Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 4

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 4
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including our Common Shareholders)
may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of Common Shares, if such income is treated
as sourced from within China. An “indirect transfer” of PRC assets, including a transfer of equity interests in an unlisted
non-PRC holding company of a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct
transfer of the underlying PRC assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose
of avoiding payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise
income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes,
currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. See “Risk Factors - Risks Relating
to Our PRC Operations and Doing Business in the PRC - We may be classified as a “resident enterprise” for PRC enterprise income
tax purposes; such classification could result in unfavorable tax consequences to us and our non-PRC shareholders” on page 18 of
the accompanying prospectus and pages 14 through 15 of our annual report on Form 20-F for the fiscal year ended December 31, 2024.

Pursuant to the Holding Foreign Companies Accountable
Act, as amended by the Consolidated Appropriations Act, 2023, or the HFCAA, if the SEC determines that we have filed audit reports issued
by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years, the SEC will prohibit
our shares from being traded on a national securities exchange or in the over-the-counter trading market in the United States. On December
16, 2021, the PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public
accounting firms headquartered in mainland China and in Hong Kong, and our auditor was subject to that determination. On December 15,
2022, the PCAOB issued a report that vacated its December 16, 2021 determination and removed mainland China and Hong Kong from the list
of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms. Each year, the PCAOB will
determine whether it can