Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 229

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 229
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more than one service in a service concession arrangement, the transaction price will be allocated to each performance obligation by reference
to their relative stand-alone selling prices. In determining the transaction price, the Group adjusts the promised amount of consideration
for the effect of a financing component if it is significant.

| F-30 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (aa) | Revenue recognition – Discontinued Operations (continued) |

Revenue from contracts with customers(continued)

Construction services

The Group’s performance
with respect to construction services creates or enhances an asset or work in progress that the customer controls as the asset is created
or enhanced. The Group satisfies the performance obligation and recognizes revenue over time, by reference to completion of the specific
transaction assessed on the basis of either the surveyors’ assessment of work performed for Engineering Procurement Construction
(EPC) contracts or the costs incurred up to the end of the reporting period as a percentage of total estimated costs for certain contracts
solely associated with equipment installation.

In some circumstances,
the Group as subcontractor of the construction service may not be able to reasonably measure the outcome of a performance obligation in
the early states of a contract. The Group recognizes revenue only to the extent of the costs incurred until such time that it can reasonably
measure the outcome of the performance obligation.

The fair value of the construction services
under a service concession arrangement is initially estimated at the date of the agreement based on a cost-plus-margin basis with reference
to the prevailing market rate of gross margin applicable to similar construction services rendered

Operation services of service concession arrangements

Operation revenue from
service concession arrangements is recognized over the period of time that the services are rendered, and the benefits are received and
consumed simultaneously by the customers.

Sales of water treatment equipment

Revenue from the sales
of water treatment equipment is recognized at the point in time when control of the asset is transferred to the customer. Control is generally
transferred when: (i) the customer obtains the physical possession or the legal title of water treatment equipment; and (ii) the Group
has a present right to payment and the collection of the consideration is probable.

Maintenance services

Revenue from maintenance
services is recognized over the period of time that the services are rendered, and the benefits are received and consumed simultaneously
by the customers.

Trading of copper ores

The Group purchased
copper ores from third-party suppliers and then resells to a third-party trading company. The