Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 37

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 37
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 of the Renminbi may materially and adversely affect our cash flows and financial condition. Additionally, if we convert our
CNY into U.S. Dollars, to pay dividends on our common shares or for other business purposes, depreciation of the CNY against the U.S.
Dollar would negatively affect the amount of U.S. Dollars we convert our CNY into. Conversely, to the extent that we need to convert U.S.
Dollars we receive from an offering of our securities or otherwise into CNY for our operations, the appreciation of the CNY against the
U.S. Dollar could have an adverse effect on our financial condition and result in a charge to our income statement and a reduction in
the value of these U.S. Dollar denominated assets.

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PRC SAFE regulations regarding offshore financing activities by PRC residents have undergone changes which may increase the administrative burden we face and create uncertainties that could adversely affect us, and a failure by our shareholders who are PRC residents to make any required applications and filings pursuant to such regulations may prevent us from being able to distribute profits and could expose us and our PRC resident shareholders to liability under PRC law.

In July 2014, SAFE promulgated the
Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip
Investment Through Special Purpose Vehicles (“SAFE Circular 37”). SAFE Circular 37 requires PRC residents (including PRC
individuals and PRC corporate entities as well as foreign individuals that are deemed PRC residents for foreign exchange administration
purposes) to register with SAFE or its local branches in connection with their direct or indirect offshore investment activities. SAFE
Circular 37 further requires an amendment to a SAFE registration in the event of any changes with respect to the basic information of
the offshore special purpose vehicle, such as a change in the PRC shareholders, the names of such special purpose vehicle, and the operation
term of such special purpose vehicle, or any significant changes with respect to the offshore special purpose vehicle, such as an increase
or decrease of capital, a share transfer or exchange, or mergers or divisions. SAFE Circular 37 is applicable to our shareholders who
are PRC residents and may be applicable to any offshore acquisitions that we make in the future. If our shareholders who are PRC residents
fail to make the required SAFE registration or to update a previously filed registration, our PRC subsidiaries may be prohibited from
distributing their profits or the proceeds from