Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 204

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 204
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ATION |

The consolidated financial statements comprise
the financial statements of the Company and its subsidiaries for the years ended December 31. A subsidiary is an entity (including a structured
entity), directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e.,
existing rights that give the Group the current ability to direct the relevant activities of the investee).

Generally, there is a presumption that
a majority of voting rights results in control. When the Company has less than a majority of the voting or similar right of an investee,
the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

| (a) | the contractual arrangement with the other vote holders of the investee; |
| (b) | rights arising from other contractual arrangements; and                  |
| (c) | the Group’s voting rights and potential voting rights.                   |

The financial statements of the subsidiaries
are prepared for the same reporting period as the Company, using consistent accounting policies. The results of subsidiaries are consolidated
from the date on which the Group obtains control and continue to be consolidated until the date that such control ceases.

Profit or loss and each component of other
comprehensive income are attributed to owners of the Company and to the non-controlling interests, even if this results in the non-controlling
interests having a deficit balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.

The Group reassesses whether or not it
controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control above.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, any non-controlling interest and the exchange fluctuation reserve; and recognises the fair value of any investment retained and any resulting surplus or deficit in profit or loss. The Group’s share of components previously recognised in other comprehensive income is reclassified to profit or loss or retained profits, as appropriate, on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

| 2.3 |