CHINA NATURAL RESOURCES REPORTS FULL YEAR 2024 RESULTS

Rhea-AI Summary

China Natural Resources (NASDAQ: CHNR) reported its financial results for FY2024. The company reduced its net loss to CNY3.16 million (US$0.43 million) from CNY12.44 million in 2023. Administrative expenses decreased by CNY5.68 million to CNY7.20 million due to reduced professional fees. Fair value gain on financial instruments increased to CNY4.00 million from CNY0.85 million. The company continues to explore value opportunities at the Wulatehouqi Moruogu Tong Mine despite challenging market conditions from trade frictions and geopolitical tensions. Other income significantly decreased to CNY2,000 from CNY3.74 million in 2023, mainly due to the absence of government compensation received in 2023 for terminated mine exploration rights.

Positive

• Net loss decreased by 74.6% to CNY3.16 million in 2024 from CNY12.44 million in 2023
• Administrative expenses reduced by CNY5.68 million through expense control
• Fair value gain on financial instruments increased by CNY3.15 million to CNY4.00 million

Negative

• Other income significantly decreased to CNY2,000 from CNY3.74 million in 2023
• Cash and cash equivalents declined to CNY3.08 million from CNY4.75 million
• Challenging market conditions due to trade frictions and geopolitical tensions

Insights

Financial Analyst

CHNR reduced its net loss by 75% to $0.43M despite revenue challenges, with financial improvements driven by cost controls and warrant valuations.

China Natural Resources (CHNR) has managed to significantly narrow its losses in 2024, with net loss decreasing by 75% from CNY12.44 million in 2023 to CNY3.16 million ($0.43 million) in 2024. This improvement occurred despite challenging market conditions referenced by management regarding trade frictions and geopolitical tensions.

The company achieved this loss reduction through two primary drivers: First, administrative expenses decreased by CNY5.68 million (44%), mainly from reduced professional fees through expense control initiatives. Second, they recorded a CNY4.00 million fair value gain on financial instruments (primarily from warrant valuation fluctuations), representing a 371% increase from 2023.

However, CHNR faces some concerning fundamentals. The company has limited revenue generation, with no reported revenue figures in the income statement. Cash reserves have declined by 35% to just $422,000, which could become problematic given the company's ongoing operational costs. Additionally, total liabilities remain substantial at $23.68 million, though they decreased slightly from 2023.

The company appears to be in transition, focusing on exploring the Wulatehouqi Moruogu Tong Mine while evaluating how to leverage its mining expertise. Management's cautious approach is evident in their "prudent investment" language and acknowledgment of macroeconomic challenges.

Balance sheet restructuring is notable, with a significant shift of liabilities from current to non-current status. This improves the company's short-term liquidity position dramatically, as current liabilities decreased from CNY177.81 million to CNY17.32 million. However, this merely represents a maturity extension rather than debt reduction, as the total liability amount remained relatively stable.

For investors, the key concern remains CHNR's lack of revenue-generating operations and continued cash burn, despite the improved loss profile. The company needs to translate its exploration activities into commercial operations to achieve sustainable profitability.

HONG KONG, May 15, 2025 /PRNewswire/ -- China Natural Resources Inc. (NASDAQ: CHNR) (the "Company") today announced its results of operations for the year ended December 31, 2024. 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 = CNY7.2980 as quoted by www.ofx.com on December 31, 2024, except as otherwise disclosed.

Mr. Wong Wah On Edward, Chairman of the Company, commented, "We are prudently investing in our exploration activities as we continue to evaluate the further value from the Wulatehouqi Moruogu Tong Mine. The intensifying trade frictions and geopolitical tensions significantly and adversely impact market sentiment and the world economy. Despite the challenges, we are evaluating to leverage our mining expertise as we continue to execute on our long-term business strategy and build value for our shareholders."

Financial Results for the Twelve Months Ended December 31, 2024

Administrative expenses decreased by CNY5.68 million (US$0.78 million) from CNY12.88 million for the year ended December 31, 2023 to CNY7.20 million (US$0.99 million) for the year ended December 31, 2024. The decrease was mainly caused by the decrease of professional fees (mainly legal and audit fees) as a result of expense control.

Other income decreased by CNY3.74 million (US$0.51 million) from CNY3.74 million for the year ended December 31, 2023 to CNY2.00 thousand for the year ended December 31, 2024. The decrease in other income was mainly caused by government compensation received in 2023 for termination of 5 mine exploration rights in Dengkou County, Inner Mongolia Autonomous Region.

Fair value gain on financial instruments, net increased by CNY3.15 million (US$0.43 million) from CNY0.85 million for the year ended December 31, 2023 to CNY4.00 million (US$0.55 million) for the year ended December 31, 2024. The increase was caused by the fluctuation of fair values of the Company's outstanding warrants.

