6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of November 2022.

Commission File Number 0-26046

China Natural Resources, Inc.

(Translation of registrant's name into English)

Room 2205, 22/F, West Tower, Shun Tak Centre,

168-200 Connaught Road Central, Sheung Wan, Hong Kong

(Address of principal executive offices)

Indicate by check mark whether the registrant files of will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

1 

This report on Form 6-K is hereby incorporated by reference into (i) the Registration Statement on Form F-3 (File No. 333-233852) of China Natural Resources, Inc. (the “Company”), (ii) the Registration Statement on Form F-3 (File No. 333-252895) of the Company, and (iii) the Registration Statement on Form S-8 (File No. 333-266219) of the Company, and in each instance the related prospectus, as such registration statements and prospectuses may be amended or supplemented from time to time, and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

Unaudited Results of Operations

Furnished herewith on behalf of the Company are the following:

(a)       Unaudited Financial Statements:

- Condensed Consolidated Statements of Profit or Loss (Unaudited) for the Six Months Ended June 30, 2022 and 2021

- Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Six Months Ended June 30, 2022 and 2021

- Condensed Consolidated Statements of Financial Position as of June 30, 2022 (Unaudited) and December 31, 2021

- Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Six Months Ended June 30, 2022 and 2021

- Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2022 and 2021

- Notes to Condensed Consolidated Financial Statements (Unaudited)

(b)       Management's Discussion and Analysis of Financial Condition and Results of Operations

Press Release

On November 7, 2022, the Company issued a press release including a portion of the information contained in this current report. The press release furnished herewith as Exhibit 15.1 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Exhibit Index

15.1	Press Release dated November 7, 2022.
101.INS	Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

2 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CHINA NATURAL RESOURCES, INC.
Date: November 7, 2022	By:	/s/ Wong Wah On Edward
		Wong Wah On Edward
		Chairman and Chief Executive Officer

3 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

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

			Six Months Ended June 30,
			2021			2022			2022
			CNY			CNY			US$
	Notes		(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Revenue		4		8,220			16,072			2,401
Cost of sales				(7,109	)		(8,771	)		(1,309	)
GROSS PROFIT				1,111			7,301			1,092
Selling and distribution expenses				(496	)		(410	)		(61	)
Administrative expenses				(12,175	)		(8,733	)		(1,304	)
Other income				376			731			109
Fair value (loss)/gain on financial instruments, net		6		(24,807	)		559			83
Impairment losses on financial assets		6		(993	)		(2,972	)		(444	)
Finance costs		5		(2,271	)		(1,822	)		(272	)
Finance income		5		8,787			9,376			1,400
(LOSS)/PROFIT BEFORE INCOME TAX		6		(30,468	)		4,030			603
Income tax benefit/(expense)		7		633			(357	)		(53	)
(LOSS)/PROFIT FOR THE PERIOD				(29,835	)		3,673			550
ATTRIBUTABLE TO:
Owners of the Company				(27,993	)		1,949			293
Non-controlling interests				(1,842	)		1,724			257
(LOSS)/PROFIT for the year				(29,835	)		3,673			550
(LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:
Basic and diluted
- (Loss)/earnings per share		8		(0.69	)		0.05			0.01

F-1 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Amounts in thousands)

	Six Months Ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
(LOSS)/PROFIT FOR THE PERIOD		(29,835	)		3,673			550
Other comprehensive income/(loss) that will be reclassified to profit or loss in subsequent periods:
Foreign currency translation adjustments of the subsidiaries		2,646			(4,616	)		(688	)
Other comprehensive (loss)/income that will not be reclassified to profit or loss in subsequent periods:
Foreign currency translation adjustments of the Company		(9,542	)		5,361			800
Total other comprehensive (loss)/income for the period, net of tax		(6,896	)		745			112
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD		(36,731	)		4,418			662
Attributable to:
Owners of the Company		(34,889	)		2,694			405
Non-controlling interests		(1,842	)		1,724			257
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		(36,731	)		4,418			662

F-2 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021

(Amounts in thousands)

			December 31,		June 30,
			2021		2022		2022
			CNY		CNY		US$
	Notes		(Audited)		(Unaudited)		(Unaudited)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment		9		715		578		86
Intangible assets		10		20,189		19,785		2,953
Right-of-use assets		11		2,351		1,644		245
Trade and bills receivable		12		9,501		8,455		1,262
Contract assets		13		91,035		90,453		13,501
Deferred tax assets				66		537		80
Other non-current assets				10		2		—
TOTAL NON-CURRENT ASSETS				123,867		121,454		18,127
CURRENT ASSETS
Inventories				986		1,196		179
Trade and bills receivable		12		41,526		55,309		8,256
Contract assets		13		15,331		15,552		2,321
Prepayments				2,236		2,004		299
Other receivables		14		86,201		88,904		13,270
Other current assets				4,942		3,401		509
Cash and cash equivalents		15		58,359		50,915		7,600
TOTAL CURRENT ASSETS				209,581		217,281		32,434
TOTAL ASSETS				333,448		338,735		50,561

F-3 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)

AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021

(Amounts in thousands)

			December 31,			June 30,
			2021			2022			2022
			CNY			CNY			US$
	Notes		(Audited)			(Unaudited)			(Unaudited)
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables				21,118			17,810			2,658
Contract liabilities				690			690			104
Other payables and accruals		16		12,098			17,663			2,636
Income tax payable				9,254			10,031			1,497
Provision		17		—			808			121
Dividends payable		22		5,048			5,048			753
Derivative financial liabilities		18		1,710			1,224			183
Interest-bearing loans and borrowings		20		3,000			3,000			448
Lease liabilities		11		981			613			91
Due to related companies		22		5,710			5,986			893
Due to the Shareholder		22		14,050			14,050			2,097
TOTAL CURRENT LIABILITIES				73,659			76,923			11,481
NON-CURRENT LIABILITIES
Deferred tax liabilities				2,544			1,824			272
Lease liabilities		11		1,208			1,033			155
Interest-bearing loans and borrowings		20		74,000			72,500			10,822
TOTAL NON-CURRENT LIABILITIES				77,752			75,357			11,249
TOTAL LIABILITIES				151,411			152,280			22,730
EQUITY
Issued capital		21		450,782			450,782			67,286
Other capital reserves		21		719,110			719,110			107,338
Accumulated losses				(1,084,387	)		(1,082,438	)		(161,570	)
Other comprehensive losses				(10,821	)		(10,076	)		(1,504	)
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY				74,684			77,378			11,550
NON-CONTROLLING INTERESTS				107,353			109,077			16,281
TOTAL EQUITY				182,037			186,455			27,831
TOTAL LIABILITIES AND EQUITY				333,448			338,735			50,561

F-4 

CHINA NATURAL RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Amounts in thousands)

Attributable to Owners of the Company

	Issued capital		Other capital reserves		Accumulated losses			Other comprehensive income			Total			Non-controlling interests			Total Equity
(As adjusted)	CNY		CNY		CNY			CNY			CNY			CNY			CNY
Balance as of January 1, 2021		419,091		787,987		(1,031,187	)		(3,164	)		172,727			119,072			291,799
Loss for the period		—		—		(27,993	)		—			(27,993	)		(1,842	)		(29,835	)
Foreign currency translation adjustments		—		—		—			(6,896	)		(6,896	)		—			(6,896	)
Total comprehensive loss		—		—		(27,993	)		(6,896	)		(34,889	)		(1,842	)		(36,731	)
Dividends paid to non-controlling shareholders		—		—		(5,048	)		—			(5,048	)		—			(5,048	)
Issuance of shares		31,691		—		—			—			31,691			—			31,691
Equity-settled share-based payment		—		2,311		—			—			2,311			—			2,311
Balance as of June 30, 2021		450,782		790,298		(1,064,228	)		(10,060	)		166,792			117,230			284,022
Balance as of January 1, 2022		450,782		719,110		(1,084,387	)		(10,821	)		74,684			107,353			182,037
Profit for the period		—		—		1,949			—			1,949			1,724			3,673
Foreign currency translation adjustments		—		—		—			745			745			—			745
Total comprehensive income		—		—		1,949			745			2,694			1,724			4,418
Balance as of June 30, 2022		450,782		719,110		(1,082,438	)		(10,076	)		77,378			109,077			186,455
Balance as of June 30, 2022 (US$)		67,286		107,338		(161,570	)		(1,504	)		11,550			16,281			27,831

F-5 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Amounts in thousands)

			Six Months Ended June 30,
			2021			2022			2022
			CNY			CNY			US$
	Notes		(As adjusted and unaudited)			(Unaudited)			(Unaudited)
OPERATING ACTIVITIES				2,550			(4,482	)		(665	)
INVESTING ACTIVITIES
Interest received				3,800			—			—
Additions of service concession right				(68	)		—			—
Purchase of property, plant and equipment				(2	)		(6	)		(1	)
Purchase of structured deposit product				(40,000	)		—			—
Disposal of property, plant and equipment				—			3			—
Disposal of a subsidiary				(263	)		—			—
Loan to an unrelated company				(80,000	)		—			—
Repayment from loans due from related companies				125,000			—			—
Proceeds from maturity of structured deposit product				45,000			—			—
Net cash flows from/ (used in) investing activities				53,467			(3	)		(1	)
FINANCING ACTIVITIES
Proceeds from issuance of shares				41,996			—			—
Repayments of bank loans				(1,500	)		(1,500	)		(224	)
Advances from related companies				430			149			22
Repayment to related companies				(50,100	)		—			—
Repayments to the Shareholder				(7,155	)		—			—
Payment of principal portion of lease liabilities				(665	)		(543	)		(81	)
Payment of interest expenses of lease liabilities				(86	)		(53	)		(8	)
Dividends paid to non-controlling shareholders				(2,400	)		—			—
Interest paid				(2,032	)		(1,954	)		(292	)
Net cash flows used in financing activities				(21,512	)		(3,901	)		(583	)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS				34,505			(8,386	)		(1,249	)
NET FOREIGN EXCHANGE DIFFERENCE				860			942			138
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				56,580			58,359			8,711
CASH AND CASH EQUIVALENTS AT END OF PERIOD		15		91,945			50,915			7,600

F-6 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

China Natural Resources, Inc. (“CHNR” or the “Company”) is a British Virgin Islands (“BVI”) holding company incorporated in 1993. The address of the principal executive office is Room 2205, 22/F, West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong. The Company’s principal activity is investment holding. The Company’s subsidiaries (collectively with CHNR, the “Group”) are primarily involved in the exploration and mining and wastewater treatment businesses in the People’s Republic of China (“PRC”).

CHNR’s principal shareholder is Feishang Group Limited (“Feishang Group” or the “Shareholder”), a BVI corporation. Mr. Li Feilie is the controlling shareholder of Feishang Group. In the opinion of the directors of the Company (the “Directors”), the ultimate parent of CHNR is Laitan Investment Limited, a BVI corporation.

2.1 BASIS OF PRESENTATION

The interim condensed consolidated financial statements for the six months ended June 30, 2022 have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting.

The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.

The interim condensed consolidated financial statements do not include all the information and footnotes required by International Financial Reporting Standards (“IFRS”) for complete financial statements, and should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Group’s annual report on Form 20-F for the year ended December 31, 2021 (the “2021 Annual Report”).

The condensed consolidated financial statements include the accounts of CHNR and those subsidiaries in which CHNR has direct or indirect controlling interests. The Company’s subsidiaries as of June 30, 2022 are as described in the 2021 Annual Report.

The Company accounted for the common-control acquisitions disclosed in Note 29 of the 2021 Annual Report by using the pooling of interest method. The condensed consolidated statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period, regardless of the date of the common control combination. In this report, the comparative financial data of have been restated to reflect the business combinations under common control occurred.

For the convenience of readers, amounts in Renminbi, the Chinese currency (“CNY”), have been translated into United States dollars (“US$”) at the applicable rate of US$1.00 = CNY6.6995 as quoted by www.ofx.com as of June 30, 2022, except as otherwise disclosed. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.

F-7 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

2.2 CHANGES IN ACCOUNTING POLICIES

The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of the following IFRS for the first time for the current period’s financial information.

Amendments to IFRS 3	Reference to the Conceptual Framework
Amendments to IAS 16	Property, Plant and Equipment: Proceeds before Intended Use
Amendments to IAS 37	Onerous Contracts – Cost of Fulfilling a Contract
Annual Improvements to IFRSs 2018-2020	Amendments to IFRS 1, IFRS 9, Illustrative Examples accompanying IFRS 16, and IAS 41

(a) Amendments to IFRS 3 replace a reference to the previous Framework for the Preparation and Presentation of Financial Statements with a reference to the Conceptual Framework for Financial Reporting issued in June 2018 without significantly changing its requirements. The amendments also add to IFRS 3 an exception to its recognition principle for an entity to refer to the Conceptual Framework to determine what constitutes an asset or a liability. The exception specifies that, for liabilities and contingent liabilities that would be within the scope of IAS 37 or International Financial Reporting Interpretations Committee Interpretation (“IFRIC”) 21 if they were incurred separately rather than assumed in a business combination, an entity applying IFRS 3 should refer to IAS 37 or IFRIC 21 respectively instead of the Conceptual Framework. Furthermore, the amendments clarify that contingent assets do not qualify for recognition at the acquisition date. The Group has applied the amendments prospectively to business combinations that occurred on or after January 1, 2022. As there were no contingent assets, liabilities and contingent liabilities within the scope of the amendments arising in the business combination that occurred during the period, the amendments did not have any impact on the financial position and performance of the Group.

(b) Amendments to IAS 16 prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling any such items, and the cost of those items, in profit or loss. The Group has applied the amendments retrospectively to items of property, plant and equipment made available for use on or after January 1, 2022. Since there was no sale of items produced while making property, plant and equipment available for use on or after January 1, 2022, the amendments did not have any impact on the financial position or performance of the Group.

(c) Amendments to IAS 37 clarify that for the purpose of assessing whether a contract is onerous under IAS 37, the cost of fulfilling the contract comprises the costs that relate directly to the contract. Costs that relate directly to a contract include both the incremental costs of fulfilling that contract (e.g., direct labor and materials) and an allocation of other costs that relate directly to fulfilling that contract (e.g., an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract as well as contract management and supervision costs). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The Group has applied the amendments prospectively to contracts for which it has not yet fulfilled all its obligations at January 1, 2022 and no onerous contracts were identified. Therefore, the amendments did not have any impact on the financial position or performance of the Group.

F-8 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

2.2. CHANGES IN ACCOUNTING POLICIES (CONTINUED)

(d) Annual Improvements to IFRSs 2018-2020 sets out amendments to IFRS 1, IFRS 9, Illustrative Examples accompanying IFRS 16, and IAS 41. Details of the amendments that are applicable to the Group are as follows:

· IFRS 9 Financial Instruments: clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. The Group has applied the amendment prospectively to financial liabilities that are modified or exchanged on or after January 1, 2022. As there was no modification of the Group’s financial liabilities during the period, the amendment did not have any impact on the financial position or performance of the Group.

· IFRS 16 Leases: removes the illustration of payments from the lessor relating to leasehold improvements in Illustrative Example 13 accompanying IFRS 16. This removes potential confusion regarding the treatment of lease incentives when applying IFRS 16.

F-9 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

3. SEGMENT INFORMATION

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s management and the Company’s Board of Directors for the purpose of resource allocation and performance assessment.

Management assesses the performance of operating segments based on profit or loss before income tax in related periods. The manner of assessment is consistent with that applied in these financial statements.

As of June 30, 2022, the Group’s two reportable operating segments are summarized below:

- Wastewater treatment segment, which consists of sales of assembled equipment, provision of construction services and participating in PPP projects as operator;

- Exploration and mining segment, which consists of the exploration for lead, silver and other metals in the Inner Mongolia Autonomous Region of the PRC;

Deferred tax assets, income tax payable and deferred tax liabilities are excluded from segment assets and segment liabilities. The Group had neither sales of products nor provisions of services between the operating segments.

For the six months ended June 30, 2021, the segment results were as follows:

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	CNY			CNY			CNY			CNY
Six months ended June 30, 2021 (As adjusted and unaudited)
Revenues from external customers		8,220			—			—			8,220
Segment profit/(loss) before income tax		179			(333	)		(30,314	)		(30,468	)
Income tax benefit											633
Loss for the period											(29,835	)
Other items
Depreciation of property, plant and equipment		(124	)		(31	)		(2	)		(157	)
Depreciation of right of use assets		(321	)		—			(360	)		(681	)
Amortization of intangible assets		(441	)		—			—			(441	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(1,920	)		—			—			(1,920	)
- Contract assets		(179	)		—			—			(179	)
- Amounts due from related companies		775			—			331			1,106
Fair value loss on financial instruments, net		—			—			(24,807	)		(24,807	)
Other income		76			300			—			376
Finance costs		(2,142	)		—			(129	)		(2,271	)
Finance income		8,782			—			5			8,787

F-10 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

3. SEGMENT INFORMATION (CONTINUED)

For the six months ended June 30, 2022, the segment results were as follows:

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	CNY			CNY			CNY			CNY
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers		16,072			—			—			16,072
Segment profit before income tax		3,784			245			1			4,030
Income tax expenses											(357	)
Profit for the period											3,673
Other items
Depreciation of property, plant and equipment		(114	)		(26	)		(1	)		(141	)
Depreciation of right of use assets		(347	)		—			(360	)		(707	)
Amortization of intangible assets		(404	)		—			—			(404	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(1,936	)		—			—			(1,936	)
- Contract assets		41			—			—			41
- Other receivables		—			—			(1,077	)		(1,077	)
Other income		30			700			1			731
Fair value gain on financial instruments		—			—			559			559
Finance costs		(1,799	)		(1	)		(22	)		(1,822	)
Finance income		7,857			—			1,519			9,376

F-11 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

3. SEGMENT INFORMATION (CONTINUED)

For the six months ended June 30, 2022, the segment results were as follows (continued):

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	US$			US$			US$			US$
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers		2,401			—			—			2,401
Segment profit before income tax		566			37			—			603
Income tax expenses											(53	)
Profit for the period											550
Other items
Depreciation of property, plant and equipment		(17	)		(4	)		—			(21	)
Depreciation of right of use assets		(52	)		—			(54	)		(106	)
Amortization of intangible assets		(60	)		—			—			(60	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(289	)		—			—			(289	)
- Contract assets		6			—			—			6
- Other receivables		—			—			(161	)		(161	)
Other income		4			105			—			109
Fair value gain on financial instruments		—			—			83			83
Finance costs		(269	)		—			(3	)		(272	)
Finance income		1,398			—			2			1,400

F-12 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

3. SEGMENT INFORMATION (CONTINUED)

The following table presents the asset and liability information of the Group’s operating segments as of December 31, 2021 and June 30, 2022:

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	CNY		CNY		CNY		CNY
As of December 31, 2021 (Audited)
Segment assets		390,895		321		22,166		413,382
Reconciliation:
Elimination of inter-segment receivables								(80,000	)
Unallocated assets:
Deferred tax assets								66
Total assets								333,448
Segment liabilities		113,124		3,294		103,195		219,613
Reconciliation:
Elimination of inter-segment payables								(80,000	)
Unallocated liabilities:
Deferred tax liabilities								2,544
Income tax payable								9,254
Total liabilities								151,411

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	CNY		CNY		CNY		CNY
As of June 30, 2022 (Unaudited)
Segment assets		398,064		573		19,561		418,198
Reconciliation:
Elimination of inter-segment receivables								(80,000	)
Unallocated assets:
Deferred tax assets								537
Total assets								338,735
Segment liabilities		115,995		3,301		101,129		220,425
Reconciliation:
Elimination of inter-segment payables								(80,000	)
Unallocated liabilities:
Deferred tax liabilities								1,824
Income tax payable								10,031
Total liabilities								152,280

F-13 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

3. SEGMENT INFORMATION (CONTINUED)

The following table presents the asset and liability information of the Group’s operating segments as of December 31, 2021 and June 30, 2022(continued):

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	US$		US$		US$		US$
As of June 30, 2022 (Unaudited)
Segment assets		59,416		86		2,920		62,422
Reconciliation:
Elimination of inter-segment receivables								(11,941	)
Unallocated assets:
Deferred tax assets								80
Total assets								50,561
Segment liabilities		17,314		493		15,096		32,903
Reconciliation:
Elimination of inter-segment payables								(11,942	)
Unallocated liabilities:
Deferred tax liabilities								272
Income tax payable								1,497
Total liabilities								22,730

4. REVENUE FROM CONTRACT WITH CUSTOMERS

Set out below is the disaggregation of the Group’s revenue from contracts with customers:

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Type of goods or services
Construction contract revenue		4,601		12,639		1,889
Operation services of service concession arrangement		3,223		3,433		512
Construction services of service concession arrangement		396		—		—
Total revenue from contracts with customers		8,220		16,072		2,401
Geographic market
Mainland China		8,220		16,072		2,401
Timing of revenue recognition
Over time		8,220		16,072		2,401
Total revenue from contracts with customers		8,220		16,072		2,401

F-14 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

4. REVENUE FROM CONTRACT WITH CUSTOMERS (CONTINUED)

(i) The Group had neither revenue from the exploration and mining segment nor inter-segment revenue for six months ended June 30, 2021 and 2022. No revenue was recognized in the current reporting period that was included in the contract liabilities at the beginning of the reporting period and recognized from performance obligations satisfied in previous periods.

(ii) Performance obligation

Construction services

The Group’s performance in respect of construction services creates or enhances an asset or work in progress that the customer controls as the asset is created or enhanced. The Group satisfies the performance obligation and recognizes revenue over time, by reference to completion of the specific transaction assessed on the basis of the surveyors’ assessment of work performed for each contract.

Operation services of service concession arrangements

The operation revenue from service concession arrangements is recognized over the period of time that the services are rendered, and the benefits are received and consumed simultaneously by the customers.

(iii) Significant financing components

The majority of the Group’s customers are town/village government entities or main contractors of governmental infrastructure projects whose time of payment for the service or goods received from the Group depends on the appropriation and approval of funds. Certain customers for construction services, sales of wastewater treatment equipment, and maintenance services will generally settle the amounts owed to the Group in a number of specified instalments covering periods ranging from one year to five years. Therefore, the Group’s management considers the contracts with customers which are town/village government entities or main contractors of the governmental infrastructure projects as containing a significant financing component. For each of the six months ended June 30, 2021 and 2022, the respective revenue considerations were adjusted for this financing component based on an imputed interest rate of 4.75% per annum and the Group’s revenue was adjusted to CNY288 (as adjusted), and CNY771, respectively. The interest income related to the significant financing components is disclosed in Note 5 to the financial statements.

F-15 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

5. FINANCE INCOME AND COSTS

	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Finance income
Interest income on loans to a related party/ third party		3,396			3,396			507
Interest income on revenue contracts with significant financing component		1,132			2,547			380
Interest income from service concession    arrangement		3,988			3,389			506
Interest income on structured deposits		219			—			—
Interest income on bank deposit		52			44			7
		8,787			9,376			1,400
Finance costs
Interest expenses on loans		2,032			1,954			292
Interest expense on lease liabilities		86			53			8
Other finance costs		210			(185	)		(28	)
Less: interest expense capitalized into intangible assets-concession right*		(57	)		—			—
		2,271			1,822			272

* The borrowing costs have been capitalized at a rate of 5.05% per annum during the period ended June 30, 2021.

F-16 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

6. (LOSS)/PROFIT BEFORE INCOME TAX

The Group’s (loss)/profit before tax is arrived at after (crediting)/charging:

	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Crediting:
Finance income (Note 5)		(8,787	)		(9,376	)		(1,400	)
Charging:
Cost of sales
- Construction service		3,916			5,107			762
- Operation services related to service concession arrangement		2,804			3,664			547
- Construction services related to service concession arrangement		389			—			—
Total		7,109			8,771			1,309
Depreciation
- Property, plant and equipment		157			141			21
- Right-of-use assets (Note 11)		681			707			106
Amortization of intangible assets* (Note 10)		441			404			60
Expense relating to short-term leases		338			174			26
Impairment losses/(reversal) on financial assets:
- Trade receivables		1,920			1,936			289
- Contract assets		179			(41	)		(6	)
- Other receivables		—			1,077			161
- Amounts due from related companies		(1,106	)		—			—
Fair value (gain)/loss on financial instruments:
- Financial assets at fair value through profit or loss (Note 18(a))		26,015			—			—
- Derivative financial liabilities (Note 18(b))		(1,208	)		(559	)		(83	)
Issuance expense in related to placement		1,579			—			—
Other income		(376	)		(731	)		(109	)
Finance costs (Note 5)		2,271			1,822			272
Employee benefit expenses *		5,751			5,772			861

* The employee benefit expenses and amortization of intangible assets for the year are included in “Cost of sales” and “Administrative expenses” on the face of the consolidated statement of profit or loss.

