Tue, May 17, 2022, 10:46 PM
In this article:
CHNR
+2.20%
HONG KONG, MAY 17, 2022 /PRNewswire/ -- China Natural Resources Inc. (NASDAQ: CHNR) (the "Company") today announced its results of operations for the twelve months ended December 31, 2021. 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 = CNY6.3559 as quoted by www.ofx.com on December 31, 2021.
Mr. Wong Wah On Edward, Chairman and Chief Executive Officer of the Company, commented, "We continued to make meaningful progress on the strategic diversification of our business in 2021. Our progress was, however, slowed by the COVID-19 pandemic, resulting shutdowns, logistic complications, and the steep global increase in operating costs and inflation. In addition, our operations in the rural wastewater treatment industry in 2021 resulted in a near-term reduction in our revenue level, but we believe our actions will be a catalyst for increased revenue growth and profitability. We are already seeing initial positive signs from our efforts to streamline our operations and our cost reduction plan, while at the same time focusing on continued exploration of the Moruogu Tong Mine. As we recently noted, we expect commodities prices to remain high, with demand continuing to outstrip supply. With even greater urgency placed on exploration opportunities and the potential for higher valuations of assets such as the Moruogu Tong Mine, we also recently announced plans to increase investments in the Moruogu Tong Mine. We are also evaluating other attractive business opportunities and believe that we will be able to further leverage our expertise and capital to create even greater value for shareholders."
Financial Results for the Twelve Months Ended December 31, 2021
As of December 31, 2021, the Company had two operating segments: wastewater treatment and exploration and mining. Revenue for the twelve months ended December 31, 2021 was CNY18.74 million (approximately US$2.95 million), as compared to revenue of approximately CNY42.50 million (approximately US$6.69 million) for the twelve months ended December 31, 2020. The decrease in revenue was mainly caused by the completion of the construction phase of a public-private partnership wastewater treatment project in January 2021.
CHNR
+2.20%
Tue, May 17, 2022, 10:46 PM
In this article:
CHNR
+2.20%
HONG KONG, MAY 17, 2022 /PRNewswire/ -- China Natural Resources Inc. (NASDAQ: CHNR) (the "Company") today announced its results of operations for the twelve months ended December 31, 2021. For the convenience of the reader, amounts in Chinese Yuan ("CNY") have been translated into United States dollars ("US$") at the rate of US$1.00 = CNY6.3559 as quoted by www.ofx.com on December 31, 2021.
Mr. Wong Wah On Edward, Chairman and Chief Executive Officer of the Company, commented, "We continued to make meaningful progress on the strategic diversification of our business in 2021. Our progress was, however, slowed by the COVID-19 pandemic, resulting shutdowns, logistic complications, and the steep global increase in operating costs and inflation. In addition, our operations in the rural wastewater treatment industry in 2021 resulted in a near-term reduction in our revenue level, but we believe our actions will be a catalyst for increased revenue growth and profitability. We are already seeing initial positive signs from our efforts to streamline our operations and our cost reduction plan, while at the same time focusing on continued exploration of the Moruogu Tong Mine. As we recently noted, we expect commodities prices to remain high, with demand continuing to outstrip supply. With even greater urgency placed on exploration opportunities and the potential for higher valuations of assets such as the Moruogu Tong Mine, we also recently announced plans to increase investments in the Moruogu Tong Mine. We are also evaluating other attractive business opportunities and believe that we will be able to further leverage our expertise and capital to create even greater value for shareholders."
Financial Results for the Twelve Months Ended December 31, 2021
Net loss for the twelve months ended December 31, 2021 was approximately CNY54.97 million (approximately US$8.65 million) as compared to net profit of approximately CNY22.92 million (approximately US$3.61 million) for the twelve months ended December 31, 2020. The turn to loss in 2021 from profit in 2020 was mainly due to the recognition of fair value loss of approximately CNY38.35 million (approximately US$6.03 million) in the twelve months ended December 31, 2021 and fair value gain of approximately CNY31.33 million (approximately US$4.93 million) in the twelve months ended December 31, 2020, relating to the Company's holdings in Feishang Anthracite Resources Limited, a company listed on the Hong Kong Stock Exchange, designated as financial assets at fair value through profit or loss, and the impact of warrants issued to institutional investors in a private placement in January 2021, which were designated as derivative financial liabilities.
The Company had a cash balance of approximately CNY58.36 million (approximately US$9.18 million) at December 31, 2021.
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, 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 in a concurrent private placement, warrants initially exercisable for the purchase of an aggregate of 1,584,000 of its common shares with an initial exercise price of US$2.35 per share. Because the changes in equity from this private placement transaction are dominated in US$, the US$ amount is the actual transaction amount and the corresponding CNY amount was translated from US$ at the applicable exchange rate as of the transaction date, January 22, 2021.
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 provision of equipment for rural wastewater treatment, engineering, procurement and construction services related to wastewater treatment in the PRC, 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.