The loss for the year from discontinued operations, net of tax decreased by CNY4.11 million from CNY4.11 million for the period ended July 31, 2023 to nil for the year ended December 31, 2024. The decrease was a result of the disposal of PSTT in 2023.

As a result of the foregoing, our net loss decreased by CNY9.28 million (US$1.27 million), from CNY12.44 million for the year ended December 31, 2023 to CNY3.16 million (US$0.43 million) for the year ended December 31, 2024. 

 

 

CHINA NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024
(Amounts in thousands, except share and per share data)
					Year Ended December 31,
					2022				2023				2024				2024
					CNY				CNY				CNY				US$
CONTINUING OPERATIONS
Administrative expenses						(25,248)				(12,883)				(7,199)				(986)
Other income						699				3,742				2				1
Fair value gain on financial instruments, net						1,007				847				3,996				548
Finance costs						191				(48)				(28)				(4)
Finance income						13				5				69				9
LOSS BEFORE INCOME TAX						(23,338)				(8,337)				(3,160)				(432)
Income tax expense						—				—				—				—
LOSS FOR THE YEAR FROM CONTINUING OPERATIONS						(23,338)				(8,337)				(3,160)				(432)
DISCONTINUED OPERATIONS
(Loss)/profit for the year from discontinued operations, net    of tax						1,042				(4,106)				—				—
LOSS FOR THE YEAR						(22,296)				(12,443)				(3,160)				(432)
ATTRIBUTABLE TO:
Owners of the Company
From continuing operations						(23,338)				(8,337)				(3,160)				(432)
From discontinued operations						(1,285)				(5,504)				—				—
Non-controlling interests
From continuing operations						—				—				—				—
From discontinued operations						2,327				1,398				—				—
LOSS FOR THE YEAR						(22,296)				(12,443)				(3,160)				(432)
LOSS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY:
Basic and diluted
- For loss from continuing operations						(2.85)				(1.01)				(0.33)				(0.04)
- For loss from discontinued operations						(0.15)				(0.67)				—				—
- Loss per share						(3.00)				(1.68)				(0.33)				(0.04)

 

 

CHINA NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024
(Amounts in thousands)
		Year Ended December 31,
		2022				2023				2024				2024
		CNY				CNY				CNY				US$
LOSS FOR THE YEAR			(22,296)				(12,443)				(3,160)				(432)
Other comprehensive income/(loss) that will be reclassified to profit    or loss in subsequent periods:
Foreign currency translation adjustments of the subsidiaries			(8,094)				(2,810)				(4,053)				(556)
Other comprehensive (loss)/income that will not be reclassified to    profit or loss in subsequent periods:
Foreign currency translation adjustments of the Company			9,593				1,421				5,590				766
Total other comprehensive (loss)/income for the year, net of tax			1,499				(1,389)				1,537				210
TOTAL COMPREHENSIVE LOSS FOR THE YEAR			(20,797)				(13,832)				(1,623)				(222)
Attributable to:
Owners of the Company
From continuing operations			(21,839)				(9,726)				(1,623)				(222)
From discontinued operations			(1,285)				(5,504)				—				—
Non-controlling interests
From continuing operations			—				—				—				—
From discontinued operations			2,327				1,398				—				—
TOTAL COMPREHENSIVE LOSS FOR THE YEAR			(20,797)				(13,832)				(1,623)				(222)

 

 

CHINA NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2023 AND 2024
(Amounts in thousands)
		December 31,
		2023				2024				2024
		CNY				CNY				US$
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment			53				49				7
Right-of-use assets			346				—				—
Other non-current assets			247,530				256,484				35,144
TOTAL NON-CURRENT ASSETS			247,929				256,533				35,151
CURRENT ASSETS
Prepayments			1,107				1,242				170
Other receivables			18				32				4
Cash and cash equivalents			4,753				3,082				422
TOTAL CURRENT ASSETS			5,878				4,356				596
TOTAL ASSETS			253,807				260,889				35,747

 

 

CHINA NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2023 AND 2024
(Amounts in thousands)
		December 31,
		2023				2024				2024
		CNY				CNY				US$
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables			100				280				38
Other payables and accruals			82,610				3,536				485
Derivative financial liabilities			—				2,138				293
Lease liabilities			360				—				—
Due to related companies			9,069				11,361				1,557
Due to the Shareholder			85,673				—				—
TOTAL CURRENT LIABILITIES			177,812				17,315				2,373
NON-CURRENT LIABILITIES
Other payables			—				76,945				10,543
Due to the Shareholder			—				78,567				10,766
TOTAL NON-CURRENT LIABILITIES			—				155,512				21,309
TOTAL LIABILITIES			177,812				172,827				23,682
EQUITY
Issued capital			450,782				450,782				61,768
Other capital reserves			758,775				772,465				105,845
Accumulated losses			(1,122,851)				(1,126,011)				(154,291)
Other comprehensive losses			(10,711)				(9,174)				(1,257)
EQUITY ATTRIBUTABLE TO OWNERS    OF THE COMPANY			75,995				88,062				12,065
NON-CONTROLLING INTERESTS			—				—				—
TOTAL EQUITY			75,995				88,062				12,065
TOTAL LIABILITIES AND EQUITY			253,807				260,889				35,747

