Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 54

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 54
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 PRC subsidiaries are required to participate in various government sponsored employee
benefit plans, including certain social insurance, housing funds and other welfare-oriented payment obligations, and to contribute to
the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of the employees up to a maximum amount
specified by the local government from time to time at locations where they operate the businesses. The requirements of employee benefit
plans have not been implemented consistently by the local governments in China given the different levels of economic development in
different locations. If the local governments deem our subsidiaries’ contribution to be insufficient, our subsidiaries may be subject
to late contribution fees or fines in relation to any underpaid employee benefits, and our financial condition and results of operations
may be adversely affected.

In Hong Kong,
employers are required to select and join a provident fund scheme (“MPF Scheme”) in accordance with the statutory requirements
of the Mandatory Provident Fund Schemes Ordinance for all employees in Hong Kong and to make contributions to the MPF Scheme based on
the minimum statutory contribution requirement of 5% of the eligible employees’ relevant aggregate income, subject to a capped amount.
Any non-compliance with statutory requirements with respect to our employees located in Hong Kong may result in enforcement being taken
by the relevant authorities, which could lead to financial penalties or imprisonment.

| 27 |

Enforcement of stricter labor laws and regulations may increase our labor costs.

China’s overall economy and the
average wage have grown in recent years and are expected to continue to grow. The average wage level for our employees has also grown
in recent years. We expect that our labor costs, including wages and employee benefits, will continue to increase. Unless we are able
to pass on these increased labor costs to our customers who pay for our services, our profitability and results of operations may be
materially and adversely affected. The PRC Labor Contract Law and its implementing rules impose requirements concerning contracts entered
into between an employer and its employees and establishes time limits for probationary periods and for how long an employee can be placed
in a fixed-term labor contract. We cannot assure you that our or our subsidiaries’ employment policies and practices do not, or
will not, violate the Labor Contract Law or its implementing rules or that we will not be subject to related penalties, fines or legal
fees. If we or our subsidiaries are subject to large penalties or fees related to the Labor Contract Law or its implementing rules, our
business, financial condition and results of