Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 10

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 10
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, the funds can be transferred in accordance with the applicable laws and regulations in the PRC and other jurisdictions. PRC laws
and regulations may restrict our ability to make dividends and distributions to investors, including US investors.

According to the Foreign Investment
Law of the People’s Republic of China and its implementing rules, which jointly established the legal framework for the administration
of foreign-invested companies, a foreign investor may, in accordance with other applicable laws, freely transfer into or out of China
its contributions, profits, capital earnings, income from asset disposal, intellectual property rights, royalties acquired, compensation
or indemnity legally obtained, and income from liquidation, made or derived within the territory of China in CNY or any foreign currency,
and any entity or individual shall not illegally restrict such transfer in terms of the currency, amount and frequency. According to the
currently effective Company Law of the People’s Republic of China and other Chinese laws and regulations, our PRC subsidiaries may
pay dividends out of their respective accumulated profits as determined in accordance with Chinese accounting standards and regulations.
In addition, each of our PRC subsidiaries is required to set aside at least 10% of its accumulated after-tax profits, if any, each year
to fund a certain statutory reserve fund, until the aggregate amount of such fund reaches 50% of its registered capital. Where the statutory
reserve fund is insufficient to cover any loss the PRC subsidiary incurred in the previous financial year, its current financial year’s
accumulated after-tax profits shall first be used to cover the loss before any statutory reserve fund is drawn therefrom. Such statutory
reserve funds and the accumulated after-tax profits that are used for covering the loss cannot be distributed to us as dividends. At their
discretion, our PRC subsidiaries may allocate a portion of their after-tax profits based on Chinese accounting standards to a discretionary
reserve fund. See “Risk Factors - Risks Relating to Our PRC Operations and Doing Business in the PRC - Our PRC subsidiaries are
subject to restrictions on paying dividends and making other payments to us.” on page 17 of this prospectus.

Renminbi is not freely
convertible into other currencies. Shortages in availability of foreign currency may then restrict the ability of our PRC subsidiaries
to remit sufficient foreign currency to our offshore entities for our offshore entities to pay dividends or make other payments or otherwise
to satisfy our foreign-currency-denominated obligations. The Renminbi is currently convertible under the “current account,”