HONG KONG, April 23, 2021 /PRNewswire/ -- CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR)
(the "Company") today announced its results of operations for the
year ended December 31, 2020.
For the convenience of the reader, amounts in Chinese
Yuan ("CNY") have been translated into United States dollars ("US$") at the rate of
US$1.00 = CNY6.5306 as quoted by www.ofx.com on
December 31, 2020.
Mr. Wong Wah On Edward, the
Company's Chairman and Chief Executive Officer, commented on the
results: "As with the rest of the world, our business was
significantly impacted by the COVID-19 pandemic. The business
disruption had a negative financial impact as we focused on
ensuring the health of our employees and full compliance with
government controls and health policies. This also
dramatically slowed our Company's strategic diversification into
healthcare and other non-natural resource sectors. On the
financial front we took decisive measures to align our expenses to
the reduced revenue profile after we ceased trading copper ore,
while prioritizing our working capital usage of cash in the near
term. The positive result of our actions and an exchange of
our newly issued common shares for equity in Feishang Anthracite
Resources Limited (Hong Kong
ticker 1738) helped us achieve earnings of CNY 0.90 per share in 2020 compared to a loss of
CNY 0.23 per share in 2019. We
also recently completed a private placement with certain
institutional investors in January
2021 for a total of US$7.3
million. This strengthened our balance sheet giving us
the resources to actively continue the Company's strategic
diversification, which we believe will provide meaningfully greater
opportunities for sustained revenue growth and profitability, as we
work to build value for shareholders."
Mr. Wong Wah On Edward,
continued, "I am proud of our team's efforts and drive during such
a challenging period. We continued to make progress in our
mining and exploration segment, as well as positioning ourselves to
pursue new business opportunities. As I noted earlier, we acquired
8.7% of the shares of Feishang Anthracite Resources Limited, a
producer of anthracite coal based in China's Guizhou province engaged in the acquisition,
construction and development of anthracite coal mines and the
extraction and sale of anthracite coal. We believe this
strategic investment will contribute to our growth, and give us
improved access to the capital markets and new opportunities. At
the same time, we continued to bolster the team leading our efforts
to diversify into healthcare and other non-natural resource
sectors. We are pleased to have attracted such highly
qualified talent as our new vice presidents, Mr. Zou Yu, who joined us in October 2020 and Dr. Peng Wenlie, who joined us
in March 2021. Both seasoned
executives have extensive experience in the healthcare and natural
medicines sectors. They are already immersed in our company's
day-to-day operations and working to identify potential
opportunities in these markets, which are global growth
markets. We anticipate these will be a cornerstone of our
future business as we move into our next phase of growth."
About China Natural Resources:
China Natural Resources, Inc. (NASDAQ: CHNR) is currently
engaged in the acquisition and exploitation of mining rights in
Inner Mongolia, including exploring for lead, silver and other
nonferrous metal, and is actively exploring business opportunities
in the healthcare and other non-natural resource sectors.
Forward-Looking Statements:
This press release includes forward-looking statements within
the meaning of the U.S. federal securities laws. These
statements include, without limitation, statements regarding the
intent, belief and current expectations of the Company, its
directors or its officers with respect to: the potential presented
by the healthcare sector in the PRC and other industry sectors in
the PRC generally; the impact on the Company's financial
position of an investment in the healthcare sector of the PRC; the
impact of the company's recently acquired marketable securities on
its ability to execute on potential acquisitions and its financial
position, and its ability to locate and execute on strategic
opportunities. Forward-looking statements are not a guarantee of
future performance and involve risks and uncertainties, and actual
results may differ materially from those in the forward-looking
statement as a result of various factors. Among the risks and
uncertainties that could cause the Company's actual results to
differ from its forward-looking statements are: the potential lack
of appetite for the Company's current holdings as consideration for
a transaction in the healthcare sector or otherwise; possible
downturns in the healthcare sector in the PRC or other sectors that
the Company may invest in; the results of the next assessment by
the Staff of the Nasdaq Listing Qualifications department of the
Company's compliance with the Nasdaq Listing Rules; uncertainties
related to governmental, economic and political circumstances in
the PRC; uncertainties related to metal price volatility;
uncertainties related to the Company's ability to fund operations;
uncertainties related to possible future increases in operating
expenses, including costs of labor and materials; uncertainties
related to the impact of the COVID-19 pandemic; uncertainties
related to the political situation between the PRC and the United States, and potential negative
impacts on companies with operations in the PRC that are listed on
exchanges in the United States;
and other risks detailed from time to time in the Company's filings
with the U.S. Securities and Exchange Commission. When, in any
forward-looking statement, the Company, or its management,
expresses an expectation or belief as to future results, that
expectation or belief is expressed in good faith and is believed to
have a reasonable basis, but there can be no assurance that the
stated expectation or belief will result or be achieved or
accomplished. Except as required by law, the Company undertakes no
obligation to update any forward-looking statements.
