China Daye Announces 2012 Annual Results<0066.HK>

Wed Mar 27, 2013 12:24am EDT

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Further Enhances Production Output and Achieves Sustainable Business Development
HONG KONG,  March 27, 2013  /PRNewswire/ --  

Results Highlights:

* Revenue was approximately  RMB28,878 million, up of 6.4% year-on-year.  
* Gross profit was approximately  RMB863 million, down 6.3% year-on-year.  
* Profit attributable to equity holders was  RMB157 million, up 5.3%
* Basic earnings per share were  RMB0.96 cent.

China Daye Non-Ferrous Metals Mining Limited  ("China Daye" or the "Company")
(Stock Code: 00661.HK) announced its audited consolidated annual results of the
Company and its subsidiaries (the "Group") for the year ended  31 December 2012 
(the "Period").

In 2012, the production and operations of the Group have changed significantly,
and they managed to maintain stable and rapid development through various
enhancements. In  March 2012, the Groups completed its reverse takeover of Daye
Nonferrous Metals Co., Ltd. ("Daye Metal"). This was a major strategic move by
China's Daye's parent company, Daye Nonferrous Metals Corporation Holdings
Limited (the "Parent Company"). It floated the premier assets of the Parent
Company through its listing platform,  China Daye. The Parent Company injected
its four mines located in the  Hubei  province, PRC (being, Tonglvshan Mine,
Fengshan Mine, Tongshankou Mine and Chimashan Mine) to the Group. This lays a
solid foundation for the robust growth of the Group's operations. In the second
half of 2012, the Group entered into a memorandum of understanding (the "MOU")
in which the Parent Group proposed within the next three to five years, to
inject the interest in four existing mines currently held by the Parent Group
into the Company. During the Period, the Group's revenue increased by 6.4%
year-on-year to  RMB28,878 million; gross profit decreased by 6.3% year-on-year
to  RMB863 million. Profit attributable to equity holders rose by 5.3% to 
RMB157 million, and basic earnings per share decreased from  RMB0.43 cents  to 
RMB0.96 cents.

Mr.  Zhang Lin, Chairman of  China Daye, said, "In 2012, the prices of
non-ferrous metal products dropped while the prices of energy resources remained
at high level and labor cost increased substantially. They were impacted by the
unstable and deteriorating European debt crisis, persistent depression of global
economy and slowdown in the economic growth of China. During the Period, the
Group managed to overcome the adverse impact brought by the stringent
macro-economic environment and completed reorganization. The Group continued to
improve its production facilities, operations and management, thereby ensuring
smooth running and rapid growth of the Group. It also implemented projects for
prospecting of replacement resources in the State's old mines and re-exploration
of its mines. It also made new achievements in mineral resources exploitation.
In addition, we exceeded our prospecting targets for the whole year. The Ausmelt
furnace ancillary facility was smoothly constructed and commenced operation
during the Period.  

Optimized production process to achieve production targets

During the Period, the Group optimized its production process and achieved its
expected production targets with operations running at full capacity. For the
year ended  31 December 2012, the output of all products reported an increase.
The Group produced a total of approximately 22,000 tonnes of mined copper, up
approximately 6.1% year-on-year. Copper cathode production amounted around
275,200 tonnes, up 1.7% year-on-year. Precious metal production was
approximately 397.12 tonnes  (including approximately 7,754 kg of gold, 389.14
tonnes of silver, 13 kg of platinum and 201 kg of palladium), up approximately
9.7% year-on-year. Chemical production was approximately 790,800 tonnes
(including sulfuric acid), up approximately 14.3% year-on-year. Iron concentrate
production was approximately 271,000 tonnes.

