Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 250

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 250
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 primarily include cash and cash equivalents, trade receivables, bills receivable at fair value through
other comprehensive income, other receivables, contract assets, trade payables, other payables, amounts due to related companies, amounts
due to the Shareholder, derivative financial liabilities, and interest-bearing loans and borrowings.

The
Group is exposed to credit risk, foreign currency risk, business and economic risk and liquidity risk. The Group has not used any derivatives
and other instruments for hedging purposes. The Group does not hold or issue derivative financial liabilities for trading purposes. The
Group reviews and agrees policies for managing each of these risks and they are summarized below.

| (a) |     | Credit risk |

Management
has a credit policy in place and the exposures to credit risk are monitored on an ongoing basis. Debts are usually due within 30 to 90
days from the date of billing.

Trade
receivables of the Group mainly represent receivables with respect to revenue from construction services for wastewater treatment plant
and sales of wastewater treatment equipment, which are settled through progress billing, and operation services of service concession
arrangement, which are settled on a quarterly basis. In addition, the Group has contract assets relating to the service concession arrangement
and construction service.

As
of December 31, 2022, “Trade receivables” and “Contract assets” before allowances in the aggregate amounted to
CNY182,998, of which CNY120,090 were due from the largest customer and CNY134,930 were due from the five largest customers in the aggregate
of the Group. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the consolidated statements
of financial position. Since the counterparty to the BOT arrangement is a local government authority in the PRC, the Group considers
credit risk is low as of December 31, 2022. The Group does not hold any collateral over these balances.

Management
groups financial instruments based on shared credit risk characteristics, such as instrument type and credit risk ratings for the purpose
of determining significant increase in credit risk and calculation of impairment. The carrying amount of each financial asset in the
consolidated statements of financial position represents the Group’s maximum exposure to credit risk in relation to its financial
assets.

| F-64 |

| 22. |     | FINANCIAL RISK                                 
 MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |

| (a) |