CHINA NATURAL
RESOURCES, INC.
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS (Amounts in
thousands, except share and per share data)
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
CNY
|
|
CNY
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
12,969
|
|
|
6,867
|
|
|
1,986
|
|
1,052
|
|
Cost of
sales
|
|
|
|
(12,752)
|
|
|
(6,854)
|
|
|
(1,293)
|
|
(1,050)
|
|
Gross
profit
|
|
|
|
217
|
|
|
13
|
|
|
33
|
|
2
|
|
Selling and
distribution expenses
|
|
|
|
(2)
|
|
|
(2)
|
|
|
—
|
|
—
|
|
Administrative
expenses
|
|
|
|
(5,814)
|
|
|
(7,140)
|
|
|
(890)
|
|
(1,093)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
|
(5,599)
|
|
|
(7,129)
|
|
|
(857)
|
|
(1,091)
|
|
Fair value gain on
financial assets at fair value
through profit or loss
|
|
|
|
—
|
|
|
31,334
|
|
|
—
|
|
4,798
|
|
Finance
costs
|
|
|
|
(62)
|
|
|
(60)
|
|
|
(9)
|
|
(9)
|
|
Interest
income
|
|
|
|
16
|
|
|
18
|
|
|
2
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)/PROFIT BEFORE
INCOME TAX
|
|
|
|
(5,645)
|
|
|
24,163
|
|
|
(864)
|
|
3,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
BENEFIT
|
|
|
|
—
|
|
|
1,416
|
|
|
—
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)/PROFIT FOR THE
YEAR
|
|
|
|
(5,645)
|
|
|
25,579
|
|
|
(864)
|
|
3,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE
TO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
Company
|
|
|
|
(5,645)
|
|
|
25,579
|
|
|
(864)
|
|
3,918
|
|
Non-controlling
interests
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
|
|
|
(5,645)
|
|
|
25,579
|
|
|
(864)
|
|
3,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)/EARNINGS PER
SHARE
ATTRIBUTABLE TO OWNERS OF THE
COMPANY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net
(loss)/earnings per share
|
|
|
|
(0.23)
|
|
|
0.90
|
|
|
(0.04)
|
|
0.14
|
|
CHINA NATURAL
RESOURCES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2019 AND 2020 (Amounts in
thousands)
|
|
|
|
|
December 31,
|
|
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
CNY
|
|
CNY
|
|
US$
|
|
US$
|
|
ASSETS
(1)
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
214
|
|
|
158
|
|
|
33
|
|
25
|
|
Right-of-use
assets
|
|
|
|
616
|
|
|
1,079
|
|
|
94
|
|
165
|
|
TOTAL NON-CURRENT
ASSETS
|
|
|
|
830
|
|
|
1,237
|
|
|
127
|
|
190
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments
|
|
|
|
29
|
|
|
25
|
|
|
4
|
|
4
|
|
Trade
Receivables
|
|
|
|
3,956
|
|
|
—
|
|
|
606
|
|
—
|
|
Other
Receivables
|
|
|
|
39
|
|
|
42
|
|
|
6
|
|
6
|
|
Financial assets at
fair value through profit or
loss
|
|
|
|
—
|
|
|
138,674
|
|
|
—
|
|
21,234
|
|
Cash and cash
equivalents
|
|
|
|
3,444
|
|
|
2,450
|
|
|
527
|
|
375
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
7,468
|
|
|
141,191
|
|
|
1,143
|
|
21,619
|
|
TOTAL
ASSETS
|
|
|
|
8,298
|
|
|
142,428
|
|
|
1,270
|
|
21,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
3,896
