Company: CHNR
Filing Date: 2025-12-31
Form Type: 6-K
Source: 0001553350-25-000219
Chunk: 25

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-12-31
Form: 6-K
Chunk 25
---
 subsidiaries incorporated in the BVI are not subject to tax on income
or capital gains.

The Hong Kong Profits Tax rate
is 16.50%. The Company’s Hong Kong subsidiaries have both Hong Kong–sourced and non-Hong Kong–sourced income. The latter
is not subject to Hong Kong Profits Tax and the related expenses are non-tax-deductible. For the Hong Kong–sourced income, no provision
for Hong Kong Profits Tax was made as such operations sustained tax losses during the period ended June 30, 2024 and 2025. Furthermore,
there are no withholding taxes in Hong Kong on the remittance of dividends.

Under the Law of the PRC on
corporate income tax and the Implementation Regulation of the Corporate Income Tax Law (collectively, the “CIT Law”), the
Company’s PRC subsidiaries are generally subject to PRC corporate income tax at the statutory rate of 25% on their respective estimated
assessable profits for the six months ended June 30, 2024 and 2025.

LOSS FOR THE PERIOD

As a result of the foregoing,
our net loss increased by CNY1.15 million (US$0.16 million), from CNY0.12 million for the period ended June 30, 2024 to CNY1.27 million
(US$0.18 million) for the period ended June 30, 2025.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary
liquidity needs are to fund operating expenses, capital expenditures and acquisitions. To date, the Company financed its working capital
requirements and capital expenditures through internally generated cash from prior years, non-interest-bearing loans from the related
parties, funds provided pursuant to the mutual cooperation agreement with Bayannaoer Jijincheng Mining Co., Ltd., and the issuance of
shares and warrants in 2024. As the Wulatehouqi Moruogu Tong Mine ("Moruogu Tong Mine") is still in the pre-revenue exploration
stage, the Company expects our operations to continue to be funded through internally generated cash reserves from prior years, non-interest-bearing
loans from related parties, and funds provided pursuant to the Cooperation Agreement. Feishang Group Limited and Feishang Enterprise Group
Company Limited, related parties which have provided non-interest-bearing loans, have confirmed they will not recall any amounts due to
them until the Group is in a position to settle the amounts due