Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 109

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 109
---
 and Purchase Agreement with Feishang Group. Pursuant to the agreement, the Company agreed to sell 100% equity interest of PST Technology to Feishang Group, together with PST Technology’s outstanding payable owed to the Company, for consideration of approximately CNY95,761,119 comprising: (i) CNY-34,197,300, the fair value of 100% equity interest of PST Technology as determined by the independent valuation report dated July 28, 2023. (ii) CNY129,958,419, the book value of PST Technology’s outstanding payable owed to the Company. See, “Corporate History and Structure — Acquisition and Sale of PST Technology.”

Discontinued Operations

Please see “Corporate History and Structure – Acquisition and Sale of PST Technology” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Discontinued Operations”, on pages 50 and 59 of the prospectus in this registration statement.

Quantitative and Qualitative Disclosures about Market Risk

Equity Price Risk

We were not exposed to equity
price risk as of the date of this prospectus.

Foreign Currency Exchange Rate Risk

Revenue and expenses of our PRC
subsidiaries are denominated in Renminbi. The administrative expenses of the Company’s head office in Hong Kong are denominated
either in United States dollars or Hong Kong dollars. As the reporting currency of the Company’s consolidated financial statements
is Renminbi, the Company has market risk with respect to currency fluctuation between Hong Kong dollars and United States dollars to
Renminbi and translation difference may arise on consolidation. The Company may also suffer an exchange loss when it converts Renminbi
to other currencies, such as Hong Kong dollars or United States dollars. If market conditions allow, the Company endeavors to match the
currency used in operating/investing activities with that used in financing activities. We have not engaged any foreign currency contracts
to hedge our potential foreign currency exchange exposure, if any.

Interest Rate Risk

None of our outstanding debt bears
interest at a floating rate. Our exposure to interest rate risk primarily relates to the interest income generated by excess cash, which
is mostly held in interest-bearing bank accounts. We have not used derivative financial instruments in our investment portfolio. Interest
earning instruments carry a degree of interest rate risk. We have not been exposed to, nor do we anticipate being exposed to, material
risks due to changes in market interest rates. However, our future interest income may fall