Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 217

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 217
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 computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes
are recognized in other comprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income
is recycled to the statement of profit or loss.

| F-21 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (i) | Investments and other financial assets (continued) |

Financial assets at fair value through profit or loss

Financial assets at fair value through
profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement
of profit or loss.

This category includes derivative instruments
and equity investments which the Group had not irrevocably elected to classify at fair value through other comprehensive income. Dividends
on the equity investments are also recognized as other income in the statement of profit or loss when the right of payment has been established.

| (j) | Derecognition of financial assets |

A financial asset (or, where applicable,
a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s
statement of financial position) when:

| • | the rights to receive cash flows from the asset have expired; or                                                                                                                                                                                                                                                                                                                                                                                                              |
| • | the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. |

When the Group has transferred its rights
to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained
the risk and rewards of ownership of the asset. When it has neither transferred nor retained substantially all the risks and rewards of
the asset nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group’s
continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Group has retained.

Continuing involvement that takes the form
of a guarantee