F-17 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

7. INCOME TAX (BENEFIT)/EXPENSE

The Company is incorporated in the BVI and conducts its primary business operations through its subsidiaries in mainland China. It also has intermediate holding companies in the BVI and Hong Kong. Under the current laws of the BVI, the Company and its subsidiaries incorporated in the BVI are not subject to tax on income or capital gains. The Hong Kong Profits Tax rate is 16.50%. The Company’s Hong Kong subsidiaries have both Hong Kong–sourced and non-Hong Kong–sourced income. The latter is not subject to Hong Kong Profits Tax and the related expenses are non-tax-deductible. For the Hong Kong–sourced income, no provision for Hong Kong Profits Tax was made as such operations sustained tax losses during the six months ended June 30, 2021 and 2022. Furthermore, there are no withholding taxes in Hong Kong on the remittance of dividends.

China

Under the Law of the PRC on corporate income tax and the Implementation Regulation of the Corporate Income Tax Law (collectively, the “CIT Law”), the Company’s PRC subsidiaries are generally subject to PRC corporate income tax at the statutory rate of 25% on their respective estimated assessable profits for the six months ended June 30, 2021 and 2022. Certain PRC subsidiaries of the Company engaged in environmental protection projects were subject to tax at a preferential tax rate of 12.5% or fully exempted from income tax according to the preferential policy of CIT law for the six months ended June 30, 2021 and 2022.

Under the prevailing CIT Law and its relevant regulations, any dividends paid by the Company’s mainland China subsidiaries from their earnings derived after January 1, 2008 to the Company’s Hong Kong subsidiaries are subject to PRC dividend withholding tax of 5% or 10%, depending on the applicability of the Sino-Hong Kong tax treaty.

The current and deferred components of income tax (benefit)/expense are as follows:

Schedule of deferred component of income tax expenses
	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Current income tax expense		685			1,548			231
Deferred income tax benefit		(1,318	)		(1,191	)		(178	)
Total		(633	)		357			53

F-18 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

8. (LOSS)/EARNINGS PER SHARE

Basic (loss)/earnings per share is calculated by dividing the (loss)/earnings for the period attributable to ordinary equity holders of the Company by the weighted average number of common shares outstanding during the period.

Diluted (loss)/earnings per share is calculated by dividing the (loss)/earnings attributable to ordinary equity holders of the Company by the weighted average number of common shares outstanding during the period plus the weighted average number of common shares that would be issued on conversion of all outstanding dilutive securities into common shares.

Basic and diluted net (loss)/earnings per share for the six months ended June 30, 2021 and 2022 are as follows:

	Six months ended June 30,
	2021			2022		2022
	CNY			CNY		US$
	(As adjusted and unaudited)			(Unaudited)		(Unaudited)
(Loss)/Earnings:
(Loss)/Earnings attributable to ordinary equity holders of the Company		(27,993	)		1,949		293
Number of Shares:
Weighted average number of common shares for basic and diluted loss per share:
Basic and diluted		40,488,634			40,948,082		40,948,082
(Loss)/Earnings per share:
Basic and diluted		(0.69	)		0.05		0.01

The Company did not have any potential diluted shares for the six months ended June 30, 2021 and 2022. For the period ended June 30, 2022, the effects of the outstanding warrants were anti-dilutive and excluded from the computation of diluted loss per share. Accordingly, the diluted (loss)/earnings per share amounts are the same as the basic (loss)/earnings per share amounts for all periods presented.

9. PROPERTY, PLANT AND EQUIPMENT

	December 31,			June 30,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
At cost:
Buildings		46			46			7
Machinery and equipment		1,177			1,084			162
Motor vehicles		2,486			2,486			371
Office and other equipment		728			734			110
		4,437			4,350			650
Accumulated depreciation and amortization		(3,722	)		(3,772	)		(564	)
Net book value		715			578			86

F-19 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

10. INTANGIBLE ASSETS

	Patent			Concession Right			Software			Total
	CNY			CNY			CNY			CNY
Cost
As of January 1, 2021 (As adjusted)		22,878			—			274			23,152
Transfer in		—			20,430			—			20,430
As of December 31, 2021		22,878			20,430			274			43,582
Accumulated amortization and impairment
As of January 1, 2021 (As adjusted)		(22,388	)		—			(121	)		(22,509	)
Amortization charge		(105	)		(730	)		(49	)		(884	)
As of December 31, 2021		(22,493	)		(730	)		(170	)		(23,393	)
Net carrying amount
As of December 31, 2021		385			19,700			104			20,189
Cost
As of January 1, 2022 and June 30, 2022		22,878			20,430			274			43,582
Accumulated amortization and impairment losses
As of January 1, 2022		(22,493	)		(730	)		(170	)		(23,393	)
Amortization charge		(19	)		(365	)		(20	)		(404	)
As of June 30, 2022		(22,512	)		(1,095	)		(190	)		(23,797	)
Net carrying amount
As of June 30, 2022		366			19,335			84			19,785
As of June 30, 2022 (US$)		55			2,886			12			2,953

As of December 31, 2021 and June 30, 2022, the Group’s concession rights associated with environmental water projects (comprising intangible assets, contract assets and trade receivables) with aggregate gross carrying amounts of CNY129,437 and CNY133,750, respectively, were pledged to secure bank loans from the Bank of Communications with outstanding balances of CNY77,000 and CNY75,500, respectively. Please refer to Note 20 for further details.

There was no impairment loss on intangible assets for the year ended December 31, 2021 and six months ended June 30, 2022.

F-20 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

11. LEASES

(a) Right-of-use assets

The carrying amounts of the Group’s right-of-use assets and the movements during the year/period are as follows:

	Motor Vehicles			Offices and warehouse			Total
	CNY			CNY			CNY
As of January 1, 2021		408			3,152			3,560
Addition		—			157			157
Depreciation charge		(163	)		(1,203	)		(1,366	)
As of December 31, 2021		245			2,106			2,351
As of January 1, 2022		245			2,106			2,351
Depreciation charge		(82	)		(625	)		(707	)
As of June 30, 2022		163			1,481			1,644
As of June 30, 2022 (US$)		24			221			245

(b) Lease liabilities

The carrying amount of lease liabilities and the movements during the year/period are as follows:

	Motor Vehicles			Offices and Warehouse			Total
	CNY			CNY			CNY
As of January 1, 2021		502			3,048			3,550
Addition		—			102			102
Accretion of interest recognized during the period		17			133			150
Payments		(364	)		(1,249	)		(1,613	)
As of December 31, 2021		155			2,034			2,189
Analyzed into:
Current portion		155			826			981
Non-current portion		—			1,208			1,208
As of January 1, 2022		155			2,034			2,189
Accretion of interest recognized during the period		4			49			53
Payments		—			(596	)		(596	)
As of June 30, 2022		159			1,487			1,646
Analyzed into:
Current portion		159			454			613
Non-current portion		—			1,033			1,033
As of June 30, 2022 (US$)		24			222			246
Current portion (US$)		24			67			91
Non-current portion (US$)		—			155			155

F-21 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

11. LEASES (CONTINUED)

(c) Lease related expenses

The following are the amounts recognized in profit of loss in relation to leases:

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Depreciation expense of right-of-use assets		681		707		106
Interest on lease liabilities		86		53		8
Expense relating to short-term leases		338		174		26
Total amounts recognized in profit or loss		1,105		934		140

12. TRADE AND BILLS RECEIVABLE

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Non-current
Trade receivables from third parties		17,033			16,815			2,510
Less: Impairment allowance		(7,532	)		(8,360	)		(1,248	)
Total of Non-current trade receivables		9,501			8,455			1,262
Current
Trade receivables from third parties		51,608			54,799			8,180
Less: Impairment allowance		(10,082	)		(11,190	)		(1,670	)
Total of current trade receivables		41,526			43,609			6,510
Bills receivable
At fair value through other comprehensive income		—			11,700			1,746
Total		51,027			63,764			9,518

Ageing analysis of accounts receivable and bills receivable was as follows:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Within 1 year		19,026		40,398		6,031
Between 1-2 years		5,106		3,740		558
Between 2-3 years		12,796		10,835		1,617
Over 3 years		14,099		8,791		1,312
Total		51,027		63,764		9,518

F-22 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

12. TRADE AND BILLS RECEIVABLES (CONTINUED)

Movements of loss allowance during the year/period are analyzed as follows:

	Year Ended December 31,		Six Months Ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Beginning of the year/period		13,774		17,614		2,629
Provision for expected credit losses (“ECLs”)		3,840		1,936		289
End of the year/period		17,614		19,550		2,918

The Group elected to apply the simplified approach for providing impairment for ECLs prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the ECLs, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The ECLs below also incorporate forward looking information. The impairment as of December 31, 2021 and June 30, 2022 was determined as follows:

									Past due
	Current		within 1 years			1-2 years				2-3 years		over 3 years			Total
As of December 31, 2021:
Expected credit loss rate				6	%		26	%		13	%		48	%		26	%
Gross carrying amount (CNY)		3,670		16,311			6,865			14,712			27,083			68,641
Impairment allowances (CNY)				955			1,759			1,916	(i)		12,984	(ii)		17,614
As of June 30, 2022:
Expected credit loss rate				10	%		10	%		10	%		60	%		20	%
Gross carrying amount (CNY)		331		42,479			4,186			12,412			23,906			83,314
Impairment allowances (CNY)				2,412			446			1,577	(i)		15,115	(ii)		19,550
Impairment allowances (US$)				360			67			235			2,256			2,918

(i) The impairment allowances included CNY221 and CNY211 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

(ii) The impairment allowances included an amount of CNY4,646 and CNY4,588 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

F-23 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

13. CONTRACT ASSETS

		December 31,			June 30,
		2021			2022			2022
		CNY			CNY			US$
		(Audited)			(Unaudited)			(Unaudited)
Non-current
Service concession assets	(a)		91,062			90,480			13,505
Less: impairment allowance			(27	)		(27	)		(4	)
			91,035			90,453			13,501
Current
Service concession assets	(a)		7,423			7,422			1,108
Other contract assets	(b)		8,443			8,706			1,299
Less: impairment allowance			(535	)		(576	)		(86	)
			15,331			15,552			2,321
Total			106,366			106,005			15,822

(a) Service concession assets bearing an imputed interest of 7% arose from the Group’s revenue from construction service under a build-own-transfer (“BOT”) arrangement rendered by the Group’s subsidiary, Shaoguan Angrui Environmental Technology Development Co., Limited (“Shaoguan Angrui”). The facilities that the service concession arrangement relate to were under construction phases from June 2018 to December 2020 and commenced operation in January 2021.

The amounts for the service concession arrangement are not yet due for payment and will be settled by revenue to be generated during the operating periods of the service concession arrangement. Amounts billed will be transferred to trade receivables.

As of December 31, 2021 and June 30, 2022, the Group’s concession rights associated with the environmental water projects (comprising intangible assets, contract assets and trade receivables) with aggregate gross carrying amounts of CNY129,437 and CNY133,750, respectively, were pledged to secure bank loans from the Bank of Communications with outstanding balances of CNY77,000 and CNY75,500, respectively. Please refer to Note 20 for further details.

F-24 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

13. CONTRACT ASSETS (CONTINUED)

(b) The balance as of December 31, 2021 and June 30, 2022 comprised contract assets arising from performance under water treatment plant construction service contracts. Such contracts include payment schedules which require stage payments over the service periods once milestones are reached.

The movements in the provision for impairment of contract assets are as follows:

	Year Ended December 31,		Six Months Ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Beginning of the year/period		205		562		84
Provision for expected credit loss, net		357		41		6
End of the year/period		562		603		90

An impairment analysis is performed at each reporting date using the probability-of-default approach to measure expected credit losses. The probability of default rates are estimated based on comparable entities with published credit ratings. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forward-looking credit risk information. As of December 31, 2021 and June 30, 2022, the assumed default rate ranged from 0.03% to 55.93% and from 0.03% to 54.78%, respectively.

F-25 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

14. OTHER RECEIVABLES

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Financial assets
Loans to an unrelated company (i)		83,600			87,200			13,016
Deposits		863			986			147
Others		1,000			1,000			149
Financial assets		85,463			89,186			13,312
Staff advance		697			750			112
Others		280			284			42
Total amount		977			1,034			154
Impairment allowance		(239	)		(1,316	)		(196	)
Total		86,201			88,904			13,270

(i) The balance as of June 30, 2022 consisted of the loan from Shenzhen Qianhai Feishang Environmental Investment Co., Limited (“Shenzhen Qianhai”), a subsidiary of the Company, to an unrelated company, Shenzhen Chaopeng Investment Co., Ltd., amounting to CNY80,000, and its corresponding interest receivable amounting to CNY7,200. The loan, with a maturity date of June 30, 2023, is interest bearing at a rate of 9% per annum and guaranteed by Shenzhen Feishang Investment Co., Limited, a company unrelated to the Group.

15. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are set out below as of December 31, 2021 and June 30, 2022:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Cash and cash equivalents
- Cash on hand		74		70		11
- Cash at bank		58,285		50,845		7,589
Cash and cash equivalents		58,359		50,915		7,600

The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
CNY		37,333		31,228		4,662
US$		20,011		19,015		2,838
HK$		1,015		672		100
		58,359		50,915		7,600

F-26 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

15. CASH AND CASH EQUIVALENTS (CONTINUED)

Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances and time deposits are deposited with creditworthy banks with no recent history of default. As of December 31, 2021 and June 30, 2022, there were no cash and cash equivalents pledged as security for the Group's liabilities.

16. OTHER PAYABLES AND ACCRUALS

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Financial liabilities
Accrued expenses		5,398		5,689		849
Deposits from customers		505		1,335		199
Liabilities related to bills receivable endorsed before maturity		—		2,150		320
Total payables		5,903		9,174		1,368
Penalties related to income tax		3,025		3,789		566
Taxes other than income tax payable (a)		285		2,396		358
Accrued payroll		2,878		2,262		338
Others		7		42		6
Total others payables		6,195		8,489		1,268
Total		12,098		17,663		2,636

(a) Taxes other than income taxes payable mainly comprise accruals for value-added tax, city construction tax and education surcharge.

17. PROVISIONS

A provision has been recognized for expected repair expenditures associated with the wastewater treatment infrastructure of the service concession arrangement which suffered flooding and were partially destroyed in the end of June 2022. Shaoguan Angrui has committed to repair and recover the original production capacity of the infrastructure in the next year. If the repair meets the standards of the customer, Shaoguan Angrui will have a chance to receive partial reimbursement of the repair cost through government subsidies.

F-27 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

18. FINANCIAL INSTRUMENTS

(a) Financial assets

Set out below is an overview of financial assets, other than cash and short-term deposits, held by the Group as of December 31, 2021 and June 30, 2022:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Debt instruments at amortized cost:
Accounts receivable: current		41,526		43,609		6,510
Accounts receivable: non-current		9,501		8,455		1,262
Financial assets included in other receivables		85,224		87,870		13,116
Financial assets at fair value through other comprehensive income:
Bills receivable		—		11,700		1,746
Total		136,251		151,634		22,634
Total Current		126,750		143,179		21,372
Total Non-current		9,501		8,455		1,262

(b) Financial liabilities

Set out below, is an overview of financial liabilities of the Group as of December 31, 2021 and June 30, 2022:

	December 31,		June 30,		June 30
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Derivatives not designated as hedging instruments：
Derivative financial liabilities (i)		1,710		1,224		183
Financial liabilities at amortized cost:
Trade payables		21,118		17,810		2,658
Financial liabilities in other payables and accruals		5,903		9,174		1,368
Dividends payable		5,048		5,048		753
Lease liabilities		2,189		1,646		246
Due to related companies		5,710		5,986		893
Due to the Shareholder		14,050		14,050		2,097
Interest-bearing loans and borrowings		77,000		75,500		11,270
Total		132,728		130,438		19,468
Total current		57,520		56,905		8,491
Total non-current		75,208		73,533		10,977

F-28 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

18. FINANCIAL INSTRUMENTS (CONTINUED)

(b) Financial liabilities (continued)

(i) On January 20, 2021, the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which the Company issued and sold on January 22, 2021, (i) in a registered direct offering, an aggregate of 3,960,000 of its common shares at a price of US$1.85 per share, and (ii) in a concurrent private placement, warrants initially exercisable for an aggregate of 1,584,000 of the Company’s common shares with an initial exercise price of US$2.35 per share.

The Company recognized the warrants issued to the investors as derivative financial liabilities (not designated as hedging instruments) with a fair value of CNY9,246 (US$1,427)* on the issue date as the investors have the right to exercise their warrants on a cashless basis. Per IAS 32, a contract settled by a single net payment (generally referred to as net cash-settled or net equity-settled as the case may be) is a financial liability and not an equity instrument. The fair value gain of CNY1,208 and CNY559 (US$83) (Note 6) were recognized according to fair value changes for the six months ended June 30, 2021 and 2022, respectively.

* As the changes in equity from this private placement transaction are denominated in US$, the amount in US$ is the actual transaction amount and the corresponding amount in CNY was translated from US$ at the applicable exchange rate of the transaction date, January 22, 2021.

(c) Fair value

Set out below is a comparison, by class, of the carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

	December 31,				June 30,
	2021				2022				2022
	CNY				CNY				US$
	(Audited)				(Unaudited)				(Unaudited)
	Carrying amount		Fair value		Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities
Interest-bearing loans and borrowings		77,000		79,003		75,500		78,471		11,270		11,713
Total		77,000		79,003		75,500		78,471		11,270		11,713

F-29 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

18. FINANCIAL INSTRUMENTS (CONTINUED)

(c) Fair value (continued)

The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities as of December 31, 2021 and June 30, 2022:

As of December 31, 2021 (Audited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	CNY		CNY		CNY		CNY
Recurring fair value measurement:
Financial liabilities
Derivative financial liabilities		—		1,710		—		1,710

As of June 30, 2022 (Unaudited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	CNY		CNY		CNY		CNY
Recurring fair value measurement:
Financial assets
Bills receivables		—		11,700		—		11,700
Financial liabilities
Derivative financial liabilities		—		1,224		—		1,224

As of June 30, 2022 (Unaudited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	US$		US$		US$		US$
Recurring fair value measurement:
Financial assets
Bills receivables		—		1,746		—		1,746
Financial liabilities
Derivative financial liabilities		—		183		—		183

F-30 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

18. FINANCIAL INSTRUMENTS (CONTINUED)

(c) Fair value (continued)

Level 2:

Bills receivable

The fair value valuation of bills receivable is based on directly or indirectly observable inputs (such as recent bill discount rates) through valuation techniques. The fair value of the bills receivable approximate their book value due to the short-term maturity.

Derivative financial liabilities

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

There is no established public trading market for the warrants issued to investors on January 22, 2021. As of June 30, 2022, the Group measured the fair value of those warrants on a recurring basis using a binomial lattice pricing model with significant inputs including the underlying spot price of the Company’s ordinary shares, exercise price, time to expiration, risk-free rate and equity volatility, etc., which are all relevant observable inputs.

F-31 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The financial instruments of the Group primarily include cash and cash equivalents, trade and bills receivable, other receivables, contract assets, derivative financial liabilities, trade payables, other payables, dividends payable, amounts due to related companies, amounts due to the Shareholder, lease liabilities and interest-bearing loans and borrowings.

The Group is exposed to credit risk, foreign currency risk, business and economic risk and liquidity risk. The Group has not used any derivatives or other instruments for hedging purposes. The Group does not hold or issue derivative financial liabilities for trading purposes. The Group reviews and adopts policies for managing each of these risks and they are summarized below.

(a) Credit risk

Management has a credit policy in place and the exposures to credit risk are monitored on an ongoing basis. Debts are usually due within 30 to 90 days from the date of billing.

Trade receivables of the Group mainly represent receivables in respect of revenue from construction services for wastewater treatment plant construction and sales of wastewater treatment equipment which are settled through progress billing and the operation services of the service concession arrangement which are settled on a quarterly basis. In addition, the Group has contract assets relating to the service concession arrangement and construction services.

As of December 31, 2021, and June 30 2022, “Trade and bills receivables” and “Contract assets” in the aggregate amounted to CNY175,569 and CNY189,922, respectively, of which CNY109,737 and CNY114,417 were due from the largest customer and CNY127,415 and CNY136,505 were due from the five largest customers in the aggregate of the Group, respectively. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the consolidated statements of financial position. Since the counterparty to the BOT arrangement is a local government authority in the PRC which has high credit rating, the Group considers credit risk to be low as of December 31, 2021 and June 30 2022. The Group does not hold any collateral over these balances.

Management groups financial instruments based on shared credit risk characteristics, such as instrument type and credit risk ratings for the purpose of determining significant increase in credit risk and calculation of impairment. The carrying amount of each financial asset in the condensed interim consolidated statement of financial position represents the Group’s maximum exposure to credit risk in relation to its financial assets.

F-32 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(a) Credit risk (continued)

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

- significant financial difficulty of the debtor;

- a breach of contract such as a default or past due event; or

- it is probable that the debtor will enter bankruptcy or other financial reorganization.

To manage credit risk arising from trade receivables and contract assets, the credit quality of the debtors is assessed, taking into account their financial position, historical settlement records, past experience and other factors. The Group applies the simplified approach to provide for ECLs prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The ECLs also incorporated forward-looking information.

For financial assets assessed for impairment under the general approach, the Group established a policy to perform an assessment at the end of each reporting period of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. The Group groups its other receivables into Stage 1, Stage 2 and Stage 3, as described below:

Stage 1 – When other receivables are first recognized, the Group recognized an allowance based on 12 months’ ECLs.

Stage 2 – When other receivables have shown a significant increase in credit risk since origination, the Group records an allowance for the lifetime ECLs.

Stage 3 – Other receivables are considered credit-impaired. The Group records an allowance for the lifetime ECLs.

Management also makes periodic collective assessments for other receivables and amounts due from related companies as well as individual assessments of the recoverability of other receivables based on historical settlement records, past experience and other factors. The Group classified other receivables and amounts due from related companies in Stage 1 and continuously monitored their credit risk. Management believes that there is no material credit risk inherent in the Group’s outstanding balance of other receivables as of December 31, 2021 and June 30, 2022.

The Group does not provide any guarantees that would expose the Group to credit risk. Further quantitative disclosures in respect of the Group’s exposure to credit risk arising from financial assets are set out in Notes 12, 13, 14 and 22 to the financial statements.

Cash and cash equivalents

The Group maintains its cash and cash equivalents primarily with various PRC state-owned banks and Hong Kong based financial institutions, which management believes are of high credit quality. The Group performs periodic evaluations of the relative credit standing of those financial institutions.

F-33 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(b) Foreign currency risk

Foreign currency risk primarily arises from certain significant foreign currency deposits denominated in US$ and HK$ and related exposures are disclosed in Note 15. The Group Treasury closely monitors the international foreign currency market on the change of exchange rates and takes these into consideration when investing in foreign currency deposits and borrowing loans.

CNY is not freely convertible into foreign currencies. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of CNY into foreign currencies. The value of CNY is subject to changes in PRC government policies and to international economic and political developments affecting the supply and demand in the China Foreign Exchange Trading System market. All foreign exchange transactions continue to take place either through the People's Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People's Bank of China.

As of June 30, 2022 the Group only had significant exposure to US$. If CNY had strengthened/ weakened by 5% against US$ with all other variables held constant, the income for the period ended June 30, 2022 would have been approximately CNY951 lower/higher (the loss for the period ended June 30, 2021 would have been CNY1,001 higher/lower), mainly as a result of foreign exchange gains and losses arising from translation of US$-denominated deposits. Profit was less sensitive to the fluctuation in CNY/US$ exchange rates in the period ended June 30, 2022 than in the period ended June 30, 2021, mainly due to the decrease in the US$ denominated cash deposits.

(c) Interest rate risk

The fair value interest rate risk of the Group mainly arises from long-term loans at fixed rates (see Note 20). As the fluctuation of comparable interest rate (Loan Prime Rate of PRC market) with similar term was relatively low, the Directors are of the opinion that the Group is not exposed to any significant fair value interest rate risk for its fixed interest rate borrowings held as of December 31, 2021 and June 30, 2022.

(d) Business and economic risk

The Group's operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 40 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the political, economic and social conditions in the PRC. There is also no guarantee that the PRC government's pursuit of economic reforms will be consistent or effective.

F-34 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(e) Liquidity risk

The Group manages its liquidity risk by regularly monitoring its liquidity requirements and its compliance with debt covenants to ensure that it maintains sufficient cash and cash equivalents, and adequate time deposits to meet its liquidity requirements in the short and long term.