  

The condensed consolidated statements of profit or loss of the Company for the year ended December 31, 2024 and 2023, and the condensed consolidated statements of financial position of the Company as of December 31, 2024 and December 31, 2023, 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, 2024 contained in the Company's Annual Report on Form 20-F as filed with the Commission on May 15, 2025.

About China Natural Resources:

China Natural Resources, Inc. (NASDAQ: CHNR) is currently a holding company that operated in exploration and mining business. Upon the completion of Precise Space-Time Technology disposition on July 28, 2023, the Company is engaged in the acquisition and exploitation of mining rights in Inner Mongolia, including exploring for lead, silver and other nonferrous metal, and is actively exploring business opportunities in other non-natural resource sectors. In 2023, China Natural Resources agreed to acquire Williams Minerals, which operates a lithium mine in Zimbabwe, for a maximum consideration of US$1.75 billion. Currently, we are actively working with all involved parties to close the deal by December 2025. Williams Minerals is owned by China Natural Resources' controlling shareholder, Feishang Group Limited, and a non-affiliate, Top Pacific (China) Limited.

Forward-Looking Statements:

This press release includes forward-looking statements within the meaning of the U.S. federal securities laws. These statements include, without limitation, statements regarding the intent, belief and current expectations of the Company, its directors or its officers with respect to: the potential presented by the exploration and mining sector in the People's Republic of China (the "PRC") and other industry sectors in the PRC generally; the impact on the Company's financial position, growth potential and business of in the sale of Precise Space-Time Technology and Shanghai Onway specifically; the experience, supply chain and customer relationships and market insights of the Precise Space-Time Technology team; and the Company's ability to locate and execute on strategic opportunities in non-natural resources sectors. Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statement as a result of various factors. Among the risks and uncertainties that could cause the Company's actual results to differ from its forward-looking statements are 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 regarding our ability to acquire a mining permit and to extract mineral reserves located in the Moruogu Tong Mine in an economically feasible manner; uncertainties related to our ability to fund operations and capital expenditures; uncertainties relating to the acquisition of Williams Minerals that were not discovered by us through our due diligence investigation; uncertainties related to the completion of the acquisition of Williams Minerals which is conditional upon satisfaction or waiver of various conditions; failure to complete the acquisition of Williams Minerals may have a material adverse effect on the Company's business, financial condition and results of operations; uncertainties related to the realization of the anticipated benefits associated with it; the potential lack of appetite for the Company's current holdings as consideration for a transaction; uncertainties related to geopolitical events and conflicts, such as the conflict between Russia and Ukraine; uncertainties regarding the impact of climate change on our operations and business; 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 governmental, economic and political circumstances in the PRC; uncertainties related to the Company's ability to fund operations; uncertainties related to possible future increases in operating expenses, including costs of labor and materials; uncertainties related to the political situation between the PRC and the United States, and potential negative impacts on companies with operations in the PRC that are listed on exchanges in the United States; and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. When, in any forward-looking statement, the Company, or its management, expresses an expectation or belief as to future results, that expectation or belief is expressed in good faith and is believed to have a reasonable basis, but there can be no assurance that the stated expectation or belief will result or be achieved or accomplished. Except as required by law, the Company undertakes no obligation to update any forward-looking statements.

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SOURCE China Natural Resources, Inc.

FAQ

What was CHNR's net loss for fiscal year 2024?

China Natural Resources reported a net loss of CNY3.16 million (US$0.43 million) for fiscal year 2024, down from CNY12.44 million in 2023.

How did CHNR's administrative expenses change in 2024?

Administrative expenses decreased by CNY5.68 million to CNY7.20 million in 2024, mainly due to reduced professional fees (legal and audit fees) as a result of expense control.

What caused the decrease in CHNR's other income for 2024?

Other income decreased from CNY3.74 million to CNY2,000 in 2024, mainly due to the absence of government compensation received in 2023 for termination of 5 mine exploration rights in Dengkou County.

What was CHNR's cash position at the end of 2024?

CHNR's cash and cash equivalents were CNY3.08 million (US$422,000) as of December 31, 2024, compared to CNY4.75 million at the end of 2023.