#China #Hong Kong #mining #China Natural Resources #financial report

China Natural Resources Reports 2024 Financial Results

On May 15, 2025, China Natural Resources Inc. (NASDAQ: CHNR) unveiled its financial outcomes for the fiscal year ending December 31, 2024. The company, which focuses on the exploration and acquisition of mining rights, has navigated a complex market environment characterized by intensifying geopolitical tensions and trade frictions that have pressured global investment climates.

Chairman's Insights

Mr. Wong Wah On Edward, the company’s chairman, offered commentary on the challenging landscape, emphasizing a prudent investment strategy geared towards enhancing value from the Wulatehouqi Moruogu Tong Mine. According to his remarks, the business is keenly focused on utilizing its mining expertise while remaining committed to a long-term business strategy that aims to generate growth for its shareholders despite external economic pressures.

Financial Highlights

The financial report revealed a net loss of CNY 3.16 million (approximately USD 432,000) for the year, a marked improvement from the previous year's loss of CNY 12.44 million. This decrease in losses can largely be attributed to a reduction in administrative expenses and the disposal of non-performing assets.

• - Administrative Expenses: These expenses saw a considerable reduction, decreasing from CNY 12.88 million in 2023 to CNY 7.20 million in 2024, primarily due to stricter expense controls and reductions in legal/audit fees.
• - Other Income: The company recorded CNY 2.00 thousand in other income for 2024, down from CNY 3.74 million in the prior year, influenced by a one-time government compensation payment received in 2023.
• - Fair Value Gains: An uptick was noted in fair value gains of financial instruments, which rose to CNY 4.00 million, up from CNY 0.85 million in 2023. This increase was driven by fluctuations in the fair value of the company's outstanding warrants.

Discontinued Operations

China Natural Resources saw a significant shift in its portfolio after disposing of its asset in Precise Space-Time Technology, leading to a cessation of ongoing losses from discontinued operations by the end of 2024. This strategic move is expected to streamline operations and refocus resources on more promising ventures within the mining sector.

Long-term Outlook

The company is actively pursuing growth opportunities in non-natural resource sectors as well, including a significant agreement to acquire Williams Minerals, which holds a lithium mine in Zimbabwe. The acquisition, capped at USD 1.75 billion, is anticipated to enhance China Natural Resources’ market position and competitiveness, aiming for completion by December 2025.

As China Natural Resources continues to adjust to market conditions and pursue strategic asset management, its ability to build shareholder value amidst a backdrop of uncertainty remains to be seen. The company remains committed to navigating challenges and exploring potential pathways for future growth, providing further insight into its evolving business strategy.

Conclusion

The results from 2024 provide a mixed but cautiously optimistic picture for China Natural Resources Inc., underlining both the difficulties faced and the company's proactive decisions to maintain financial health and strategic focus. As it embarks on new ventures and optimizes existing operations, stakeholders will be keeping a close watch on its developments in the coming years.