The table below summarizes the maturity profile of the Group’s financial liabilities and lease liabilities based on contractual undiscounted payments:

December 31, 2021 (Audited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	CNY		CNY		CNY		CNY		CNY
Derivative financial liabilities		1,710		—		—		—		1,710
Trade payables		—		21,118		—		—		21,118
Financial liabilities in other payables and accruals		—		5,903		—		—		5,903
Dividends payable		—		5,048		—		—		5,048
Due to related companies		—		5,710		—		—		5,710
Due to the Shareholder		—		14,050		—		—		14,050
Lease liabilities		—		1,047		1,354		—		2,401
Interest-bearing loans and borrowings		—		6,882		28,792		78,139		113,813
Total		1,710		59,758		30,146		78,139		169,753

F-35 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(e) Liquidity risk (continued)

June 30, 2022 (Unaudited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	CNY		CNY		CNY		CNY		CNY
Derivative financial liabilities		1,224		—		—		—		1,224
Trade payables		—		17,810		—		—		17,810
Financial liabilities in other payables and accruals		—		9,174		—		—		9,174
Dividends payable		—		5,048		—		—		5,048
Due to related companies		—		5,986		—		—		5,986
Due to the Shareholder		—		14,050		—		—		14,050
Lease liabilities		—		683		1,123		—		1,806
Interest-bearing loans and borrowings		—		6,806		28,908		74,699		110,413
Total		1,224		59,557		30,031		74,699		165,511

June 30, 2022 (Unaudited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	USD		USD		USD		USD		USD
Derivative financial liabilities		183		—		—		—		183
Trade payables		—		2,658		—		—		2,658
Financial liabilities in other payables and accruals		—		1,368		—		—		1,368
Dividends payable		—		753		—		—		753
Due to related companies		—		893		—		—		893
Due to the Shareholder		—		2,097		—		—		2,097
Lease liabilities		—		102		168		—		270
Interest-bearing loans and borrowings		—		1,016		4,315		11,150		16,481
Total		183		8,887		4,483		11,150		24,703

(f) Capital management

The Group monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debt divided by total capitalization. Interest-bearing debt mainly includes lease liabilities and interest-bearing loans and borrowings. Total capitalization includes total equity and interest-bearing debt. The debt to capital ratio was 30.31% and 29.27% as of December 31, 2021 and June 30, 2022, respectively.

F-37 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

20. INTEREST-BEARING LOANS AND BORROWINGS

						December 31,		June 30,
						2021		2022		2022
						CNY		CNY		US$
	Interest rate			Maturity		(Audited)		(Unaudited)		(Unaudited)
Non-current interest-bearing loans
Bank loan-secured and guaranteed		5.05	%		2023 to 2038		74,000		72,500		10,822
Current interest-bearing loans
Bank loan-secured and guaranteed		5.05	%		2022 to 2023		3,000		3,000		448
Total							77,000		75,500		11,270

The bank loan is owed to the Bank of Communications and denominated in CNY.

The loan is secured by collection rights, contract assets, intangible assets and trade receivables in connection with the Group's service concession arrangement and 80% equity interest of the Company's subsidiary, Shaoguan Angrui. The loan is also guaranteed by Shanghai Onway Environmental Development Co., Limited (“Shanghai Onway”), the Company’s subsidiary, and Feishang Enterprise Group Co., Ltd. (“Feishang Enterprise”), a related company of the Group.

The outstanding balance as of June 30, 2022 is due in annual instalments of CNY1,500 due as of December 31, 2022, CNY3,000 due in 2023; CNY4,000 due annually from 2024 to 2028; CNY5,000 due annually from 2029 to 2034; CNY6,000 due in 2035; and CNY5,000 due annually from 2036 to 2038.

F-38 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

21. EQUITY

(a) Issued capital

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Authorized:
10,000,000 preferred shares, no par value		—		—		—
200,000,000 common shares, no par value		—		—		—
Common shares issued and fully paid:
June 30, 2022: 40,948,082, (December 31, 2021: 40,948,082) common shares, no par value		450,782		450,782		67,286

	Number of shares		Share capital
			CNY		US$
(As adjusted)
As of January 1, 2021		36,988,082		419,091		62,556
Common shares issued through private placement		3,960,000		31,691		4,730
As of December 31, 2021 and January 1, 2022		40,948,082		450,782		67,286
		—		—		—
As of June 30, 2022		40,948,082		450,782		67,286

(b) Other capital reserves

Other capital reserves of the Company are mainly for equity-settled share-based compensation, the exercise of stock options, the exercise of warrants, the business combination and the deemed contribution from the Shareholder of the Company and related companies.

F-39 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

22. RELATED PARTY BALANCES AND TRANSACTIONS

In addition to the transactions detailed elsewhere in these condensed consolidated financial statements, the Group had the following transactions with related parties during the period.

(a) Commercial transactions with related parties

			Six months ended June 30,
			2021		2022		2022
			CNY		CNY		US$
	Notes		(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Interest income received from Feishang Enterprise(a)		i		3,396		—		—
CHNR's share of office rental, rates and others to Anka Consultants Limited (“Anka”) (b)		ii		205		217		32
Feishang Management's share of office rental to Feishang Enterprise(a)		iii		84		84		13
Shenzhen New PST’s share of office rental to Feishang Enterprise(a)		iv		45		15		2

(i) The Company’s subsidiary, Shanghai Onway, entered into a series of contracts to provide a loan amounting to CNY80,000 at an interest rate of 9% per annum to Feishang Enterprise from March 2, 2018 to June 30, 2021.

(ii) The Company signed a contract with Anka to lease 184 square meters of office premises for two years, from July 1, 2018 to June 30, 2020, subsequently extended to June 30, 2024. The agreement also provides that the Company shares certain costs and expenses in connection with its use of the office, in addition to some of the accounting and secretarial services and day-to-day office administration services provided by Anka.

(iii) On January 1, 2018, Feishang Management signed an office-sharing agreement with Feishang Enterprise. Pursuant to the agreement, Feishang Management shares 40 square meters of office premises for 33 months. Feishang Management signed a new contract with Feishang Enterprise in October 2021, which was renewed in October 2022 and will expire on September 30, 2023.

(iv) Shenzhen New PST signed a contract with Feishang Enterprise to lease 96 square meters of office premises annually. The latest contract is from March 14, 2022 to March 13, 2023.

(a) Feishang Enterprise, Feishang Group and Feishang Energy are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(b) Anka is jointly owned by Mr. Wong Wah On Edward and Mr. Tam Cheuk Ho, who are officers of the Company.

F-40 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

22. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)

(b) Balances with related companies

The Company’s balances with related companies are unsecured and non-interest bearing. Feishang Enterprise and the Shareholder have provided letters stating their continuous financial support to the Group and that they will not recall any amounts due to them until the Group has sufficient liquidity to finance its operations. The balances are summarized as follows:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Current:
Payable to related companies:
Feishang Enterprise (a, i)		3,019		3,068		457
Anka Capital (b)		2,691		2,818		421
Yangpu Lianzhong Mining Co., Ltd (c, iii)		—		100		15
		5,710		5,986		893
Payable to the Shareholder:
Feishang Group (a, ii)		14,050		14,050		2,097
		14,050		14,050		2,097
Dividend payables to related companies:
Qianhai Industrial(d, iv)		5,048		5,048		753
		5,048		5,048		753
Lease liabilities to related parties
Anka (b)		372		—		—
		372		—		—

(i) The payable to Feishang Enterprise by Feishang Management represents the net amount of advances from Feishang Enterprise. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(ii) The payable to Feishang Group represents the net amount of advances from Feishang Group. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(iii) The payable to Yangpu Lianzhong Mining Co., Ltd by Feishang Management represents the net amount of advances from Yangpu Lianzhong Mining Co., Ltd. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(iv) The dividend payable to Shenzhen Qianhai Feishang Industrial Investment Co., Ltd. (“Qianhai Industrial”) represents the declared but unpaid dividend that was approved at the shareholder meeting of Shenzhen Qianhai on June 22, 2021, prior to the acquisition of Precise Space-Time Technology Limited (“PST Technology”) and its subsidiaries by the Group.

(a) Feishang Enterprise and Feishang Group are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(b) Anka Capital and Anka are each jointly owned by Wong Wah On Edward and Tam Cheuk Ho, who are officers of the Company.

(c) Yangpu Lianzhong Mining Co., Ltd is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(d) Qianhai Industrial is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

F-41 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

 

22. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)

(c) Compensation of key management personnel of the Group

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Wages, salaries and allowances		661		618		92
Housing subsidies		10		11		2
Contribution to pension plans		41		43		6
Total Compensation of key management personnel		712		672		100

The amounts disclosed in the table are the amounts recognized as expenses during the respective period related to key management personnel.

23. COMMITMENTS

There were no capital commitments as of December 31, 2021 and June 30, 2022.

24. SUBSEQUENT EVENTS

On July 14, 2022, the Board of Directors of the Company approved grants of option awards covering an aggregate of 8,100,000 common shares, without par value, of the Company (the “Shares”) to fifteen consultants and employees of the Company under the China Natural Resources, Inc. 2014 Equity Incentive Plan. The grantees assisted the Company in locating potential strategic partnerships and acquisitions, conducted due diligence, provided mergers and acquisition advice, and provided other related services to the Company over the course of the past one to three years, and continued to provide these services through the grant date. The recipients of the largest grants, Woo Chun Kei Jackie and Li Feiwen, received options exercisable for 3,700,000 and 3,000,000 Shares, respectively. The remaining 13 grant recipients received option awards exercisable for amounts ranging between 40,000 to 200,000 Shares.

The granted options vested immediately upon granting and became exercisable upon the filing of a registration statement on Form S-8 covering the Shares. The exercise price for the options is $0.623 per Share. The options expire three years from the date of grant.

As a result of the grant, the exercise price for the Company’s outstanding warrants to purchase up to an aggregate of 1,980,000 common shares was reduced to $0.623 per share pursuant to the terms of the warrants.

25. APPROVAL OF THE INTERIM FINANCIAL STATEMENTS

These interim condensed consolidated financial statements were approved by the Board of Directors on November 4, 2022.

F-42 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

The following discussion contains statements that constitute forward-looking statements within the meaning of the U.S. federal securities laws. These statements appear in a number of places throughout this report and include, without limitation, statements regarding the intent, belief and current expectations of China Natural Resources, Inc. (the “Company,” and together with its subsidiaries, the “Group”), its directors or its officers with respect to the applicability of US taxes to the Company, the availability of internally generated funds and funds for the payment of operating expenses, the sufficiency of working capital for present operations and over the next twelve months and access to capital, and its intent 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 our actual results to differ from our forward-looking statements are: uncertainties regarding the governmental, economic and political circumstances in the PRC; the impact on the Company’s financial position, growth potential and business of an investment in the wastewater treatment sector of the PRC generally and in PST Technology and Shanghai Onway specifically; the experience, supply chain and customer relationships and market insights of the PST Technology team, the growth potential of the wastewater treatment and environmental protection industries in the PRC; uncertainties related to the Company’s ability to identify potential partners or acquisition targets as it considers strategic alternatives, including in the healthcare and other non-natural resources sectors; uncertainties associated with metal price volatility; uncertainties concerning the viability of mining and estimates of reserves at the Company’s Wulatehouqi Moruogu Tong Mine in Inner Mongolia; uncertainties related to geopolitical events and conflicts, such as the conflict between Russia and Ukraine; uncertainties regarding the impact of the COVID-19 pandemic on domestic PRC and global economic conditions, demand for the mineral reserves that we may locate or extract, our workforce, whether due to illness or restrictions on movement, and on the price of our common shares; uncertainties related to possible future increases in operating expenses; the fluctuations of interest rates and foreign exchange rates; 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 the political situation between the PRC and the United States, the ability of the Public Company Accounting Oversight Board to inspect auditors located in the PRC and Hong Kong, the implementation by the U.S. Securities and Exchange Commission of more stringent disclosure and/or other requirements for companies located in the PRC, potential negative impacts on companies with operations in the PRC that are listed on exchanges in the United States, and increasing regulation by PRC government agencies of companies located in the PRC but listed elsewhere; and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including without limitation the information set forth in our Annual Reports on Form 20-F under the heading “Risk Factors.” 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.

REVENUE

Revenue for the six months ended June 30, 2022 was CNY16.07 million (US$2.40 million), as compared to revenue of CNY8.22 million for the same period in 2021. The increase was mainly attributable to the increase of revenue from construction contracts as the number of the projects and construction progress in the first half of 2022 were both higher than those in the first half of 2021.

COST OF SALES

Cost of sales for the six months ended June 30, 2022 was CNY8.77 million (US$1.31 million), as compared to cost of sales of CNY7.11 million for the same period in 2021. This increase was also due to more projects with higher construction progress compared with the first half of 2021.

43 

GROSS PROFIT

The overall gross profit margin was 45.43% for the six months ended June 30, 2022, as compared to 13.52% for the same period in 2021. The surge of gross profit margin was mainly due to the recognition of construction contract revenue of certain projects in 2022, while the comparable costs of these projects were recognized in previous years when incurred. The recognition of revenue for advance or additional construction services provided in previous years outside the scope of the signed contracts for which the Company incurred and recognized the related costs without the corresponding revenue was because not all attributes of a contract were met under IFRS 15 Revenue from Contracts with Customers in previous years.

SELLING AND DISTRIBUTION EXPENSES

Selling and distribution expenses for the six months ended June 30, 2022 were CNY0.41 million (US$0.06 million), as compared to expenses of CNY0.50 million for the same period in 2021. No material fluctuation was noted for the comparative periods.

ADMINISTRATIVE EXPENSES

Administrative expenses for the six months ended June 30, 2022 were CNY8.73 million (US$1.30 million), as compared to expenses of CNY12.18 million for the same period in 2021. The decrease was mainly due to the one-off professional service fees incurred in 2021 in relation to the Company’s public offering of shares and private placement of warrants.

OTHER INCOME

Other income for the six months ended June 30, 2022 were CNY0.73 million (US$0.11 million), as compared to other income of CNY0.38 million for the same period in 2021. The increase was caused by the collection of receivables in 2022 which had been written off in the prior period.

FAIR VALUE (LOSS)/ GAIN ON FINANCIAL INSTRUMENTS, NET

Fair value gain on financial instruments, net for the six months ended June 30, 2022 were CNY0.56 million (US$0.08 million), as compared to a loss of CNY24.81 million for the same period in 2021. The amount for the six months ended June 30, 2022 represented the fluctuation of fair values of the Company’s outstanding warrants only, whereas the amount for the same period in 2021 comprised the fluctuation of fair values of both the Company’s outstanding warrants and the shares in Feishang Anthracite Resources Limited, a company listed on the Hong Kong Stock Exchange (“FARL”).

FINANCE COSTS

Finance costs for the six months ended June 30, 2022 were CNY1.82 million (US$0.27 million), as compared to CNY2.27 million for the same period in 2021. The decrease was due to the appreciation of US dollars against Chinese Yuan in 2022, which lead to exchange gains on our bank deposits of US dollars.

FINANCE INCOME

Finance income for the six months ended June 30, 2022 was CNY9.38 million (US$1.40 million), as compared to CNY8.79 million for the same period in 2021. The increase was mainly from the increase of interest income from revenue contracts with significant financing components due to earlier collections.

INCOME TAX EXPENSE/(BENEFIT)

Management believes that the Company is not subject to US taxes.

Under the current laws of the British Virgin Islands (“BVI”), dividends and capital gains arising from the Company’s investments in the BVI are not subject to income tax and no withholding tax is imposed on payments of dividends to the Company.

44 

The Company's subsidiaries in the PRC are generally subject to a PRC enterprise income tax rate of 25% applicable to both foreign-invested enterprises and domestic companies, with the exception of Shaoguan Angrui, which engages in the environmental protection service concession arrangement and is subject to tax at a preferential tax rate of 12.5% for the three-year period since 2022 and was fully exempted from income tax for the year of 2021 due to the preferential policies of the CIT law.

The income tax expense was CNY0.36 million (US$0.05 million) for the six months ended June 30, 2022, as compared to income tax benefit of CNY0.63 million for the same period in 2021. The increase was mainly attributable to the increase of taxable profits in 2022. The effective income tax rate was 8.86% for the six months ended June 30, 2022, as compared to 2.08% for the same period in 2021.

PROFIT/(LOSS) FOR THE PERIOD

Profit for the six months ended June 30, 2022 was CNY3.67 million (US$0.55 million) as compared to a loss of CNY29.84 million for the six months ended June 30, 2021. The loss in 2021 was mainly due to the net fair value loss (amounting to CNY24.81 million) relating to the Company’s holdings in FARL, designated as financial assets at fair value through profit or loss, and the impact of warrants issued to institutional investors in a private placement on January 22, 2021, which were designated as derivative financial liabilities.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary liquidity needs are to fund operating expenses, capital expenditures and acquisitions. To date, the Company financed its working capital requirements and capital expenditures through internally generated cash from prior years, our bank loan, non-interest-bearing loans from the related parties, funds provided pursuant to the mutual cooperation agreement with Bayannaoer Jijincheng Mining Co., Ltd., and the issuance of shares and warrants in 2021. In view of negative operating cash flows from the wastewater treatment business and the pre-revenue exploration stage of the Moruogu Tong Mine, the Company expects that the availability of internally generated funds to sustain operations will decrease for the foreseeable future. Although we believe that our working capital is sufficient for our present requirements and to continue our current operations over the next 12 months, as we intend to explore other business opportunities and to diversify our operations as we move into our next phase of growth, we envisage engaging in further capital-raising activities.

Net cash used in operating activities for the six months ended June 30, 2022 was approximately CNY4.48 million (US$0.67 million), as compared to net cash inflows of CNY2.55 million for the corresponding period in 2021. The decrease of cash inflows from operating activities was mainly caused by the net effect of increases in both trade receivable and payables in 2022.

Net cash used in investing activities for the six months ended June 30, 2022 was CNY0.003 million (US$0.001 million), as compared to net cash inflows of CNY53.47 million for the corresponding period in 2021. The cash inflows in 2021 mainly represents the net amount of repayments from related parties and a loan to an unrelated company.

Net cash used in financing activities for the six months ended June 30, 2022 was CNY3.90 million (US$0.58 million), as compared to CNY21.51 million for the corresponding period in 2021. The decrease in cash used in financing activities was a result of decrease in net repayments to related parties, offset by the proceeds from our registered public offering of common shares and concurrent private placement of warrants in January 2021.

The following summarizes the Company's financial condition and liquidity at the dates indicated:

	December 31,		June 30,
	2021		2022
	(Audited)		(Unaudited)
Current ratio		2.85x		2.82x
Working capital (CNY'000)		135,922		140,358

45 

OFF BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet arrangements that have had or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that would be material to investors.

OTHER INFORMATION

On July 14, 2022, the Board of Directors of the Company approved grants of option awards covering an aggregate of 8,100,000 common shares, without par value, of the Company (the “Shares”) to fifteen consultants and employees of the Company under the China Natural Resources, Inc. 2014 Equity Incentive Plan. The grantees assisted the Company in locating potential strategic partnerships and acquisitions, conducted due diligence, provided mergers and acquisition advice, and provided other related services to the Company over the course of the past one to three years, and continued to provide these services through the grant date. The recipients of the largest grants, Woo Chun Kei Jackie and Li Feiwen, received options exercisable for 3,700,000 and 3,000,000 Shares, respectively. The remaining 13 grant recipients received option awards exercisable for amounts ranging between 40,000 to 200,000 Shares. The granted options vested immediately upon granting and became exercisable upon the filing of a registration statement on Form S-8 covering the Shares. The exercise price for the options is $0.623 per Share. The options expire three years from the date of grant. As a result of the grant, the exercise price for the Company’s outstanding warrants to purchase up to an aggregate of 1,980,000 common shares was reduced to $0.623 per share pursuant to the terms of the warrants.

 46

EX-15.1

Exhibit 15.1

CHINA NATURAL RESOURCES REPORTS FIRST HALF 2022 RESULTS

HONG KONG, November 7, 2022 – China Natural Resources Inc. (NASDAQ: CHNR) (the “Company”) today announced its results of operations for the six months ended June 30, 2022. 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 = CNY6.6995 as quoted by www.ofx.com on June 30, 2022, except as otherwise disclosed.

Mr. Wong Wah On Edward, Chairman of the Company, commented, “We are pleased with our increased gross margin, which improved to 45.43% from 13.52% in the prior year period, and our return to profitability, with net income attributable to the owners of the Company of $0.01 per share compared to a net loss of $0.10 per share in the prior year period. Our experienced team has remained focused during this challenging period as we execute on our long-term business strategy.”

“We are prudently investing in our exploration activities as we work to extract further value from the Wulatehouqi Moruogu Tong Mine, in addition to further developing our wastewater treatment segment. Longer-term we believe there is considerable opportunity in our mine. We also intend to explore other business opportunities and to further diversify our operations as we move into our next phase of growth. Importantly, our balance sheet is healthy and able to support our growth strategy, with necessary liquidity to fund operating expenses and capital expenditures.”

Financial Results for the Six Months Ended June 30, 2022

Revenue for the six months ended June 30, 2022 was CNY16.07 million (US$2.40 million), as compared to total sales of CNY8.22 million for the same period in 2021. The increase was mainly attributable to the increase of revenue from construction contracts, as the number of projects and construction progress in the first half of 2022 were both higher than those in the first half of 2021.

Cost of sales for the six months ended June 30, 2022 was CNY8.77 million (US$1.31 million), as compared to cost of sales of CNY7.11 million for the same period in 2021. This increase was also due to more projects with higher construction progress compared with the first half of 2021.

Gross profit margin was 45.43% for the six months ended June 30, 2022, as compared to 13.52% for the same period in 2021. The surge of gross profit margin was mainly due to the recognition of construction contract revenue of certain projects in 2022, while the comparable costs of these projects were recognized in previous years when incurred. The recognition of revenue for advance or additional construction services provided in previous years outside the scope of the signed contracts for which the Company incurred and recognized the related costs without the corresponding revenue was because not all attributes of a contract were met under International Financial Reporting Standards 15 Revenue from Contracts with Customers in previous years.

Selling and distribution expenses for the six months ended June 30, 2022 were CNY0.41 million (US$0.06 million), as compared to expenses of CNY0.50 million for the same period in 2021. No material fluctuation was noted for the comparative periods.

Administrative expenses for the six months ended June 30, 2022 were CNY8.73 million (US$1.30 million), as compared to expenses of CNY12.18 million for the same period in 2021. The decrease was primarily due to the one-off professional service fees incurred in 2021 in relation to the Company’s public offering of shares and private placement of warrants.

Other income for the six months ended June 30, 2022 were CNY0.73 million (US$0.11 million), as compared to other income of CNY0.38 million for the same period in 2021. The increase was caused by the collection of receivables in 2022 which had been written off in the prior period.

Fair value gain on financial instruments, net for the six months ended June 30, 2022 were CNY0.56 million (US$0.08 million), as compared to a loss of CNY24.81 million for the same period in 2021.  The amount for the six months ended June 30, 2022 represented the fluctuation of fair values of the Company’s outstanding warrants only whereas the amount for the same period in 2021 comprised the fluctuation of fair values of both the Company’s outstanding warrants and the shares in Feishang Anthracite Resources Limited, a company listed on the Hong Kong Stock Exchange (“FARL”).

1 

Finance costs for the six months ended June 30, 2022 were CNY1.82 million (US$0.27 million), as compared to CNY2.27 million for the same period in 2021. The decrease was due to the appreciation of US dollars against Chinese Yuan in 2022, which lead to exchange gains on our bank deposits of US dollars.

Finance income for the six months ended June 30, 2022 was CNY9.38 million (US$1.40 million), as compared to CNY8.79 million for the same period in 2021. The increase was mainly from the increase of interest income from revenue contracts with significant financing components due to earlier collections.

The income tax expense was CNY0.36 million (US$0.05 million) for the six months ended June 30, 2022, as compared to income tax benefit of CNY0.63 million for the same period in 2021. The increase was mainly attributable to the increase of taxable profits in 2022. The effective income tax rate was 8.86% for the six months ended June 30, 2022, as compared to 2.08% for the same period in 2021.

Profit for the six months ended June 30, 2022 was CNY3.67 million (US$0.55 million) as compared to a net loss of CNY29.84 million for the six months ended June 30, 2021. The loss in 2021 was mainly due to the net fair value loss (amounting to CNY24.81 million) relating to the Company’s holdings in FARL, designated as financial assets at fair value through profit or loss, and the impact of warrants issued to institutional investors in a private placement on January 22, 2021, which were designated as derivative financial liabilities.

The Company had a US$7.6 million balance of cash and cash equivalents at June 30, 2022.

