Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 60

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 60
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safety practices, corporate governance and transparency, our reputation, brand and employee retention may be negatively impacted.

Investors, customers,
partners and other stakeholders are increasingly focusing on environmental issues, including climate change, dams, energy and water use,
and other sustainability concerns. Concern over climate change, in particular, may result in new or increased legal and regulatory requirements
to reduce or mitigate impacts to the environment.

If we do not adapt
to or comply with new regulations, or if we fail to comply with disclosure requirements and consequently fail to meet evolving regulatory,
investor, industry or stakeholder expectations and concerns regarding ESG issues, investors may reconsider their capital investment in
us, customers and partners may choose to stop the cooperation with us, which could have a material adverse effect on our reputation,
business or financial condition.

In addition, our
ESG practices and initiatives may result in increased operational costs, including monitoring and reporting costs, equipment costs, energy
costs, and other costs to comply with our developing practices and initiatives. These additional costs could have a material impact on
our business, results of operations and financial condition.

Risks Relating to the Sale of PST Technology

We face risks associated with the divesture of our wastewater treatment segment.

In July 2021, we
acquired Precise Space-Time Technology Limited (“PST Technology”) for consideration of three million of the Company’s
newly issued restricted common shares, 120 million shares of FARL, and approximately CNY10.3 million (US$1.42 million). Through our acquisition
of PST Technology, we obtained a 51% equity interest in Shanghai Onway, a company principally engaged in services related to rural wastewater
treatment. In addition to the purchase price, we incurred significant non-recurring expenses in connection with the acquisition, including
legal, accounting, financial advisory, integration planning and other expenses, and have incurred and expect to continue to incur integration
costs arising out of this transaction.

On July 28, 2023, we entered into a
Sale and Purchase Agreement (“SPA”) with Feishang Group Limited (“Feishang Group”), pursuant to which, we agreed
to sell 100% equity interest of Precise Space-Time Technology Limited to Feishang Group, together with PST Technology’s outstanding
payable owed to us, for consideration of approximately CNY95,761,119 comprising: (i) CNY-34,197,300, the fair value of 100% equity interest