China Metal Resources Utilization Limited Announces 2020 Int

|Aug 31|magazine9 min read

HONG KONG, September 1, 2020 /PRNewswire/ -- China Metal Resources Utilization Limited ("CMRU" or "the Company") (Stock Code: 1636.HK), announced its 2020 interim results for the six months ended 30 June 2020 (the "Period").

The Coronavirus Disease 2019 ("COVID-19") pneumonia epidemic has caused a major impact on the world economy. China's economic growth in the first half of 2020 has dropped to the lowest level in history, and real GDP has fallen by 1.6% year-on-year. This is the first half-year negative growth since the establishment of the GDP quarterly accounting system in 1992, the shock to the Chinese economy is far exceeding the impact from the international financial crisis in 2008. Meanwhile, the PRC has implemented a series of precautionary and control measures to cope with the pandemic, which have caused certain impacts on the PRC's business and economic activities. In this difficult operating environment, the Company's revenue amounted to RMB10,186.4 million and the net loss attributable to the shareholders of the Company was approximately RMB156.2 million, the decrease was mainly due to the suspension of production following the outbreak of COVID-19 in early of 2020.

In addition, the decline in industrial production across China has led to a significant reduction in the demand for basic raw materials, especially metal materials. As a result, during the period, the Company's revenue from copper products decreased by 12.7%, amounted to RMB10,165.4 million, including revenue from trading of electrolytic copper of RMB8,209.5 million and revenue from recycled copper products of RMB1,955.9 million, reflecting mainly a decrease of 5.8% in the sales volume of all copper products from the same period last year of 273,665 metric tons to 257,664 metric tons, and a decrease of 7.2% in average selling price from the same period last year of RMB42,532 per ton to RMB39,452 per ton. Besides, revenue from sales of power transmission and distribution cables, and communication cables amounted to RMB9.6 million and RMB8.8 million, respectively.

Mr. Yu Jianqiu, Chairman of CMRU, concluded, "The operating environment was challenging to all business in the first half of 2020. Although the pandemic has so far caused operational delays to our business, the Group has put in place contingency measures to reduce the impact from this outbreak. In order to further support the Group's business development, the management is implementing a series of financing plans to consolidate our financial strength so that we will be able to cope with possible headwinds as well as being able to take advantage of future opportunities if and when they arise to help grow our business and enhance our shareholder value."

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About China Metal Resources Utilization Limited

China Metal Resources Utilization Limited is a leading manufacturer in scrap copper industry. The Company has a fully integrated value chain with a production and service business model, with business consisting of scrap metal recycling, standard processing and metal deep processing products. By making use of the internet, the Company also provides a comprehensive platform combined with recycle metal information, warehouse logistics and financial services, providing services including recycled metal production, sale and related services. China Metal Resources is mainly involved in the sale of deep processed metal products and scrap metal value chain integrated services, in which deep processing metal includes the processing of recycled scrap copper, scrap aluminium, turning them into different copper and aluminium products such as copper rod, copper bar, copper wire as well as cable, wire and network cable; while scrap metal value chain integrated services include standard metal recovery processing, warehouse logistics, transaction settlement and financial services.

The press release is distributed by Vitalink Consultants on behalf of China Metal Resources Utilization Limited.

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SOURCE China Metal Resources Utilization Limited