About China Natural Resources:

China Natural Resources, Inc. (NASDAQ: CHNR), a British Virgin Islands corporation, through its operating subsidiaries in the People’s Republic of China (the “PRC”), is currently engaged in the wastewater treatment industry in the PRC, and the acquisition and exploitation of mining rights in Inner Mongolia, including preliminary exploration for nickel, lead, silver and other nonferrous metal, and is actively exploring further business opportunities in the healthcare sector, natural resources sector and other 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 ability to locate and execute on strategic opportunities; the ability to develop the wastewater treatment segment; the impact of the rising commodity prices; the potential presence of minerals in the Wulatehouqi Moruogu Tong Mine; and the availability of internally generated funds and funds for the payment of operating expenses, capital expenditures and the Company’s growth strategy. 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 statements 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: uncertainties regarding the governmental, economic and political circumstances in the PRC; the impact on the Company’s financial position, growth potential and business of an investment in the wastewater treatment sector of the PRC generally and in PST Technology and Shanghai Onway Environmental Development Co., Limited specifically; the experience, supply chain and customer relationships and market insights of the Precise Space-Time Technology Limited team, the growth potential of the wastewater treatment and environmental protection industries in the PRC; uncertainties related to the Company’s ability to identify potential partners or acquisition targets as it considers strategic alternatives, including in the healthcare and other non-natural resources sectors; uncertainties associated with metal price volatility; uncertainties concerning the viability of mining and estimates of reserves at the Company’s Wulatehouqi Moruogu Tong Mine in Inner Mongolia; uncertainties related to geopolitical events and conflicts, such as the conflict between Russia and Ukraine; uncertainties regarding the impact of the COVID-19 pandemic on domestic PRC and global economic conditions, demand for the mineral reserves that we may locate or extract, our workforce, whether due to illness or restrictions on movement, and on the price of our common shares; uncertainties related to possible future increases in operating expenses; the fluctuations of interest rates and foreign exchange rates; 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 the political situation between the PRC and the United States, the ability of the Public Company Accounting Oversight Board to inspect auditors located in the PRC and Hong Kong, the implementation by the U.S. Securities and Exchange Commission of more stringent disclosure and/or other requirements for companies located in the PRC, potential negative impacts on companies with operations in the PRC that are listed on exchanges in the United States, and increasing regulation by PRC government agencies of companies located in the PRC but listed elsewhere; and other risks detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (the “Commission”), including, without limitation, the information set forth in the Company’s Annual Reports on Form 20-F under the heading “Risk Factors”. 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.

For more information please contact:

David Pasquale

Global IR Partners

New York Office Phone: +1-914-337-8801 or CHNR@GlobalIRPartners.com

2 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

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

	Six Months Ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Revenue		8,220			16,072			2,401
Cost of sales		(7,109	)		(8,771	)		(1,309	)
GROSS PROFIT		1,111			7,301			1,092
Selling and distribution expenses		(496	)		(410	)		(61	)
Administrative expenses		(12,175	)		(8,733	)		(1,304	)
Other income		376			731			109
Fair value (loss)/gain on financial instruments, net		(24,807	)		559			83
Impairment losses on financial assets		(993	)		(2,972	)		(444	)
Finance costs		(2,271	)		(1,822	)		(272	)
Finance income		8,787			9,376			1,400
(LOSS)/PROFIT BEFORE INCOME TAX		(30,468	)		4,030			603
Income tax benefit/(expense)		633			(357	)		(53	)
(LOSS)/PROFIT FOR THE PERIOD		(29,835	)		3,673			550
ATTRIBUTABLE TO:
Owners of the Company		(27,993	)		1,949			293
Non-controlling interests		(1,842	)		1,724			257
		(29,835	)		3,673			550
(LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:
Basic and diluted
- (Loss)/earnings per share		(0.69	)		0.05			0.01

3 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021

(Amounts in thousands)

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment		715		578		86
Intangible assets		20,189		19,785		2,953
Right-of-use assets		2,351		1,644		245
Trade and bills receivable		9,501		8,455		1,262
Contract assets		91,035		90,453		13,501
Deferred tax assets		66		537		80
Other non-current assets		10		2		—
TOTAL NON-CURRENT ASSETS		123,867		121,454		18,127
CURRENT ASSETS
Inventories		986		1,196		179
Trade and bills receivable		41,526		55,309		8,256
Contract assets		15,331		15,552		2,321
Prepayments		2,236		2,004		299
Other receivables		86,201		88,904		13,270
Other current assets		4,942		3,401		509
Cash and cash equivalents		58,359		50,915		7,600
TOTAL CURRENT ASSETS		209,581		217,281		32,434
TOTAL ASSETS		333,448		338,735		50,561

4 

CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)

AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021

(Amounts in thousands)

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables		21,118			17,810			2,658
Contract liabilities		690			690			104
Other payables and accruals		12,098			17,663			2,636
Income tax payable		9,254			10,031			1,497
Provision		—			808			121
Dividends payable		5,048			5,048			753
Derivative financial liabilities		1,710			1,224			183
Interest-bearing loans and borrowings		3,000			3,000			448
Lease liabilities		981			613			91
Due to related companies		5,710			5,986			893
Due to the Shareholder		14,050			14,050			2,097
TOTAL CURRENT LIABILITIES		73,659			76,923			11,481
NON-CURRENT LIABILITIES
Deferred tax liabilities		2,544			1,824			272
Lease liabilities		1,208			1,033			155
Interest-bearing loans and borrowings		74,000			72,500			10,822
TOTAL NON-CURRENT LIABILITIES		77,752			75,357			11,249
TOTAL LIABILITIES		151,411			152,280			22,730
EQUITY
Issued capital		450,782			450,782			67,286
Other capital reserves		719,110			719,110			107,338
Accumulated losses		(1,084,387	)		(1,082,438	)		(161,570	)
Other comprehensive losses		(10,821	)		(10,076	)		(1,504	)
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY		74,684			77,378			11,550
NON-CONTROLLING INTERESTS		107,353			109,077			16,281
TOTAL EQUITY		182,037			186,455			27,831
TOTAL LIABILITIES AND EQUITY		333,448			338,735			50,561

5 

The condensed consolidated statements of profit or loss of the Company for the the six months ended June 30, 2022 and 2021, and the condensed consolidated statements of financial position of the Company as of December 31, 2021 and June 30, 2022, have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The condensed consolidated statements of profit or loss and the condensed 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, 2021 contained in the Company’s Annual Report on Form 20-F as filed with the Commission on May 17, 2022.

6

XML

Cover	6 Months Ended
	Jun. 30, 2022
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	0-26046
Entity Registrant Name	China Natural Resources, Inc.
Entity Central Index Key	0000793628
Entity Address, Address Line One	Room 2205
Entity Address, Address Line Two	22/F
Entity Address, Address Line Three	West Tower
Entity Address, City or Town	Sheung Wan
Entity Address, Country	HK
Entity Address, Address Line Four	Shun Tak Centre
Entity Address, Address Line Five	168-200 Connaught Road Central

XML

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS (UNAUDITED) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2022 CNY (¥) ¥ / shares	Jun. 30, 2021 CNY (¥) ¥ / shares
Profit or loss [abstract]
Revenue	$ 2,401	¥ 16,072	¥ 8,220
Cost of sales	(1,309)	(8,771)	(7,109)
GROSS PROFIT	1,092	7,301	1,111
Selling and distribution expenses	(61)	(410)	(496)
Administrative expenses	(1,304)	(8,733)	(12,175)
Other income	109	731	376
Fair value (loss)/gain on financial instruments, net	83	559	(24,807)
Impairment losses on financial assets	(444)	(2,972)	(993)
Finance costs	(272)	(1,822)	(2,271)
Finance income	1,400	9,376	8,787
LOSS BEFORE INCOME TAX	603	4,030	(30,468)
Income tax benefit	(53)	(357)	633
(LOSS)/PROFIT FOR THE YEAR	550	3,673	(29,835)
ATTRIBUTABLE TO:
Owners of the Company	293	1,949	(27,993)
Non-controlling interests	257	1,724	(1,842)
(LOSS)/PROFIT for the year	$ 550	¥ 3,673	¥ (29,835)
(LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:
Basic And Diluted Earnings Loss Per Share | (per share)	$ 0.01	¥ 0.05	¥ (0.69)

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
Profit or loss [abstract]
(LOSS)/PROFIT FOR THE YEAR	$ 550	¥ 3,673	¥ (29,835)
Other comprehensive income/(loss) that will be reclassified to profit or loss in subsequent periods:
Foreign currency translation adjustments of the subsidiaries	(688)	(4,616)	2,646
Other comprehensive (loss)/income that will not be reclassified to profit or loss in subsequent periods:
Foreign currency translation adjustments of the Company	800	5,361	(9,542)
Total other comprehensive (loss)/income for the period, net of tax	112	745	(6,896)
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD	662	4,418	(36,731)
Attributable to:
Owners of the Company	405	2,694	(34,889)
Non-controlling interests	257	1,724	(1,842)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 662	¥ 4,418	¥ (36,731)

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
NON-CURRENT ASSETS
Property, plant and equipment	$ 86	¥ 578	¥ 715
Intangible assets	2,953	19,785	20,189
Right-of-use assets	245	1,644	2,351
Trade and bills receivable	1,262	8,455	9,501
Contract assets	13,501	90,453	91,035
Deferred tax assets	80	537	66
Other non-current assets		2	10
TOTAL NON-CURRENT ASSETS	18,127	121,454	123,867
CURRENT ASSETS
Inventories	179	1,196	986
Trade and bills receivable	8,256	55,309	41,526
Contract assets	2,321	15,552	15,331
Prepayments	299	2,004	2,236
Other receivables	13,270	88,904	86,201
Other current assets	509	3,401	4,942
Cash and cash equivalents	7,600	50,915	58,359
TOTAL CURRENT ASSETS	32,434	217,281	209,581
TOTAL ASSETS	50,561	338,735	333,448
CURRENT LIABILITIES
Trade payables	2,658	17,810	21,118
Contract liabilities	104	690	690
Other payables and accruals	2,636	17,663	12,098
Income tax payable	1,497	10,031	9,254
Provision	121	808
Dividends payable	753	5,048	5,048
Derivative financial liabilities	183	1,224	1,710
Interest-bearing loans and borrowings	448	3,000	3,000
Lease liabilities	91	613	981
Due to related companies	893	5,986	5,710
Due to the Shareholder	2,097	14,050	14,050
TOTAL CURRENT LIABILITIES	11,481	76,923	73,659
NON-CURRENT LIABILITIES
Deferred tax liabilities	272	1,824	2,544
Lease liabilities	155	1,033	1,208
Interest-bearing loans and borrowings	10,822	72,500	74,000
TOTAL NON-CURRENT LIABILITIES	11,249	75,357	77,752
TOTAL LIABILITIES	22,730	152,280	151,411
EQUITY
Issued capital	67,286	450,782	450,782
Other capital reserves	107,338	719,110	719,110
Accumulated losses	(161,570)	(1,082,438)	(1,084,387)
Other comprehensive losses	(1,504)	(10,076)	(10,821)
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY	11,550	77,378	74,684
NON-CONTROLLING INTERESTS	16,281	109,077	107,353
TOTAL EQUITY	27,831	186,455	182,037
TOTAL LIABILITIES AND EQUITY	$ 50,561	¥ 338,735	¥ 333,448

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) ¥ in Thousands, $ in Thousands	Issued capital [member] USD ($)	Issued capital [member] CNY (¥)	Other reserves [member] USD ($)	Other reserves [member] CNY (¥)	Retained earnings [member] USD ($)	Retained earnings [member] CNY (¥)	Other Comprehensive Income Loss [Member] USD ($)	Other Comprehensive Income Loss [Member] CNY (¥)	Total [Member] USD ($)	Total [Member] CNY (¥)	Non-controlling interests [member] USD ($)	Non-controlling interests [member] CNY (¥)	USD ($)	CNY (¥)
Beginning balance, value at Dec. 31, 2020		¥ 419,091		¥ 787,987		¥ (1,031,187)		¥ (3,164)		¥ 172,727		¥ 119,072		¥ 291,799
IfrsStatementLineItems [Line Items]
Profit for the period						(27,993)				(27,993)		(1,842)		(29,835)
Foreign currency translation adjustments								(6,896)		(6,896)				(6,896)
Total comprehensive income						(27,993)		(6,896)		(34,889)		(1,842)		(36,731)
Dividends paid to non-controlling shareholders						(5,048)				(5,048)				(5,048)
Issuance of shares		31,691								31,691				31,691
Equity-settled share-based payment				2,311						2,311				2,311
Ending balance, value at Jun. 30, 2021		450,782		790,298		(1,064,228)		(10,060)		166,792		117,230		284,022
Beginning balance, value at Dec. 31, 2021		450,782		719,110		(1,084,387)		(10,821)		74,684		107,353		182,037
IfrsStatementLineItems [Line Items]
Profit for the period						1,949				1,949		1,724	$ 550	3,673
Foreign currency translation adjustments								745		745				745
Total comprehensive income						1,949		745		2,694		1,724		4,418
Ending balance, value at Jun. 30, 2022		¥ 450,782		¥ 719,110		¥ (1,082,438)		¥ (10,076)		¥ 77,378		¥ 109,077		186,455
Ending Balance at Jun. 30, 2022	$ 67,286		$ 107,338		$ (161,570)		$ (1,504)		$ 11,550		$ 16,281		$ 27,831	¥ 186,455

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
Statement of cash flows [abstract]
OPERATING ACTIVITIES	$ (665)	¥ (4,482)	¥ 2,550
INVESTING ACTIVITIES
Interest received			3,800
Additions of service concession right			(68)
Purchase of property, plant and equipment	(1)	(6)	(2)
Purchase of structured deposit product			(40,000)
Disposal of property, plant and equipment		3
Disposal of a subsidiary			(263)
Loan to an unrelated company			(80,000)
Repayment from loans due from related companies			125,000
Proceeds from maturity of structured deposit product			45,000
Proceeds from maturity of structured deposit product	(1)	(3)	53,467
FINANCING ACTIVITIES
Proceeds from issuance of shares			41,996
Repayments of bank loans	(224)	(1,500)	(1,500)
Advances from related companies	22	149	430
Repayment to related companies			(50,100)
Repayments to the Shareholder			(7,155)
Payment of principal portion of lease liabilities	(81)	(543)	(665)
Payment of interest expenses of lease liabilities	(8)	(53)	(86)
Dividends paid to non-controlling shareholders			(2,400)
Interest paid	(292)	(1,954)	(2,032)
Net cash flows used in financing activities	(583)	(3,901)	(21,512)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(1,249)	(8,386)	34,505
NET FOREIGN EXCHANGE DIFFERENCE	138	942	860
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	8,711	58,359	56,580
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 7,600	¥ 50,915	¥ 91,945

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ORGANIZATION AND PRINCIPAL ACTIVITIES

6 Months Ended

Jun. 30, 2022

Organization And Principal Activities

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

China Natural Resources, Inc. (“CHNR” or the “Company”) is a British Virgin Islands (“BVI”) holding company incorporated in 1993. The address of the principal executive office is Room 2205, 22/F, West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong. The Company’s principal activity is investment holding. The Company’s subsidiaries (collectively with CHNR, the “Group”) are primarily involved in the exploration and mining and wastewater treatment businesses in the People’s Republic of China (“PRC”).

CHNR’s principal shareholder is Feishang Group Limited (“Feishang Group” or the “Shareholder”), a BVI corporation. Mr. Li Feilie is the controlling shareholder of Feishang Group. In the opinion of the directors of the Company (the “Directors”), the ultimate parent of CHNR is Laitan Investment Limited, a BVI corporation.

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2022

Basis Of Presentation

BASIS OF PRESENTATION

2.1 BASIS OF PRESENTATION

The interim condensed consolidated financial statements for the six months ended June 30, 2022 have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting.

The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.

The interim condensed consolidated financial statements do not include all the information and footnotes required by International Financial Reporting Standards (“IFRS”) for complete financial statements, and should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Group’s annual report on Form 20-F for the year ended December 31, 2021 (the “2021 Annual Report”).

The condensed consolidated financial statements include the accounts of CHNR and those subsidiaries in which CHNR has direct or indirect controlling interests. The Company’s subsidiaries as of June 30, 2022 are as described in the 2021 Annual Report.

The Company accounted for the common-control acquisitions disclosed in Note 29 of the 2021 Annual Report by using the pooling of interest method. The condensed consolidated statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period, regardless of the date of the common control combination. In this report, the comparative financial data of have been restated to reflect the business combinations under common control occurred.

For the convenience of readers, amounts in Renminbi, the Chinese currency (“CNY”), have been translated into United States dollars (“US$”) at the applicable rate of US$1.00 = CNY6.6995 as quoted by www.ofx.com as of June 30, 2022, except as otherwise disclosed. No representation is made that the CNY amounts could have been, or could be, converted into US$ at that rate, or at all.

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CHANGES IN ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

Changes In Accounting Policies

CHANGES IN ACCOUNTING POLICIES

2.2 CHANGES IN ACCOUNTING POLICIES

The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021, except for the adoption of the following IFRS for the first time for the current period’s financial information.

Amendments to IFRS 3	Reference to the Conceptual Framework
Amendments to IAS 16	Property, Plant and Equipment: Proceeds before Intended Use
Amendments to IAS 37	Onerous Contracts – Cost of Fulfilling a Contract
Annual Improvements to IFRSs 2018-2020	Amendments to IFRS 1, IFRS 9, Illustrative Examples accompanying IFRS 16, and IAS 41

(a) Amendments to IFRS 3 replace a reference to the previous Framework for the Preparation and Presentation of Financial Statements with a reference to the Conceptual Framework for Financial Reporting issued in June 2018 without significantly changing its requirements. The amendments also add to IFRS 3 an exception to its recognition principle for an entity to refer to the Conceptual Framework to determine what constitutes an asset or a liability. The exception specifies that, for liabilities and contingent liabilities that would be within the scope of IAS 37 or International Financial Reporting Interpretations Committee Interpretation (“IFRIC”) 21 if they were incurred separately rather than assumed in a business combination, an entity applying IFRS 3 should refer to IAS 37 or IFRIC 21 respectively instead of the Conceptual Framework. Furthermore, the amendments clarify that contingent assets do not qualify for recognition at the acquisition date. The Group has applied the amendments prospectively to business combinations that occurred on or after January 1, 2022. As there were no contingent assets, liabilities and contingent liabilities within the scope of the amendments arising in the business combination that occurred during the period, the amendments did not have any impact on the financial position and performance of the Group.

(b) Amendments to IAS 16 prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling any such items, and the cost of those items, in profit or loss. The Group has applied the amendments retrospectively to items of property, plant and equipment made available for use on or after January 1, 2022. Since there was no sale of items produced while making property, plant and equipment available for use on or after January 1, 2022, the amendments did not have any impact on the financial position or performance of the Group.

(c) Amendments to IAS 37 clarify that for the purpose of assessing whether a contract is onerous under IAS 37, the cost of fulfilling the contract comprises the costs that relate directly to the contract. Costs that relate directly to a contract include both the incremental costs of fulfilling that contract (e.g., direct labor and materials) and an allocation of other costs that relate directly to fulfilling that contract (e.g., an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract as well as contract management and supervision costs). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The Group has applied the amendments prospectively to contracts for which it has not yet fulfilled all its obligations at January 1, 2022 and no onerous contracts were identified. Therefore, the amendments did not have any impact on the financial position or performance of the Group.

(d) Annual Improvements to IFRSs 2018-2020 sets out amendments to IFRS 1, IFRS 9, Illustrative Examples accompanying IFRS 16, and IAS 41. Details of the amendments that are applicable to the Group are as follows:

· IFRS 9 Financial Instruments: clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. The Group has applied the amendment prospectively to financial liabilities that are modified or exchanged on or after January 1, 2022. As there was no modification of the Group’s financial liabilities during the period, the amendment did not have any impact on the financial position or performance of the Group.

· IFRS 16 Leases: removes the illustration of payments from the lessor relating to leasehold improvements in Illustrative Example 13 accompanying IFRS 16. This removes potential confusion regarding the treatment of lease incentives when applying IFRS 16.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Information

SEGMENT INFORMATION

3. SEGMENT INFORMATION

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s management and the Company’s Board of Directors for the purpose of resource allocation and performance assessment.

Management assesses the performance of operating segments based on profit or loss before income tax in related periods. The manner of assessment is consistent with that applied in these financial statements.

As of June 30, 2022, the Group’s two reportable operating segments are summarized below:

- Wastewater treatment segment, which consists of sales of assembled equipment, provision of construction services and participating in PPP projects as operator;

- Exploration and mining segment, which consists of the exploration for lead, silver and other metals in the Inner Mongolia Autonomous Region of the PRC;

Deferred tax assets, income tax payable and deferred tax liabilities are excluded from segment assets and segment liabilities. The Group had neither sales of products nor provisions of services between the operating segments.

For the six months ended June 30, 2021, the segment results were as follows:

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	CNY			CNY			CNY			CNY
Six months ended June 30, 2021 (As adjusted and unaudited)
Revenues from external customers		8,220			—			—			8,220
Segment profit/(loss) before income tax		179			(333	)		(30,314	)		(30,468	)
Income tax benefit											633
Loss for the period											(29,835	)
Other items
Depreciation of property, plant and equipment		(124	)		(31	)		(2	)		(157	)
Depreciation of right of use assets		(321	)		—			(360	)		(681	)
Amortization of intangible assets		(441	)		—			—			(441	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(1,920	)		—			—			(1,920	)
- Contract assets		(179	)		—			—			(179	)
- Amounts due from related companies		775			—			331			1,106
Fair value loss on financial instruments, net		—			—			(24,807	)		(24,807	)
Other income		76			300			—			376
Finance costs		(2,142	)		—			(129	)		(2,271	)
Finance income		8,782			—			5			8,787

For the six months ended June 30, 2022, the segment results were as follows:

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	CNY			CNY			CNY			CNY
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers		16,072			—			—			16,072
Segment profit before income tax		3,784			245			1			4,030
Income tax expenses											(357	)
Profit for the period											3,673
Other items
Depreciation of property, plant and equipment		(114	)		(26	)		(1	)		(141	)
Depreciation of right of use assets		(347	)		—			(360	)		(707	)
Amortization of intangible assets		(404	)		—			—			(404	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(1,936	)		—			—			(1,936	)
- Contract assets		41			—			—			41
- Other receivables		—			—			(1,077	)		(1,077	)
Other income		30			700			1			731
Fair value gain on financial instruments		—			—			559			559
Finance costs		(1,799	)		(1	)		(22	)		(1,822	)
Finance income		7,857			—			1,519			9,376

For the six months ended June 30, 2022, the segment results were as follows (continued):

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	US$			US$			US$			US$
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers		2,401			—			—			2,401
Segment profit before income tax		566			37			—			603
Income tax expenses											(53	)
Profit for the period											550
Other items
Depreciation of property, plant and equipment		(17	)		(4	)		—			(21	)
Depreciation of right of use assets		(52	)		—			(54	)		(106	)
Amortization of intangible assets		(60	)		—			—			(60	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(289	)		—			—			(289	)
- Contract assets		6			—			—			6
- Other receivables		—			—			(161	)		(161	)
Other income		4			105			—			109
Fair value gain on financial instruments		—			—			83			83
Finance costs		(269	)		—			(3	)		(272	)
Finance income		1,398			—			2			1,400

The following table presents the asset and liability information of the Group’s operating segments as of December 31, 2021 and June 30, 2022:

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	CNY		CNY		CNY		CNY
As of December 31, 2021 (Audited)
Segment assets		390,895		321		22,166		413,382
Reconciliation:
Elimination of inter-segment receivables								(80,000	)
Unallocated assets:
Deferred tax assets								66
Total assets								333,448
Segment liabilities		113,124		3,294		103,195		219,613
Reconciliation:
Elimination of inter-segment payables								(80,000	)
Unallocated liabilities:
Deferred tax liabilities								2,544
Income tax payable								9,254
Total liabilities								151,411

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	CNY		CNY		CNY		CNY
As of June 30, 2022 (Unaudited)
Segment assets		398,064		573		19,561		418,198
Reconciliation:
Elimination of inter-segment receivables								(80,000	)
Unallocated assets:
Deferred tax assets								537
Total assets								338,735
Segment liabilities		115,995		3,301		101,129		220,425
Reconciliation:
Elimination of inter-segment payables								(80,000	)
Unallocated liabilities:
Deferred tax liabilities								1,824
Income tax payable								10,031
Total liabilities								152,280

The following table presents the asset and liability information of the Group’s operating segments as of December 31, 2021 and June 30, 2022(continued):

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	US$		US$		US$		US$
As of June 30, 2022 (Unaudited)
Segment assets		59,416		86		2,920		62,422
Reconciliation:
Elimination of inter-segment receivables								(11,941	)
Unallocated assets:
Deferred tax assets								80
Total assets								50,561
Segment liabilities		17,314		493		15,096		32,903
Reconciliation:
Elimination of inter-segment payables								(11,942	)
Unallocated liabilities:
Deferred tax liabilities								272
Income tax payable								1,497
Total liabilities								22,730

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REVENUE FROM CONTRACT WITH CUSTOMERS

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customers

REVENUE FROM CONTRACT WITH CUSTOMERS

4. REVENUE FROM CONTRACT WITH CUSTOMERS

Set out below is the disaggregation of the Group’s revenue from contracts with customers:

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Type of goods or services
Construction contract revenue		4,601		12,639		1,889
Operation services of service concession arrangement		3,223		3,433		512
Construction services of service concession arrangement		396		—		—
Total revenue from contracts with customers		8,220		16,072		2,401
Geographic market
Mainland China		8,220		16,072		2,401
Timing of revenue recognition
Over time		8,220		16,072		2,401
Total revenue from contracts with customers		8,220		16,072		2,401

(i) The Group had neither revenue from the exploration and mining segment nor inter-segment revenue for six months ended June 30, 2021 and 2022. No revenue was recognized in the current reporting period that was included in the contract liabilities at the beginning of the reporting period and recognized from performance obligations satisfied in previous periods.

