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Tag: China Natural Resources

  • China Natural Resources (CNHR) Stock Skyrockets Amidst Market Uncertainty

    China Natural Resources, Inc. (NASDAQ: CHNR) witnessed a staggering surge in its stock price, catapulting by almost 16% in this morning’s premarket session, following a substantial 4.5% climb during the previous trading day. This surge, however, lacks a discernible catalyst, raising concerns of a potential pump-and-dump scenario.

    Company Overview and Developments

    The company, primarily engaged in lead, silver, and metal exploration in China’s Inner Mongolia Autonomous Region, operates across two segments: Wastewater Treatment and Exploration and Mining. Despite its recent market performance, the lack of significant news leaves investors grappling for insight.

    Market analysts express bearish sentiment, attributing the price surge to liquidity-driven maneuvers, with suspicions that warrants are being offloaded. While the company recently struck a deal valued at approximately $13 million, surpassing its market capitalization of $8 million, sentiments appear to have excessively inflated the stock, leaving investors vulnerable to market bubbles.

    Moreover, scant financial disclosures and unaudited reports filed with the SEC further obscure the company’s financial standing, heightening investor skepticism.

    Management Clarifications

    Management attempts to assuage concerns, emphasizing its status as a BVI holding company with operations in China and Hong Kong. However, regulatory risks loom large, with recent Chinese government actions targeting data security and anti-monopoly measures potentially impacting the company’s operations and listing status on U.S. exchanges.

    Additionally, the specter of the Holding Foreign Companies Accountable Act (HFCAA) hovers over the company, as its auditor remains subject to scrutiny by the Public Company Accounting Oversight Board (PCAOB), a crucial determinant for continued trading on U.S. markets.

    Conclusion

    Investors tread cautiously amidst the stock’s meteoric rise, mindful of underlying regulatory uncertainties and the company’s opaque financials. With risks abound, prudent assessment and due diligence remain paramount for those enticed by China Natural Resources, Inc.’s volatile market performance.

  • Stock Corrections: China Natural Resources Inc. (CHNR) Plummets After Hours

    China Natural Resources Inc. (CHNR) stock gained a huge 27.79% during regular trading on January 06. Following the gain, the stock succumbed to corrections in the after-hours session.

    On Thursday, CHNR stock closed the regular trading session at $0.8600 with a gain of $0.1870. Consequently, the stock lost 12.56% to corrections in the after-hours at $0.7520.

    The metals exploration holding company, China Natural Resources Inc. was founded in 1993. Currently, its 40.95 million outstanding shares trade at a market capitalization of $27.56 million.

    What is happening?

    On January 06, CHNR stock surged high on a hefty volume of 3.42 million, which was 2,447% of its average of 139.63K shares. While there was no news from the company, the stock reached a high of $1.09 after almost forty-five days. Given the huge gain and reaching such a high price, the stock was bound to fall under corrections. Hence, CHNR fell under corrections in the after-hours to shed its gains.

    In the bigger picture, the stock has added 48.28% in the past five days and 8.78% last month. Moreover, the stock suffered a loss of 31.75% in the past three months and 46.91% last year.

    CHNR’s Business Diversification

    On July 27, the company entered into a Sale and Purchase Agreement for acquiring 100% equity interests of Precise Space-Time Technology Limited. The consideration for the transaction was 104.1 million Chinese Yuan (US$16.1 million). Further, this consideration amount was a 20% discount to Precise Space Time’s value. Moreover, the consideration consisted of:

    • The company’s 120 million shares of Feishang Anthracite Resources Limited.
    • 3 million restricted shares of CHNR
    • Cash.

    Furthermore, the price of the above-mentioned shares was based on the five-day average closing price before July 27.

    In addition, Precise Space-Time owns 51% equity interest in Shanghai Onway Environmental Co. Ltd, through its subsidiaries.

    CHNR’s Financial Results

    On November 05, the company disclosed its unaudited financial results for the first half of 2021, which ended on June 30.

    In the first half of 2021, CHNR incurred a net loss of CNY26.74 million (US$4.14 million). This compares to a profit of CNY2.74 million (US$0.42 million) in the first half of 2020.

    At the end of the six-month period of 2021, the company had a cash balance of CNY32.54 million (US$5.04 million).

    In addition, the company had no revenues in the first half of 2021.

  • What Drove The CHNR Stock Up 40% During Extended Trading?

    On the last check Tuesday, China Natural Resources Inc. (CHNR) gained 39.71% at $1.90 in after-hours trading. CHNR stock declined -6.21% to close at $1.36, trading in a range of $1.3301 to $1.4367. A total of 3.19 million CHNR shares were traded on the day, which was above its 100-day daily average of 0.23 million shares. In the last five days, CHNR shares have lost -8.72%, while they have lost -11.69% in the last month. An acquisition agreement led to a rise in CHNR stock.

    What was the contract signed by CHNR?

    The focus of China Natural Resources is currently acquisition and exploitation of mining resources in Inner Mongolia.  CHNR is also actively exploring business opportunities outside of natural resources, such as healthcare and other non-resource sectors. CHNR is engaged in exploring for lead, silver, and other nonferrous metals.

    It was announced yesterday that China Natural Resources had acquired Precise Space-Time Technology Limited (“Precise Space-Time Technology”).

    • As estimated by an independent valuation firm, the acquisition price was approximately 104.1 million Chinese Yuan (US$16.1 million), which represents a 20% discount from Precise Space-Time Technology’s value.
    • A total of 120 million shares of Feishang Anthracite Resources Limited held by CHNR, 3 million restricted shares of CHNR, and cash will be the consideration.
    • By way of its wholly owned subsidiaries, Precision Space-Time Technology owns a 51% stake in Shanghai Onway Environmental Co., Ltd. (“Shanghai Onway”).
    • As a principally engaged in providing engineering, procurement and construction services for wastewater treatment in China, Shanghai Onway primarily provides equipment for rural wastewater treatment.
    • The mining and healthcare sector businesses of Precise Space-Time Technology fit well with CHNR’s strategic objectives.
    • CHNR is reviewing possible ways to reduce environmental impacts during mining operations and to preserve local water quality standards by leveraging Shanghai Onway.
    • Additionally, CHNR discovered a significant difference between the rural and urban sewage treatment rates in China.
    • Through the construction of sewage treatment facilities in the villages where CHNR operates, it can help close that gap.
    • During the past few years, the rural sewage treatment industry has experienced rapid growth.
    • CHNR can find opportunities outside of its current operations, in addition to leveraging valuable synergies.

    Is the recent acquisition a positive development for CHNR Stock?

    As a result of the current move, CHNR shareholders will be able to reap the benefits of a profitable business. In addition to entering an attractive environmental protection business, CHNR’s acquisition of Precise Space-Time Technology will further strengthen its long-term growth prospects. In addition to the experience, customer relationships, and valuable market insight that Precise Space-Time Technology will offer, CHNR will directly benefit from their expertise.