Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 81

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 81
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grown in recent years. We expect that our labor costs, including wages and employee benefits, will continue to increase. Unless we are
able to pass on these increased labor costs to our customers who pay for our services, our profitability and results of operations may
be materially and adversely affected. The PRC Labor Contract Law and its implementing rules impose requirements concerning contracts
entered into between an employer and its employees and establishes time limits for probationary periods and for how long an employee
can be placed in a fixed-term labor contract. We cannot assure you that our or our subsidiaries’ employment policies and practices
do not, or will not, violate the Labor Contract Law or its implementing rules or that we will not be subject to related penalties, fines
or legal fees. If we or our subsidiaries are subject to large penalties or fees related to the Labor Contract Law or its implementing
rules, our business, financial condition and results of operations may be materially and adversely affected.In addition, according to the Labor Contract Law and its implementing rules, if we intend to enforce the non-compete provision
with an employee in a labor contract or non-competition agreement, we have to compensate the employee on a monthly basis during the term
of the restriction period after the termination or ending of the labor contract, which may cause extra expenses to us. Furthermore, the
Labor Contract Law and its implementing rules require certain terminations to be based upon seniority rather than merit, which
significantly affects the cost of reducing workforce for employers. In the event we decide to significantly change or decrease our workforce
in the PRC, the Labor Contract Law could adversely affect our ability to enact such changes in a manner that is most advantageous to
our circumstances or in a timely and cost-effective manner, thus our results of operations could be adversely affected.

If
the chops of our PRC subsidiaries are not kept safely, are stolen or are used by unauthorized persons or for unauthorized purposes, the
corporate governance of these entities could be severely and adversely compromised.

In China, a company chop or
seal serves as the legal representation of the company towards third parties even when unaccompanied by a signature. Each legally registered
company in China is required to maintain a company chop, which must be registered with the local Public Security Bureau. In addition to
this mandatory company chop, companies may have several other chops which can be used for specific purposes. The chops of our PRC subsidiaries
are generally held securely by personnel designated or approved by us in accordance with our internal