(ii) Performance obligation

Construction services

The Group’s performance in respect of construction services creates or enhances an asset or work in progress that the customer controls as the asset is created or enhanced. The Group satisfies the performance obligation and recognizes revenue over time, by reference to completion of the specific transaction assessed on the basis of the surveyors’ assessment of work performed for each contract.

Operation services of service concession arrangements

The operation revenue from service concession arrangements is recognized over the period of time that the services are rendered, and the benefits are received and consumed simultaneously by the customers.

(iii) Significant financing components

The majority of the Group’s customers are town/village government entities or main contractors of governmental infrastructure projects whose time of payment for the service or goods received from the Group depends on the appropriation and approval of funds. Certain customers for construction services, sales of wastewater treatment equipment, and maintenance services will generally settle the amounts owed to the Group in a number of specified instalments covering periods ranging from one year to five years. Therefore, the Group’s management considers the contracts with customers which are town/village government entities or main contractors of the governmental infrastructure projects as containing a significant financing component. For each of the six months ended June 30, 2021 and 2022, the respective revenue considerations were adjusted for this financing component based on an imputed interest rate of 4.75% per annum and the Group’s revenue was adjusted to CNY288 (as adjusted), and CNY771, respectively. The interest income related to the significant financing components is disclosed in Note 5 to the financial statements.

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FINANCE INCOME AND COSTS

6 Months Ended

Jun. 30, 2022

Finance Income And Costs

FINANCE INCOME AND COSTS

5. FINANCE INCOME AND COSTS

	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Finance income
Interest income on loans to a related party/ third party		3,396			3,396			507
Interest income on revenue contracts with significant financing component		1,132			2,547			380
Interest income from service concession    arrangement		3,988			3,389			506
Interest income on structured deposits		219			—			—
Interest income on bank deposit		52			44			7
		8,787			9,376			1,400
Finance costs
Interest expenses on loans		2,032			1,954			292
Interest expense on lease liabilities		86			53			8
Other finance costs		210			(185	)		(28	)
Less: interest expense capitalized into intangible assets-concession right*		(57	)		—			—
		2,271			1,822			272

* The borrowing costs have been capitalized at a rate of 5.05% per annum during the period ended June 30, 2021.

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(LOSS)/PROFIT BEFORE INCOME TAX

6 Months Ended

Jun. 30, 2022

Lossprofit Before Income Tax

(LOSS)/PROFIT BEFORE INCOME TAX

6. (LOSS)/PROFIT BEFORE INCOME TAX

The Group’s (loss)/profit before tax is arrived at after (crediting)/charging:

	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Crediting:
Finance income (Note 5)		(8,787	)		(9,376	)		(1,400	)
Charging:
Cost of sales
- Construction service		3,916			5,107			762
- Operation services related to service concession arrangement		2,804			3,664			547
- Construction services related to service concession arrangement		389			—			—
Total		7,109			8,771			1,309
Depreciation
- Property, plant and equipment		157			141			21
- Right-of-use assets (Note 11)		681			707			106
Amortization of intangible assets* (Note 10)		441			404			60
Expense relating to short-term leases		338			174			26
Impairment losses/(reversal) on financial assets:
- Trade receivables		1,920			1,936			289
- Contract assets		179			(41	)		(6	)
- Other receivables		—			1,077			161
- Amounts due from related companies		(1,106	)		—			—
Fair value (gain)/loss on financial instruments:
- Financial assets at fair value through profit or loss (Note 18(a))		26,015			—			—
- Derivative financial liabilities (Note 18(b))		(1,208	)		(559	)		(83	)
Issuance expense in related to placement		1,579			—			—
Other income		(376	)		(731	)		(109	)
Finance costs (Note 5)		2,271			1,822			272
Employee benefit expenses *		5,751			5,772			861

* The employee benefit expenses and amortization of intangible assets for the year are included in “Cost of sales” and “Administrative expenses” on the face of the consolidated statement of profit or loss.

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INCOME TAX (BENEFIT)/EXPENSE

6 Months Ended

Jun. 30, 2022

Income Tax Benefitexpense

INCOME TAX (BENEFIT)/EXPENSE

7. INCOME TAX (BENEFIT)/EXPENSE

The Company is incorporated in the BVI and conducts its primary business operations through its subsidiaries in mainland China. It also has intermediate holding companies in the BVI and Hong Kong. Under the current laws of the BVI, the Company and its subsidiaries incorporated in the BVI are not subject to tax on income or capital gains. The Hong Kong Profits Tax rate is 16.50%. The Company’s Hong Kong subsidiaries have both Hong Kong–sourced and non-Hong Kong–sourced income. The latter is not subject to Hong Kong Profits Tax and the related expenses are non-tax-deductible. For the Hong Kong–sourced income, no provision for Hong Kong Profits Tax was made as such operations sustained tax losses during the six months ended June 30, 2021 and 2022. Furthermore, there are no withholding taxes in Hong Kong on the remittance of dividends.

China

Under the Law of the PRC on corporate income tax and the Implementation Regulation of the Corporate Income Tax Law (collectively, the “CIT Law”), the Company’s PRC subsidiaries are generally subject to PRC corporate income tax at the statutory rate of 25% on their respective estimated assessable profits for the six months ended June 30, 2021 and 2022. Certain PRC subsidiaries of the Company engaged in environmental protection projects were subject to tax at a preferential tax rate of 12.5% or fully exempted from income tax according to the preferential policy of CIT law for the six months ended June 30, 2021 and 2022.

Under the prevailing CIT Law and its relevant regulations, any dividends paid by the Company’s mainland China subsidiaries from their earnings derived after January 1, 2008 to the Company’s Hong Kong subsidiaries are subject to PRC dividend withholding tax of 5% or 10%, depending on the applicability of the Sino-Hong Kong tax treaty.

The current and deferred components of income tax (benefit)/expense are as follows:

Schedule of deferred component of income tax expenses
	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Current income tax expense		685			1,548			231
Deferred income tax benefit		(1,318	)		(1,191	)		(178	)
Total		(633	)		357			53

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(LOSS)/EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

(LOSS)/EARNINGS PER SHARE

8. (LOSS)/EARNINGS PER SHARE

Basic (loss)/earnings per share is calculated by dividing the (loss)/earnings for the period attributable to ordinary equity holders of the Company by the weighted average number of common shares outstanding during the period.

Diluted (loss)/earnings per share is calculated by dividing the (loss)/earnings attributable to ordinary equity holders of the Company by the weighted average number of common shares outstanding during the period plus the weighted average number of common shares that would be issued on conversion of all outstanding dilutive securities into common shares.

Basic and diluted net (loss)/earnings per share for the six months ended June 30, 2021 and 2022 are as follows:

	Six months ended June 30,
	2021			2022		2022
	CNY			CNY		US$
	(As adjusted and unaudited)			(Unaudited)		(Unaudited)
(Loss)/Earnings:
(Loss)/Earnings attributable to ordinary equity holders of the Company		(27,993	)		1,949		293
Number of Shares:
Weighted average number of common shares for basic and diluted loss per share:
Basic and diluted		40,488,634			40,948,082		40,948,082
(Loss)/Earnings per share:
Basic and diluted		(0.69	)		0.05		0.01

The Company did not have any potential diluted shares for the six months ended June 30, 2021 and 2022. For the period ended June 30, 2022, the effects of the outstanding warrants were anti-dilutive and excluded from the computation of diluted loss per share. Accordingly, the diluted (loss)/earnings per share amounts are the same as the basic (loss)/earnings per share amounts for all periods presented.

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PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2022

Property, plant and equipment [abstract]

PROPERTY, PLANT AND EQUIPMENT

9. PROPERTY, PLANT AND EQUIPMENT

	December 31,			June 30,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
At cost:
Buildings		46			46			7
Machinery and equipment		1,177			1,084			162
Motor vehicles		2,486			2,486			371
Office and other equipment		728			734			110
		4,437			4,350			650
Accumulated depreciation and amortization		(3,722	)		(3,772	)		(564	)
Net book value		715			578			86

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INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2022

Intangible Assets

INTANGIBLE ASSETS

10. INTANGIBLE ASSETS

	Patent			Concession Right			Software			Total
	CNY			CNY			CNY			CNY
Cost
As of January 1, 2021 (As adjusted)		22,878			—			274			23,152
Transfer in		—			20,430			—			20,430
As of December 31, 2021		22,878			20,430			274			43,582
Accumulated amortization and impairment
As of January 1, 2021 (As adjusted)		(22,388	)		—			(121	)		(22,509	)
Amortization charge		(105	)		(730	)		(49	)		(884	)
As of December 31, 2021		(22,493	)		(730	)		(170	)		(23,393	)
Net carrying amount
As of December 31, 2021		385			19,700			104			20,189
Cost
As of January 1, 2022 and June 30, 2022		22,878			20,430			274			43,582
Accumulated amortization and impairment losses
As of January 1, 2022		(22,493	)		(730	)		(170	)		(23,393	)
Amortization charge		(19	)		(365	)		(20	)		(404	)
As of June 30, 2022		(22,512	)		(1,095	)		(190	)		(23,797	)
Net carrying amount
As of June 30, 2022		366			19,335			84			19,785
As of June 30, 2022 (US$)		55			2,886			12			2,953

As of December 31, 2021 and June 30, 2022, the Group’s concession rights associated with environmental water projects (comprising intangible assets, contract assets and trade receivables) with aggregate gross carrying amounts of CNY129,437 and CNY133,750, respectively, were pledged to secure bank loans from the Bank of Communications with outstanding balances of CNY77,000 and CNY75,500, respectively. Please refer to Note 20 for further details.

There was no impairment loss on intangible assets for the year ended December 31, 2021 and six months ended June 30, 2022.

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LEASES

6 Months Ended

Jun. 30, 2022

LEASES

11. LEASES

(a) Right-of-use assets

The carrying amounts of the Group’s right-of-use assets and the movements during the year/period are as follows:

	Motor Vehicles			Offices and warehouse			Total
	CNY			CNY			CNY
As of January 1, 2021		408			3,152			3,560
Addition		—			157			157
Depreciation charge		(163	)		(1,203	)		(1,366	)
As of December 31, 2021		245			2,106			2,351
As of January 1, 2022		245			2,106			2,351
Depreciation charge		(82	)		(625	)		(707	)
As of June 30, 2022		163			1,481			1,644
As of June 30, 2022 (US$)		24			221			245

(b) Lease liabilities

The carrying amount of lease liabilities and the movements during the year/period are as follows:

	Motor Vehicles			Offices and Warehouse			Total
	CNY			CNY			CNY
As of January 1, 2021		502			3,048			3,550
Addition		—			102			102
Accretion of interest recognized during the period		17			133			150
Payments		(364	)		(1,249	)		(1,613	)
As of December 31, 2021		155			2,034			2,189
Analyzed into:
Current portion		155			826			981
Non-current portion		—			1,208			1,208
As of January 1, 2022		155			2,034			2,189
Accretion of interest recognized during the period		4			49			53
Payments		—			(596	)		(596	)
As of June 30, 2022		159			1,487			1,646
Analyzed into:
Current portion		159			454			613
Non-current portion		—			1,033			1,033
As of June 30, 2022 (US$)		24			222			246
Current portion (US$)		24			67			91
Non-current portion (US$)		—			155			155

(c) Lease related expenses

The following are the amounts recognized in profit of loss in relation to leases:

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Depreciation expense of right-of-use assets		681		707		106
Interest on lease liabilities		86		53		8
Expense relating to short-term leases		338		174		26
Total amounts recognized in profit or loss		1,105		934		140

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TRADE AND BILLS RECEIVABLE

6 Months Ended

Jun. 30, 2022

Trade And Bills Receivable

TRADE AND BILLS RECEIVABLE

12. TRADE AND BILLS RECEIVABLE

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Non-current
Trade receivables from third parties		17,033			16,815			2,510
Less: Impairment allowance		(7,532	)		(8,360	)		(1,248	)
Total of Non-current trade receivables		9,501			8,455			1,262
Current
Trade receivables from third parties		51,608			54,799			8,180
Less: Impairment allowance		(10,082	)		(11,190	)		(1,670	)
Total of current trade receivables		41,526			43,609			6,510
Bills receivable
At fair value through other comprehensive income		—			11,700			1,746
Total		51,027			63,764			9,518

Ageing analysis of accounts receivable and bills receivable was as follows:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Within 1 year		19,026		40,398		6,031
Between 1-2 years		5,106		3,740		558
Between 2-3 years		12,796		10,835		1,617
Over 3 years		14,099		8,791		1,312
Total		51,027		63,764		9,518

Movements of loss allowance during the year/period are analyzed as follows:

	Year Ended December 31,		Six Months Ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Beginning of the year/period		13,774		17,614		2,629
Provision for expected credit losses (“ECLs”)		3,840		1,936		289
End of the year/period		17,614		19,550		2,918

The Group elected to apply the simplified approach for providing impairment for ECLs prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the ECLs, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The ECLs below also incorporate forward looking information. The impairment as of December 31, 2021 and June 30, 2022 was determined as follows:

									Past due
	Current		within 1 years			1-2 years				2-3 years		over 3 years			Total
As of December 31, 2021:
Expected credit loss rate				6	%		26	%		13	%		48	%		26	%
Gross carrying amount (CNY)		3,670		16,311			6,865			14,712			27,083			68,641
Impairment allowances (CNY)				955			1,759			1,916	(i)		12,984	(ii)		17,614
As of June 30, 2022:
Expected credit loss rate				10	%		10	%		10	%		60	%		20	%
Gross carrying amount (CNY)		331		42,479			4,186			12,412			23,906			83,314
Impairment allowances (CNY)				2,412			446			1,577	(i)		15,115	(ii)		19,550
Impairment allowances (US$)				360			67			235			2,256			2,918

(i) The impairment allowances included CNY221 and CNY211 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

(ii) The impairment allowances included an amount of CNY4,646 and CNY4,588 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

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CONTRACT ASSETS

6 Months Ended

Jun. 30, 2022

Contract assets [abstract]

CONTRACT ASSETS

13. CONTRACT ASSETS

		December 31,			June 30,
		2021			2022			2022
		CNY			CNY			US$
		(Audited)			(Unaudited)			(Unaudited)
Non-current
Service concession assets	(a)		91,062			90,480			13,505
Less: impairment allowance			(27	)		(27	)		(4	)
			91,035			90,453			13,501
Current
Service concession assets	(a)		7,423			7,422			1,108
Other contract assets	(b)		8,443			8,706			1,299
Less: impairment allowance			(535	)		(576	)		(86	)
			15,331			15,552			2,321
Total			106,366			106,005			15,822

(a) Service concession assets bearing an imputed interest of 7% arose from the Group’s revenue from construction service under a build-own-transfer (“BOT”) arrangement rendered by the Group’s subsidiary, Shaoguan Angrui Environmental Technology Development Co., Limited (“Shaoguan Angrui”). The facilities that the service concession arrangement relate to were under construction phases from June 2018 to December 2020 and commenced operation in January 2021.

The amounts for the service concession arrangement are not yet due for payment and will be settled by revenue to be generated during the operating periods of the service concession arrangement. Amounts billed will be transferred to trade receivables.

As of December 31, 2021 and June 30, 2022, the Group’s concession rights associated with the environmental water projects (comprising intangible assets, contract assets and trade receivables) with aggregate gross carrying amounts of CNY129,437 and CNY133,750, respectively, were pledged to secure bank loans from the Bank of Communications with outstanding balances of CNY77,000 and CNY75,500, respectively. Please refer to Note 20 for further details.

(b) The balance as of December 31, 2021 and June 30, 2022 comprised contract assets arising from performance under water treatment plant construction service contracts. Such contracts include payment schedules which require stage payments over the service periods once milestones are reached.

The movements in the provision for impairment of contract assets are as follows:

	Year Ended December 31,		Six Months Ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Beginning of the year/period		205		562		84
Provision for expected credit loss, net		357		41		6
End of the year/period		562		603		90

An impairment analysis is performed at each reporting date using the probability-of-default approach to measure expected credit losses. The probability of default rates are estimated based on comparable entities with published credit ratings. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forward-looking credit risk information. As of December 31, 2021 and June 30, 2022, the assumed default rate ranged from 0.03% to 55.93% and from 0.03% to 54.78%, respectively.

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OTHER RECEIVABLES

6 Months Ended

Jun. 30, 2022

Other Receivables

OTHER RECEIVABLES

14. OTHER RECEIVABLES

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Financial assets
Loans to an unrelated company (i)		83,600			87,200			13,016
Deposits		863			986			147
Others		1,000			1,000			149
Financial assets		85,463			89,186			13,312
Staff advance		697			750			112
Others		280			284			42
Total amount		977			1,034			154
Impairment allowance		(239	)		(1,316	)		(196	)
Total		86,201			88,904			13,270

(i) The balance as of June 30, 2022 consisted of the loan from Shenzhen Qianhai Feishang Environmental Investment Co., Limited (“Shenzhen Qianhai”), a subsidiary of the Company, to an unrelated company, Shenzhen Chaopeng Investment Co., Ltd., amounting to CNY80,000, and its corresponding interest receivable amounting to CNY7,200. The loan, with a maturity date of June 30, 2023, is interest bearing at a rate of 9% per annum and guaranteed by Shenzhen Feishang Investment Co., Limited, a company unrelated to the Group.

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CASH AND CASH EQUIVALENTS

6 Months Ended

Jun. 30, 2022

Cash and cash equivalents [abstract]

CASH AND CASH EQUIVALENTS

15. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are set out below as of December 31, 2021 and June 30, 2022:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Cash and cash equivalents
- Cash on hand		74		70		11
- Cash at bank		58,285		50,845		7,589
Cash and cash equivalents		58,359		50,915		7,600

The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
CNY		37,333		31,228		4,662
US$		20,011		19,015		2,838
HK$		1,015		672		100
		58,359		50,915		7,600

Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances and time deposits are deposited with creditworthy banks with no recent history of default. As of December 31, 2021 and June 30, 2022, there were no cash and cash equivalents pledged as security for the Group's liabilities.

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OTHER PAYABLES AND ACCRUALS

6 Months Ended

Jun. 30, 2022

Other Payables And Accruals

OTHER PAYABLES AND ACCRUALS

16. OTHER PAYABLES AND ACCRUALS

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Financial liabilities
Accrued expenses		5,398		5,689		849
Deposits from customers		505		1,335		199
Liabilities related to bills receivable endorsed before maturity		—		2,150		320
Total payables		5,903		9,174		1,368
Penalties related to income tax		3,025		3,789		566
Taxes other than income tax payable (a)		285		2,396		358
Accrued payroll		2,878		2,262		338
Others		7		42		6
Total others payables		6,195		8,489		1,268
Total		12,098		17,663		2,636

(a) Taxes other than income taxes payable mainly comprise accruals for value-added tax, city construction tax and education surcharge.

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PROVISIONS

6 Months Ended

Jun. 30, 2022

Provisions [abstract]

PROVISIONS

17. PROVISIONS

A provision has been recognized for expected repair expenditures associated with the wastewater treatment infrastructure of the service concession arrangement which suffered flooding and were partially destroyed in the end of June 2022. Shaoguan Angrui has committed to repair and recover the original production capacity of the infrastructure in the next year. If the repair meets the standards of the customer, Shaoguan Angrui will have a chance to receive partial reimbursement of the repair cost through government subsidies.

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FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2022

Financial Instruments

FINANCIAL INSTRUMENTS

18. FINANCIAL INSTRUMENTS

(a) Financial assets

Set out below is an overview of financial assets, other than cash and short-term deposits, held by the Group as of December 31, 2021 and June 30, 2022:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Debt instruments at amortized cost:
Accounts receivable: current		41,526		43,609		6,510
Accounts receivable: non-current		9,501		8,455		1,262
Financial assets included in other receivables		85,224		87,870		13,116
Financial assets at fair value through other comprehensive income:
Bills receivable		—		11,700		1,746
Total		136,251		151,634		22,634
Total Current		126,750		143,179		21,372
Total Non-current		9,501		8,455		1,262

(b) Financial liabilities

Set out below, is an overview of financial liabilities of the Group as of December 31, 2021 and June 30, 2022:

	December 31,		June 30,		June 30
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Derivatives not designated as hedging instruments：
Derivative financial liabilities (i)		1,710		1,224		183
Financial liabilities at amortized cost:
Trade payables		21,118		17,810		2,658
Financial liabilities in other payables and accruals		5,903		9,174		1,368
Dividends payable		5,048		5,048		753
Lease liabilities		2,189		1,646		246
Due to related companies		5,710		5,986		893
Due to the Shareholder		14,050		14,050		2,097
Interest-bearing loans and borrowings		77,000		75,500		11,270
Total		132,728		130,438		19,468
Total current		57,520		56,905		8,491
Total non-current		75,208		73,533		10,977

(i) On January 20, 2021, the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which the Company issued and sold on January 22, 2021, (i) in a registered direct offering, an aggregate of 3,960,000 of its common shares at a price of US$1.85 per share, and (ii) in a concurrent private placement, warrants initially exercisable for an aggregate of 1,584,000 of the Company’s common shares with an initial exercise price of US$2.35 per share.

The Company recognized the warrants issued to the investors as derivative financial liabilities (not designated as hedging instruments) with a fair value of CNY9,246 (US$1,427)* on the issue date as the investors have the right to exercise their warrants on a cashless basis. Per IAS 32, a contract settled by a single net payment (generally referred to as net cash-settled or net equity-settled as the case may be) is a financial liability and not an equity instrument. The fair value gain of CNY1,208 and CNY559 (US$83) (Note 6) were recognized according to fair value changes for the six months ended June 30, 2021 and 2022, respectively.

* As the changes in equity from this private placement transaction are denominated in US$, the amount in US$ is the actual transaction amount and the corresponding amount in CNY was translated from US$ at the applicable exchange rate of the transaction date, January 22, 2021.

(c) Fair value

Set out below is a comparison, by class, of the carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

	December 31,				June 30,
	2021				2022				2022
	CNY				CNY				US$
	(Audited)				(Unaudited)				(Unaudited)
	Carrying amount		Fair value		Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities
Interest-bearing loans and borrowings		77,000		79,003		75,500		78,471		11,270		11,713
Total		77,000		79,003		75,500		78,471		11,270		11,713

The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities as of December 31, 2021 and June 30, 2022:

As of December 31, 2021 (Audited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	CNY		CNY		CNY		CNY
Recurring fair value measurement:
Financial liabilities
Derivative financial liabilities		—		1,710		—		1,710

As of June 30, 2022 (Unaudited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	CNY		CNY		CNY		CNY
Recurring fair value measurement:
Financial assets
Bills receivables		—		11,700		—		11,700
Financial liabilities
Derivative financial liabilities		—		1,224		—		1,224

As of June 30, 2022 (Unaudited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	US$		US$		US$		US$
Recurring fair value measurement:
Financial assets
Bills receivables		—		1,746		—		1,746
Financial liabilities
Derivative financial liabilities		—		183		—		183

Level 2:

Bills receivable

The fair value valuation of bills receivable is based on directly or indirectly observable inputs (such as recent bill discount rates) through valuation techniques. The fair value of the bills receivable approximate their book value due to the short-term maturity.

Derivative financial liabilities

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

There is no established public trading market for the warrants issued to investors on January 22, 2021. As of June 30, 2022, the Group measured the fair value of those warrants on a recurring basis using a binomial lattice pricing model with significant inputs including the underlying spot price of the Company’s ordinary shares, exercise price, time to expiration, risk-free rate and equity volatility, etc., which are all relevant observable inputs.

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FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

6 Months Ended

Jun. 30, 2022

Financial Risk Management Objectives And Policies

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The financial instruments of the Group primarily include cash and cash equivalents, trade and bills receivable, other receivables, contract assets, derivative financial liabilities, trade payables, other payables, dividends payable, amounts due to related companies, amounts due to the Shareholder, lease liabilities and interest-bearing loans and borrowings.

The Group is exposed to credit risk, foreign currency risk, business and economic risk and liquidity risk. The Group has not used any derivatives or other instruments for hedging purposes. The Group does not hold or issue derivative financial liabilities for trading purposes. The Group reviews and adopts policies for managing each of these risks and they are summarized below.

