(LOSS)

 

 

500

 

 

 

(1

)

 

 

 

 

 

579

 

 

 

(9

)

 

 

(1

)

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX

 

 

(8,903

)

 

 

(5,064

)

 

 

(762

)

 

 

(14,069

)

 

 

(8,130

)

 

 

(1,224

)



CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR

LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) (Continued)

THREE AND SIX MONTHS ENDED JUNE 30, 2016 AND 2015

(Amounts in thousands, except per share data)


 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2015

 

 

2016

 

 

2016

 

 

2015

 

 

2016

 

 

2016

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

  

                    

  

  

                    

  

  

                    

  

  

                    

  

  

                    

  

  

                    

 

LOSS FOR THE PERIOD ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(9,403

)

 

 

(5,063

)

 

 

(762

)

 

 

(14,648

)

 

 

(8,121

)

 

 

(1,223

)

Non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,403

)

 

 

(5,063

)

 

 

(762

)

 

 

(14,648

)

 

 

(8,121

)

 

 

(1,223

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(8,903

)

 

 

(5,064

)

 

 

(762

)

 

 

(14,069

)

 

 

(8,130

)

 

 

(1,224

)

Non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,903

)

 

 

(5,064

)

 

 

(762

)

 

 

(14,069

)

 

 

(8,130

)

 

 

(1,224

)

LOSS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Net loss per share

 

 

(0.38

)

 

 

(0。20

)

 

 

(0。03

)

 

 

(0.59

)

 

 

(0。33

)

 

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Net loss per share

 

 

(0.38

)

 

 

(0.20

)

 

 

(0.03

)

 

 

(0.59

)

 

 

(0。33

)

 

 

(0.05

)




CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2016 (UNAUDITED) AND DECEMBER 31, 2015

(Amounts in thousands)


 

 

December 31,

 

 

June 30,

 

 

June 30,

 

 

 

2015

 

 

2016

 

 

2016

 

 

 

CNY

 

 

CNY

 

 

US$

 

 

 

(Audited)

 

 

(Unaudited)

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

10,296

 

 

 

9,591

 

 

 

1,445

 

Rehabilitation fund

 

 

3,957

 

 

 

4,052

 

 

 

611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

14,253

 

 

 

13,643

 

 

 

2,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

3,923

 

 

 

4,701

 

 

 

708

 

Prepayments

 

 

136

 

 

 

154

 

 

 

24

 

Other receivables

 

 

488

 

 

 

559

 

 

 

84

 

Cash and cash equivalents

 

 

32,840

 

 

 

18,182

 

 

 

2,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

37,387

 

 

 

23,596

 

 

 

3,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

51,640

 

 

 

37,239

 

 

 

5,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

921

 

 

 

226

 

 

 

34

 

Other payables and accrued liabilities

 

 

20,097

 

 

 

14,559

 

 

 

2,194

 

Taxes payable

 

 

22,288

 

 

 

22,149

 

 

 

3,337

 

Due to the Shareholder

 

 

11,752

 

 

 

12,001

 

 

 

1,808

 

Due to a related company

 

 

3,932

 

 

 

3,814

 

 

 

575

 

Deferred income

 

 

287

 

 

 

143

 

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

59,277

 

 

 

52,892

 

 

 

7,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations

 

 

4,639

 

 

 

4,753

 

 

 

716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

4,639

 

 

 

4,753

 

 

 

716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

63,916

 

 

 

57,645

 

 

 

8,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Issued capital

 

 

312,081

 

 

 

312,081

 

 

 

47,023

 

Other capital reserves

 

 

636,960

 

 

 

636,960

 

 

 

95,974

 

Reserves

 

 

63,607

 

 

 

63,607

 

 

 

9,584

 

Accumulated losses

 

 

(1,021,028

)

 

 

(1,029,149

)

 

 

(155,067

)

Other comprehensive losses

 

 

(3,896

)

 

 

(3,905

)

 

 

(588

)

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ DEFICIT

 

 

(12,276

)

 

 

(20,406

)

 

 

(3,074

)

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

51,640

 

 

 

37,239

 

 

 

5,612

 



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$1.00 = CNY6.6368 as quoted by UKForex as of June 30, 2016. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.


The condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2016 (unaudited) and the condensed consolidated statements of financial position sheet as of June 30, 2016 (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, 2016 and 2015, as filed with the Securities and Exchange Commission on November 17, 2016 under cover of Form 6-K. The results of operations for the six months ended June 30, 2016 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2016.


Mr. Edward Wong, the Company's Chairman and CEO, commented on the 2016 interim results: "While exploration of additional mineable ore at Yangchong Mine is in progress, the Group has decided to continue the temporary suspension of mining and sales operations as the current market price of iron concentrates remains too low for economically viable operations. The sales price of iron concentrates has been improving in 2016 and we expect to resume our sales operations when the price rebounds to an acceptable level. We continue to explore opportunities to acquire other projects in China that can generate cash and add value to our shareholders."


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 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.


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.