nan nan resources enterprise (1229) Snapshot

The board of directors of Nan Nan Resources Enterprise Limited announced that based on the information currently available, the annual results of the Group for the year ended 31 March 2013 are expected to record a net loss as compared to a profit for the year ended 31 March 2012, which was mainly due to the reduction in the value of the inventories of the Company and the cancellation of the value of the exploration permit owned by Qitai County Zexu Trading Company Limited.

Nan Nan Resources Enterprise Limited announced unaudited consolidated earnings results for the six months ended September 30, 2012. For the period, the company reported turnover of HKD 94,052,000 compared to HKD 90,174,000 a year ago. Profit before tax was HKD 17,418,000 compared to loss before tax of HKD 1,483,000 a year ago. Profit attributable to owners of the company was HKD 16,307,000 or 0.83 cents per diluted share compared to loss attributable to owners of the company of HKD 3,125,000 or 0.41 cents per diluted share a year ago. During the period, the Group acquired property, plant and equipment with a cost of HKD 958,000 compared to HKD 150,000 a year ago. Reasons for increase in turnover were the increase in average selling price for coal per tone.

Nan Nan Resources Enterprise Limited provided earnings guidance for the six months ended September 30, 2012. The board of directors of Nan Nan Resources Enterprise Limited informed to the shareholders of the company and potential investors that based on the information currently available, the unaudited interim results of the group for the six months ended September 30, 2012 are expected to record a net profit as compared to a loss for the corresponding period ended September 30, 2011, which was mainly due to the decrease in costs of sales, increase in profit margin and decrease in the valuation amount of the convertible bonds of the company during such period.