(a) Credit risk

Management has a credit policy in place and the exposures to credit risk are monitored on an ongoing basis. Debts are usually due within 30 to 90 days from the date of billing.

Trade receivables of the Group mainly represent receivables in respect of revenue from construction services for wastewater treatment plant construction and sales of wastewater treatment equipment which are settled through progress billing and the operation services of the service concession arrangement which are settled on a quarterly basis. In addition, the Group has contract assets relating to the service concession arrangement and construction services.

As of December 31, 2021, and June 30 2022, “Trade and bills receivables” and “Contract assets” in the aggregate amounted to CNY175,569 and CNY189,922, respectively, of which CNY109,737 and CNY114,417 were due from the largest customer and CNY127,415 and CNY136,505 were due from the five largest customers in the aggregate of the Group, respectively. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the consolidated statements of financial position. Since the counterparty to the BOT arrangement is a local government authority in the PRC which has high credit rating, the Group considers credit risk to be low as of December 31, 2021 and June 30 2022. The Group does not hold any collateral over these balances.

Management groups financial instruments based on shared credit risk characteristics, such as instrument type and credit risk ratings for the purpose of determining significant increase in credit risk and calculation of impairment. The carrying amount of each financial asset in the condensed interim consolidated statement of financial position represents the Group’s maximum exposure to credit risk in relation to its financial assets.

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

- significant financial difficulty of the debtor;

- a breach of contract such as a default or past due event; or

- it is probable that the debtor will enter bankruptcy or other financial reorganization.

To manage credit risk arising from trade receivables and contract assets, the credit quality of the debtors is assessed, taking into account their financial position, historical settlement records, past experience and other factors. The Group applies the simplified approach to provide for ECLs prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The ECLs also incorporated forward-looking information.

For financial assets assessed for impairment under the general approach, the Group established a policy to perform an assessment at the end of each reporting period of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. The Group groups its other receivables into Stage 1, Stage 2 and Stage 3, as described below:

Stage 1 – When other receivables are first recognized, the Group recognized an allowance based on 12 months’ ECLs.

Stage 2 – When other receivables have shown a significant increase in credit risk since origination, the Group records an allowance for the lifetime ECLs.

Stage 3 – Other receivables are considered credit-impaired. The Group records an allowance for the lifetime ECLs.

Management also makes periodic collective assessments for other receivables and amounts due from related companies as well as individual assessments of the recoverability of other receivables based on historical settlement records, past experience and other factors. The Group classified other receivables and amounts due from related companies in Stage 1 and continuously monitored their credit risk. Management believes that there is no material credit risk inherent in the Group’s outstanding balance of other receivables as of December 31, 2021 and June 30, 2022.

The Group does not provide any guarantees that would expose the Group to credit risk. Further quantitative disclosures in respect of the Group’s exposure to credit risk arising from financial assets are set out in Notes 12, 13, 14 and 22 to the financial statements.

Cash and cash equivalents

The Group maintains its cash and cash equivalents primarily with various PRC state-owned banks and Hong Kong based financial institutions, which management believes are of high credit quality. The Group performs periodic evaluations of the relative credit standing of those financial institutions.

(b) Foreign currency risk

Foreign currency risk primarily arises from certain significant foreign currency deposits denominated in US$ and HK$ and related exposures are disclosed in Note 15. The Group Treasury closely monitors the international foreign currency market on the change of exchange rates and takes these into consideration when investing in foreign currency deposits and borrowing loans.

CNY is not freely convertible into foreign currencies. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of CNY into foreign currencies. The value of CNY is subject to changes in PRC government policies and to international economic and political developments affecting the supply and demand in the China Foreign Exchange Trading System market. All foreign exchange transactions continue to take place either through the People's Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People's Bank of China.

As of June 30, 2022 the Group only had significant exposure to US$. If CNY had strengthened/ weakened by 5% against US$ with all other variables held constant, the income for the period ended June 30, 2022 would have been approximately CNY951 lower/higher (the loss for the period ended June 30, 2021 would have been CNY1,001 higher/lower), mainly as a result of foreign exchange gains and losses arising from translation of US$-denominated deposits. Profit was less sensitive to the fluctuation in CNY/US$ exchange rates in the period ended June 30, 2022 than in the period ended June 30, 2021, mainly due to the decrease in the US$ denominated cash deposits.

(c) Interest rate risk

The fair value interest rate risk of the Group mainly arises from long-term loans at fixed rates (see Note 20). As the fluctuation of comparable interest rate (Loan Prime Rate of PRC market) with similar term was relatively low, the Directors are of the opinion that the Group is not exposed to any significant fair value interest rate risk for its fixed interest rate borrowings held as of December 31, 2021 and June 30, 2022.

(d) Business and economic risk

The Group's operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 40 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the political, economic and social conditions in the PRC. There is also no guarantee that the PRC government's pursuit of economic reforms will be consistent or effective.

(e) Liquidity risk

The Group manages its liquidity risk by regularly monitoring its liquidity requirements and its compliance with debt covenants to ensure that it maintains sufficient cash and cash equivalents, and adequate time deposits to meet its liquidity requirements in the short and long term.

The table below summarizes the maturity profile of the Group’s financial liabilities and lease liabilities based on contractual undiscounted payments:

December 31, 2021 (Audited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	CNY		CNY		CNY		CNY		CNY
Derivative financial liabilities		1,710		—		—		—		1,710
Trade payables		—		21,118		—		—		21,118
Financial liabilities in other payables and accruals		—		5,903		—		—		5,903
Dividends payable		—		5,048		—		—		5,048
Due to related companies		—		5,710		—		—		5,710
Due to the Shareholder		—		14,050		—		—		14,050
Lease liabilities		—		1,047		1,354		—		2,401
Interest-bearing loans and borrowings		—		6,882		28,792		78,139		113,813
Total		1,710		59,758		30,146		78,139		169,753

June 30, 2022 (Unaudited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	CNY		CNY		CNY		CNY		CNY
Derivative financial liabilities		1,224		—		—		—		1,224
Trade payables		—		17,810		—		—		17,810
Financial liabilities in other payables and accruals		—		9,174		—		—		9,174
Dividends payable		—		5,048		—		—		5,048
Due to related companies		—		5,986		—		—		5,986
Due to the Shareholder		—		14,050		—		—		14,050
Lease liabilities		—		683		1,123		—		1,806
Interest-bearing loans and borrowings		—		6,806		28,908		74,699		110,413
Total		1,224		59,557		30,031		74,699		165,511

June 30, 2022 (Unaudited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	USD		USD		USD		USD		USD
Derivative financial liabilities		183		—		—		—		183
Trade payables		—		2,658		—		—		2,658
Financial liabilities in other payables and accruals		—		1,368		—		—		1,368
Dividends payable		—		753		—		—		753
Due to related companies		—		893		—		—		893
Due to the Shareholder		—		2,097		—		—		2,097
Lease liabilities		—		102		168		—		270
Interest-bearing loans and borrowings		—		1,016		4,315		11,150		16,481
Total		183		8,887		4,483		11,150		24,703

(f) Capital management

The Group monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debt divided by total capitalization. Interest-bearing debt mainly includes lease liabilities and interest-bearing loans and borrowings. Total capitalization includes total equity and interest-bearing debt. The debt to capital ratio was 30.31% and 29.27% as of December 31, 2021 and June 30, 2022, respectively.

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INTEREST-BEARING LOANS AND BORROWINGS

6 Months Ended

Jun. 30, 2022

Interest-bearing Loans And Borrowings

INTEREST-BEARING LOANS AND BORROWINGS

20. INTEREST-BEARING LOANS AND BORROWINGS

						December 31,		June 30,
						2021		2022		2022
						CNY		CNY		US$
	Interest rate			Maturity		(Audited)		(Unaudited)		(Unaudited)
Non-current interest-bearing loans
Bank loan-secured and guaranteed		5.05	%		2023 to 2038		74,000		72,500		10,822
Current interest-bearing loans
Bank loan-secured and guaranteed		5.05	%		2022 to 2023		3,000		3,000		448
Total							77,000		75,500		11,270

The bank loan is owed to the Bank of Communications and denominated in CNY.

The loan is secured by collection rights, contract assets, intangible assets and trade receivables in connection with the Group's service concession arrangement and 80% equity interest of the Company's subsidiary, Shaoguan Angrui. The loan is also guaranteed by Shanghai Onway Environmental Development Co., Limited (“Shanghai Onway”), the Company’s subsidiary, and Feishang Enterprise Group Co., Ltd. (“Feishang Enterprise”), a related company of the Group.

The outstanding balance as of June 30, 2022 is due in annual instalments of CNY1,500 due as of December 31, 2022, CNY3,000 due in 2023; CNY4,000 due annually from 2024 to 2028; CNY5,000 due annually from 2029 to 2034; CNY6,000 due in 2035; and CNY5,000 due annually from 2036 to 2038.

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EQUITY

6 Months Ended

Jun. 30, 2022

Equity

EQUITY

21. EQUITY

(a) Issued capital

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Authorized:
10,000,000 preferred shares, no par value		—		—		—
200,000,000 common shares, no par value		—		—		—
Common shares issued and fully paid:
June 30, 2022: 40,948,082, (December 31, 2021: 40,948,082) common shares, no par value		450,782		450,782		67,286

	Number of shares		Share capital
			CNY		US$
(As adjusted)
As of January 1, 2021		36,988,082		419,091		62,556
Common shares issued through private placement		3,960,000		31,691		4,730
As of December 31, 2021 and January 1, 2022		40,948,082		450,782		67,286
		—		—		—
As of June 30, 2022		40,948,082		450,782		67,286

(b) Other capital reserves

Other capital reserves of the Company are mainly for equity-settled share-based compensation, the exercise of stock options, the exercise of warrants, the business combination and the deemed contribution from the Shareholder of the Company and related companies.

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RELATED PARTY BALANCES AND TRANSACTIONS

6 Months Ended

Jun. 30, 2022

RELATED PARTY BALANCES AND TRANSACTIONS

22. RELATED PARTY BALANCES AND TRANSACTIONS

In addition to the transactions detailed elsewhere in these condensed consolidated financial statements, the Group had the following transactions with related parties during the period.

(a) Commercial transactions with related parties

			Six months ended June 30,
			2021		2022		2022
			CNY		CNY		US$
	Notes		(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Interest income received from Feishang Enterprise(a)		i		3,396		—		—
CHNR's share of office rental, rates and others to Anka Consultants Limited (“Anka”) (b)		ii		205		217		32
Feishang Management's share of office rental to Feishang Enterprise(a)		iii		84		84		13
Shenzhen New PST’s share of office rental to Feishang Enterprise(a)		iv		45		15		2

(i) The Company’s subsidiary, Shanghai Onway, entered into a series of contracts to provide a loan amounting to CNY80,000 at an interest rate of 9% per annum to Feishang Enterprise from March 2, 2018 to June 30, 2021.

(ii) The Company signed a contract with Anka to lease 184 square meters of office premises for two years, from July 1, 2018 to June 30, 2020, subsequently extended to June 30, 2024. The agreement also provides that the Company shares certain costs and expenses in connection with its use of the office, in addition to some of the accounting and secretarial services and day-to-day office administration services provided by Anka.

(iii) On January 1, 2018, Feishang Management signed an office-sharing agreement with Feishang Enterprise. Pursuant to the agreement, Feishang Management shares 40 square meters of office premises for 33 months. Feishang Management signed a new contract with Feishang Enterprise in October 2021, which was renewed in October 2022 and will expire on September 30, 2023.

(iv) Shenzhen New PST signed a contract with Feishang Enterprise to lease 96 square meters of office premises annually. The latest contract is from March 14, 2022 to March 13, 2023.

(a) Feishang Enterprise, Feishang Group and Feishang Energy are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(b) Anka is jointly owned by Mr. Wong Wah On Edward and Mr. Tam Cheuk Ho, who are officers of the Company.

(b) Balances with related companies

The Company’s balances with related companies are unsecured and non-interest bearing. Feishang Enterprise and the Shareholder have provided letters stating their continuous financial support to the Group and that they will not recall any amounts due to them until the Group has sufficient liquidity to finance its operations. The balances are summarized as follows:

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Current:
Payable to related companies:
Feishang Enterprise (a, i)		3,019		3,068		457
Anka Capital (b)		2,691		2,818		421
Yangpu Lianzhong Mining Co., Ltd (c, iii)		—		100		15
		5,710		5,986		893
Payable to the Shareholder:
Feishang Group (a, ii)		14,050		14,050		2,097
		14,050		14,050		2,097
Dividend payables to related companies:
Qianhai Industrial(d, iv)		5,048		5,048		753
		5,048		5,048		753
Lease liabilities to related parties
Anka (b)		372		—		—
		372		—		—

(i) The payable to Feishang Enterprise by Feishang Management represents the net amount of advances from Feishang Enterprise. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(ii) The payable to Feishang Group represents the net amount of advances from Feishang Group. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(iii) The payable to Yangpu Lianzhong Mining Co., Ltd by Feishang Management represents the net amount of advances from Yangpu Lianzhong Mining Co., Ltd. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(iv) The dividend payable to Shenzhen Qianhai Feishang Industrial Investment Co., Ltd. (“Qianhai Industrial”) represents the declared but unpaid dividend that was approved at the shareholder meeting of Shenzhen Qianhai on June 22, 2021, prior to the acquisition of Precise Space-Time Technology Limited (“PST Technology”) and its subsidiaries by the Group.

(a) Feishang Enterprise and Feishang Group are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(b) Anka Capital and Anka are each jointly owned by Wong Wah On Edward and Tam Cheuk Ho, who are officers of the Company.

(c) Yangpu Lianzhong Mining Co., Ltd is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(d) Qianhai Industrial is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(c) Compensation of key management personnel of the Group

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Wages, salaries and allowances		661		618		92
Housing subsidies		10		11		2
Contribution to pension plans		41		43		6
Total Compensation of key management personnel		712		672		100

The amounts disclosed in the table are the amounts recognized as expenses during the respective period related to key management personnel.

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COMMITMENTS

6 Months Ended

Jun. 30, 2022

Commitments

COMMITMENTS

23. COMMITMENTS

There were no capital commitments as of December 31, 2021 and June 30, 2022.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

Subsequent Events

SUBSEQUENT EVENTS

24. SUBSEQUENT EVENTS

On July 14, 2022, the Board of Directors of the Company approved grants of option awards covering an aggregate of 8,100,000 common shares, without par value, of the Company (the “Shares”) to fifteen consultants and employees of the Company under the China Natural Resources, Inc. 2014 Equity Incentive Plan. The grantees assisted the Company in locating potential strategic partnerships and acquisitions, conducted due diligence, provided mergers and acquisition advice, and provided other related services to the Company over the course of the past one to three years, and continued to provide these services through the grant date. The recipients of the largest grants, Woo Chun Kei Jackie and Li Feiwen, received options exercisable for 3,700,000 and 3,000,000 Shares, respectively. The remaining 13 grant recipients received option awards exercisable for amounts ranging between 40,000 to 200,000 Shares.

The granted options vested immediately upon granting and became exercisable upon the filing of a registration statement on Form S-8 covering the Shares. The exercise price for the options is $0.623 per Share. The options expire three years from the date of grant.

As a result of the grant, the exercise price for the Company’s outstanding warrants to purchase up to an aggregate of 1,980,000 common shares was reduced to $0.623 per share pursuant to the terms of the warrants.

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APPROVAL OF THE INTERIM FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2022

Approval Of Interim Financial Statements

APPROVAL OF THE INTERIM FINANCIAL STATEMENTS

25. APPROVAL OF THE INTERIM FINANCIAL STATEMENTS

These interim condensed consolidated financial statements were approved by the Board of Directors on November 4, 2022.

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2022

Segment Information

Schedule of Segment Results

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	CNY			CNY			CNY			CNY
Six months ended June 30, 2021 (As adjusted and unaudited)
Revenues from external customers		8,220			—			—			8,220
Segment profit/(loss) before income tax		179			(333	)		(30,314	)		(30,468	)
Income tax benefit											633
Loss for the period											(29,835	)
Other items
Depreciation of property, plant and equipment		(124	)		(31	)		(2	)		(157	)
Depreciation of right of use assets		(321	)		—			(360	)		(681	)
Amortization of intangible assets		(441	)		—			—			(441	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(1,920	)		—			—			(1,920	)
- Contract assets		(179	)		—			—			(179	)
- Amounts due from related companies		775			—			331			1,106
Fair value loss on financial instruments, net		—			—			(24,807	)		(24,807	)
Other income		76			300			—			376
Finance costs		(2,142	)		—			(129	)		(2,271	)
Finance income		8,782			—			5			8,787

For the six months ended June 30, 2022, the segment results were as follows:

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	CNY			CNY			CNY			CNY
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers		16,072			—			—			16,072
Segment profit before income tax		3,784			245			1			4,030
Income tax expenses											(357	)
Profit for the period											3,673
Other items
Depreciation of property, plant and equipment		(114	)		(26	)		(1	)		(141	)
Depreciation of right of use assets		(347	)		—			(360	)		(707	)
Amortization of intangible assets		(404	)		—			—			(404	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(1,936	)		—			—			(1,936	)
- Contract assets		41			—			—			41
- Other receivables		—			—			(1,077	)		(1,077	)
Other income		30			700			1			731
Fair value gain on financial instruments		—			—			559			559
Finance costs		(1,799	)		(1	)		(22	)		(1,822	)
Finance income		7,857			—			1,519			9,376

For the six months ended June 30, 2022, the segment results were as follows (continued):

	Wastewater treatment			Exploration and mining			Corporate activities			Total
	US$			US$			US$			US$
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers		2,401			—			—			2,401
Segment profit before income tax		566			37			—			603
Income tax expenses											(53	)
Profit for the period											550
Other items
Depreciation of property, plant and equipment		(17	)		(4	)		—			(21	)
Depreciation of right of use assets		(52	)		—			(54	)		(106	)
Amortization of intangible assets		(60	)		—			—			(60	)
Impairment (losses)/reversal on financial assets
- Trade receivables		(289	)		—			—			(289	)
- Contract assets		6			—			—			6
- Other receivables		—			—			(161	)		(161	)
Other income		4			105			—			109
Fair value gain on financial instruments		—			—			83			83
Finance costs		(269	)		—			(3	)		(272	)
Finance income		1,398			—			2			1,400

Schedule of operating segment

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	CNY		CNY		CNY		CNY
As of December 31, 2021 (Audited)
Segment assets		390,895		321		22,166		413,382
Reconciliation:
Elimination of inter-segment receivables								(80,000	)
Unallocated assets:
Deferred tax assets								66
Total assets								333,448
Segment liabilities		113,124		3,294		103,195		219,613
Reconciliation:
Elimination of inter-segment payables								(80,000	)
Unallocated liabilities:
Deferred tax liabilities								2,544
Income tax payable								9,254
Total liabilities								151,411

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	CNY		CNY		CNY		CNY
As of June 30, 2022 (Unaudited)
Segment assets		398,064		573		19,561		418,198
Reconciliation:
Elimination of inter-segment receivables								(80,000	)
Unallocated assets:
Deferred tax assets								537
Total assets								338,735
Segment liabilities		115,995		3,301		101,129		220,425
Reconciliation:
Elimination of inter-segment payables								(80,000	)
Unallocated liabilities:
Deferred tax liabilities								1,824
Income tax payable								10,031
Total liabilities								152,280

The following table presents the asset and liability information of the Group’s operating segments as of December 31, 2021 and June 30, 2022(continued):

	Wastewater treatment		Exploration and mining		Corporate activities		Total
	US$		US$		US$		US$
As of June 30, 2022 (Unaudited)
Segment assets		59,416		86		2,920		62,422
Reconciliation:
Elimination of inter-segment receivables								(11,941	)
Unallocated assets:
Deferred tax assets								80
Total assets								50,561
Segment liabilities		17,314		493		15,096		32,903
Reconciliation:
Elimination of inter-segment payables								(11,942	)
Unallocated liabilities:
Deferred tax liabilities								272
Income tax payable								1,497
Total liabilities								22,730

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REVENUE FROM CONTRACT WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customers

Schedule of Disaggregated Revenue Information

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Type of goods or services
Construction contract revenue		4,601		12,639		1,889
Operation services of service concession arrangement		3,223		3,433		512
Construction services of service concession arrangement		396		—		—
Total revenue from contracts with customers		8,220		16,072		2,401
Geographic market
Mainland China		8,220		16,072		2,401
Timing of revenue recognition
Over time		8,220		16,072		2,401
Total revenue from contracts with customers		8,220		16,072		2,401

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FINANCE INCOME AND COSTS (Tables)

6 Months Ended

Jun. 30, 2022

Finance Income And Costs

Schedule of finance income and cost

	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Finance income
Interest income on loans to a related party/ third party		3,396			3,396			507
Interest income on revenue contracts with significant financing component		1,132			2,547			380
Interest income from service concession    arrangement		3,988			3,389			506
Interest income on structured deposits		219			—			—
Interest income on bank deposit		52			44			7
		8,787			9,376			1,400
Finance costs
Interest expenses on loans		2,032			1,954			292
Interest expense on lease liabilities		86			53			8
Other finance costs		210			(185	)		(28	)
Less: interest expense capitalized into intangible assets-concession right*		(57	)		—			—
		2,271			1,822			272

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(LOSS)/PROFIT BEFORE INCOME TAX (Tables)

6 Months Ended

Jun. 30, 2022

Lossprofit Before Income Tax

Schedule of Group's Loss Before Income Tax

	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Crediting:
Finance income (Note 5)		(8,787	)		(9,376	)		(1,400	)
Charging:
Cost of sales
- Construction service		3,916			5,107			762
- Operation services related to service concession arrangement		2,804			3,664			547
- Construction services related to service concession arrangement		389			—			—
Total		7,109			8,771			1,309
Depreciation
- Property, plant and equipment		157			141			21
- Right-of-use assets (Note 11)		681			707			106
Amortization of intangible assets* (Note 10)		441			404			60
Expense relating to short-term leases		338			174			26
Impairment losses/(reversal) on financial assets:
- Trade receivables		1,920			1,936			289
- Contract assets		179			(41	)		(6	)
- Other receivables		—			1,077			161
- Amounts due from related companies		(1,106	)		—			—
Fair value (gain)/loss on financial instruments:
- Financial assets at fair value through profit or loss (Note 18(a))		26,015			—			—
- Derivative financial liabilities (Note 18(b))		(1,208	)		(559	)		(83	)
Issuance expense in related to placement		1,579			—			—
Other income		(376	)		(731	)		(109	)
Finance costs (Note 5)		2,271			1,822			272
Employee benefit expenses *		5,751			5,772			861

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INCOME TAX (BENEFIT)/EXPENSE (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Benefitexpense

Schedule of deferred component of income tax expenses

Schedule of deferred component of income tax expenses
	Six months ended June 30,
	2021			2022			2022
	CNY			CNY			US$
	(As adjusted and unaudited)			(Unaudited)			(Unaudited)
Current income tax expense		685			1,548			231
Deferred income tax benefit		(1,318	)		(1,191	)		(178	)
Total		(633	)		357			53

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(LOSS)/EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Basic and Diluted Loss Earnings Per Share

	Six months ended June 30,
	2021			2022		2022
	CNY			CNY		US$
	(As adjusted and unaudited)			(Unaudited)		(Unaudited)
(Loss)/Earnings:
(Loss)/Earnings attributable to ordinary equity holders of the Company		(27,993	)		1,949		293
Number of Shares:
Weighted average number of common shares for basic and diluted loss per share:
Basic and diluted		40,488,634			40,948,082		40,948,082
(Loss)/Earnings per share:
Basic and diluted		(0.69	)		0.05		0.01

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PROPERTY, PLANT AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2022

Property, plant and equipment [abstract]

Schedule of Property Plant and Equipment

	December 31,			June 30,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
At cost:
Buildings		46			46			7
Machinery and equipment		1,177			1,084			162
Motor vehicles		2,486			2,486			371
Office and other equipment		728			734			110
		4,437			4,350			650
Accumulated depreciation and amortization		(3,722	)		(3,772	)		(564	)
Net book value		715			578			86

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INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2022

Intangible Assets

Schedule of intangible assets

	Patent			Concession Right			Software			Total
	CNY			CNY			CNY			CNY
Cost
As of January 1, 2021 (As adjusted)		22,878			—			274			23,152
Transfer in		—			20,430			—			20,430
As of December 31, 2021		22,878			20,430			274			43,582
Accumulated amortization and impairment
As of January 1, 2021 (As adjusted)		(22,388	)		—			(121	)		(22,509	)
Amortization charge		(105	)		(730	)		(49	)		(884	)
As of December 31, 2021		(22,493	)		(730	)		(170	)		(23,393	)
Net carrying amount
As of December 31, 2021		385			19,700			104			20,189
Cost
As of January 1, 2022 and June 30, 2022		22,878			20,430			274			43,582
Accumulated amortization and impairment losses
As of January 1, 2022		(22,493	)		(730	)		(170	)		(23,393	)
Amortization charge		(19	)		(365	)		(20	)		(404	)
As of June 30, 2022		(22,512	)		(1,095	)		(190	)		(23,797	)
Net carrying amount
As of June 30, 2022		366			19,335			84			19,785
As of June 30, 2022 (US$)		55			2,886			12			2,953

