HONG KONG, June 30, 2011 /PRNewswire/ -- CHINA NATURAL
RESOURCES, INC. (NASDAQ: CHNR), a company based in the People's Republic of China, today released
results of operations for the year ended December 31, 2010 (derived from the Company's
audited financial statements) as follows.
CHINA NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2008,
2009 AND 2010
(Amounts in thousands, except share and per share data)
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Year Ended
December 31,
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2008
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2009
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2010
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2010
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RMB
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RMB
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RMB
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US$
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NET SALES
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Related parties
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26,210
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63,025
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—
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—
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Third parties
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74,707
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44,725
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100,813
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15,259
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100,917
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107,750
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100,813
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15,259
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COST OF SALES
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Related parties
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(25,452)
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(61,887)
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—
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—
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Third parties
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(34,953)
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(33,749)
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(58,832)
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(8,904)
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(60,405)
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(95,636)
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(58,832)
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(8,904)
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GROSS PROFIT
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40,512
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12,114
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41,981
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6,355
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ADMINISTRATIVE
EXPENSES,
including
share-based compensation
expense
of RMB26,016
(US$3,938)
in
2008,
2009 and 2010
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(48,407)
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(57,271)
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(92,090)
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(13,938)
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OTHER OPERATING
EXPENSES
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—
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(9,316)
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(9,031)
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(1,367)
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LOSS FROM OPERATIONS
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(7,895)
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(54,473)
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(59,140)
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(8,950)
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FINANCE COST
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(8)
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(11)
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(6,007)
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(909)
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INTEREST INCOME
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2,158
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2,654
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1,112
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168
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LOSS ATTRIBUTABLE TO INVESTMENTS
IN
UNCONSOLIDATED
INVESTEES
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(9,691)
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(11,211)
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(6,310)
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(955)
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GAIN ON DISPOSAL OF
UNCONSOLIDATED
INVESTEES
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—
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—
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30,571
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4,627
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GAIN FROM BARGAIN
PURCHASE
OF A
SUBSIDIARY
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—
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—
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624,148
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94,468
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OTHER EXPENSES
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(2,985)
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(236)
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(1,874)
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(282)
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(10,526)
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(8,804)
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641,640
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97,117
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(LOSS) INCOME FROM
CONTINUING
OPERATIONS BEFORE INCOME
TAX
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(18,421)
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(63,277)
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582,500
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88,167
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INCOME TAX EXPENSE
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(6,294)
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(2,438)
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(12,224)
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(1,850)
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(LOSS) INCOME FROM
CONTINUING
OPERATIONS
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(24,715)
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(65,715)
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570,276
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86,317
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DISCONTINUED
OPERATIONS
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Income
(loss)
from discontinued
Mark Faith
operations, net of
tax
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24,560
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(10,937)
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—
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—
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Gain on disposal of Mark
Faith
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78,877
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123,133
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—
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—
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INCOME FROM
DISCONTINUED OPERATIONS
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103,437
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112,196
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—
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—
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NET INCOME
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78,722
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46,481
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570,276
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86,317
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NET INCOME (LOSS) ATTRIBUTABLE
TO:
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CHNR
Shareholders
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78,722
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54,140
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574,395
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86,940
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Non-controlling
interests
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—
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(7,659)
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(4,119)
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(623)
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78,722
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46,481
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570,276
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86,317
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NET (LOSS) INCOME ATTRIBUTABLE
TO CHNR SHAREHOLDERS:
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Continuing
operations
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(24,715)
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(62,431)
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574,395
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86,940
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Discontinued
operations
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103,437
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116,571
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—
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—
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78,722
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54,140
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574,395
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86,940
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Year Ended
December 31,
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2008
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2009
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2010
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2010
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RMB
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RMB
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RMB
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US$
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NET (LOSS) INCOME PER
SHARE:
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Basic
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(Loss)
income from
continuing operations
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(1.28)
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(2.97)
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25.59
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3.87
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Income from discontinued operations
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5.36
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5.55
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—
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—
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Net income per share
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4.08
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2.58
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25.59
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3.87
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NET (LOSS)
INCOME PER SHARE:
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Diluted
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(Loss)
income from
continuing operations
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(1.11)
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(2.86)
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25.25
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3.82
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Income from
discontinued operations
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4.64
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5.34
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—
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—
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Net income
per share
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3.53
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2.48
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25.25
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3.82
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WEIGHTED AVERAGE NUMBER
OF
COMMON SHARES
OUTSTANDING:
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Basic
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19,276,019
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21,004,238
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22,443,416
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22,443,416
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Diluted
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22,278,600
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21,817,907
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22,751,864
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22,751,864
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The consolidated statements of operations for the years ended
December 31, 2008, 2009 and 2010 have
been prepared in accordance with generally accepted accounting
principles in the United States,
and are derived from, and should be read in conjunction with, the
Company's consolidated financial statements for the years ended
December 31, 2008, 2009 and 2010, as
filed with the Securities and Exchange Commission on June 30, 2011 under cover of Form 20-F.
