EX-99.1 2 exhibit991.htm PRESS RELEASE United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 99.1

CONTACT

Edward Wong, Financial Controller

011-852-2810-7205 or fc@chrb.com


FOR IMMEDIATE RELEASE


CHINA NATURAL RESOURCES RELEASES

INTERIM RESULTS OF OPERATIONS


HONG KONG, September 19, 2007 – CHINA NATURAL RESOURCES, INC. (NASDAQ: CHNR), a company based in the People’s Republic of China, today released unaudited interim financial statements for the three and six months ended June 30, 2007 as follows.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006

(Amounts in thousands, except share and per share data)


 

 

Three Months Ended June 30,   

Six Months Ended June 30,     

 

 

2007

2006

2007

2007

2006

2007

 

 

RMB

RMB

US$

RMB

RMB

US$

 

 

 

NET SALES

 

33,070

32,526

4,346

58,962

51,664

7,748

 

 

 

 

 

 

 

 

COST OF SALES

 

(10,205)

(8,961)

(1,341)

(17,991)

(17,042)

(2,364)

 

 

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-----------

-----------

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GROSS PROFIT

 

22,865

23,565

3,005

40,971

34,622

5,384

 

 

 

 

 

 

 

 

SELLING, GENERAL AND

 

 

 

 

 

 

 

ADMINISTRATIVE EXPENSES

 

(2,673)

(3,715)

(351)

(5,738)

(7,106)

(754)

 

 

 

 

 

 

 

 

INTEREST INCOME

 

424

135

56

843

235

110

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE), NET

 

(34)

1,083

(5)

(41)

4,958

(5)

 

 

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-----------

-----------

-----------

-----------

----------

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING

 OPERATIONS BEFORE INCOME

 TAXES

 



20,582



21,068



2,705



36,035



32,709



4,735

 

 

 

 

 

 

 

 

INCOME TAXES

 

(3,267)

(3,338)

(430)

(5,798)

(4,906)

(762)

 

 

-----------

-----------

-----------

-----------

-----------

----------

INCOME FROM CONTINUING

 OPERATIONS

 


17,315


17,730


2,275


30,237


27,803


3,973

 

 

 

 

 

 

 

 

DISCONTINUED OPERATIONS

 Loss from discontinued advertising and

  HARC operations, net of taxes of nil

 



-



(212)



-



-



(486)



-

 

 

-----------

-----------

-----------

-----------

-----------

----------

NET INCOME

 

17,315

17,518

2,275

30,237

27,317

3,973

 

 

-----------

-----------

-----------

-----------

-----------

----------

Other comprehensive income (loss):

 

 

 

 

 

 

 

 Foreign currency translation

 Adjustments

 


(360)


(3)


(47)


(564)


(11)


(74)

 

 

-----------

-----------

-----------

-----------

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----------

COMPREHENSIVE INCOME

 

16,955

17,515

2,228

29,673

27,306

3,899

 

 

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INCOME PER SHARE:

 Basic

  Income from continuing operations

  Loss from discontinued operations

 



1.50

-



1.54

(0.02)



0.20

-



2.62

-



2.87

(0.05)



0.34

-

 

 

-----------

-----------

-----------

-----------

-----------

----------

 

 

1.50

1.52

0.20

2.62

2.82

0.34

 

 

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INCOME PER SHARE:

 Diluted

  Income from continuing operations

  Loss from discontinued operations

 



1.29

-



1.27

(0.02)



0.17

-



2.23

-



2.27

(0.04)



0.29

-

 

 

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-----------

-----------

-----------

-----------

----------

 

 

1.29

1.25

0.17

2.23

2.23

0.29

 

 

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WEIGHTED AVERAGE NUMBER

 

 

 

 

 

 

 

 OF SHARES OUTSTANDING

 

 

 

 

 

 

 

   Basic

 

11,548,416

11,548,416

11,548,416

11,548,416

9,670,407

11,548,416

 

 

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   Diluted

 

13,377,836

13,959,662

13,377,836

13,547,420

12,240,535

13,547,420

 

 

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CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2007 AND DECEMBER 31, 2006

(Amounts in thousands, except share and per share data)


 

 

June 30,

December 31,

June 30,

 

 

2007

2006

2007

 

 

RMB

RMB

US$

 

 

(Unaudited)

 

(Unaudited)

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

  Cash and cash equivalents

 

148,130

136,991

19,465

  Trade receivables

 

11,562

504

1,519

  Other receivables, deposits and prepayments

 

1,594

604

210

  Inventories

 

4,554

5,231

599

 

 

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----------

----------

TOTAL CURRENT ASSETS

 

165,840

143,330

21,793

PROPERTY AND EQUIPMENT

 

36,981

37,435

4,859

 

 

----------

----------

----------

TOTAL ASSETS

 

202,821

180,765

26,652

 

 

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======

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LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

  Accounts payable

 

1,487

1,231

196

  Accrued liabilities

 

31,075

30,880

4,083

  Advances from customers

 

2,331

2,650

306

  Amounts due to a related company

 

2,312

3,444

304

  Amounts due to a director

 

-

8,594

-

  Dividends payable

 

170

170

22

  Taxes payable

 

5,242

3,265

689

 

 

----------

----------

----------

TOTAL LIABILITIES – ALL CURRENT

 

42,617

50,234

5,600

 

 

----------

----------

----------

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

  Common shares, no par:

 

 

 

 

   Authorized – 200,000,000 shares

 

 

 

 

   Issued and outstanding –11,548,416 shares in

 

 

 

 

     2006 and 2005, respectively

 

47,250

47,250

6,209

Appropriated retained earnings

 

7,331

7,331

963

Retained earnings

 

106,417

76,180

13,984

Other comprehensive loss

 

(794)

(230)

(104)

 

 

----------

----------

----------

TOTAL SHAREHOLDERS’ EQUITY

 

160,204

130,531

21,052

 

 

----------

----------

----------

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’

 

 

 

 

  EQUITY

 

202,821

180,765

26,652

 

 

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The condensed consolidated statement of operations and comprehensive income for the three and six months ended June 30, 2007 (unaudited) and the condensed consolidated balance sheet as of June 30, 2007 (unaudited) have been prepared in accordance with generally accepted accounting principles in the United States but omit certain financial statements and note disclosure that would be included in full financial statements prepared in accordance with USGAAP.  The condensed consolidated statement of operations and comprehensive income for the three and six months ended June 30, 2007 (unaudited) and the condensed consolidated balance sheet as of June 30, 2007 (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, 2007 and 2006, which was furnished to the Securities and Exchange Commission on September 19, 2007 under cover of Form 6-K.  The results of operations for the six months ended June 30, 2007 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2007.



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This press release includes forward-looking statements within the meaning of federal securities laws.  These forward-looking statements are based upon assumptions believed to be reliable, but involve risks and uncertainties that may cause actual results of operations to differ materially from the forward-looking statements.  Among the risks and uncertainties that could cause our actual results to differ from our forward-looking statements are our intent, belief and current expectations as to business operations and operating results of the Company, uncertainties regarding the governmental, economic and political circumstances in the People’s Republic of China, risks and hazards associated with the Company’s mining activities, uncertainties associated with ore reserve estimates, uncertainties associated with metal 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 Securities and Exchange Commission filings. Although the Company’s management believes that the expectations reflected in forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to be accurate.



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