Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 9

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 9
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 the ability to pay
dividends. There are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out
of Hong Kong (including funds from Hong Kong to the PRC), except for the transfer of funds involving money laundering and criminal activities.
However, there is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions
in the future. To the extent cash in the business is in the PRC or Hong Kong or our PRC or Hong Kong entities, the funds may not be available
to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions and limitations
on the ability of us or our subsidiaries by the PRC or Hong Kong governments to transfer cash. We cannot assure you that the PRC or Hong
Kong governments will not intervene in or impose restrictions on our ability to make intercompany cash transfers.

See “Transfers of Cash
and Assets Between Our Company and Our Subsidiaries” on page 8 of this prospectus for all cash or asset transfers between us and
our subsidiaries for each of the three years ended December 31, 2023. The purpose of the outbound transfers, in the form of shareholder
loans, was to pay off the subsidiaries’ expenses and provide working capital for the subsidiaries. The purpose of the inbound transfers,
in the form of loan repayments, was to centralize the treasury function of the Company and our subsidiaries. There are no fixed repayment
terms and we do not expect there to be any tax implications for such transfers. We did not make any capital contributions to, or receive
any dividends from, our subsidiaries during these periods. Other than the deemed contribution of RMB20.38 million (US$2.80 million) from
Mr. Li Feilie,our controlling shareholder due to the sale of PST Technology on July 28, 2023, netting off the assets and liabilities
of the wastewater treatment business segment transferred to Mr. Li Feilie, which were accounted for as a deemed distribution to the controlling
shareholder, no transfers, dividends or distributions have been made to investors during these periods. PRC laws and regulations may
restrict our ability to make dividends and distributions to investors during these periods. We currently have not maintained any cash
management policies that dictate the purpose, amount and procedure of cash transfers between the Company, our subsidiaries, or the investors.
Rather