Mr. Li Feilie, the Company's
Chairman, commented on the results: "China Natural Resources
recorded total sales revenue of RMB100.81
million (US$15.26 million) in
2010, down by 6.44% from a year earlier. The drop in sales
was mainly caused by the discontinuation of our copper business.
While sales generated from our metal division achieved modest
growth, our prime focus now is on our coal mining business.
Following the gradual completion of construction and upgrade of our
acquired coal mines, sales of coal will become our primary source
of revenue in the coming years. The Company achieved net income
attributable to shareholders of RMB574.40
million (US$86.94 million) in
2010, up by 961% from last year, of which RMB624.15 million (US$94.47 million) was derived from the bargain
purchase gain relating to Guizhou Puxin's acquisition. The positive
results reflect our ability to identify what we believe are
undervalued assets, and signify the success of our strategy in
pursuing growth through acquisition and consolidation of small to
medium sized coal mines in mainland China. In view of the continuing economic
growth in mainland China, we
believe that demand for coal will continue to be robust in the
foreseeable future. We are positive about the prospects of the coal
mining industry in mainland China."
For the convenience of the reader, amounts in Renminbi ("RMB")
have been translated into United
States dollars ("US$") at the rate of US$1.00=RMB6.6070
quoted by Bloomberg Finance L.P. on December
31, 2010. The RMB is not freely convertible into foreign
currencies and no representation is made that the RMB amounts could
have been, or could be, converted into US$ at that rate, or at
all.
About China Natural Resources:
China Natural Resources, Inc., a British
Virgin Islands corporation, through its operating
subsidiaries in the People's Republic of
China, is currently engaged in (a) the acquisition and
exploitation of mining rights, including the exploration, mineral
extraction, processing and sale of iron, zinc and other nonferrous
metals, extracted or produced at mines primarily located in
Anhui Province in the PRC, and (b)
the acquisition, development and production of coal resources in
Guizhou Province in the PRC.
Forward-Looking Statements:
This press release includes forward-looking statements within the
meaning of federal securities laws. These forward-looking
statements are based upon assumptions believed to be reliable, but
involve risks and uncertainties that may cause actual results of
operations to differ materially from the forward-looking
statements. Among the risks and uncertainties that could
cause our actual results to differ from our forward-looking
statements are our intent, belief and current expectations as to
business operations and operating results of the Company,
uncertainties regarding the governmental, economic and political
circumstances in the People's Republic of
China, risks and hazards associated with the Company's
mining activities, uncertainties associated with ore reserve
estimates, uncertainties associated with metal price volatility,
uncertainties associated with the Company's reliance on third-party
contractors uncertainties relating to possible future increases in
operating expenses, including costs of labor and materials,
and other risks detailed from time to time in the Company's
Securities and Exchange Commission filings. Although the Company's
management believes that the expectations reflected in
forward-looking statements are reasonable, it can provide no
assurance that such expectations will prove to be accurate.
SOURCE China Natural Resources, Inc.