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.
