Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 106

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 106
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 Shenzhen Qianhai, our wholly owned subsidiary until July 28,
2023.

Financing Activities

Net cash from financing activities
was CNY15.84 million (US$2.18 million) for the six months ended June 30, 2024, compared to net cash outflows of CNY1.60 million for the
same period in 2023. The increase in cash from financing activities was a result of proceeds from the private placement in February 2024.

Net cash used in financing
activities was CNY37.93 million in 2023, as compared to net cash used in financing activities of CNY22.83 million in 2022. The increase
in cash outflows in financing activities was the combined effect of a decrease in the amount of net repayments to related parties in
2023 and cash outflows as a result of disposal of PST Technology on July 28, 2023.

Net cash used in financing activities was CNY22.83
million in 2022, compared to CNY38.79 million in 2021. The decrease in cash used in financing activities was a result of a decrease in
the amount of net repayments to related parties in 2022, partially offset by the proceeds from our registered public offering of common
shares and concurrent private placement of warrants in January 2021.

Equity Financing

On February 20, 2024, we raised approximately
US$3.01 million in net proceeds through our registered direct offering of common shares and private placement of warrants before deducting
placement agent’s fees and other fees and expenses. On January 20, 2021, we raised approximately US$6.37 million in net proceeds
through our registered direct offering of common shares and private placement of warrants after deducting placement agent’s fees
and other fees and expenses.

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Capital Expenditures

Our capital expenditures were
incurred primarily in connection with the purchase of property, plant and equipment for office use. Our capital expenditures were CNY0.09
million, CNY0.02 million and CNY0.01 million in 2021, 2022 and 2023, respectively, and CNY0.04 million (US$0.01 million) in the six months
ended June 30, 2024. We will continue to make capital expenditures to meet the expected growth of our operations and expect cash generated
from internally generated cash from prior years,