Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 62

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 62
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 regulations. Our subsidiaries in China are also required to set aside a portion of their
after-tax profits as certain reserve funds according to PRC accounting standards and regulations. The PRC government also imposes controls
on the conversion of RMB into foreign currencies and the remittance of currency out of China. We may experience difficulties in completing
the administrative procedures necessary to obtain and remit foreign currency. Furthermore, if our subsidiaries in China incur further
debt in the future, debt covenants may restrict their ability to pay dividends or make other payments. If we or our subsidiaries are unable
to receive dividends from our operating companies, Bayannaoer Mining and Shanghai Onway, due to contractual or other limitations on the
payment of dividends, we may be unable to pay dividends or make other distributions on our common shares.

Governmental
control of currency conversion may affect payment of any dividends or foreign currency denominated obligations, and it may adversely affect
the value of your investment.

The PRC government imposes
controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. Shortages
in the availability of foreign currency may restrict our ability to remit sufficient foreign currency to pay dividends, or otherwise satisfy
foreign currency denominated obligations. Under existing PRC foreign exchange regulations, the RMB is currently convertible under the
“current account,” which includes dividends, trade and service-related foreign exchange transactions, but not under the “capital
account,” which includes foreign direct investment and loans, including loans we may secure from our onshore subsidiaries. Currently,
our PRC subsidiaries may purchase foreign currency for settlement of “current account transactions,” including payment of
dividends to us, without prior approval from SAFE by complying with certain procedural requirements. However, approval from appropriate
governmental authorities is required where RMB is to be converted into foreign currency and remitted out of the PRC to pay capital expenses
such as the repayment of bank loans denominated in foreign currencies.

The PRC government may also
at its discretion restrict access to foreign currencies for current account transactions in the future. If the foreign exchange control
system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be able to pay certain of our
expenses as they come due, or pay dividends or make other distributions to investors, including U.S. investors.

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The fluctuation of the RMB may materially
and adversely affect your investment.

The exchange rate