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LEASES (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of right of use assets

	Motor Vehicles			Offices and warehouse			Total
	CNY			CNY			CNY
As of January 1, 2021		408			3,152			3,560
Addition		—			157			157
Depreciation charge		(163	)		(1,203	)		(1,366	)
As of December 31, 2021		245			2,106			2,351
As of January 1, 2022		245			2,106			2,351
Depreciation charge		(82	)		(625	)		(707	)
As of June 30, 2022		163			1,481			1,644
As of June 30, 2022 (US$)		24			221			245

Schedule of lease liabilities

	Motor Vehicles			Offices and Warehouse			Total
	CNY			CNY			CNY
As of January 1, 2021		502			3,048			3,550
Addition		—			102			102
Accretion of interest recognized during the period		17			133			150
Payments		(364	)		(1,249	)		(1,613	)
As of December 31, 2021		155			2,034			2,189
Analyzed into:
Current portion		155			826			981
Non-current portion		—			1,208			1,208
As of January 1, 2022		155			2,034			2,189
Accretion of interest recognized during the period		4			49			53
Payments		—			(596	)		(596	)
As of June 30, 2022		159			1,487			1,646
Analyzed into:
Current portion		159			454			613
Non-current portion		—			1,033			1,033
As of June 30, 2022 (US$)		24			222			246
Current portion (US$)		24			67			91
Non-current portion (US$)		—			155			155

Schedule of lease related expenses

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Depreciation expense of right-of-use assets		681		707		106
Interest on lease liabilities		86		53		8
Expense relating to short-term leases		338		174		26
Total amounts recognized in profit or loss		1,105		934		140

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TRADE AND BILLS RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2022

Trade And Bills Receivable

Schedule of Trade Receivables

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Non-current
Trade receivables from third parties		17,033			16,815			2,510
Less: Impairment allowance		(7,532	)		(8,360	)		(1,248	)
Total of Non-current trade receivables		9,501			8,455			1,262
Current
Trade receivables from third parties		51,608			54,799			8,180
Less: Impairment allowance		(10,082	)		(11,190	)		(1,670	)
Total of current trade receivables		41,526			43,609			6,510
Bills receivable
At fair value through other comprehensive income		—			11,700			1,746
Total		51,027			63,764			9,518

Schedule of Aging Analysis of Trade Payables

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Within 1 year		19,026		40,398		6,031
Between 1-2 years		5,106		3,740		558
Between 2-3 years		12,796		10,835		1,617
Over 3 years		14,099		8,791		1,312
Total		51,027		63,764		9,518

Schedule of loss allowance for trade receivables

	Year Ended December 31,		Six Months Ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Beginning of the year/period		13,774		17,614		2,629
Provision for expected credit losses (“ECLs”)		3,840		1,936		289
End of the year/period		17,614		19,550		2,918

Schedule of impairment

									Past due
	Current		within 1 years			1-2 years				2-3 years		over 3 years			Total
As of December 31, 2021:
Expected credit loss rate				6	%		26	%		13	%		48	%		26	%
Gross carrying amount (CNY)		3,670		16,311			6,865			14,712			27,083			68,641
Impairment allowances (CNY)				955			1,759			1,916	(i)		12,984	(ii)		17,614
As of June 30, 2022:
Expected credit loss rate				10	%		10	%		10	%		60	%		20	%
Gross carrying amount (CNY)		331		42,479			4,186			12,412			23,906			83,314
Impairment allowances (CNY)				2,412			446			1,577	(i)		15,115	(ii)		19,550
Impairment allowances (US$)				360			67			235			2,256			2,918

(i) The impairment allowances included CNY221 and CNY211 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

(ii) The impairment allowances included an amount of CNY4,646 and CNY4,588 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

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CONTRACT ASSETS (Tables)

6 Months Ended

Jun. 30, 2022

Contract assets [abstract]

Schedule of contract assets

		December 31,			June 30,
		2021			2022			2022
		CNY			CNY			US$
		(Audited)			(Unaudited)			(Unaudited)
Non-current
Service concession assets	(a)		91,062			90,480			13,505
Less: impairment allowance			(27	)		(27	)		(4	)
			91,035			90,453			13,501
Current
Service concession assets	(a)		7,423			7,422			1,108
Other contract assets	(b)		8,443			8,706			1,299
Less: impairment allowance			(535	)		(576	)		(86	)
			15,331			15,552			2,321
Total			106,366			106,005			15,822

Schedule of provision for impairment of contract assets

	Year Ended December 31,		Six Months Ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Beginning of the year/period		205		562		84
Provision for expected credit loss, net		357		41		6
End of the year/period		562		603		90

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OTHER RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2022

Other Receivables

Schedule of other receivables

	December 31,			June 30,
	2021			2022			2022
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Financial assets
Loans to an unrelated company (i)		83,600			87,200			13,016
Deposits		863			986			147
Others		1,000			1,000			149
Financial assets		85,463			89,186			13,312
Staff advance		697			750			112
Others		280			284			42
Total amount		977			1,034			154
Impairment allowance		(239	)		(1,316	)		(196	)
Total		86,201			88,904			13,270

(i) The balance as of June 30, 2022 consisted of the loan from Shenzhen Qianhai Feishang Environmental Investment Co., Limited (“Shenzhen Qianhai”), a subsidiary of the Company, to an unrelated company, Shenzhen Chaopeng Investment Co., Ltd., amounting to CNY80,000, and its corresponding interest receivable amounting to CNY7,200. The loan, with a maturity date of June 30, 2023, is interest bearing at a rate of 9% per annum and guaranteed by Shenzhen Feishang Investment Co., Limited, a company unrelated to the Group.

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CASH AND CASH EQUIVALENTS (Tables)

6 Months Ended

Jun. 30, 2022

Cash and cash equivalents [abstract]

Schedule of cash and cash equivalents

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Cash and cash equivalents
- Cash on hand		74		70		11
- Cash at bank		58,285		50,845		7,589
Cash and cash equivalents		58,359		50,915		7,600

Schedule of Group’s cash and cash equivalents

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
CNY		37,333		31,228		4,662
US$		20,011		19,015		2,838
HK$		1,015		672		100
		58,359		50,915		7,600

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OTHER PAYABLES AND ACCRUALS (Tables)

6 Months Ended

Jun. 30, 2022

Other Payables And Accruals

Schedule of Other Payables and Accrual

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Financial liabilities
Accrued expenses		5,398		5,689		849
Deposits from customers		505		1,335		199
Liabilities related to bills receivable endorsed before maturity		—		2,150		320
Total payables		5,903		9,174		1,368
Penalties related to income tax		3,025		3,789		566
Taxes other than income tax payable (a)		285		2,396		358
Accrued payroll		2,878		2,262		338
Others		7		42		6
Total others payables		6,195		8,489		1,268
Total		12,098		17,663		2,636

(a) Taxes other than income taxes payable mainly comprise accruals for value-added tax, city construction tax and education surcharge.

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FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Financial Instruments

Schedule of financial assets

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Debt instruments at amortized cost:
Accounts receivable: current		41,526		43,609		6,510
Accounts receivable: non-current		9,501		8,455		1,262
Financial assets included in other receivables		85,224		87,870		13,116
Financial assets at fair value through other comprehensive income:
Bills receivable		—		11,700		1,746
Total		136,251		151,634		22,634
Total Current		126,750		143,179		21,372
Total Non-current		9,501		8,455		1,262

Schedule of financial liabilities

	December 31,		June 30,		June 30
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Derivatives not designated as hedging instruments：
Derivative financial liabilities (i)		1,710		1,224		183
Financial liabilities at amortized cost:
Trade payables		21,118		17,810		2,658
Financial liabilities in other payables and accruals		5,903		9,174		1,368
Dividends payable		5,048		5,048		753
Lease liabilities		2,189		1,646		246
Due to related companies		5,710		5,986		893
Due to the Shareholder		14,050		14,050		2,097
Interest-bearing loans and borrowings		77,000		75,500		11,270
Total		132,728		130,438		19,468
Total current		57,520		56,905		8,491
Total non-current		75,208		73,533		10,977

Schedule of Group’s financial instrument carrying amount

	December 31,				June 30,
	2021				2022				2022
	CNY				CNY				US$
	(Audited)				(Unaudited)				(Unaudited)
	Carrying amount		Fair value		Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities
Interest-bearing loans and borrowings		77,000		79,003		75,500		78,471		11,270		11,713
Total		77,000		79,003		75,500		78,471		11,270		11,713

Schedule of fair value instrument

As of December 31, 2021 (Audited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	CNY		CNY		CNY		CNY
Recurring fair value measurement:
Financial liabilities
Derivative financial liabilities		—		1,710		—		1,710

As of June 30, 2022 (Unaudited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	CNY		CNY		CNY		CNY
Recurring fair value measurement:
Financial assets
Bills receivables		—		11,700		—		11,700
Financial liabilities
Derivative financial liabilities		—		1,224		—		1,224

As of June 30, 2022 (Unaudited)	Fair value measurement using
	Quoted prices in active markets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	US$		US$		US$		US$
Recurring fair value measurement:
Financial assets
Bills receivables		—		1,746		—		1,746
Financial liabilities
Derivative financial liabilities		—		183		—		183

XML

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Tables)

6 Months Ended

Jun. 30, 2022

Financial Risk Management Objectives And Policies

Summary of maturity

December 31, 2021 (Audited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	CNY		CNY		CNY		CNY		CNY
Derivative financial liabilities		1,710		—		—		—		1,710
Trade payables		—		21,118		—		—		21,118
Financial liabilities in other payables and accruals		—		5,903		—		—		5,903
Dividends payable		—		5,048		—		—		5,048
Due to related companies		—		5,710		—		—		5,710
Due to the Shareholder		—		14,050		—		—		14,050
Lease liabilities		—		1,047		1,354		—		2,401
Interest-bearing loans and borrowings		—		6,882		28,792		78,139		113,813
Total		1,710		59,758		30,146		78,139		169,753

June 30, 2022 (Unaudited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	CNY		CNY		CNY		CNY		CNY
Derivative financial liabilities		1,224		—		—		—		1,224
Trade payables		—		17,810		—		—		17,810
Financial liabilities in other payables and accruals		—		9,174		—		—		9,174
Dividends payable		—		5,048		—		—		5,048
Due to related companies		—		5,986		—		—		5,986
Due to the Shareholder		—		14,050		—		—		14,050
Lease liabilities		—		683		1,123		—		1,806
Interest-bearing loans and borrowings		—		6,806		28,908		74,699		110,413
Total		1,224		59,557		30,031		74,699		165,511

June 30, 2022 (Unaudited)	On demand		Less than 1 year		1 to 5 years		More than 5 years		Total
	USD		USD		USD		USD		USD
Derivative financial liabilities		183		—		—		—		183
Trade payables		—		2,658		—		—		2,658
Financial liabilities in other payables and accruals		—		1,368		—		—		1,368
Dividends payable		—		753		—		—		753
Due to related companies		—		893		—		—		893
Due to the Shareholder		—		2,097		—		—		2,097
Lease liabilities		—		102		168		—		270
Interest-bearing loans and borrowings		—		1,016		4,315		11,150		16,481
Total		183		8,887		4,483		11,150		24,703

XML

INTEREST-BEARING LOANS AND BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2022

Interest-bearing Loans And Borrowings

Schedule of interest bearing loan and borrowings

						December 31,		June 30,
						2021		2022		2022
						CNY		CNY		US$
	Interest rate			Maturity		(Audited)		(Unaudited)		(Unaudited)
Non-current interest-bearing loans
Bank loan-secured and guaranteed		5.05	%		2023 to 2038		74,000		72,500		10,822
Current interest-bearing loans
Bank loan-secured and guaranteed		5.05	%		2022 to 2023		3,000		3,000		448
Total							77,000		75,500		11,270

XML

EQUITY (Tables)

6 Months Ended

Jun. 30, 2022

Equity

Schedule of issued capital

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Authorized:
10,000,000 preferred shares, no par value		—		—		—
200,000,000 common shares, no par value		—		—		—
Common shares issued and fully paid:
June 30, 2022: 40,948,082, (December 31, 2021: 40,948,082) common shares, no par value		450,782		450,782		67,286

Schedule of share capital

	Number of shares		Share capital
			CNY		US$
(As adjusted)
As of January 1, 2021		36,988,082		419,091		62,556
Common shares issued through private placement		3,960,000		31,691		4,730
As of December 31, 2021 and January 1, 2022		40,948,082		450,782		67,286
		—		—		—
As of June 30, 2022		40,948,082		450,782		67,286

XML

RELATED PARTY BALANCES AND TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Commercial Transactions with Related Parties

			Six months ended June 30,
			2021		2022		2022
			CNY		CNY		US$
	Notes		(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Interest income received from Feishang Enterprise(a)		i		3,396		—		—
CHNR's share of office rental, rates and others to Anka Consultants Limited (“Anka”) (b)		ii		205		217		32
Feishang Management's share of office rental to Feishang Enterprise(a)		iii		84		84		13
Shenzhen New PST’s share of office rental to Feishang Enterprise(a)		iv		45		15		2

(i) The Company’s subsidiary, Shanghai Onway, entered into a series of contracts to provide a loan amounting to CNY80,000 at an interest rate of 9% per annum to Feishang Enterprise from March 2, 2018 to June 30, 2021.

(ii) The Company signed a contract with Anka to lease 184 square meters of office premises for two years, from July 1, 2018 to June 30, 2020, subsequently extended to June 30, 2024. The agreement also provides that the Company shares certain costs and expenses in connection with its use of the office, in addition to some of the accounting and secretarial services and day-to-day office administration services provided by Anka.

(iii) On January 1, 2018, Feishang Management signed an office-sharing agreement with Feishang Enterprise. Pursuant to the agreement, Feishang Management shares 40 square meters of office premises for 33 months. Feishang Management signed a new contract with Feishang Enterprise in October 2021, which was renewed in October 2022 and will expire on September 30, 2023.

(iv) Shenzhen New PST signed a contract with Feishang Enterprise to lease 96 square meters of office premises annually. The latest contract is from March 14, 2022 to March 13, 2023.

(a) Feishang Enterprise, Feishang Group and Feishang Energy are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(b) Anka is jointly owned by Mr. Wong Wah On Edward and Mr. Tam Cheuk Ho, who are officers of the Company.

Schedule of Group Payables with Related Parties

	December 31,		June 30,
	2021		2022		2022
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Current:
Payable to related companies:
Feishang Enterprise (a, i)		3,019		3,068		457
Anka Capital (b)		2,691		2,818		421
Yangpu Lianzhong Mining Co., Ltd (c, iii)		—		100		15
		5,710		5,986		893
Payable to the Shareholder:
Feishang Group (a, ii)		14,050		14,050		2,097
		14,050		14,050		2,097
Dividend payables to related companies:
Qianhai Industrial(d, iv)		5,048		5,048		753
		5,048		5,048		753
Lease liabilities to related parties
Anka (b)		372		—		—
		372		—		—

(i) The payable to Feishang Enterprise by Feishang Management represents the net amount of advances from Feishang Enterprise. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(ii) The payable to Feishang Group represents the net amount of advances from Feishang Group. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(iii) The payable to Yangpu Lianzhong Mining Co., Ltd by Feishang Management represents the net amount of advances from Yangpu Lianzhong Mining Co., Ltd. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

(iv) The dividend payable to Shenzhen Qianhai Feishang Industrial Investment Co., Ltd. (“Qianhai Industrial”) represents the declared but unpaid dividend that was approved at the shareholder meeting of Shenzhen Qianhai on June 22, 2021, prior to the acquisition of Precise Space-Time Technology Limited (“PST Technology”) and its subsidiaries by the Group.

(a) Feishang Enterprise and Feishang Group are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(b) Anka Capital and Anka are each jointly owned by Wong Wah On Edward and Tam Cheuk Ho, who are officers of the Company.

(c) Yangpu Lianzhong Mining Co., Ltd is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

(d) Qianhai Industrial is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

Schedule of Compensation of Key Management Personnel of Group

	Six months ended June 30,
	2021		2022		2022
	CNY		CNY		US$
	(As adjusted and unaudited)		(Unaudited)		(Unaudited)
Wages, salaries and allowances		661		618		92
Housing subsidies		10		11		2
Contribution to pension plans		41		43		6
Total Compensation of key management personnel		712		672		100

XML

BASIS OF PRESENTATION (Details Narrative)	6 Months Ended
	Jun. 30, 2021
Basis Of Presentation
Translated exchange ate description	US$1.00 = CNY6.6995

XML

SEGMENT INFORMATION (Schedule of Segment Results) (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Revenues from external customers	$ 2,401	¥ 16,072	¥ 8,220
Segment profit/(loss) before income tax	603	4,030	(30,468)
Income tax benefit (loss)/benefit	(53)	(357)	633
Profit/(Loss) for the period	550	3,673	(29,835)
Depreciation of property, plant and equipment	(21)	(141)	(157)
Depreciation of right-of-use assets	(106)	(707)	(681)
Amortization of intangible assets	(60)	(404)	(441)
Other income	109	731	376
Finance costs	(272)	(1,822)	(2,271)
Finance income	1,400	9,376	8,787
Trade receivables [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets	(289)	(1,936)	(1,920)
Contract assets [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets	6	41	(179)
Amounts Due From Related Companies [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets			1,106
Fair value loss on financial instruments, net	83	559	(24,807)
Other Receivable [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets	(161)	(1,077)
Wastewater Treatment [Member]
IfrsStatementLineItems [Line Items]
Revenues from external customers	2,401	16,072	8,220
Segment profit/(loss) before income tax	566	3,784	179
Depreciation of property, plant and equipment	(17)	(114)	(124)
Depreciation of right-of-use assets	(52)	(347)	(321)
Amortization of intangible assets	(60)	(404)	(441)
Other income	4	30	76
Finance costs	(269)	(1,799)	(2,142)
Finance income	1,398	7,857	8,782
Wastewater Treatment [Member] | Trade receivables [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets	(289)	(1,936)	(1,920)
Wastewater Treatment [Member] | Contract assets [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets	6	41	(179)
Wastewater Treatment [Member] | Amounts Due From Related Companies [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets			775
Fair value loss on financial instruments, net
Wastewater Treatment [Member] | Other Receivable [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets
Corporate Activity [Member]
IfrsStatementLineItems [Line Items]
Revenues from external customers
Segment profit/(loss) before income tax		1	(30,314)
Depreciation of property, plant and equipment		(1)	(2)
Depreciation of right-of-use assets	(54)	(360)	(360)
Amortization of intangible assets
Other income		1
Finance costs	(3)	(22)	(129)
Finance income	2	1,519	5
Corporate Activity [Member] | Trade receivables [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets
Corporate Activity [Member] | Contract assets [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets
Corporate Activity [Member] | Amounts Due From Related Companies [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets			331
Fair value loss on financial instruments, net	83	559	(24,807)
Corporate Activity [Member] | Other Receivable [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets	(161)	(1,077)
Exploration and Mining [Member]
IfrsStatementLineItems [Line Items]
Segment profit/(loss) before income tax	37	245	(333)
Depreciation of property, plant and equipment	(4)	(26)	(31)
Depreciation of right-of-use assets
Amortization of intangible assets
Other income	105	700	300
Finance costs		(1)
Finance income
Exploration and Mining [Member] | Trade receivables [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets
Exploration and Mining [Member] | Contract assets [member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets
Exploration and Mining [Member] | Amounts Due From Related Companies [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets
Fair value loss on financial instruments, net
Exploration and Mining [Member] | Other Receivable [Member]
IfrsStatementLineItems [Line Items]
Impairment (losses)/reversal on financial assets

XML

SEGMENT INFORMATION (Schedule of Operating Segment) (Details 1) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Segment assets	$ 62,422	¥ 418,198	¥ 413,382
Elimination of inter-segment receivables	(11,941)	(80,000)	(80,000)
Deferred tax assets	80	537	66
Total assets	50,561	338,735	333,448
Segment Liabilities	32,903	220,425	219,613
Elimination of inter-segment payables	(11,942)	(80,000)	(80,000)
Deferred tax liabilities	272	1,824	2,544
Income tax payable	1,497	10,031	9,254
Total liabilities	22,730	152,280	151,411
Deferred tax assets	80
Deferred tax liabilities	272
Income tax payable	1,497
Total liabilities	22,730
Wastewater Treatment [Member]
IfrsStatementLineItems [Line Items]
Segment assets	59,416	398,064	390,895
Segment Liabilities	17,314	115,995	113,124
Exploration and Mining [Member]
IfrsStatementLineItems [Line Items]
Segment assets	86	573	321
Segment Liabilities	493	3,301	3,294
Corporate Activity [Member]
IfrsStatementLineItems [Line Items]
Segment assets	2,920	19,561	22,166
Segment Liabilities	$ 15,096	¥ 101,129	¥ 103,195

XML

REVENUE FROM CONTRACT WITH CUSTOMERS (Schedule of Disaggregated revenue information) (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	$ 2,401	¥ 16,072	¥ 8,220
Mainland China [Member] | Geographic market [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	2,401	16,072	8,220
Type Of Goods Or Services [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	2,401		8,220
Type Of Goods Or Services [Member] | Construction Contract Revenue [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	1,889		4,601
Type Of Goods Or Services [Member] | Operation Service Concession Arrangements [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	512		3,223
Type Of Goods Or Services [Member] | Construction Service Concession Arrangements [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer			396
Type Of Goods Or Service [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer		16,072
Type Of Goods Or Service [Member] | Construction Contract Revenue [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer		12,639
Type Of Goods Or Service [Member] | Operation Service Concession Arrangements [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer		3,433
Type Of Goods Or Service [Member] | Construction Service Concession Arrangements [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer
Timing Of Revenue Recognition [Member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	2,401	16,072	8,220
Timing Of Revenue Recognition [Member] | Goods or services transferred over time [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with a customer	$ 2,401	¥ 16,072	¥ 8,220

XML

FINANCE INCOME AND COSTS (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Finance income	$ 1,400	¥ 9,376	¥ 8,787
Finance costs	272	1,822	2,271
Finance Income [Member]
IfrsStatementLineItems [Line Items]
Interest income on loans to a related party/ third party	507	3,396	3,396
Interest income on revenue contracts with significant financing component	380	2,547	1,132
Interest income from service concession arrangement	506	3,389	3,988
Interest income on structured deposits			219
Interest income on bank deposit	7	44	52
Finance income	1,400	9,376	8,787
Interest expenses on loans	292	1,954	2,032
Interest expense on lease liabilities	8	53	86
Other finance costs	(28)	(185)	210
Less: interest expense capitalized into intangible assets-concession right			(57)
Finance costs	$ 272	¥ 1,822	¥ 2,271

XML

LOSS BEFORE INCOME TAX (Schedule of Group's Loss Before Tax from Continuing Operations) (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
Crediting:
Finance income (Note 5)	$ (1,400)	¥ (9,376)	¥ (8,787)
Charging:
- Construction service	762	5,107	3,916
- Operation services related to service concession arrangement	547	3,664	2,804
- Construction services related to service concession arrangement			389
Total	1,309	8,771	7,109
Depreciation
- Property, plant and equipment	21	141	157
- Right-of-use assets (Note 11)	106	707	681
Amortization of intangible assets* (Note 10)	60	404	441
Expense relating to short-term leases	26	174	338
Impairment losses/(reversal) on financial assets:
- Trade receivables	289	1,936	1,920
- Contract assets	(6)	(41)	179
- Other receivables	161	1,077
- Amounts due from related companies			(1,106)
Fair value (gain)/loss on financial instruments:
- Financial assets at fair value through profit or loss (Note 18(a))			26,015
- Derivative financial liabilities (Note 18(b))	(83)	(559)	(1,208)
Issuance expense in related to placement			1,579
Other income	(109)	(731)	(376)
Finance costs (Note 5)	272	1,822	2,271
Employee benefit expenses	$ 861	¥ 5,772	¥ 5,751

XML

INCOME TAX (BENEFIT)/EXPENSE (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
Income Tax Benefitexpense
Current income tax expense	$ 231	¥ 1,548	¥ 685
Deferred income tax benefit	(178)	(1,191)	(1,318)
Total	$ 53	¥ 357	¥ (633)

XML

INCOME TAX (BENEFIT)/EXPENSE (Details Narrative)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Applicable tax rate	25.00%	25.00%
Preferential tax rate	12.50%	12.50%
Dividend withholding tax rate	10.00%	5.00%
Hong Kong [Member]
IfrsStatementLineItems [Line Items]
Applicable tax rate	16.50%

XML

(LOSS)/EARNINGS PER SHARE (Schedule of Basic and Diluted Loss Per Share) (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2022 CNY (¥) ¥ / shares shares	Jun. 30, 2021 CNY (¥) ¥ / shares shares
(Loss)/Earnings attributable to ordinary equity holders of the Company	$ 293	¥ 1,949	¥ (27,993)
Basic and diluted	40,948,082	40,948,082	40,488,634
Basic and diluted | (per share)	$ 0.01	¥ 0.05	¥ (0.69)

XML

PROPERTY, PLANT AND EQUIPMENT (Schedule of Property Plant and Equipment) (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Property, plant and equipment	$ 86	¥ 578	¥ 715
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	650	4,350	4,437
Gross carrying amount [member] | Buildings [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	7	46	46
Gross carrying amount [member] | Machinery [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	162	1,084	1,177
Gross carrying amount [member] | Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	371	2,486	2,486
Gross carrying amount [member] | Office equipment [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	110	734	728
Accumulated depreciation, amortisation and impairment [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	$ (564)	¥ (3,772)	¥ (3,722)

XML

INTANGIBLE ASSETS (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
At June 30	$ 2,953	¥ 19,785
Net carrying amount	2,953
Patent [Member]
IfrsStatementLineItems [Line Items]
At June 30	55	366
Net carrying amount			¥ 385
Net carrying amount	55
Service concession rights [member]
IfrsStatementLineItems [Line Items]
At June 30	2,886	19,335
Net carrying amount			19,700
Net carrying amount	2,886
Software [Member]
IfrsStatementLineItems [Line Items]
At June 30	12	84
Net carrying amount			104
Net carrying amount	$ 12
Accumulated depreciation, amortisation and impairment [member]
IfrsStatementLineItems [Line Items]
Net carrying amount			20,189
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
At January 1		43,582	23,152
Transfer in			20,430
At June 30		43,582	43,582
Amortization charge		(404)	(884)
Net carrying amount			43,582
Gross carrying amount [member] | Patent [Member]
IfrsStatementLineItems [Line Items]
At January 1		22,878	22,878
Transfer in
At June 30		22,878	22,878
Amortization charge		(19)	(105)
Net carrying amount			22,878
Gross carrying amount [member] | Service concession rights [member]
IfrsStatementLineItems [Line Items]
At January 1		20,430
Transfer in			20,430
At June 30		20,430	20,430
Amortization charge		(365)	(730)
Net carrying amount			20,430
Gross carrying amount [member] | Software [Member]
IfrsStatementLineItems [Line Items]
At January 1		274	274
Transfer in
At June 30		274	274
Amortization charge		(20)	(49)
Net carrying amount			274
Accumulated depreciation, amortisation and impairment [member]
IfrsStatementLineItems [Line Items]
At January 1		(23,393)	(22,509)
At June 30		(23,797)	(23,393)
Net carrying amount			(23,393)
Accumulated depreciation, amortisation and impairment [member] | Patent [Member]
IfrsStatementLineItems [Line Items]
At January 1		(22,493)	(22,388)
At June 30		(22,512)	(22,493)
Net carrying amount			(22,493)
Accumulated depreciation, amortisation and impairment [member] | Service concession rights [member]
IfrsStatementLineItems [Line Items]
At January 1		(730)
At June 30		(1,095)	(730)
Net carrying amount			(730)
Accumulated depreciation, amortisation and impairment [member] | Software [Member]
IfrsStatementLineItems [Line Items]
At January 1		(170)	(121)
At June 30		¥ (190)	(170)
Net carrying amount			¥ (170)

XML

LEASES (Details-Right Of Use Assets) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Beginning balace		¥ 2,351	¥ 3,560
Addition			157
Depreciation charge		(707)	(1,366)
Ending balance	$ 245	1,644	2,351
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning balace		245	408
Addition
Depreciation charge		(82)	(163)
Ending balance	24	163	245
Offices And Warehouse [Member]
IfrsStatementLineItems [Line Items]
Beginning balace		2,106	3,152
Addition			157
Depreciation charge		(625)	(1,203)
Ending balance	$ 221	¥ 1,481	¥ 2,106

XML

LEASES (Details-Lease Liabilities) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)	Dec. 31, 2021 CNY (¥)	Jun. 30, 2022 CNY (¥)
IfrsStatementLineItems [Line Items]
Beginning balance		¥ 2,189	¥ 3,550	¥ 3,550
Addition				102
Accretion of interest recognized during the period	$ 8	53	86	150
Payments		(596)		(1,613)
Ending balance	246	1,646		2,189
Current portion	91			981	¥ 613
Non-current portion	155			1,208	1,033
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning balance		155	502	502
Addition
Accretion of interest recognized during the period		4		17
Payments				(364)
Ending balance	24	159		155
Current portion	24			155	159
Non-current portion
Offices And Warehouse [Member]
IfrsStatementLineItems [Line Items]
Beginning balance		2,034	¥ 3,048	3,048
Addition				102
Accretion of interest recognized during the period		49		133
Payments		(596)		(1,249)
Ending balance	222	¥ 1,487		2,034
Current portion	67			826	454
Non-current portion	$ 155			¥ 1,208	¥ 1,033

XML

LEASES (Details-Lease related expenses) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)	Dec. 31, 2021 CNY (¥)
Depreciation expense of right-of-use assets	$ 106	¥ 707	¥ 681
Interest on lease liabilities	8	53	86	¥ 150
Expense relating to short-term leases	26	174	338
Total amounts recognized in profit or loss	$ 140	¥ 934	¥ 1,105

XML

TRADE AND BILLS RECEIVABLE (Schedule of Trade Receivables) (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Non-current
Trade receivables from third parties	$ 2,510	¥ 16,815	¥ 17,033
Less: Impairment allowance	(1,248)	(8,360)	(7,532)
Total of Non-current trade receivables	1,262	8,455	9,501
Non-current trade receivables	1,262	8,455	9,501
Current
Trade receivables from third parties	8,180	54,799	51,608
Less: Impairment allowance	(1,670)	(11,190)	(10,082)
Total of current trade receivables	6,510	43,609	41,526
Current trade receivables	6,510	43,609	41,526
Bills receivable
At fair value through other comprehensive income	1,746	11,700
Total	$ 9,518	¥ 63,764	¥ 51,027

XML

TRADE AND BILLS RECEIVABLE (Schedule of Aging Analysis of Trade Receivables) (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Trade receivables	$ 9,518	¥ 63,764	¥ 51,027
Not Later Than One Year One [Member]
IfrsStatementLineItems [Line Items]
Trade receivables	6,031	40,398	19,026
Not Later Than One Yearto Two [Member]
IfrsStatementLineItems [Line Items]
Trade receivables	558	3,740	5,106
Not Later Thantwo Yeart To Three [Member]
IfrsStatementLineItems [Line Items]
Trade receivables	1,617	10,835	12,796
Over Three Years [Member]
IfrsStatementLineItems [Line Items]
Trade receivables	$ 1,312	¥ 8,791	¥ 14,099

XML

TRADE AND BILLS RECEIVABLES (Schedule of loss allowance for trade receivables) (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Trade And Bills Receivable
Beginning of the year	$ 2,629	¥ 17,614	¥ 13,774
Provision for expected credit loss, net	289	1,936	3,840
End of the year	$ 2,918	¥ 19,550	¥ 17,614

XML

TRADE AND BILLS RECEIVABLES (Schedule of Impairment) (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)		Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Expected credit loss rate	20.00%	20.00%		26.00%
Gross carrying amount		¥ 83,314		¥ 68,641
Impairment allowances	$ 2,918	¥ 19,550		¥ 17,614
Not Later Than One Year One [Member]
IfrsStatementLineItems [Line Items]
Expected credit loss rate	10.00%	10.00%		6.00%
Gross carrying amount		¥ 42,479		¥ 16,311
Impairment allowances	$ 360	¥ 2,412		¥ 955
Not Later Than One Year To Twoyears [Member]
IfrsStatementLineItems [Line Items]
Expected credit loss rate	10.00%	10.00%		26.00%
Gross carrying amount		¥ 4,186		¥ 6,865
Impairment allowances	$ 67	¥ 446		¥ 1,759
Not Later Than Two Years To Threeyears [Member]
IfrsStatementLineItems [Line Items]
Expected credit loss rate	10.00%	10.00%		13.00%
Gross carrying amount		¥ 12,412		¥ 14,712
Impairment allowances	$ 235	¥ 1,577	[1]	¥ 1,916	[1]
Over Three Years [Member]
IfrsStatementLineItems [Line Items]
Expected credit loss rate	60.00%	60.00%		48.00%
Gross carrying amount		¥ 23,906		¥ 27,083
Impairment allowances	$ 2,256	15,115	[2]	12,984	[2]
Current [member]
IfrsStatementLineItems [Line Items]
Gross carrying amount		¥ 331		¥ 3,670

[1] The impairment allowances included CNY221 and CNY211 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

[2] The impairment allowances included an amount of CNY4,646 and CNY4,588 as of December 31, 2021 and June 30, 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

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CONTRACT ASSETS (Details) ¥ in Thousands, $ in Thousands		Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Non-current contract assets		$ 13,501	¥ 90,453	¥ 91,035
Allowance account for credit losses of financial assets		(4)	(27)	(27)
Current contract assets		2,321	15,552	15,331
Less Impairement allowance		(86)	(576)	(535)
Contract asset		15,822	106,005	106,366
Service concession arrangements [member]
IfrsStatementLineItems [Line Items]
Non-current contract assets	[1]	13,505	90,480	91,062
Current contract assets	[1]	1,108	7,422	7,423
Service concession rights [member]
IfrsStatementLineItems [Line Items]
Current contract assets	[2]	$ 1,299	¥ 8,706	¥ 8,443

[1] Service concession assets bearing an imputed interest of 7% arose from the Group’s revenue from construction service under a build-own-transfer (“BOT”) arrangement rendered by the Group’s subsidiary, Shaoguan Angrui Environmental Technology Development Co., Limited (“Shaoguan Angrui”). The facilities that the service concession arrangement relate to were under construction phases from June 2018 to December 2020 and commenced operation in January 2021.

[2] The balance as of December 31, 2021 and June 30, 2022 comprised contract assets arising from performance under water treatment plant construction service contracts. Such contracts include payment schedules which require stage payments over the service periods once milestones are reached.

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CONTRACT ASSETS (Details 1) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Contract assets [abstract]
Beginning of the year	$ 84	¥ 562	¥ 205
Provision for expected credit loss, net	6	41	357
End of the year	$ 90	¥ 603	¥ 562

XML

CONTRACT ASSETS (Details Narrative)	Jun. 30, 2022	Dec. 31, 2021
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Rate of range	0.03%	0.03%
Top of range [member]
IfrsStatementLineItems [Line Items]
Rate of range	54.78%	55.93%

XML

OTHER RECEIVABLES (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Other Receivables
Loans to unrelated companies	$ 13,016	¥ 87,200	¥ 83,600
Deposit	147	986	863
Others	149	1,000	1,000
Financia assets amount	13,312	89,186	85,463
Staff advance	112	750	697
Others	42	284	280
Total amount	154	1,034	977
Impairment allowance	(196)	(1,316)	(239)
Total	$ 13,270	¥ 88,904	¥ 86,201

XML

CASH AND CASH EQUIVALENTS (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Cash and cash equivalents
- Cash on hand	$ 11	¥ 70	¥ 74
- Cash at bank	7,589	50,845	58,285
Cash and cash equivalents	$ 7,600	¥ 50,915	¥ 58,359

XML

CASH AND CASH EQUIVALENTS (Details 1) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Cash and cash equivalents	$ 7,600	¥ 50,915	¥ 58,359
R M B [Member]
IfrsStatementLineItems [Line Items]
Cash and cash equivalents	4,662	31,228	37,333
U S [Member]
IfrsStatementLineItems [Line Items]
Cash and cash equivalents	2,838	19,015	20,011
H K [Member]
IfrsStatementLineItems [Line Items]
Cash and cash equivalents	$ 100	¥ 672	¥ 1,015

XML

OTHER PAYABLES AND ACCRUALS (Schedule of Other Payables and Accrued Liabilities) (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Other Payables And Accruals
Accrued expenses	$ 849	¥ 5,689	¥ 5,398
Deposits from customers | ¥		1,335	505
Deposits from customers | $	199
Liabilities related to bills receivable endorsed before maturity	320	2,150
Deposits from customers	1,368	9,174	5,903
Penalties related to income tax	566	3,789	3,025
Taxes other than income tax payable (a)	358	2,396	285
Accrued payroll	338	2,262	2,878
Others	6	42	7
Total other payables	1,268	8,489	6,195
Total	$ 2,636	¥ 17,663	¥ 12,098

XML

FINANCIAL INSTRUMENTS (Details-Financial Assets) - Financial assets, class [member] ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Debt instruments at amortized cost:
Accounts receivable: current	$ 6,510	¥ 43,609	¥ 41,526
Accounts receivable: non-current	1,262	8,455	9,501
Financial assets included in other receivables	13,116	87,870	85,224
Financial assets at fair value through other comprehensive income:
Bills receivable	1,746	11,700
Total	22,634	151,634	136,251
Total Current	21,372	143,179	126,750
Total Non-current	$ 1,262	¥ 8,455	¥ 9,501

XML

FINANCIAL INSTRUMENTS (Details - Schedule of financial liabilities) - Financial liabilities at amortised cost, class [member] ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Derivatives not designated as hedging instruments：
Derivative financial liabilities (i)	$ 183	¥ 1,224	¥ 1,710
Financial liabilities at amortized cost:
Trade payables	2,658	17,810	21,118
Financial liabilities in other payables and accruals	1,368	9,174	5,903
Dividends payable	753	5,048	5,048
Lease liabilities	246	1,646	2,189
Due to related companies	893	5,986	5,710
Due to the Shareholder	2,097	14,050	14,050
Interest-bearing loans and borrowings	11,270	75,500	77,000
Total	19,468	130,438	132,728
Total current	8,491	56,905	57,520
Total non-current	$ 10,977	¥ 73,533	¥ 75,208

XML

FINANCIAL INSTRUMENTS (Details-Fair Value) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Carrying amount	$ 11,270	¥ 75,500	¥ 77,000
Fair value	11,713	78,471	79,003
Loans And Borrowings [Member]
IfrsStatementLineItems [Line Items]
Carrying amount	11,270	75,500	77,000
Fair value	$ 11,713	¥ 78,471	¥ 79,003

XML

FINANCIAL INSTRUMENTS (Details-CarryingAmounts) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Derivative financial liabilities | ¥		¥ 1,224	¥ 1,710
Bills receivables	$ 1,746	11,700
Derivative financial liabilities | $	183
Level 1 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities | ¥
Bills receivables
Derivative financial liabilities | $
Level 2 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities | ¥		1,224	1,710
Bills receivables	1,746	11,700
Derivative financial liabilities | $	183
Level 3 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities | ¥
Bills receivables
Derivative financial liabilities | $

XML

FINANCIAL INSTRUMENTS (Details Narrative) $ / shares in Units, ¥ in Thousands, $ in Thousands		1 Months Ended		6 Months Ended
	Jul. 14, 2022 $ / shares	Jan. 20, 2021 USD ($) $ / shares shares	Jan. 20, 2021 CNY (¥) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Initial exercise price | $ / shares	$ 0.623
Securities Purchase Agreement [Member]
IfrsStatementLineItems [Line Items]
Aggregate of shares		3,960,000	3,960,000
Common shares at a price		1.85	1.85
Warrants exercisable shares		1,584,000	1,584,000
Initial exercise price | $ / shares		$ 2.35
Fair value gain loss		$ 1,427	¥ 9,246	$ 83	¥ 559	¥ 1,208

XML

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Details - Liquidity risk) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Dividends payable	$ 753	¥ 5,048	¥ 5,048
Due to related companies	893	5,986	5,710
Due to the Shareholder	6	42	7
Total [Member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities	183	1,224	1,710
Trade payables	2,658	17,810	21,118
Financial liabilities in other payables and accruals	1,368	9,174	5,903
Dividends payable	753	5,048	5,048
Due to related companies	893	5,986	5,710
Due to the Shareholder	2,097	14,050	14,050
Lease liabilities	270	1,806	2,401
Interest-bearing loans and borrowings	16,481	110,413	113,813
Total	24,703	165,511	169,753
On demand [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities	183	1,224	1,710
Trade payables
Financial liabilities in other payables and accruals
Dividends payable
Due to related companies
Due to the Shareholder
Lease liabilities
Interest-bearing loans and borrowings
Total	183	1,224	1,710
Not later than one year [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities
Trade payables	2,658	17,810	21,118
Financial liabilities in other payables and accruals	1,368	9,174	5,903
Dividends payable	753	5,048	5,048
Due to related companies	893	5,986	5,710
Due to the Shareholder	2,097	14,050	14,050
Lease liabilities	102	683	1,047
Interest-bearing loans and borrowings	1,016	6,806	6,882
Total	8,887	59,557	59,758
Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities
Trade payables
Financial liabilities in other payables and accruals
Dividends payable
Due to related companies
Due to the Shareholder
Lease liabilities	168	1,123	1,354
Interest-bearing loans and borrowings	4,315	28,908	28,792
Total	4,483	30,031	30,146
More Than Five Years [Member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities
Trade payables
Financial liabilities in other payables and accruals
Dividends payable
Due to related companies
Due to the Shareholder
Lease liabilities
Interest-bearing loans and borrowings	11,150	74,699	78,139
Total	$ 11,150	¥ 74,699	¥ 78,139

XML

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Details Narrative)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Financial Risk Management Objectives And Policies
Debt to capital ratio	29.27%	30.31%

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INTEREST-BEARING LOANS AND BORROWINGS (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Interest-bearing Loans And Borrowings
Interest rate	5.05%
Maturity	2023 to 2038
Non-current interest-bearing loans	$ 10,822	¥ 72,500	¥ 74,000
Current interest rate	5.05%
Current loans maturity	2022 to 2023
Current interest-bearing loans	$ 448	3,000	3,000
Total	$ 11,270	¥ 75,500	¥ 77,000

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INTEREST-BEARING LOANS AND BORROWINGS (Details Narrative)	6 Months Ended
	Jun. 30, 2022
Interest-bearing Loans And Borrowings
Equal annual installments, description	The outstanding balance as of June 30, 2022 is due in annual instalments of CNY1,500 due as of December 31, 2022, CNY3,000 due in 2023; CNY4,000 due annually from 2024 to 2028; CNY5,000 due annually from 2029 to 2034; CNY6,000 due in 2035; and CNY5,000 due annually from 2036 to 2038.

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EQUITY (Details-Issued Capital) ¥ in Thousands, $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Authorized:
10,000,000 preferred shares, no par value
200,000,000 common shares, no par value
Common shares issued and fully paid:
June 30, 2022: 40,948,082, (December 31, 2021: 40,948,082) common shares, no par value	$ 67,286	¥ 450,782	¥ 450,782

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EQUITY (Details-Share Capital) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) shares	Jun. 30, 2022 CNY (¥) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2021 CNY (¥) shares
Equity
Beginning balance	40,948,082	40,948,082	36,988,082	36,988,082
Beginning balance	$ 67,286	¥ 450,782	$ 62,556	¥ 419,091
Common shares issued through private placement			3,960,000	3,960,000
Common shares issued through private placement			$ 4,730	¥ 31,691
Ending balance	40,948,082	40,948,082	40,948,082	40,948,082
Ending balance	$ 67,286	¥ 450,782	$ 67,286	¥ 450,782

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RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Commercial Transactions with Related Parties) (Details) ¥ in Thousands, $ in Thousands		6 Months Ended
		Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
Interest income received from Feishang Enterprise	[1],[2]			¥ 3,396
[custom:ChnrsShareOfOfficeRentalRatesAndOthersToAnkaConsultantsLimitedankaB]	[3],[4]	32	217	205
Feishang Management's share of office rental to Feishang Enterprise	[1],[5]	13	84	84
[custom:ShenzhenNewPstsShareOfOfficeRentalToFeishangEnterprisea]	[1],[6]	$ 2	¥ 15	¥ 45

[1] Feishang Enterprise, Feishang Group and Feishang Energy are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

[2] The Company’s subsidiary, Shanghai Onway, entered into a series of contracts to provide a loan amounting to CNY80,000 at an interest rate of 9% per annum to Feishang Enterprise from March 2, 2018 to June 30, 2021.

[3] Anka is jointly owned by Mr. Wong Wah On Edward and Mr. Tam Cheuk Ho, who are officers of the Company.

[4] The Company signed a contract with Anka to lease 184 square meters of office premises for two years, from July 1, 2018 to June 30, 2020, subsequently extended to June 30, 2024. The agreement also provides that the Company shares certain costs and expenses in connection with its use of the office, in addition to some of the accounting and secretarial services and day-to-day office administration services provided by Anka.

[5] On January 1, 2018, Feishang Management signed an office-sharing agreement with Feishang Enterprise. Pursuant to the agreement, Feishang Management shares 40 square meters of office premises for 33 months. Feishang Management signed a new contract with Feishang Enterprise in October 2021, which was renewed in October 2022 and will expire on September 30, 2023.

[6] Shenzhen New PST signed a contract with Feishang Enterprise to lease 96 square meters of office premises annually. The latest contract is from March 14, 2022 to March 13, 2023.

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RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Group Payables with Related Parties) (Details) ¥ in Thousands, $ in Thousands		Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
IfrsStatementLineItems [Line Items]
Payable to related companies		$ 893	¥ 5,986	¥ 5,710
Payable to the Shareholder:		2,097	14,050	14,050
Dividend payables to related companies		753	5,048	5,048
Lease liabilities to related parties				372
Feishang Enterprise [Member]
IfrsStatementLineItems [Line Items]
Payable to related companies	[1],[2]	457	3,068	3,019
Anka Capital Limited [Member]
IfrsStatementLineItems [Line Items]
Payable to related companies	[3]	421	2,818	2,691
Yangpu Lianzhong Mining Co [Member]
IfrsStatementLineItems [Line Items]
Payable to related companies	[4],[5]	15	100
Feishang Group [Member]
IfrsStatementLineItems [Line Items]
Payable to the Shareholder:	[1],[6]	2,097	14,050	14,050
Qianhai Industrial [Member]
IfrsStatementLineItems [Line Items]
Dividend payables to related companies	[7],[8]	753	5,048	5,048
Anka [Member]
IfrsStatementLineItems [Line Items]
Lease liabilities to related parties	[3]			¥ 372

[1] Feishang Enterprise and Feishang Group are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

[2] The payable to Feishang Enterprise by Feishang Management represents the net amount of advances from Feishang Enterprise. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

[3] Anka Capital and Anka are each jointly owned by Wong Wah On Edward and Tam Cheuk Ho, who are officers of the Company.

[4] The payable to Yangpu Lianzhong Mining Co., Ltd by Feishang Management represents the net amount of advances from Yangpu Lianzhong Mining Co., Ltd. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

[5] Yangpu Lianzhong Mining Co., Ltd is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

[6] The payable to Feishang Group represents the net amount of advances from Feishang Group. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

[7] Qianhai Industrial is controlled by Mr. Li Feilie, who is the controlling shareholder of the Company.

[8] The dividend payable to Shenzhen Qianhai Feishang Industrial Investment Co., Ltd. (“Qianhai Industrial”) represents the declared but unpaid dividend that was approved at the shareholder meeting of Shenzhen Qianhai on June 22, 2021, prior to the acquisition of Precise Space-Time Technology Limited (“PST Technology”) and its subsidiaries by the Group.

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RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Compensation of Key Management Personnel of Group) (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Jun. 30, 2021 CNY (¥)
Wages, salaries and allowances	$ 92	¥ 618	¥ 661
Housing subsidies	2	11	10
Contribution to pension plans	6	43	41
Total Compensation of key management personnel	$ 100	¥ 672	¥ 712

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COMMITMENTS (Details Narrative) - CNY (¥)	Jun. 30, 2022	Dec. 31, 2021
Commitments
Capital commitments	¥ 0	¥ 0

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SUBSEQUENT EVENTS (Details Narrative)	Jul. 14, 2022 $ / shares shares
IfrsStatementLineItems [Line Items]
Number of shares related to option	8,100,000
Exercise price for the options | $ / shares	$ 0.623
Number of shares related to warrants	1,980,000
Adjusted exercise price | $ / shares	$ 0.623
Bottom of range [member]
IfrsStatementLineItems [Line Items]
Options exercisable	40,000
Top of range [member]
IfrsStatementLineItems [Line Items]
Options exercisable	200,000
Woo Chun Kei Jackie [Member]
IfrsStatementLineItems [Line Items]
Options exercisable	3,700,000
Li Feiwen [Member]
IfrsStatementLineItems [Line Items]
Options exercisable	3,000,000