Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 34

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 34
---
, such regulations. Such
changes, if implemented, may adversely affect our business operations and may reduce our profitability. The effectiveness of newly enacted
laws, regulations or amendments may be delayed, resulting in detrimental reliance by foreign investors. New laws and regulations that
affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation of
existing or new PRC laws or regulations may have on our businesses.

| 16 |

PRC regulation of loans to and direct investment in PRC entities by offshore holding companies may delay or prevent us from making loans or additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our ability to fund and expand our business.

We are an offshore
holding company conducting our operations in China. We may make loans to our PRC subsidiaries, or we may make additional capital contributions
to our wholly foreign-owned subsidiaries in China. Any loans to our wholly foreign-owned subsidiaries in China, which are treated as
foreign-invested enterprises under PRC law, are subject to PRC regulations and foreign exchange loan registration requirements. In addition,
a foreign-invested PRC enterprise has limitations upon its uses of capital, including restrictions on such capital being: (i) directly
or indirectly used for payments beyond the business scope of the enterprise or payments prohibited by relevant laws and regulations;
(ii) used for the granting of loans to non-affiliated enterprises, except where expressly permitted in the foreign-invested PRC enterprise’s
business license; and (iii) used for paying expenses related to the purchase of real estate that is not for self-use, except for foreign-invested
real estate enterprises. We may also decide to finance our PRC subsidiaries by means of capital contributions, in which case the PRC
subsidiary is required to register the details of the capital contribution with the local branch of the State Administration for Market
Regulation and submit a report on the capital contribution via the online enterprise registration system to the Ministry of Commerce.

In light of the
various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot
assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals or filings
on a timely basis, if at all, with respect to future loans by us to our current PRC operating subsidiaries or with respect to future
capital contributions by us to our current PRC operating subsidiaries. If we fail to complete such registrations or obtain