Company: CHNR
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001079973-25-000827
Chunk: 100

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 100
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 - History and Development of the Company — Acquisition and Sale of PST Technology Limited.”

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Continuing Operations
 
Administrative Expenses
 Administrative expenses primarily consist of salaries and staff welfare expenses, professional service fees, travel and entertainment expenses, depreciation and amortization, option awards granted to certain eligible parties and other general corporate function related expenses.
Other Income
 Other income primarily consists of government reimbursements, grants and tax refunds, and other non-operating income or expenses.
 Fair Value Gain/(Loss) on Financial Instruments, net
 Fair value gain or loss on financial instruments, the net changes in fair value of warrants issued to investors on January 20, 2021 and February 21, 2024.
 Finance Costs
 Finance costs consist primarily of interest expense on loans and lease liabilities, and foreign currency exchange differences.
 Finance Income
 Finance income consists primarily of interest income on bank deposits.
 Income Tax Expense
 The Company is not subject to taxes in the United States.
 Under the current laws of the BVI, dividends and capital gains arising from the Company’s investments in the BVI are not subject to income or capital gains taxes and no withholding tax is imposed on payments of dividends to the Company.
 The Company’s subsidiaries in Hong Kong are subject to the Hong Kong Profits Tax rate of 16.5%, while foreign-derived income is exempted from income tax. There is no withholding tax in Hong Kong on the remittance of dividends.
 
The Company’s subsidiaries in the PRC are subject to a PRC enterprise income tax rate of 25% applicable to both foreign invested enterprises and domestic companies.
 Discontinued Operations 
 Revenue
 Revenue from our discontinued operations primarily consists of revenue from construction contracts, operation and maintenance services, operation services and construction services for the Wujiang Project, which we refer to as the “service concession arrangement.”
Cost of Sales
 Cost of sales of our discontinued operations primarily consists of costs relating to the construction of water treatment facilities, such as raw materials, spare parts, consumables, and outsourced costs charged by subcontractors.
Selling and Distribution Expenses
 Selling and distribution expenses primarily consist of business development expenses, payroll, travel expenses and related expenses for employees involved in selling and distribution activities.
 
Profit/(loss) for the year from discontinued operations, net of tax
 Profit/(loss) for the year from discontinued operations, net of tax represents operating results from PST Technology and its subsidiaries until its disposition on July 28, 2023.
 

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Results of Operations 
 The following table sets out our consolidated