Continuous strong support from the Parent Company with re-injection of premier

In  November 2012, the Company and Daye Nonferrous Metals Corporation Holdings
Limited (the "Parent Company", together with its subsidiaries, the "Parent
Group") entered into a MOU. The Parent Group has proposed injecting the interest
in four existing mines currently held by the Parent Group into the Company
within the next three to five years. These mines include a Guokesu gold mine in
the Republic of  Kyrgyzstan, a Jilongshan gold mine in  Hubei Province, a Lini
lake copper-iron mine in  Hubei Province  and a multi-metal mine at Zedang in
Tibet. In addition, the Company will be injected two new mines in  Hubei
Province  that proposed to be acquired by the Parent Group from the relevant
government authorities in  China, including a rutile mine in Zaoyang and niobium
and cerium rare-earth mine in Miaoya, Zhushan. The signing of the MOU is in the
best interests of the Company and its shareholders. It is also a major strategic
move by  China Daye's parent company to float the premier assets of the Parent

An analysis of the Group's revenue by major product and service categories:

                                      For the year ended 31 December               
 (RMB'000)                            2012              2011              change  
 Sales of goods                       28,711,872        26,938,291        +6.6    
 Copper cathodes                      20,091,529        19,170,117        +4.8    
 Other copper products                588,689           663,502           -11.3   
 Gold and other gold products         4,862,223         3,958,785         +22.8   
 Silver and other silver products     2,514,869         2,396,505         +4.9    
 Sulphuric and sulphuric concentrate  226,041           268,159           -15.7   
 Iron ores                            232,107           300,387           -22.7   
 Others                               196,414           180,836           +8.6    
 Rendering of services                166,251           206,468           -19.5   
 Copper processing                    152,709           197,384           -22.6   
 Others                               13,542            9,084             +49.1   
 Total Revenue                        28,878,123        27,144,759        +6.4    

Business outlook

The global economy remains uncertain while China economy is undergoing
structural adjustments. The slowdown in economic growth coincides with soaring
costs. The global economy is unstable and shows few signs of recovery, which we
believe will bring greater challenges to the Group. The market expects the
non-ferrous metal industry to show signs of stability with an upward trend in
production growth and improvement in efficiency in 2013. The prices of
non-ferrous metals are expected to increase as compared to 2012. According to
the '12th Five-year Development Plan' of China, the launch and implementation of
the 'Energy-saving Subsidy Program' is expected to lead to further increases in
consumption demand for non-ferrous metals, in particular, the products refined
and processed from non-ferrous metals.  

Mr.  Zhang Lin  concluded, "Looking ahead, the Group will push ahead with its
five core development strategies, i.e. 'resources enhancement, scale expansion,
structural optimization, efficient use of capital markets and growth of talent'.
It will continue to optimize its production process, enhance production
efficiency, optimize marketing and trading operations, and improve its
efficiency. Meanwhile, we will enhance our market analytical abilities, and
actively expand the market. We will also push vigorously forward with project
construction so as to increase the competitive strengths of our various business
segments. More importantly, we will continue to exercise stricter cost control
and use resources more efficiently, achieving continuous growth of our business
and creating greater returns for shareholders."

About  the Parent Company

Daye Nonferrous Metals Corporation Holdings Limited ("Daye Nonferrous Metals")
was founded by the State-owned Assets Supervision and Administration Commission
of Hubei Provincial People's Government and China Nonferrous Metal Mining
(Group) Co., Ltd. After several years of development, it evolved into a leading
state-owned integrated copper enterprise with a value chain encompassing
exploration, mining, smelting, chemicals, rolling processing, waste heat power
generation, waste recycling, research and design, geological survey, shaft
engineering, construction and installation, machinery repair and manufacturing
and transportation. In 2010, it was selected as a major enterprise promoted by
the government in the demonstration zone for the materials industry and newly
industrialized enterprises in the central China. Daye Nonferrous Metals has a
global business network that is spread around the world. It currently has over
20 wholly owned subsidiaries, associates and holding companies in southeastern 
Hubei, the Yangtze River Delta, the Pearl River Delta,  Hunan, Xinjiang,  Hong
Kong,  Kyrgyzstan  and  Mongolia.

About  China Daye

China Daye  and its subsidiaries are mainly engaged in exploration, mining and
trading of non-ferrous metals.

Investor and Media Enquiries:

 PRChina Limited                                                                                          
 Camille Xiong / David Shiu / Henry Chik / Ivan Kau                                                       
 Tel: 852-2522 1838 / 852-2522 1368 / 852-2521 2823                                                       
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SOURCE  China Daye Non-Ferrous Metals Mining Limited

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