China Natural Resources(CHNR) - 2024 Q4 - Annual Report

Financial Performance - For the six months ended June 30, 2024, the company reported a loss of CNY 122,000 compared to a loss of CNY 9,461,000 for the same period in 2023, representing a significant reduction in losses [17]. - Total comprehensive income for the period was CNY 8,227,000, a turnaround from a comprehensive loss of CNY 9,843,000 in the prior year [18]. - The company recorded a fair value gain on financial instruments of CNY 3,862,000 in the first half of 2024, a significant improvement from a loss of CNY 86,000 in the same period of 2023 [17]. - The loss for the period from continuing operations narrowed significantly to CNY 122 (US$ 17) compared to a loss of CNY 4,506 in the same period of 2023 [44]. - Basic and diluted loss per share for the six months ended June 30, 2024, was CNY 0.01 (US$ 0.00), a substantial improvement from CNY 1.31 in 2023 [50]. - The net loss decreased to CNY 0.12 million (US$ 0.02 million) for the period ended June 30, 2024, from CNY 9.46 million in the same period of 2023, a reduction of CNY 9.34 million (US$ 1.29 million) [113]. Cash Flow and Liquidity - Cash and cash equivalents increased to CNY 8,779,000 as of June 30, 2024, up from CNY 4,753,000 at the end of 2023, indicating improved liquidity [19]. - For the six months ended June 30, 2024, the company reported a net cash flow from operating activities of CNY (11,846) compared to CNY 3,047 in the same period of 2023, indicating a significant decline in operational cash flow [23]. - The net increase in cash and cash equivalents for the six months ended June 30, 2024, was CNY 3,986, compared to an increase of CNY 397 in the same period of 2023 [23]. - As of June 30, 2024, the company had net current liabilities of CNY 157,971 (US$ 21,737), raising concerns about liquidity [28]. - The current ratio improved from 0.03x on December 31, 2023, to 0.06x on June 30, 2024 [118]. - Working capital improved from (CNY171,934) to (CNY157,971) between December 31, 2023, and June 30, 2024 [118]. Asset and Liability Management - Total assets grew to CNY 264,159,000 as of June 30, 2024, compared to CNY 253,807,000 at the end of 2023, reflecting a positive trend in asset management [20]. - Current liabilities decreased to CNY 167,838,000 as of June 30, 2024, down from CNY 177,812,000 at the end of 2023, suggesting better management of short-term obligations [20]. - The company’s equity attributable to owners increased to CNY 96,321,000 as of June 30, 2024, compared to CNY 75,995,000 at the end of 2023, reflecting improved financial health [20]. - The total liabilities decreased to CNY 167,838 (US$ 23,095) from CNY 177,812, representing a reduction of about 5.6% [43]. - The Group's total current financial liabilities were CNY 91,110 as of June 30, 2024, with no non-current liabilities reported [60]. Operational Efficiency - Administrative expenses decreased to CNY 3,996,000 in the first half of 2024, down from CNY 4,879,000 in the prior year, indicating cost control efforts [17]. - Other income for the six months ended June 30, 2024, was nil, compared to CNY 0.50 million for the same period in 2023, primarily due to prior impairments being fully written off [107]. - The company did not incur any income tax expense for the period, consistent with the previous year [17]. - The company did not recognize any impairment loss for the six months ended June 30, 2024, maintaining asset integrity [52]. Strategic Developments - The company completed the sale of 100% equity interest in Precise Space-Time Technology Limited for approximately CNY 95,761, marking a strategic exit from the wastewater treatment business [35]. - The company is acquiring 100% equity interests in Greatfame Investments Limited, which owns a mining permit for a lithium mine in Zimbabwe, with a consideration based on the quantity of lithium oxide resources [91]. - The company extended the long stop date for closing the acquisition from December 31, 2024, to December 31, 2025 [103]. Financing Activities - The company raised CNY 20,429 from the issuance of shares in 2024, contrasting with no proceeds from share issuance in 2023 [23]. - The company entered into a securities purchase agreement to issue up to 1,487,870 common shares at a price of US$2.20 per share and warrants for 1,115,903 common shares at an exercise price of US$3.00 [81]. - The gross proceeds from the offering, after deducting the fair value of warrants, amounted to CNY 15,305 (US$ 2,129) [82]. - The company incurred fees and offering expenses of CNY 5,250 (US$ 730), which included 8% of gross proceeds and other professional service expenses [83]. - The company issued a US$24,500 promissory note for the acquisition and recognized a liability of US$24,500 and other payable of US$10,500 [92]. - The company has capital commitments of CNY 2,432 (US$ 335) associated with mineral exploration for the Zimbabwean lithium mine [102].