|
|
|
100
|
|
|
597
|
|
15
|
|
Other payables and accrued
liabilities
|
|
|
|
2,161
|
|
|
3,558
|
|
|
331
|
|
545
|
|
Taxes payable
|
|
|
|
16,818
|
|
|
10,205
|
|
|
2,575
|
|
1,563
|
|
Lease liabilities
|
|
|
|
803
|
|
|
745
|
|
|
123
|
|
114
|
|
Due to related
companies
|
|
|
|
5,077
|
|
|
9,158
|
|
|
777
|
|
1,402
|
|
Due to the
Shareholder
|
|
|
|
7,097
|
|
|
7,149
|
|
|
1,087
|
|
1,095
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
35,852
|
|
|
30,915
|
|
|
5,490
|
|
4,734
|
|
NON- CURRENT
LIABILITIES
Deferred tax
liabilities
|
|
|
|
—
|
|
|
9,964
|
|
|
—
|
|
1,526
|
|
Lease liabilities
|
|
|
|
—
|
|
|
347
|
|
|
—
|
|
53
|
|
TOTAL NON- CURRENT
LIABILITIES
|
|
|
|
—
|
|
|
10,311
|
|
|
—
|
|
1,579
|
|
TOTAL
LIABILITIES
|
|
|
|
35,852
|
|
|
41,226
|
|
|
5,490
|
|
6,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(DEFICIENCY IN
ASSETS)/EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued capital
|
|
|
|
312,081
|
|
|
390,297
|
|
|
47,787
|
|
59,764
|
|
Other capital
reserves
|
|
|
|
692,518
|
|
|
716,776
|
|
|
106,042
|
|
109,756
|
|
Accumulated
losses
|
|
|
|
(1,028,284)
|
|
|
(1,002,705)
|
|
|
(157,456)
|
|
(153,539)
|
|
Other comprehensive
loss
|
|
|
|
(3,869)
|
|
|
(3,166)
|
|
|
(593)
|
|
(485)
|
|
(DEFICIENCY IN
ASSETS)/EQUITY
|
|
|
|
(27,554)
|
|
|
101,202
|
|
|
(4,220)
|
|
15,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
|
|
8,298
|
|
|
142,428
|
|
|
1,270
|
|
21,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The consolidated statements of profits or loss of the Company
for the years ended December 31,
2019 and 2020 and the consolidated statements of financial
position of the Company as of December 31,
2019 and 2020 have been prepared in accordance with
International Financial Reporting Standards as issued by the
International Accounting Standards Board. The consolidated
statements of profits or loss and the consolidated statements
of financial position have been derived from and should be
read in conjunction with the Company's audited consolidated
financial statements for the year ended December 31, 2020 contained in the Company's
Annual Report on Form 20-F as filed with the Commission on
April 23, 2021.
(1) Does not reflect the
Company's January 2021 registered
direct placement of 3,960,000 common shares, or approximately
$7.3 million of common shares, no par
value, at a price of $1.85 per share
to certain institutional investors. In a concurrent private
placement, the Company also issued to the investors warrants
("Warrants") initially exercisable for the purchase of 1,584,000
common shares at an exercise price of $2.35 per share, which Warrants have a term
of 36 months from the date of issuance. The net proceeds from this
offering were used for general working capital purposes.
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SOURCE China Natural Resources, Inc.