Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 279

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 279
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 (Unaudited)                      |     |     | Significant unobservable inputs(Level 
 3) (Unaudited)                        |     |     | Total |     |
|                                  |     |                       | US$ |     |                                     | US$ |     |                                       | US$ |     |       | US$ |
| Financial liabilities            |     |                       |     |     |                                     |     |     |                                       |     |     |       |     |
| Derivative financial liabilities |     |                       | —   |     |                                     | 608 |     |                                       | —   |     |       | 608 |

There are no financial assets measured at fair value as of December
31, 2023 and June 30,2024.

| F-104 |

| CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Amounts in thousands, except share and per share data) |

| 15. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |

The financial instruments of the Group
primarily include cash and cash equivalents, trade and bills receivable, other receivables, contract assets, derivative financial liabilities,
trade payables, other payables, dividends payable, amounts due to related companies, amounts due to the Shareholder, lease liabilities
and interest-bearing loans and borrowings.

The Group is exposed to credit risk, foreign
currency risk, interest rate risk, business and economic risk and liquidity risk. The Group has not used any derivatives or other instruments
for hedging purposes. The Group does not hold or issue derivative financial liabilities for trading purposes. The Group reviews and agrees
policies for managing each of these risks and they are summarized below.

| (a) |     | Credit risk |

Management
has a credit policy in place and the exposures to credit risk are monitored on an ongoing basis. Debts are usually due within 30 to 90
days from the date of billing.

Management
groups financial instruments based on shared credit risk characteristics, such as instrument type and credit risk ratings for the purpose
of determining significant increase in credit risk and calculation of impairment. The carrying amount of each financial asset in the
condensed interim consolidated statement of financial position represents the Group’s maximum exposure to credit risk in relation
to its financial assets.

A
financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated