Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 7

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 7
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 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 25 of this prospectus.

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 inspect and investigate completely audit firms in mainland China and Hong Kong,
among other jurisdictions. If PCAOB determines in the future that it no longer has full